Saudi Aramco Base Oil Company (Luberef) has awarded a major engineering, procurement and construction (EPC) contract worth SR555 million ($148 million) to Egyptian group Petrojet for the expansion of its facility at Yanbu in Saudi Arabia.

 

The Yanbu Growth II Expansion project is aimed at expanding the existing units to their maximum potential production capacity of 1.3 million tonnes per annum, said Luberef in its filing to Saudi bourse Tadawul.

 

The scope of work includes expansion of Group II base oils productions facility or the introduction of the Group III facility. 

 

This expansion will allow flexibility for the production of additional Group II and Group III Base Oils based on market demand, it stated.

 

According to Luberef, work has begun on the Yanbu facility's expansion and it will be completed by the end of August 2025.

 

The positive financial impact of the project is expected once commercial operations kick off at the Yanbu plant by H2 2025, it added.-TradeArabia News Service