Bahri Chemicals has signed its first contract of affreightment (COA) with Luberef, the kingdom’s sole producer of virgin base oils, in a deal that underscores Saudi Arabia’s push to strengthen domestic supply chains under the Saudi Inc. initiative.

The agreement will see Bahri Chemicals, a subsidiary of national shipping giant Bahri, move base oil cargoes from Saudi ports to customers across the Arabian Gulf and the west coast of India. Both companies framed the partnership as a step toward building resilience and capturing new growth opportunities in the petrochemicals sector.

“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,” said Faisal Al Husseini, president of Bahri Chemicals. “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 called the deal “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,” he said.

Luberef, majority-owned by Saudi Aramco, is a leading supplier of high-quality base oils with a footprint extending across the Middle East, North Africa and India. Bahri Chemicals operates one of the world’s largest chemical tanker fleets, with 50 vessels, including 28 IMO2 medium range tankers, five product carriers and one LR1, plus 17 ships on charter.

The tie-up adds fresh momentum to Saudi Arabia’s strategy of leveraging national champions to drive industrial growth, with the country targeting a larger share of the high-value base oils market while keeping transport firmly in Saudi hands.