Russian lubricant maker Lukoil recently reached several key marine oil agreements to supply a range of customers, from civil maritime operators to navy contractors.
In late May Lukoil Marine Lubricants made a deal to supply 4 million liters of marine oils in one year to Oman Shipping Co. Half of this volume is slated to be Navigo MCL 100, Lukoils flagship alkaline marine cylinder lubricant for low-speed two-stroke diesel engines.
Lukoils marine oils underwent extended testing on several Oman Shipping Co. vessels, and Oman Shippings management approved their use. One of the decisive factors for this deal is the technical ability and competitiveness of Navigo MCL 100, Victor Zhuravsky, Lukoil Marine Lubricants general director, said in a May 27 press release. This agreement has a strategic importance for further development of our business in the Middle East region. It is especially important in the segment of large tankers and bulk transport vessels.
Oman Shipping Co. is owned by the government of the Sultanate of Oman and has one of the youngest and largest fleets in the world. At the moment the fleets average age is 5 years, and it consists of 43 vessels with 300,000 to 400,000 tons of payload each. Oman Shipping has ordered construction of 10 more vessels of the same class, for delivery over the next two years.
In 2012 the Lukoil Marine Lubricants broadened its presence in the markets of Saudi Arabia, India and Bangladesh, as well as in South Korea and Taiwan. This expansion resulted in Lukoil reaching 3 percent of the global marine lubricants market, Lukoil said last year.
In the summer of 2013 Lukoil Marine signed an agreement to supply marine lubricants to the worlds largest owner and operator of cruise ships, U.S. Carnival Group. The agreement covers a fleet of the Carnivals two United Kingdom subsidiaries, P&O Cruises and Cunard Line, including flagship Queen Mary 2, one of the globes most famous cruise liners, according to Lukoil.
In October 2013 the Lukoil Marine Lubricants provided first fill for the Russian Navys Mistral-type Vladivostok helicopter carrier at the shipbuilding company STX Europes shipyard in Saint-Nazaire, France. The first carrier was scheduled to be delivered by France later this year. But the $1.7 billion contract for delivery of two such helicopter carriers, which was signed at the St. Petersburg International Economic Forum in 2011, is now controversial because of the Russian-Western standoff over the conflict in Ukraine.
Lukoil Marine Lubricants, part of LLK International, Russian oil major Lukoils lube arm, is a stand-alone sales and marketing business with focus on production and sales of marine oils globally. It was created in 2008 and it has regional offices in United Arab Emirates, Germany, Singapore and the United States. The company markets its products to ship owners in 600 ports in 62 countries worldwide.
Parent company Lukoil is the largest lube marketer in Russia.