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Saudi Aramco Base Oil Company - Luberef announces the signing of an Amendment to The Supplemental Feedstock Supply Agreement for an additional supply of Reduced Crude Oil from Saudi Arabian Oil Company (Saudi Aramco)
| Element List | Explanation |
|---|---|
| Introduction | Saudi Aramco Base Oil Company – Luberef is pleased to announce that it has signed an amendment to the Supplemental Feedstock Supply Agreement dated July 1, 2021 corresponding to 21/11/1442H to receive an additional supply of 5,000 barrel per day of Reduce Crude Oil (RCO) from Saudi Arabian Oil Company (Saudi Aramco), which shall increase the total quantity of RCO received in Luberef’s Yanbu Facility from 45,000 barrel per day to 50,000 barrel per day subject to product availability. This increase in RCO quantity is part of business transformation program which is in line with Saudi Aramco’s transformation initiative for its joint ventures. |
| Date of Announcement of the Award | 2023-05-29 Corresponding to 1444-11-09 |
| Contract Subject Matter | Aadditional supply of 5,000 barrel per day of RCO from Saudi Aramco which will be used as feedstock to produce base oil and by-products in Luberef’s Yanbu facility. |
| Date of Signing the Contract | 2023-05-29 Corresponding to 1444-11-09 |
| Contract Value | Feedstock supply cost will depend on an agreed formula and is linked to Market prices. |
| Contract Details | Additional supply of 5,000 barrel per day of RCO from Saudi Aramco which will be used as feedstock to produce base oil and by-products in Luberef’s Yanbu facility. |
| Contract Duration | The amendment is effective from 1/6/ 2023 for twelve (12) months and renews automatically for subsequent periods of twelve (12) months unless terminated by either Party pursuant to the termination provisions provided in the main Yanbu Feedstock Supply Agreement. |
| Financial Impact and the Relevant Period | The positive financial impact is expected from Second quarter this year 2023, which cannot be determined exactly and will depend on the base oil market prices. The additional RCO volume has the potential to increase Luberef’s GII base oil volumes by around 88,000 metric tons per year, and bright stock volumes by around 5,000 metric tons per year. |
| Related Parties | Saudi Arabian Oil Company (Saudi Aramco). |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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