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Luberef Signs Feedstock, Return Streams Deal with Saudi Aramco

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Saudi Aramco Base Oil Co. (SASE:2223), d/b/a Luberef, entered into a successor feedstock and return streams supply agreement with Saudi Arabian Oil Co. (SASE:2222), d/b/a Saudi Aramco, according to a Tuesday filing.

The 10-year contract involves the feedstock supply of 24,500 barrels per day to base oil producer Luberef's Jeddah facility, and the sale of 16,500 barrels per day of return streams to oil giant Aramco. The parties adopted a new pricing formula for the agreement, with a payment term of 30 days.

Luberef noted that the feedstock supply will support the annual production of 275,000 metric tons of Group I base oils at its Jeddah plant, which represents 20% of its overall annual production capacity of 1.5 million metric tons.

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