Strategy in Action

Luberef continues to advance its strategy through disciplined growth, innovation, and sustainability. Major projects such as the Yanbu Growth II Expansion and the planned Group III+ study in Jazan are aimed at expanding capacity, increasing flexibility, and positioning the Company to capture value in premium global markets.

At the same time, initiatives in localization, digitalization, and portfolio diversification, supported by LubeHUB and partnerships with leading research institutions, are enhancing efficiency and competitiveness. Together, these initiatives strengthen Luberef’s ability to adapt, sustain growth, and lead in a rapidly evolving industry.

Yanbu Growth II Project and Transformation

The Yanbu Growth II Expansion is a cornerstone of Luberef’s strategy to enhance operational flexibility. Once operational in 2026, the project will raise the Yanbu facility’s total capacity to 1.26 million metric tons per year, enabling production of up to 670,000 metric tons of Group III base oils or up to 1,120,000 metric tons of Group II base oils, depending on market demand.

In 2025, Luberef successfully embarked on the GIII slating program under AramcoULTRA brand name, marking a critical quality milestone. Following Growth II completion, domestic Group III production will replace resale volumes currently sourced from Alliance partners. The Company is also advancing a Group III/III+ project, targeting premium export markets in Europe and the United States and reinforcing Luberef’s long-term growth trajectory.

Group III+ Project

Luberef signed an MOU with Aramco to evaluate establishing a facility for GIII+ production in Jazan. The efforts of sourcing UCO resulted in this ambition. By adopting a less capital-intensive configuration that relies on UCO as a feedstock, the project minimizes by-product generation while prioritizing base oil output. The project is designed to produce premium Group III+ base oils, targeting customers in developed countries and emerging markets.

These premium products will be supported by all major OEM approvals and formulations, designed to meet stringent quality requirements in high-margin markets. This supports attractive returns on investment and reinforces Luberef’s strategy of growth, portfolio enhancement, and capital efficiency.

Expanding Market Access and Geographic Reach

Luberef continues to strengthen its local and global presence through a dual focus on certification excellence and geographic expansion, reinforcing its position as a reliable and competitive supplier across key regional and international markets.

Strengthening Presence Across the GCC Region

As part of its regional growth strategy, Luberef is expanding its footprint across the Gulf Cooperation Council (GCC) region by deepening relationships in established markets while actively engaging with new customers in previously untapped GCC countries. This approach reflects the Company’s agility in responding to evolving regional demand and its commitment to serving a broader customer base with tailored solutions.

By leveraging its proximity to key GCC markets, strong supply reliability, and flexible product slate, Luberef is well positioned to support lubricant manufacturers, industrial customers, and energy-related sectors across the region. Ongoing commercial outreach, coupled with technical engagement and customized offerings, continues to strengthen Luberef’s market access and reinforce its role as a preferred regional supplier.

Expanding into African Growth Markets

Luberef’s expansion strategy in Africa aligns with Saudi Arabia’s Empowering Africa initiative, which promotes industrial and infrastructure development across the continent. Rapid economic growth and increasing demand from transportation, mining, and manufacturing sectors are driving the need for high-quality lubricants and base oils. Leveraging its strategic Red Sea location, Luberef offers reliable and cost-effective supply to African markets, addressing a growing supply gap caused by declining European base oil exports.

The Company aims to make Africa the third largest market for its products by selling approximately 200,000 MT per annum in that market by 2030. To enhance distribution efficiency and ensure reliable delivery, Luberef is leasing logistics facilities in key gateway countries. These hubs improve access to major trade routes while reducing delivery times and transportation costs. By marketing products in U.S. dollars to global distributors and international oil company–affiliated blenders, Luberef secures stable revenues and establishes a scalable platform for long-term growth across the continent.

Strengthening Global Credibility through OEM Approvals

Securing Original Equipment Manufacturer (OEM) approvals remains a key strategic priority, reinforcing Luberef’s reputation as a trusted supplier of high-performance base oils. Certified formulations have increased from fewer than 100 to over 1,000, with a target of more than 2,000 by 2027. These approvals validate compatibility with advanced automotive, industrial, and specialty applications, positioning Luberef as a preferred supplier for global manufacturers. They also strengthen long-term partnerships and enable access to high-value and emerging markets where product quality and reliability are paramount.

LubeHUB, located adjacent to the Yanbu facility, is a key enabler of downstream localization. Through piped access to base oils and specialty feedstocks, the hub supports efficient production of finished lubricants, transformer oils, white oils, rubber process oil, additive manufacturing, and specialized bitumen. Aligned with Vision 2030, LubeHUB aims to localize specialty product manufacturing, reduce imports, and increase job creation.

In parallel, Luberef is evaluating white oil opportunities to diversify into high-purity applications such as pharmaceuticals, cosmetics, food processing, and industrial uses, further strengthening its specialty portfolio.

Innovation, Sustainability, and Growth Platforms

Luberef embeds innovation and sustainability at the center of its growth strategy, driving technological advancement and long-term competitiveness. Through partnerships with leading academic and industry institutions such as KAUST and the FLEET Consortium, the Company continues to develop and implement next-generation refining technologies.

Key initiatives, including Ultrasonically Assisted Oxidative Desulfurization (uODS) and advanced fuel formulations, delivered strong KPI achievements in 2025 during the research phase in 2025. The uODS technology received international recognition at two global events, most recently winning a Gold Medal at the International Inventions Conference in Geneva in April 2025, underscoring Luberef’s commitment to developing cleaner, higher-performance products that support global efficiency and emissions-reduction objectives.