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Bahri Chemicals Signs First COA with Luberef to Boost Saudi Base Oil Exports
Bahri Chemicals, the chemicals shipping arm of Saudi Arabia’s national maritime giant Bahri, has signed its first contract of affreightment (COA) with Luberef, the Kingdom’s sole producer of virgin base oils. The agreement highlights Saudi Arabia’s strategy to strengthen domestic supply chains and expand global market share under the government’s Saudi Inc. initiative.
Details of the Agreement
Under the contract, Bahri Chemicals will transport base oil cargoes from Saudi ports to customers across the Arabian Gulf and the west coast of India. Both companies described the partnership as a key step toward building supply chain resilience and capturing new growth opportunities in the petrochemicals sector.
Faisal Al Husseini, president of Bahri Chemicals, stated:
“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. Together with Luberef, we aim to create long-term value for our customers and contribute to the Kingdom’s economy.”
Luberef CEO Samer A. Al-Hokail added:
“This deal is another important step toward strengthening operations across international markets. 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.”
Industry Background
Luberef, majority-owned by Saudi Aramco, is a leading supplier of high-quality virgin base oils, serving markets across the Middle East, North Africa, and India.
Bahri Chemicals operates one of the world’s largest chemical tanker fleets, consisting of 50 vessels, including 28 IMO2 medium range tankers, five product carriers, one LR1, and 17 ships on charter. This extensive fleet enables the company to offer flexible and reliable sea freight solutions for chemical and base oil cargoes.
Strategic Significance
The tie-up provides new momentum to Saudi Arabia’s industrial growth strategy, which seeks to leverage national champions to capture a larger share of the high-value base oil market while ensuring that critical transport operations remain under Saudi control.
