Related parties comprise the shareholders and key management personnel of the Company, and entities controlled, jointly controlled or significantly influenced by such parties. Related parties also include business entities in which certain directors or senior management have an interest (other related parties). Moreover, the Company is ultimately controlled by the government of the Kingdom of Saudi Arabia. The Company applies the exemption in IAS 24 Related Party Disclosures that allows to present reduced related party disclosures regarding transactions with government related parties.
Following is the list of related parties with whom the Company has significant transactions and balances:
- Shareholder and Immediate Parent
- Saudi Aramco
- Entities under common control
- Saudi Aramco Mobil Refinery Company Ltd. (“SAMREF”)
- S-Oil Singapore Pte. Ltd
- S-Oil Corporation
- Motiva Trading LLC
- Aramco Lubricants and Retail Company
- Saudi Aramco Technologies Company
- S-Oil Europe B.V.
- Rabigh Refining & Petrochemical Company
Agreements with Saudi Aramco
1. Purchase and sale contracts at Jeddah and Yanbu refinery
The Company has agreements with Saudi Aramco for the purchase of feedstock for its Jeddah and Yanbu refineries. The Company also has an offtake agreement with Saudi Aramco for the sale of certain products. The pricing mechanism for the sale and purchase of these products is based on formulae, that has external inputs mentioned in the contracts.
2. Technical management, support services and leases
Saudi Aramco also provides operational technical, utilities and human resources support to the Company on agreed terms. The Company also has two lease agreements with Saudi Aramco for land rentals and pipelines in Jeddah, which are on agreed terms.
Agreement with SAMREF
The Company has an agreement for the sale of certain products from its Yanbu refinery to SAMREF. The pricing mechanism is based on a formula that has external input mentioned in the contract. The Company also receives technical and management support services from SAMREF which are on agreed terms.
Transactions with key management personnel
Key management personnel include all the heads of departments and key personnel involved in the Company’s operations. The compensation to key management personnel for the year is shown below:
| Description | 2025 | 2024 |
|---|---|---|
| Short-term employee benefits | 46,788 | 38,470 |
| Provision for employee benefit obligations | 4,506 | 3,416 |
All related party transactions were made on terms specified in the agreements with the related parties. The credit terms with all related parties range from 30 to 90 days.
During the year ended December 31, 2025, the Company has remunerated Saudi Riyals 4.19 million to Board members for attending the Board of Directors’ meetings (2024: Saudi Riyals 5.30 million).
Significant transactions and balances with related parties in the ordinary course of the business included in the financial statements are summarized below:
The Company’s revenues derived from sales to Saudi Aramco and entities under its common control accounted for approximately 36% and 20% (December 31, 2024: 37% and 21%), respectively, of the total revenue. Refer to Note 11 and 32.2 for the impairment loss charge for the year ended December 31, 2025 and 2024.
The Company has Saudi Riyals 10.45 million (December 31, 2024: Saudi Riyals 32.95 million) as cash with banks owned by Saudi government entities. The Company also has Saudi Riyals 240 million (December 31, 2024: Saudi Riyals 120 million) as short-term Murabaha deposits with banks owned by Saudi government entities.