Luberef signs 20-year pact to sell ultra-low sulfur diesel to Aramco

Logo of Luberef. The company started selling 6,500 bpd of ULSD to Saudi Aramco from Sept. 29, 2025

Saudi Aramco Base Oil Co. (Luberef) signed, on Sept. 29, an agreement to sell 6,500 barrels per day (bpd) of ultra-low sulfur diesel (ULSD) to Saudi Arabian Oil Co. (Saudi Aramco), subject to product availability at its Yanbu refinery, according to a statement to Tadawul.

The product price is calculated based on an agreed formula and is linked to market prices.

The relevant positive financial impact is likely to appear from Q4 2025, which cannot be determined exactly and will depend on market prices, the statement added.

The duration of the ULSD agreement is 20 years as of Sept. 29, 2025, and may be renewed upon mutual agreement, unless terminated by either party in accordance with the agreement terms.

Luberef seeks to grow its customer base and enhance its by-product margins, the statement said.

Saudi Aramco is a related party.

According to data available with Argaam, Saudi Aramco owns 70% of Luberef.