Chevron Oronite Co. LLC has reached an agreement to supply lubricating oil additives to Russian oil giant OAO Lukoil Oil Co., a deal that marks a step toward realizing plans for a joint venture serving Russia and the former Soviet republics.
Under terms of the master supply agreement, Oronite will supply additives for Lukoil lubes until the companies are prepared to have Oronite additives produced at a Lukoil facility.
Oronites additives supply to OAO Lukoil’s refineries is the first stage of co-operation… said Patrice Vignau, president of Oronites subsidiary for Europe, Africa and the Middle East. The second stage is formation of the J.V.
The companies have not announced a target date for creation of the joint venture, plans for which were unveiled a year ago. Once established, the alliance would supply most, if not all of the additives used by Lukoil, which claims approximately 50 percent of Russias lubes market and is the worlds eighth-largest lubricant producer. The joint venture would also market additives to other lubricant makers in Russia and former Soviet republics.
Lukoil Vice President Vladislav P. Bajenov said Oronite additives will help the Russian company make high-quality lubricants cost efficiently.