ExxonMobil has sold its 30-percent stake in Saudi Aramco Lubricating Oil Refining Company (Luberef), majority shareholder Saudi Aramco announced yesterday. Jadwa Industrial Development Co., a private business connected to the Saudi royal family, purchased the stake in the joint venture, which operates two base oil plants in Saudi Arabia.
Aramco, the worlds largest oil company, owns the other 70 percent of Luberef, which was founded in 1976 as a venture with the former MobilOil Co. Luberef owns plants in Jeddah and Yanbual Bahr with combined capacity to produce 550,000 metric tons per year of Group I base oils.
ExxonMobil said it decided to sell its stake following a review of its global lubricant manufacturing business.
ExxonMobil’s spread of global lubricants businesses has not required the lifting of any physical product from this refinery venturefor many years, spokeswoman Prem Nair told Lube Report.
Both companies described their relationship as a good one.Jadwa Chairman Prince Faisal bin Salman bin Abulaziz called it noteworthy that a local company was able to purchase ExxonMobils share.
This transaction exemplifies the growing ability of the Saudi private sector to participate in complex and strategic areas of the economy, he said.