Nearly forty years' involvement of Haji Abdullah Alireza & Co. Ltd. in the marketing of lubricating oils in the Kingdom, provided the needed incentive to the Company to have an oil blending plant of its own. It obtained an industrial licence from the Ministry of Industry and Electricity in June 1995 to build and operate a lubricating oil blending plant at Jeddah with a single shift capacity of 350,000 barrels per annum.

Situated in the Industrial Estate of Jeddah, the plant commenced commercial production at the end of 1998. The plant was built and is operated in accordance with Mobil technology. It includes facilities to support product distribution and a laboratory to ensure high level of quality control. The base stocks and most of the additives required for blending are sourced from within the Kingdom. The plant is capable of blending a variety of lubricating oils for the local market and for export. It blends Mobil branded products required by a subsidiary of the company, the Arabian Petroleum Supply Co. SA (APSCO). It also produces its own requirements of drums for packaging lubricating oils.