Saudi Arabia’s Luberef considers IPO

Saudi Aramco Base Oil Co., more commonly known as Luberef, is considering an initial public stock offering that could raise more than $1bn, Bloomberg reported, citing people familiar with the matter.

Luberef is Saudi Arabia’s sole virgin base oil producer. It operates a Group II base oil unit at Yanbu with production capacity of more than 700,000 t/r. It also operates a 180,000 t/yr Group I unit at Yanbu and a 260,000 t/yr Group I base oil unit at Jeddah.

Its export markets include Africa, the Americas, Europe, India and Asia-Pacific.

The base oil producer is 70pc owned by Saudi Aramco and 30pc by Jadwa Industrial Investment Co.

Luberef, along with US-based Motiva, and South Korea’s S-Oil have been part of Aramco’s global base oil alliance since 2019.