Saudi ready to be regional hub for lubricating oils: Luberef CEO

Samer A. Al-Hokail, President & CEO of Saudi Aramco Base Oil. Company luberef

Saudi Arabia is poised to be a regional hub for lubricating oils as it is one of the fast-growing markets due to its strategic location in the near future, Samer Al-Hokail, President and CEO of Saudi Aramco Base Oil Co. (Luberef). 

In his presentation at the 18th ICIS Middle Eastern Base Oils and Lubricants Conference in Jeddah, Al-Hokail stated that the company plans to produce high-quality oils of Group II and Group III by mid-2025. 

The company aims to establish the Kingdom as a central hub for lubricants with a capacity of 1.4 million tons of base oils, he added.

He pointed out that the markets in the Middle East, China, India and emerging economies are poised to achieve strong growth as major producers target these markets. 

The priorities and global dynamics of the market have transformed significantly, as returning to the pre-pandemic period will take decades. 

Al-Hokail expected continued growth in the commercial and industrial markets of up to 1-2% annually, highlighting the importance of striking a balance between global lubricant growth and evolving consumer preferences. 

He stressed the commitment to providing energy-efficient products and solutions with a strong focus on sustainability. 

Luberef’s strategy focuses on boosting production capacity, diversifying into specialized products, supporting growth in Africa, and adopting advanced technology, the CEO said. 

There are many lessons learned from the Corona pandemic, including the need to adapt and create adaptable solutions in response to evolving market conditions,  the need to withstand economic pressures and strengthen supply chains to support companies of all sizes, Al-Hokail added.