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Motiva to market S-Oil’s Group III base oils in North America

Motiva to market S-Oil's Group III base oils in North America
Executing the base oil supply agreement with S-Oil are (left to right) Motiva Marketing & Sales Executive Vice President Bill Spurgeon, Motiva President & Chief Executive Officer Brian Coffman, Motiva Base Oils Domestic Manager Don Folse, Motiva Base Oils Director Colleen Murphy-Smith. Photo courtesy of Motiva

Motiva Enterprises, which is 100% owned by Saudi Aramco, announced that it will take over the marketing, sales and distribution of S-Oil’s Group III base oils in North America. Before the long-term supply agreement with Motiva, Phillips 66 Company was S-Oil’s exclusive distributor in North America.

The agreement will more than double Motiva’s current offering for Group III base oil in North America. Motiva will market the S-Oil products under the aramcoULTRA brand name. 

Saudi Aramco became the single largest shareholder of S-Oil in 2015, following its acquisition of Hanjin Group’s stake in the South Korean oil refiner.

S-Oil Corporation produces 2.2 million metric tons of Group I, II and III base oils in Ulsan, South Korea.

In 2019, S-Oil in South Korea, Motiva in the United States and Luberef in Saudi Arabia, formed the Aramco Base Oils Alliance. Under a brand license agreement with Saudi Aramco, the alliance offers Saudi Aramco base oil brand : aramcoDURA (Group Ⅰ), aramcoPRIMA (Group Ⅱ) and aramcoULTRA (Group Ⅲ). 

The Aramco Base Oils Alliance has a combined 14% global market share of base oils, selling one in every seven barrels of base oils around the globe, Motiva said.

The new supply agreement represents a huge milestone for Motiva, which already operates the largest base oil refinery in the Western Hemisphere, said Motiva Base Oils Director Colleen Murphy-Smith.

“The agreement solidifies Motiva as the face of Aramco base oils sales in the Americas, advancing a brand strategy that all Aramco-produced base oils are marketed exclusively by affiliates,” said Murphy-Smith. “The deal enhances Motiva’s existing product portfolio and allows us to offer our customers even greater value.”

Headquartered in Houston, Texas, U.S.A., Motiva refines, distributes and markets petroleum products throughout the United States. The company’s Port Arthur Manufacturing Complex in Port Arthur, Texas, is comprised of North America’s largest refinery with a crude capacity of more than 630,000 barrels a day, the country’s largest lubricant plant, and an adjacent chemical plant. Under exclusive, long-term brand licenses with Shell and Phillips 66 (for the 76® brand), Motiva’s marketing operations support more than 5,000 retail gasoline stations.