Lukoil Cuts More Lube Deals


Russian oil major Lukoil recently signed lubricants supply contracts with a number of business and government customers in northern Russia, Sweden, Romania, Bulgaria and Macedonia.

Under the deal between Lukoil Lubricants Oy (the companys Finland lube arm) and Norilsk Nickel, a mining and smelting company, Lukoil will supply over 1,250 metric tons of industrial lubes for mining vehicles and manufacturing equipment during the course of 2014. The oil major will supply the Russian metallurgical giant primarily with its Teboil branded products such as Pressure, Super, Larita, Hypoid or Fluid, according to LLK Internationals Jan 21 press release.

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LLK is Lukoils Russia lube arm.

Based in Norilsk, northern Siberia, above the Arctic circle, Norilsk Nickel is the worlds largest producer of nickel and palladium and one of the biggest producers of platinum and copper in the world.

Last month Lukoil also signed a supply contract with Keolis Sverige, one of the biggest public transportation companies in Sweden, according to the companys Dec. 31 press release. The deal includes supply of up to 500 tons of Lukoils Avantgarde-branded diesel engine oil in 2014.

Established in 14 countries on four continents, French transport group Keolis is one of Europes leading public transport operators. It transports around 2.2 billion passengers annually on railway, bus, tram or air transportation.

During the second half of 2013 Lukoil won a few more lubricants supply tenders with a number of key enterprises in Romania, Macedonia and Bulgaria, according to Viktor Titov, head of the companys East Europe lubricant sales and marketing. In Romania, our partners now include the state-owned Romgaz, an upstream natural gas company, Complexul Energetic Hunedora, a national power supply company, the aviation company Aeroserv and the countrys defense ministry, Titov, who is based in Bucharest, told Lube Report on Tuesday.

In addition, the company increased its lubricant supply to the Romanian railways, that reached 900 tons in 2013, or 10 percent higher volume compared to the year before.

Since July last year, Lukoil also started supplying lubricants to several key customers in Macedonia. In the [countrys] capital of Skopje we now deliver lubricants for the local municipality car park and its rescue and water supply units. In Bulgaria, the company started to deliver its products to Bulgartransgaz, a natural gas transport and storage operator.

All these customers use finished lubes made in the Lukoils lubricants plant in Romania. The 40,000 tons per year plant is located at the site of companys fuel refinery in Ploiesti. Last year the plants output reached 17,000 tons of finished products. The lubes produced here include a range of Lukoils high quality gasoline and diesel engine oils such as Genesis and Avantgarde. It also produces hydraulic and transmission lines of oils and fluids, he said.

Lukoil is the largest lubricant marketer in Russia with a significant market presence in central, eastern and southeastern Europe. In Russia it operates four blending and base oil plants. In addition to its plant in Romania, Lukoil operates a 32,000 t/y blending plant in Hamina, Finland and a 21,000 t/y plant in Izmir, Turkey.

The companys 35,000 t/y lubricants production facility in Vienna, bought from the Austrian energy group OMV last year, will be handed over to the Russian oil major after the deal closes Jan. 31, 2014.

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