Bahri Chemicals inks first COA with Luberef to boost Saudi base oil exports

In a significant move to enhance domestic supply chains, Bahri Chemicals has entered into its inaugural contract of affreightment (COA) with Luberef, Saudi Arabia’s exclusive producer of virgin base oils. This partnership aims to facilitate the transportation of base oil cargoes from Saudi ports to customers across the Arabian Gulf and the western coast of India, aligning with the Kingdom’s broader economic strategy under the Saudi Inc. initiative.

Strengthening the Petrochemicals Sector

The agreement between Bahri Chemicals, a subsidiary of the national shipping leader Bahri, and Luberef marks a pivotal step in fostering resilience and exploring new growth avenues within the petrochemicals industry. Faisal Al Husseini, president of Bahri Chemicals, emphasized the importance of this collaboration, stating, “This agreement with Luberef builds on our long-standing collaboration and reflects Bahri Chemicals’ commitment to delivering reliable, flexible, and customer-first maritime transportation solutions.” He further noted that the partnership aims to create long-term value for customers while contributing positively to the Kingdom’s economy.

Ocean Yield buys four LR1 newbuilds on first emissions-linked bareboat charter lease

Luberef’s CEO, Samer A. Al-Hokail, echoed this sentiment, describing the deal as “another important step” in fortifying operations in international markets. He expressed optimism about the future of their collaboration, stating, “We look forward to further strengthening our cooperation to deliver sustainable value to customers and to advance the Kingdom’s standing in the base oil sector.” With Luberef being majority-owned by Saudi Aramco, the company is recognized as a leading supplier of high-quality base oils, serving markets across the Middle East, North Africa, and India.

Bahri Chemicals operates one of the world’s largest chemical tanker fleets, comprising 50 vessels, including 28 IMO2 medium-range tankers, five product carriers, and one LR1, along with 17 additional ships on charter. This strategic partnership not only enhances the operational capabilities of both companies but also aligns with Saudi Arabia’s vision of leveraging national champions to drive industrial growth. The Kingdom is keen on capturing a larger share of the high-value base oils market while ensuring that transportation remains firmly within Saudi hands.