Saudi Aramco Base Oil Company (Luberef) is exploring future projects to produce group III and III+ base oils within Saudi Arabia to meet global demand, said  President and CEO Samer Al Hokail.

The Tadawul-listed company will be the first producer of base oils in the region after the implementation of the Yanbu facility expansion (Growth II), he told CNBC Arabia news channel.

The expansion will increase production capacity to 1.6 million metric tonnes annually, Al Hokail said.

The CEO said regional demand for base oils is three times greater than global growth, adding that Africa is one of the promising markets and India is witnessing significant demand.

Earlier, Al Hokail said that the Middle East is emerging as a key player in the global base oils and lubricants market, with rapid growth and significant production capacity.

He noted that despite the challenges presented by geopolitical factors and economic fluctuations, the global demand for lubricants is expected to remain stable.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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