Russian lubricants marketer Gazprom Neft-SM will acquire Select Oil, an independent lubricant blender based in Fryazino, in the Moscow oblast, for an undisclosed price. The deal is expected to be approved during the Gazprom Neft board of directors meeting scheduled for Sept. 9, the company said last week.
The blender will be operated by Gazprom Neft-SM, the oil majors lubes arm. Part of the companys development strategy is the acquisition of low-tonnage blending and filling capacity assets, company spokesman Ivan Yakovlev told Lube Report on Thursday. Select Oils production capacities would allow Gazprom Neft-SM to market its service and specialized finished [lubricants] products assortment for industrial and commercial equipment.
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The company is also ready to make essential investments to develop the plants production and logistics. It will allow us a thorough and qualitative response to our customers growing demands, Yakovlev said.
Selects blending plant has a capacity to make 30,000 metric tons of lubricants per year. It markets its products under the brand Consol.
The acquisition was also confirmed by Alexander Peremyatov, Select Oils general director. The companys stakeholders unanimously voted for the company to be sold to Gazprom Neft, he said by telephone from Moscow. He declined to give additional details.
Gazprom Neft-SM produces mid-tier to premium-quality motor oils, greases and industrial lubricants. The companys total lubricants production in 2010 amounted to 430,000 tons, including base oils and finished lubricants.
It operates a lubricants complex in Omsk, Western Siberia that includes a base oil plant with capacity to make 240,000 t/y (4,600 b/d) of API Group I, and a 50,000 t/y finished lubricants blending facility.
It also operates a 250,000 t/y Group I base oil plant in Yaroslavl, under the Slavneft joint venture with the Russian oil company TNK-BP. That facility is scheduled to be upgraded to produce 100,000 t/y of Group III base oil by 2014, to be shared equally between Gazprom and TNK-BP. Gazprom Neft also has a lubricants blending plant in Bari, Italy.