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. The company is one of the "Major Leading Players" of the lubricating grease Industry.

History

The company was established by a

royal decree A decree is a legal proclamation, usually issued by a head of state, judge, royal figure, or other relevant authorities, according to certain procedures. These procedures are usually defined by the constitution, Legislative laws, or customary l ...

on 24 February 1968 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 Saudi Aramco ( ') or Aramco (formerly Arabian-American Oil Company), officially the Saudi Arabian Oil Company, is a majority state-owned petroleum and natural gas company that is the national oil company of Saudi Arabia. , it is the fourth- l ...

and Mobil investments and started production at its first blending plant in

Jeddah Jeddah ( ), alternatively transliterated as Jedda, Jiddah or Jidda ( ; , ), is a List of governorates of Saudi Arabia, governorate and the largest city in Mecca Province, Saudi Arabia, and the country's second largest city after Riyadh, located ...

, in 1970. The first director general of the company was Abdulhadi Taher. The company was initially destined to replace foreign-owned

Aramco Saudi Aramco ( ') or Aramco (formerly Arabian-American Oil Company), officially the Saudi Arabian Oil Company, is a majority state-owned petroleum and natural gas company that is the national oil company of Saudi Arabia. , it is the fourth- lar ...

as the states primary oil company, but due to company inefficiencies, personal rivalries and corruption, instead it was decided to make it "Saudized" Aramco. In May 2003, Petromin became one of the first companies to obtain international

ISO Certification The International Organization for Standardization (ISO ; ; ) is an independent, non-governmental, international standard development organization composed of representatives from the national standards organizations of member countries. Mem ...

for their Quality and Integrated Management Systems (

ISO 9001 The ISO 9000 family is a set of international standards for quality management systems. It was developed in March 1987 by International Organization for Standardization. The goal of these standards is to help organizations ensure that they meet ...

:2015). The company has since been re-certified in 2014 and received the

OHSAS 18001 Occupational Health and Safety Assessment Series 18001 (OHSAS 18001) was an international standard for occupational health and safety management systems. It was developed in March 1999 by Occupational Health and Safety Assessment Series Project G ...

:2007 certification for their

Health Health has a variety of definitions, which have been used for different purposes over time. In general, it refers to physical and emotional well-being, especially that associated with normal functioning of the human body, absent of disease, p ...

and

Safety Management Systems An occupational safety management system (OSMS) is a management system designed to manage occupational safety and health risks in the workplace. If the system contains elements of management of longer-term health impacts and occupational disease, ...

at the Jeddah plant in 2017. 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 Abdulhadi H. Taher (1930 – 2013) was a Saudi Arabian oil executive and author. He was the Director General of the Saudi Arabian Ministry of Petroleum and Mineral Resources, Saudi Arabian Ministry of Petroleum and Minerals Taher was described ...

, 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. 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

(71% stake), an affiliate of

ExxonMobil Exxon Mobil Corporation ( ) is an American multinational List of oil exploration and production companies, oil and gas corporation headquartered in Spring, Texas, a suburb of Houston. Founded as the Successors of Standard Oil, largest direct s ...

with an annual sale of 80,000

metric tons The tonne ( or ; symbol: t) is a unit of mass equal to 1,000 kilograms. It is a non-SI unit accepted for use with SI. It is also referred to as a metric ton in the United States to distinguish it from the non-metric units of the sh ...

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 Hinduja Group is an Indian Conglomerate (company), conglomerate. The group is present in eleven sectors including automotive, oil and specialty chemicals, banking and finance, IT and ITeS, cyber security, healthcare, trading, infrastructure proj ...

, for $200 million. Dabbagh took a 51% stake and Hinduja a 49% stake in the new

joint venture A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acce ...

. In 2008, the company was renamed to its current name Petromin Corporation. In 2010 the Hinduja Group announced the launch of the initial public offering of Petromin. In 2013, The Dabbagh group purchased the Hinduja stake based on a total valuation of more than $700 million, made by

Deutsche Bank Deutsche Bank AG (, ) is a Germany, German multinational Investment banking, investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the Frankfurt Stock Exchange and the New York Stock Exchange. ...

, who assisted in the deal. In 2015, Petromin signed a five-year partnership with

Hyundai Hyundai is a former South Korean industrial conglomerate ("''chaebol''"), which was restructured into the following groups: * Hyundai Group, parts of the former conglomerate which have not been divested ** Hyundai Asan, a real estate construction ...

and Al-Majdouie, to serve its oils at all Hyundai centers in the region and to supply

diesel engine The diesel engine, named after the German engineer Rudolf Diesel, is an internal combustion engine in which Combustion, ignition of diesel fuel is caused by the elevated temperature of the air in the cylinder due to Mechanics, mechanical Compr ...

oils to Al-Majdouie Logistics. In 2017, the company employed around 5,000 people. Petromin was one of the first companies in Saudi Arabia to start employing women in 2007. The company produces industrial and non-industrial oil, lubricants and other associated products. The main product categories are

gasoline Gasoline ( North American English) or petrol ( Commonwealth English) is a petrochemical product characterized as a transparent, yellowish, and flammable liquid normally used as a fuel for spark-ignited internal combustion engines. When for ...

, diesel engine oils, gear and transmission oil, greases, industrial, marine and specialty products. In these categories the company produces more than 150 different products. The company currently distributes its products to over 35 countries across the world, with a focus in the GCC,

Middle East The Middle East (term originally coined in English language) is a geopolitical region encompassing the Arabian Peninsula, the Levant, Turkey, Egypt, Iran, and Iraq. The term came into widespread usage by the United Kingdom and western Eur ...

Africa Africa is the world's second-largest and second-most populous continent after Asia. At about 30.3 million km2 (11.7 million square miles) including adjacent islands, it covers 20% of Earth's land area and 6% of its total surfac ...

and

Asia Asia ( , ) is the largest continent in the world by both land area and population. It covers an area of more than 44 million square kilometres, about 30% of Earth's total land area and 8% of Earth's total surface area. The continent, which ...

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

outlets Outlet may refer to: * Outlet, a river that runs out of a lake * Electrical outlet * Outlet store or outlet mall * Pelvic outlet * News outlet, news media Other * ''Outlet'' (Antigua newspaper) * "Outlet" (song), by the American rapper Designer ...

. 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. Petromin entered a partnership with

Nissan is a Japanese multinational Automotive industry, automobile manufacturer headquartered in Yokohama, Kanagawa, Japan. The company sells its vehicles under the ''Nissan'' and ''Infiniti'' brands, and formerly the ''Datsun'' brand, with in-house ...

, becoming the official authorized distribution agent in Saudi Arabia. The first showroom was opened in Riyadh on 16 October 2016. In 2019, Petromin and Nissan extended the partnership.

Evolution of Petromin

Petromin Corporation began diversifying its business portfolio in the early 2000s. In addition to the original lubricant business, the company expanded into the vehicle maintenance industry by introducing Gulf Express in 2001, which was later renamed to Petromin Express - a quick automotive services network that served as its first step into the automotive sector. Furthermore, Petromin entered the General Electrical and Mechanical Repair services sector in 2012, under the brand name Petromin Auto Care, offering maintenance for all makes and models of vehicles. In the same year, Petromin also launched its first fuel station in the Kingdom of Saudi Arabia. In 2016, Petromin further expanded its operations into vehicle distribution by acquiring the Nissan brand dealership in Saudi Arabia. These initiatives allowed the company to enter the automotive market as a provider of both vehicles and services. Petromin evolved from a lubricant manufacturer to an automotive group offering electric vehicles, logistics and fleet services, car maintenance service centres, and auto parts distribution among others. They have expanded their operations to several countries in the region including, UAE, Egypt, India, Malaysia and Pakistan. Recent expansions include joint ventures with major companies like HPCL, DRB HICOM Malaysia, and acquisition of SpareIt. In 2023, HPCL and Petromin started a joint venture Automin Car Services in India to establish HP-Petromin Express co-branded vehicle service centres.

Activities

The Jeddah plant of Petromin is one of the biggest oil and mobilization plants in the

and Petromin Corporation is the largest maker of lubricants in Saudi Arabia, with a present production capacity of 300,000 metric tons.

Business verticals

Petrolube

Petrolube has a 43% market share in Saudi Arabia and exports Petromin Oils to over 40 countries. They produce more than 150 industrial and automotive lubricants and other associated products. The main product categories include gasoline, diesel engine oils, gear and transmission oil, greases, industrial, marine, and specialty products. Petrolube currently operates three main plants. The Jeddah Lube oil blending and Grease plant is now one of the largest manufacturer and distributor of lubricants in the Middle East, and Petromin Corporation is the largest maker of lubricants in Saudi Arabia, with a present production capacity of 250,000 MT annually. 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 grease. Petrolube's latest oil blending plant was commissioned in 2007 and is based in Dubai, UAE. Petrolube also owns the

Riyadh Riyadh is the capital and largest city of Saudi Arabia. It is also the capital of the Riyadh Province and the centre of the Riyadh Governorate. Located on the eastern bank of Wadi Hanifa, the current form of the metropolis largely emerged in th ...

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.

National MOTOR Company

National Motor Company are authorized dealers of Nissan vehicles, Stellantis brands (Abarth, Alfa Romeo, Chrysler, Fiat, Dodge, Jeep, Mopar and RAM) and Foton commercial vehicles in Saudi Arabia. Petromin entered a partnership with

in 2016, becoming the official authorized distribution dealer in Saudi Arabia. The first showroom was opened in Riyadh on 16 October 2016. In 2019, Petromin and Nissan extended the partnership. In 2021, Petromin started the distribution of vehicles from 8 distinct Stellantis brands through a partnership with Stellantis Middle East. Subsequently, they inaugurated a mega-facility designed to encompass sales, servicing, and provision of spare parts (3S).

Electromin

Electromin offer passenger and commercial electric vehicles, their maintenance services, installation of EV charging infrastructure, along with multiple other EV-related services and products.

National autoparts company

In 2022, Petromin introduced National Auto Parts Co., a subsidiary that sell multi-brand auto parts through an online platform to wholesalers and independent garages.

National Fuel Company

Petromin runs gas station across Saudi Arabia and Egypt, which is connected to café drive-thrus, ATMs, convenience stores, Petromin Express quick automotive service center, Petromin auto care workshops, and tire change services at its forecourts.

National Transportation Solutions Company

NTSC offers Fleet Maintenance, Fleet Management, Operational Leasing, Petromin Commercial Vehicle Care (PCVC), Diesel Vehicle Service, and Repair. As a subsidiary of Petromin group, NTSC extends its services to clients throughout KSA. PepsiCo and National Transportations Solutions Company (NTSC) signed an MoU and launched the first Electric Commercial delivery truck pilot in Saudi Arabia.

Expansion and partnerships

In 2015, Petromin signed a five-year partnership with Hyundai and Al-Majdouie, to serve its oils at all Hyundai centres in the region and to supply diesel engine oils to Al-Majdouie Logistics. In 2022, General Motors designated Petromin as the new wholesale distributor for ACDelco in the Kingdom. ACDelco is a subsidiary of General Motors and is the region’s primary supplier of aftermarket products. National Auto Parts Company (NAP), acquired SpareIt, an Indian auto-tech platform. Electromin, a NAP subsidiary, formed in 2022 a strategic partnership with Quantron AG. The partnership initially involved the distribution of Quantron's QARGO 4 EV light truck in Saudi Arabia. Siemens also provided EV chargers to Electromin, Saudi Arabia's e-mobility unit, for their region-wide charging network. Quantron entered insolvency proceedings in October 2024. In 2023, National Auto Parts signed a distribution agreement with Pirelli, which made NAP a new distributor for Pirelli tyres in the Kingdom of Saudi Arabia.

Contribution to motorsports in Saudi Arabia

Petromin also signed a three-year partnership (2021-2023) with Saudi Motorsport Company. and became Title Naming Rights Partner of the Saudi Supercar Club (SSC). As part of this partnership, they sponsored the WTCR FIA World Touring Car Cup debut at

Jeddah Corniche Circuit The Jeddah Corniche Circuit () is a motor racing street circuit built in the Red Sea port city of Jeddah, in Saudi Arabia. The circuit staged the inaugural Saudi Arabian Grand Prix on 5 December 2021 as the penultimate race on the Formula One ...

in, December 2022. In 2023, Petromin Nissan announced a strategic partnership with Nissan Formula E Team for three years. With this partnership, they became the official innovation partner of the Nissan Formula E Team for the Diriyah E-PRIX.

References

{{Portal, Saudi Arabia, Energy, Companies 1962 establishments in Saudi Arabia Oil and gas companies of Saudi Arabia Saudi Arabian brands Non-renewable resource companies established in 1962