Japanese refiner Idemitsu Kosan Co. and Saudi Aramco inked a agreement to cover the supply and procurement of lubricating base oils. The Tokyo-based refiner and lubricant manufacturer said the agreement is meant to streamline base oil procurement.
Base oils typically account for 70% to 90% of a finished lubricant formulation, depending on application. Securing reliable access to these core feedstocks is critical for lubricant producers seeking to maintain quality and supply continuity.
Saudi Aramco maintains a broad international base oil presence through its downstream network. Key affiliates include Luberef in Saudi Arabia, Motiva Enterprises in the United States and S-Oil in South Korea.
Idemitsu said it expects demand for higher-value lubricant products to continue rising as industries intensify efforts around environmental stewardship and energy efficiency. The company views the new framework as a platform to deepen collaboration with Saudi Aramco in the base oil segment and to identify additional avenues for growth.
The company noted it has steadily strengthened ties with the Saudi Aramco Group through ongoing base oil procurement. The latest agreement is intended to broaden that relationship and unlock further business opportunities.
Idemitsu said it plans to accelerate initiatives within its lubricants division, aiming to support industrial development both in Japan and overseas markets. The company is Japan’s largest lubricant supplier by domestic sales volume and ranks among the world’s top 10 lubricant manufacturers.