Saudi Aramco launches base oils business as part of downstream integration strategy
DHAHRAN -- Saudi Aramco has announced its intention to enter the base oils business. The Company made the announcement as part of its effort to optimize the value of its petroleum molecules and grow its refining and chemicals portfolio.
Photo Courtesy of Saudi Aramco.
Saudi Aramco has been integrating its downstream business in refining and marketing, in which petrochemicals and differentiated products play a major role. Saudi Aramco has been in the base oils business for many years through its joint ventures, which produce and market base oils independently.
“We are very excited to launch our base oils brands and intend to streamline our base oils strategy, capitalizing on Saudi Aramco’s vast experience in the oil industry, its renowned reputation of high quality products and its prominent position worldwide in meeting customer’s needs,” said Said Al-Hadrami, Vice President International Operations. “We will also build on the tremendous base oil industry experience within our affiliates, which spans several decades.”
Saudi Aramco is seeking synergies among its affiliates by way of automotive Group II slates interchangeability and linkage. In order to advance these synergies, Saudi Aramco completed a technical program based on 15 applications covering industry needs that include API engine oils requirements.
Furthermore, the Company finalized the Passenger Car Motor Oil (PCMO) program as per the European ATIEL Code of Practice, and the finalization of the Heavy Duty Motor Oil (HDMO) program is expected within the year.
In addition to the Group II slates interchangeability and linkage synergies, Saudi Aramco is also exploring further synergies amongst its affiliates with respect to their base oils offerings.
In its statement, Saudi Aramco also announced the launch of its three B-to-B base oils brands, namely aramcoDURA, aramcoPRIMA and aramcoULTRA.
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