Lube Park Takes Shape in Indonesia


An independent lubricant blender in Indonesia is working to develop a business park for lube companies. The project is modeled after a joint venture by Shell, Sinopec and Total in Singapore.

Located on Java Island 100 kilometers west of Jakarta, United Oil Co. Private Ltd. said the Lube Park has one tenant – itself – waterfront access and infrastructure, and now is looking for tenants.

We have only started working with some potential clients over the last three months, and we aim to attract the oil majors, base oil wholesalers, leading domestic lubricant marketers and support industries such as drum and packaging makers, United Oil Senior Business Development Manager Kong Leong Fai said after discussing the project in a presentation at the ICIS Asian Base Oils & Lubricants Conference in Singapore June 26.

Shell, Sinopec and Total announced last year their agreement to develop the Singapore park. The first such project in the industry, it is based on the premise that the companies can reduce their individual costs by sharing infrastructure such as a jetty and pipelines. Sinopec has already built and is operating its lubricant blending plant, and the other two companies are building ones of their own.

Similar to the Singapore development, the Indonesia Lube Park has waterfront access and is located in the 250 hectares Bojonegara Industrial Park in Banten.The Lube Park will be 20 hectares with potential to expand to 40 hectares, Kong added.

United Oil is already operating a blending and filling plant with capacity of 80,000 metric tons per year, a 17,000-ton tank farm, warehouse facilities and a 17,000-ton base oil terminal one kilometer from the jetty.The park also has a ship-loading yard that serviced 200 ships last year.

It will be the gateway to the Indonesian market in addition to [offering the benefit of] reduced investment from shared facilities, Kong said. Companies will be more responsive and reliable [to the Indonesian market] with a much shorter supply lead time of two and a half weeks compared to importing from the Singapore, which can take up to about six weeks.

United Oil is a lubricants manufacturer headquartered in Singapore. It is part of a group of companies in Indonesia including Pacific Lubritama Indonesia, Bojonegara Industrial Park and jetty operator, Batu Alam Makmur. United Oil has 2 lube oil blending plants with a capacity of over 100 million liters per year each in Singapore and Indonesia.