The Abu Dhabi National Oil Company (ADNOC) announced yesterday that it has signed an exclusive agreement with Penthol to become its exclusive seller of ADNOC Group III base oil in the United States.
In line with its strategy to maximise value from its refining and petrochemical business, ADNOC produces up to 500,000 metric tonnes per year of high quality Group III base oil through the Abu Dhabi Oil Refining Company (Takreer), an ADNOC Group Company. Group III base oils, together with petroleum additives, are used to formulate finished lubricants.
“We are focused on achieving the best commercial value from our crude and petroleum products, through innovative and competitive marketing strategies and the expansion of our client base. Our Group III base oil uses Murban, Abu Dhabi’s light, sweet crude oil, as feedstock, setting new standards for quality and consistency,” said Abdulla Salem Al Dhaheri, ADNOC marketing, sales and trading director.
“Tighter emissions regulations are driving the use of high-performance lubricants in transportation. This is in turn driving up the demand for Group III base oils, which deliver improved performance and increased fuel economy,” Al Dhaheri said.
“We aim to capitalise on ADNOC’s long-established reputation for high quality products to market ADNOC base oil to leading lubricant makers in the U.S.A. and worldwide. The U.S.A. is one of the world’s largest importing markets of Group III base oils and we are therefore excited to work with Penthol to deliver our high-quality product into an important global market,” he said.
“Penthol was proud to lift the very first cargo from the new ADNOC plant in June 2016, and we have been exceptionally pleased with the quality and consistency of the product we have received since. We look forward to expanding our relationship with ADNOC and to delivering greater volumes of Group III base oil to customers in the U.S.A.,” said Faruk Erkoc, Penthol chairman.
Group III base oils are greater than 90% saturates, less than 0.03% sulphur and have a viscosity index (VI) above 120.
ADNOC said it has already completed approval for its Group III base oil for ILSAC GF-5 passenger car motor oil category licensing from the American Petroleum Institute (API), including for SAE 0W-20 viscosity grade motor oils, and is actively working with additive companies to achieve individual Original Equipment Manufacturers’ (OEM) specifications approvals.