Saudi Aramco Base Oil Company (Luberef) has announced that it had extended its utilities sales and land lease agreement with its majority stakeholder and global oil giant Aramco through 2030.

Established in 1976, Luberef is a major Saudi joint-stock company that produces quality base oils from production facilities located in Jeddah and Yanbu.

The extension, effective from July 1, 2026, will allow Luberef to continue operations at the Jeddah facility and maintain Group I base oil production, the company said.

The annual land lease is valued at SAR1.02 million ($271,525), while other services are charged at rates specified in the agreement. 

The financial impact of the extension will begin from its effective date.

Luberef had early this month delivered solid Q2 results with a 199% jump in its net profit which soared to SAR734.1 million ($195.8 million), driven mainly by higher base oil crack margins, while its revenue rose 52% year on year to hit SAR3.42 billion ($900 million).

Impressed with the results, Lubref's board of directors had announced the distribution of cash dividends worth SAR673 million ($177.3 million) to its shareholders for the first half.-TradeArabia News Service