Low Toxicity Base Oil from Kerosene — M/s. Coasts Petroleum Products Co.

Low Toxicity Base Oil from Kerosene — M/s. Coasts Petroleum Products Co.

A Riyadh-based petroleum company turns feedstock advantage into a specialty manufacturing opportunity — backed by hard numbers and a clear technical roadmap.

Client: M/s. Coasts Petroleum Products Co.

M/s. Coasts Petroleum Products Co. came to NPCS with a clear ambition but an open question: within Saudi Arabia's petroleum derivatives sector, where exactly should they invest, and could the numbers justify it?

The company had the raw material advantage — Saudi Arabia's petroleum infrastructure means kerosene feedstock is accessible and cost-competitive. What they needed was someone to tell them honestly whether converting that feedstock into low toxicity base oil was a sound industrial bet, and what it would actually take to build and run such a facility.

NPCS began with a sector screening exercise, evaluating multiple petroleum derivative segments before landing on low toxicity base oil manufacturing as the strongest fit. The rationale was grounded in market reality: tightening environmental regulations globally are pushing industries away from high-aromatic oils, and demand from metalworking, automotive, pharmaceutical, and personal care sectors has been building steadily. Saudi-produced base oils also carry a natural export advantage into Asian and African markets — a factor that shaped both the market analysis and the financial projections.

The technical work covered the full production process — from feedstock preparation and hydrotreatment through dewaxing, purification, quality testing, and packaging. Technology options were evaluated, plant capacity scenarios were assessed, and equipment requirements were mapped against operational realities. Nothing was treated as a given.

The financial modeling established capital investment ranges, operating cost structures, expected gross margins, and projected return timelines. ROI was assessed as attractive within a three-to-five year horizon, with payback estimated in the four-to-six year range under standard operating conditions — numbers the client could take forward into serious planning conversations.

The engagement ran twelve weeks. By the end of it, Coasts Petroleum had a clear technical picture, a validated market thesis, a preliminary financial model, and a structured implementation pathway. They approved the project and moved into planning.

The timing also works in their favor strategically. Saudi Arabia's Vision 2030 industrial diversification agenda creates a supportive policy environment for exactly this kind of manufacturing venture — and being among the earlier movers in specialty petroleum derivatives gives the client a positioning advantage that's worth more the sooner the project gets off the ground.

Call Us WhatsApp