Lukoils Marine Lubes Grow


Russian oil major Lukoils marine lubricants division recently posted strong results for 2012, with increased sales compared to 2011, new market expansions and dozens of factory-fill tenders secured.

For the 2012 financial year, Lukoil Marine Lubricants Ltd.s revenue soared to U.S $200 million, a 75 percent increase compared to the year before.

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Our efforts are focused on production of new, high quality marine oils that reduce oil consumption and reduce engine wear, Stefan Claussen, technical and marketing director at the companys Hamburg office said in a recent press release. The main reason for the companys demonstration of excellent results is that, contrary to our competitors, we are persistently expanding our global network. Our lubricants are now more readily available in many ports than those of other suppliers.

Created in 2008, Lukoil Marine Lubricants is a division of the oil majors lube arm LLK International. Over the years it experienced fast expansion abroad with new operational offices opened in Germany, United Arab Emirates, Singapore and the United States. Since entering the global lubricants market, Lukoil has viewed Hamburg as a key location for its technical expertise. Here we are close to our customers. Germany and Hamburg in particular continue to be among the worlds most important centers for the shipping industry. The combination of Russian raw materials, world leading additive technology, and German engineering has been an important factor in our success, Claussen said.

Weve managed to build a truly global, efficient organization which is now the fastest growing company in the industry, said Victor Zhuravskiy, the companys general director. We have everything in our hands and confidence that we will continue to expand our business on a long-term basis.

Last year the company broadened its presence in the markets of South Korea, Taiwan, India and Bangladesh, as well in Saudi Arabia. This expansion resulted in Lukoil reaching 3 percent of the global marine lubricants market. LLK said.

The worldwide maritime lubricants market has undergone marked consolidation the past decade, from over a dozen suppliers at the turn of the millennium to only five big players dominating the scene today, according to LLK. Our focus is an early stage of development of new high-grade oils for ship engines, which reduce both [oil] consumption, and wear and tear, Claussen said.

In 2012 the company won 50 marine lubes supply tenders and during the last two years it secured factory fill tenders for more than 100 new large capacity vessels that are under construction or have already launched. LLKs marine oils made supply deals for the most prospective and large ships currently under construction such as container vessels and super tankers. For this kind of ship, the company secured 50 supply tenders in 2012, 2013, and 2014, the company said.

Last year the ship engine OEM MAN/B&W approved the companys Navigo MCL100-branded super alkaline product for use in its two-stroke diesel engines. The tests have shown that this oil gives a record fuel efficiency result and it is appropriate for use in the latest models of the most powerful ship engines, LLK said.

Lukoil Marine Lubricants has its own representative offices and distributors in such countries as Great Britain, Italy, Greece, Norway, Netherlands, India, China, Japan, Australia and South Africa. Its marine lubricants are marketed to ship owners in 600 ports in 62 countries worldwide.

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Europe    Finished Lubricants    Industrial Lubricants    Marine Lubricants    Region    Russia