Lukoil and GAZ, one of Russias biggest automakers, signed a lubes and chemicals procurement contract last week.
The deal was signed by Lukoil president Vagit Alekperov, and GAZ Group president Bo Andersson. Financial terms were not disclosed. Lukoil will supply GAZ with engine oils for factory fill, fuels, liquids and other petrochemical products during the next three years, beginning Oct. 1, the oil major said.
During the production process and development of new types of vehicles, GAZ will be ready to ask Lukoil to develop new types of lubes and auto-chemistry products needed for better performance of its applications, both companies stated.
Lukoil, Russias largest independently owned refiner and blender, pledged to supply GAZ with premium quality fuels, lubricants and petrochemical products, including transmission fluids for factory fill and fluids for the OEMs equipment and machinery.
During 2007 to 2010, and this year through September, Lukoil supplied GAZ around 34,500 tons of finished lubricants and liquids, the company said, adding that it has expanded the assortment from 14 to 22 brands and types of finished products.
Lukoil is Russias biggest lubricants producer. It markets its finished products through LLK International, its lubricant arm. In 2010 the company produced 1.4 million tons of base oils and finished lubricants, up 9 percent compared to its 2008 record year, LLK said earlier this year.
Lukoil reported operating income of $6.8 billion for the first half of 2011, 69 percent higher than the same period last year. The companys January-to-June revenue stood at $64.5 billion, up 29.7 percent from the year-earlier period.
GAZ is one of the largest automotive engineering holdings in Russia. It consists of 18 automotive plants in 10 Russian regions that produce cars, light commercial vehicles, buses, on-road and off-road heavy duty vehicles as well as diesel and power plant engines.