India: Base Oil Adnoc Enters into New Long-Term Sales Agreement with Indian Oil
The agreement involves the sale of Adnoc’s base oil, AD base to Indian Oil, one of the world’s largest oil companies. Indian Oil aims to utilise the base oils to produce high end engine oils for the country’s growing automotive sector.
Abu Dhabi/UAE – The Abu Dhabi National Oil Company (Adnoc) recently announced that it has signed another significant long-term sales agreement with an important end-user consumer - the Indian Oil Corporation (Indian Oil) - for its high-quality base oil, AD base.
Ahmad Bin Thalith, Acting Senior Vice President of Refined Products Sales, in Adnoc’s Marketing, Supply and Trading directorate, said: “The signing of this important sales agreement, with another major base oil consumer in a large and growing market, is testament to the quality and reliability of Adnoc’s Group III base oil, AD base. We look forward to working with Indian Oil and to increasing the supply of AD base to the Indian market, which continues to see strong demand for high quality base oil and finished lubricants.”
Indian Oil is one of the world’s largest companies, ranked 137 on the Fortune 500 list. It is the largest seller of finished lubricants in the Indian market with approximate volume of 450,000 tonnes per annum. The total Indian market for finished lubricants is 2 million tonnes and is growing at the rate of 2.4 % per annum. Indian Oil will use the AD base oils to manufacture high end engine oils for India’s growing automotive sector.
Subimal Mondal, Executive Director (Lubes) at Indian Oil said: “Indian Oil is a long-standing partner of Adnoc and we look forward to building on and strengthening the links between our two companies. The high quality of Adnoc’s AD base product, combined with strong logistics support and the proximity of the UAE to India, was key in our decision to sign this agreement.”
The signing of this agreement follows a recent signing with Xiamen Sinolook Oil Company to supply AD base into China, and the 2017 and 2018 exclusive agreements with Penthol, and Chemlube for the supply of AD base into the United States of America and Europe.
Adnoc Refining, an Adnoc subsidiary, produces up to 500,000 metric tonnes per year of Group III base oil and around 100,000 metric tonnes per year of Group II base oil, at its Ruwais refinery. Murban, Abu Dhabi’s light, high paraffinic crude is used as feedstock for Adnoc’s Base Oil plant, which ensures a consistent, high quality product.
AD base has a high Viscosity Index (VI) making it an ideal lubricant component, ensuring efficiency and fuel economy for high performance engines, while meeting ever stringent environmental regulations.
Adnoc has already completed API SN approval, GM Dexos 1, ILSAC GF-5, and 0w-20 for full synthetic motor oils, and is actively working with additive companies to achieve Original Equipment Manufacturers (OEM) and European Automobile Manufacturers Association (ACEA) formulation approvals.