ADNOC signs long-term base oil sales agreement with Indian Oil Corp.
The Abu Dhabi National Oil Company (ADNOC) has signed a long-term sales agreement with Indian Oil Corporation (IOC) for its high-quality base oil, ADbase.
“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, ADbase,” said Ahmad Bin Thalith, acting senior vice president of refined products sales, at ADNOC’s Marketing, Supply and Trading directorate. “We look forward to working with IOC and to increase the supply of ADbase to the Indian market, which continues to see strong demand for high-quality base oil and finished lubricants.”
IOC 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, selling approximately 450,000 tonnes per year. The total Indian market for finished lubricants is 2 million tonnes and is growing at an annual rate of 2.4%. IOC will use the ADbase oils to manufacture high-end engine oils for India’s growing automotive sector.
“IOC 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 ADbase product, combined with strong logistics support and the proximity of the UAE to India, was key in our decision to sign this agreement,” said Subimal Mondal, executive director (Lubes), IOC.
The signing of this agreement follows a recent signing with Xiamen Sinolook Oil Company to supply ADbase into China, and the 2017 and 2018 exclusive agreements with Penthol C.V., and Chemlube for the supply of ADbase 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.
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 get original equipment manufacturers (OEM) and European Automobile Manufacturers Association (ACEA) formulation approvals.