The Dabbagh Group is the firm of the Saudi Arabian royal family that is now in discussion to buy out the stake of its Indian partner in a lubrican venture in Saudi Arabia. The buy out plan stemmed from differences regarding strategies between the partners, according to three sources aware of the plan.

The joint venture is Petromin and is based in Jeddah, Saudi Arabia. The venture is between Dabbagh and the family owned Hinduja subsidiary Gulf Oil International Group. Dabbagh owns 51% and Gulf Oil owns the remaining shareholdings.

Aside from the lubricant business, the Dabbagh Group also has interests in real estate, food and automobile services. The buyout plan would be done partially through debt. Also included in the deliberations is whether to include another party into the venture replacing Gulf Oil, according to the sources.

There has been no valuation discussed yet as to the buyout. When sought for comment, a Hinduja Group spokesman loacted in Mumbai declined to provide one, while Petromin did not reply to an email request. The Dabbagh Group is unavailable for comment.