ADNOC signs exclusive distributor agreement with Xiamen Sinolook for Chinese base oil market
The Abu Dhabi National Oil Company (ADNOC) has appointed Xiamen Sinolook Oil as exclusive distributor of ADNOC’s Group III base oil, ADbase, in China.
Using Murban, Abu Dhabi’s light, high paraffinic crude oil as feedstock, ADNOC Refining, an ADNOC subsidiary, produces up to 500,000 metric tons per year of Group III base oil, at its Ruwais refining complex in the United Arab Emirates (UAE). The company also produces around 100,000 metric tons per year of Group II base oil.
According to Ahmed S. Al Hamed, ADNOC vice president of base oil & special product sales, based in Abu Dhabi, ADNOC has now obtained approval for use of ADBASE in passenger car engine oils seeking API SN Plus/ILSAC GF-5 license and heavy-duty engine oils seeking API CK-4 and API FA-4 (SAE 10W-30 and 15W-40) license, as well as GM’s dexos 1 Gen 2 and Dexron VI (ATF).
In addition, he said the company has obtained approval for the upcoming API/ILSAC categories, API SP and ILSAC GF-6A and 6B, which will officially be licensed this May. Approval for API CK-4/FA-4 is still in progress for viscosity grade SAE 5W-30.
In the European front, ADbase has obtained approval for use in ACEA C3-16 and MB-229.31 for the following viscosity grades: SAE 5W-30 and 5W-40. Approvals for ACEA C5-16 and C2-16 and from several original equipment manufacturers (OEMs), such as Mercedes-Benz, BMW and Opel are still in progress.
On 2 April 2019, ADNOC announced that it has signed a “significant” long-term sales agreement with Xiamen Sinolook Oil Co. Thus, the exclusive distributor agreement is a step forward in the two companies’ relationship.
Established in 2011, Xiamen Sinolook Oil Co. Ltd. is one of China’s biggest importers and distributors of base oils, with a 5% share of the 7.17 million-ton-per-annum market.
“We have been importing Group III base oils produced by ADNOC since 2016, and we have more than 300 end-user customers throughout China,” said Qingchun Lin, general manager, Xiamen Sinolook Oil Co. Ltd., at the time of the signing last year.
In Europe, Chemlube International LLC is the exclusive distributor of ADbase, while Penthol is the exclusive distributor in the United States.