Petromin Corporation

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Petromin Corporation
شركة بترومين
TypeOil and Lubricant manufacturer
IndustryIndustrial, Engine Oil and Lubricants
Founded24 February 1968; 53 years ago (1968-02-24)
Headquarters
Jeddah
,
Saudi Arabia
Area served
Middle East, Africa and expanding to Asia
ProductsEngine Oil, Petrol Fuel, Diesel Oil, Hydraulic fluid
ServicesAutomotive & Lubricants services
Websitehttp://www.petromin.com/

The Petromin Corporation is a Saudi Arabian lubricants and automotive services company, operating in lubricant oils including manufacturer, industrial, and automotive oils and lubricants, car servicing (Petromin Express), fuel retailing and car dealerships.[1][2] The company is one of the "Major Leading Players" of the lubricating grease Industry.[3]

History[]

A PetroMin service center in Buraidah Al Qassim Saudi Arabia

The company was established by a royal decree on 24 February 1968[4] The initial name of the company was Petromin Lubricating Oil Company and was renamed to Saudi Arabian Lubricating Oil Company in 1997. It was established as a joint venture between Saudi Aramco and Mobil investments and started production at its first blending plant in Jeddah, in 1970.[5][6] The first director general of the company was Abdulhadi Taher.[4]

The company was initially destined to replace foreign-owned Aramco as the states primary oil company, but due to company inefficiencies, personal rivalries and corruption, instead it was decided to make it "Saudized" Aramco.[7][8]

In May 2003, Petromin became one of the first companies to obtain international ISO Certification for their Quality and Systems (ISO 9001:2015). The company has since been re-certified in 2014 and received the OHSAS 18001:2007 certification for their Health and Safety Management Systems at the Jeddah plant in 2017.[9][10][11]

It was established to be the statist oil development of Saudi Arabia because at that time Aramco was 100% American owned. Under the responsibility of Dr. Abdulhadi H. Taher,[12] Petromin became an industrial behemoth with tens of thousands of employees. It was responsible for all oil exploration, refining, and distribution of all petroleum and mineral resources in the kingdom that were not in the domain of then US-controlled oil concessionaire Aramco.[13] After the Kingdom purchased Aramco from the americans, Petromin and most of its industrial developments were infused into it.

Joint-venture between Dabbagh Group and Gulf Oil Corporation[]

Petromin was a joint venture between Mobil Investments (29% stake) and Saudi Aramco (71% stake), an affiliate of ExxonMobil with an annual sale of 80,000 metric tons and an annual turnover of $200 million. In 2007 it was purchased by Dabbagh Group and Gulf Oil Corporation, a subsidiary of Indian Hinduja Group, for $200 million.[14] Dabbagh took a 51% stake and Hinduja a 49% stake in the new joint venture.[15]

In 2008, the company was renamed to its current name Petromin Corporation.[16]

In 2010 the Hinduja Group announced the launch of the initial public offering of Petromin.[17][18]

In 2013, The Dabbagh group purchased the Hinduja stake based on a total valuation of more than $700 million, made by Deutsche Bank, who assisted in the deal.[16][19]

In 2015, Petromin signed a five-year partnership with Hyundai and Al-Majdouie, to serve its oils at all Hyundai centers in the region and to supply diesel engine oils to Al-Majdouie Logistics.[20]

In 2017, the company employed around 5,000 people.[1][2][21] Petromin was one of the first companies in Saudi Arabia to start employing women in 2007.[22]

Petromin currently operates two main plants. The Jeddah Lube oil blending and Grease plant is now one of the biggest oil and mobilization plants in the middle east, and Petromin Corporation is the largest maker of lubricants in Saudi Arabia, with a present production capacity of 150,000 MT annually.[23] It was originally erected in 1968, with a blending capacity of 70,000 MT and upgraded in 2011 to its current capacity. The facilities encompass the Jubail lubricants and grease manufacturing plant which was built in 1985, with a production capacity of 6,000 MT of greases. Petromin also owns the Riyadh Blending Plan, which was commissioned in 1981, and has a production capacity of around 75,000 MT per year. The plant works in cooperation with the drum manufacturing company Greif, Inc., allowing a direct filling of Petromins products.[16][24]

The company produces industrial and non-industrial oil, lubricants and other associated products. The main product categories are gasoline, diesel engine oils, gear and transmission oil, greases, industrial, marine and specialty products. In these categories the company produces more than 150 different products.[16][25]

The company currently distributes its products to over 35 countries across the world, with a focus in the GCC, Middle East, Africa and Asia.[26][2]

Petromin Express is a chain of quick lube service centers throughout Saudi Arabia, offering different parts, products and services to customers. The chain operates more than 700 outlets.[27]

The company also runs a gas station network across the country, which is partly connected to Petromin Express service station, offering combined automotive services. Petromin is one of only two companies allowed to set up fuel stations along highways in Saudi Arabia. In 2017 the company first announced its plans to build 240 gas stations across the Kingdom.[1][20][21][28]

Petromin entered a partnership with Nissan, becoming the official authorized distribution agent in Saudi Arabia. The first showroom was opened in Riyadh on 16 October 2016.[29][30][31] In 2019, Petromin and Nissan extended the partnership.[32]

Activities[]

The Jeddah plant of Petromin is one of the biggest oil and mobilization plants in the Middle East and Petromin Corporation is the largest maker of lubricants in Saudi Arabia, with a present production capacity of 300,000 metric tons.[33]

References[]

  1. ^ a b c "Petromin to build 240 gas stations in Kingdom". Arab News. 28 April 2017. Retrieved 20 September 2018.
  2. ^ a b c "The Story". Petromin Corporation. Retrieved 20 September 2018.
  3. ^ "Global Lubricating Grease Market 2018". Chronicle India. 20 July 2018. Archived from the original on 20 September 2018. Retrieved 20 September 2018.
  4. ^ a b Hertog, Steffen (2008). "Petromin: the slow death of statist oil development in Saudi Arabia" (PDF). Business History. 50 (5): 645–667. doi:10.1080/00076790802246087. Retrieved 16 September 2013.
  5. ^ Official Website Company Information
  6. ^ www.tradeboss.com/ Petromin Corporation Petromin Corporation Trade Boss. Retrieved 7 July 2014.
  7. ^ "The one thing in Saudi Arabia that works well is under threat". Reuters. 4 February 2016. Retrieved 20 September 2018.
  8. ^ "Petromin: the slow death of statist oil development in Saudi Arabia" (PDF). LSE Research Online. September 2008. Retrieved 20 September 2018.
  9. ^ "Petromin's Jeddah plant gets OHSAS certification". Trade Arabia. 26 October 2017. Retrieved 20 September 2018.
  10. ^ "ISO Achievements". Petromin Corporation. Retrieved 20 September 2018.
  11. ^ "Petromin Integrated Management System Policy". Petromin Corporation. Retrieved 20 September 2018.
  12. ^ "Abdulhadi H. Taher". Saqi Books. Retrieved 25 February 2020.
  13. ^ "Saudi Aramco 2030 - Post IPO challenges". Springer. 2018. Retrieved 25 February 2020.
  14. ^ "Petromin Sold to Dabbagh-Hinduja Alliance for $200m". Arab News. 30 January 2020. Retrieved 25 February 2020.
  15. ^ "Dabbagh Group to buy Gulf Oil in Saudi Arabian lubricant venture". VCCircle. 9 April 2013. Retrieved 25 February 2020.
  16. ^ a b c d "Saudi Arabia's Dabbagh Group in talks to buy Hinduja's stake in Petromin JV". Domain-B. 9 April 2013. Retrieved 28 September 2018.
  17. ^ "Hindujas plan up to $1b Saudi IPO for Petromin". Gulf News Business. 3 June 2010. Retrieved 26 February 2020.
  18. ^ "Hindujas to raise $1 bn through Petromin IPO". The Economic Times. 3 June 2010. Retrieved 3 March 2020.
  19. ^ "Saudi firm set to buy out Indian partner in lubricant venture: sources". Reuters. 9 April 2013. Retrieved 20 September 2018.
  20. ^ a b "Petromin inks new partnership deal with Hyundai and Al-Majdouie". Arab News. 11 April 2015. Retrieved 23 September 2018.
  21. ^ a b "Petromin to build 240 gas stations in Kingdom". Arab News. 28 April 2017. Retrieved 23 September 2018.
  22. ^ "Ensuring empowerment of women in Petromin". Sudi Gazette. 15 September 2017. Retrieved 23 September 2018.
  23. ^ "The List of Top Lubricant Companies in Saudi Arabia". Marcopolis. 30 April 2015. Retrieved 23 September 2018.
  24. ^ "Plants". Petromin Corporation. Retrieved 23 September 2018.
  25. ^ "Products, Specialty Products". Petromin Corporation. Retrieved 23 September 2018.
  26. ^ "50 Years of Leadership and Excellence". Petromin. Retrieved 23 September 2018.
  27. ^ "Petromin Express". Petromin Corporation. Retrieved 26 September 2018.
  28. ^ "Gas Stations". Petromin Corporation. Retrieved 26 September 2018.
  29. ^ "Nissan-Petromin plans to open 20 more showrooms in Kingdom". Arab News. 16 October 2016. Retrieved 26 September 2018.
  30. ^ "Petromin Corporation". Bloomberg L.P. 9 April 2017. Retrieved 26 September 2018.
  31. ^ "Petromin Nissan Dealership". Petromin Corporation. Retrieved 26 September 2018.
  32. ^ "Nissan Saudi Arabia and Petromin Strengthen Relationship as New Agreement Signed". Zawya. 9 October 2019. Retrieved 3 March 2020.
  33. ^ "Hinduja Group Plans $1 Billion Saudi IPO of Lubes Blender Petromin". OEM/Lube News. 6 (22). 7 June 2010.

External links[]

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