The American Petroleum Institute activated Emergency Provisional Licensing for participants in its Engine Oil Licensing and Certification System, stating that supply disruptions associated with the ongoing Middle East conflict meet the force majeure criteria set out in API 1509 Section 6.9.
In a notice from March 24, signed by Bill O’Ryan, director of EOLCS/DEF, the organization indicated that the decision followed a request submitted earlier in the month by the Independent Lubricant Manufacturers Association. The request cited disruptions to regional energy infrastructure, including facilities linked to Group III base oil production. Publicly available industry data has long identified the Middle East, including countries such as Saudi Arabia, Bahrain, and the United Arab Emirates, as a significant source of Group III base oils used in higher-performance lubricant formulations.
According to API, interruptions affecting multiple refineries in the region have contributed to a reduction in global base oil availability, and these conditions satisfy the threshold for EPL activation under API 1509. The organisation stated that the provisional licence is valid for up to 90 days from the date an EPL Agreement is signed, with the possibility of extension if supply conditions remain unresolved. API also clarified that this system-wide activation does not automatically grant protection to individual companies; each licensee must submit a completed EPL Agreement to obtain authorisation.
API specified that licensees seeking EPL must provide documentation explaining the circumstances that necessitate its use, along with evidence of efforts to secure alternative compliant materials and an estimate of how long the shortage is expected to last. In addition, companies are required to submit technical data demonstrating that any substitute components do not compromise the performance standards claimed for the licensed product, and to issue revised traceability codes for any modified formulations. The organisation further stated that all testing required under the relevant API standards must be completed within 180 days of signing the EPL Agreement, unless additional time is granted.
API indicated that once the provisional period expires, or once it issues written notice that supply conditions have stabilised, licensees operating under EPL must either return to their originally approved formulations or apply for approval of a revised formulation. Any such revised formulation, including those incorporating temporary substitutions, must undergo full testing and review before standard licensing can be granted. The organisation also stated that failure to meet the obligations set out in the EPL Agreement, including submission of required documentation and updated traceability information, constitutes a breach of the licensing terms.