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Luberef Signs Agreement with India’s APAR Industries for Base Oil Supply

Saudi Aramco Base Oil Company (Luberef) has signed a strategic agreement with APAR Industries Middle East Limited for the supply of base oils to support the company’s manufacturing operations within the lubeHub Value Park in Yanbu Industrial City.

The agreement forms part of Luberef’s ongoing efforts to strengthen Saudi Arabia’s downstream industrial ecosystem, increase local content, and attract value-added investments to the Kingdom’s lubricants and specialty oils sector.

Under the agreement, Luberef will supply high-quality base oils to APAR Industries Middle East, enabling the company to manufacture its flagship transformer oils as well as a broad portfolio of specialty oils at its facility within the lubeHub Value Park.

The project supports the localization of specialty petroleum products and contributes to the development of an integrated lubricants value chain in Saudi Arabia. By leveraging locally produced base oils, APAR Industries is expected to enhance production efficiency while supporting the Kingdom’s industrial diversification objectives.

The partnership is also expected to strengthen Yanbu’s position as a regional hub for lubricant and specialty oil manufacturing, while creating opportunities for technology transfer, supply chain development, and increased participation of local industries.

Luberef noted that the agreement aligns with its strategy to maximize the value of its base oil production, support downstream industrial growth, and contribute to the objectives of Saudi Vision 2030 through the development of advanced manufacturing capabilities and local content enhancement.

The collaboration further reinforces the role of the lubeHub Value Park as a specialized industrial platform designed to attract global lubricant and specialty chemical manufacturers, fostering innovation and sustainable growth across the sector.

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