Russias Gazprom will produce Texaco-branded marine oils in Russia for U.S. oil major Chevron. Under the agreement, Gazprom Neft-SM, lubricant arm of the government-controlled Russian energy company, will blend and market a wide range of marine oils, including hydraulic, compressor and turbine oils, as well as cooling fluids and marine greases. Gazprom Neft-SM will open a marketing office in St. Petersburg, which the company says will enable it to effectively transport and warehouse the lubricants.

The agreement calls for the operation to use base oils from Gazprom Nefts Omsk refinery. Gazprom Neft-SMs production facilities in Omsk and Fryazino have received all necessary certifications and permits to comply with the Chevron licensing agreement. Formulas of the marine oils have already received approvals from the leading ship engine manufacturers, such as Man-B&W, Sulzer, Wartsila, Caterpillar, Deutz, AMM and Rolls-Royce.

Total Cuts Base Oil Output

Total temporarily cut base oil production at its Gonfreville, France, refinery on 10 March, citing a weak market and economy. The Gonfreville refinery is Totals only wholly owned base oil plant in Europe with a capacity of 500,000 metric tons per year of API Group I and 40,000 t/y of Group III capacity.

The main reason for the production halt, according to a Total spokesperson was that the cost of vacuum gas oil − which is used as a feedstock − has increased, while prices of base oil have fallen. While the line is halted, maintenance is being carried out. The line will be restarted as soon as the economic situation improves.

Gazproms Lube Sales Rise

Gazprom Neft-SMs automotive lubricants sales soared in 2011, boosted by new high-end products for domestic and international markets. The company increased its market share and last year held 14 percent of the Russian lubricants market, according to General Director Alexandr Truhan. The Russian lubricants market has seen growth in 2011, and Gazprom Neft-SM increased its sales in its finished automotive products segment by 37 percent [compared to 2010], he said.

Gazprom sells its premium automotive lubes under the G-Energy brand and added 13 new types of finished lubricant products in 2011. It is also developing top-tier engine oils for Formula One racing cars.

The company produced 409,000 tons of finished lubes and base oils in 2011, 20,000 tons less than the year before. Its base oil exports dropped 75,000 tons in 2011, compared to 2010.

Currently, Gazprom sells its products in 35 countries. The company increased its market share in Italy, a key European market, and is expanding in Central Asia.

Rosneft, Avtovaz Form Lubes Team

Rosneft and Russian automaker Avtovaz signed a fuels and lubricants procurement contract that could lead to development of new lubricants in Russia. Financial terms were not disclosed. The agreement envisages long-term cooperation in supply of motor oils, petrol and diesel fuel, as well as development of new lubricants, state-owned oil major Rosneft said.

Rosneft and Avtovaz are joining forces to develop both companies research and production potential, said Avtovaz President Eduard Khudainatov. Rosnefts oils and additives plant at its Novokuibyshevsk refinery is getting ready to launch a new line of premium lubes. These lubes can meet the car manufacturers latest requirements, he noted.

Based in Togliatti, Samara oblast, Avtovaz expressed confidence that the partnership with Moscow-based Rosneft will support development of the Russian lubricants and additives market. It will also increase the companys production efficiency and boost the quality of its… vehicles and equipment. The resulting economic effect will allow us to provide additional support to the city, where our plant is based, said Avtovazs Komarov.

Rowe Builds Blend Plant

German lubricant producer Rowe Mineraloelwerk GmbH is building a second blending plant to accommodate the growth of its business. The facility – scheduled to open next year in Worms, Germany – will have capacity to make 120,000 metric tons per year.

Production at our plant in Bubenheim is approaching capacity, so we needed to expand, Chief Executive Officer Michael Zehe told Lube Report in March. Plus, having two plants will allow us to separate lubricants production from other fluids such as antifreeze.

Rowe, which is based in Bubenheim, Germany, makes lubricants that it markets under its own Hightec brand and also contract blends and packages for other companies. It describes itself as one of the fastest growing independent oil blenders in Europe.

Capacity at the Bubenheim plant is 60,000 t/y. The company announced plans to build in nearby Worms two years ago, but the 40 million project was slowed by work that confirmed there were no archaeological remains of historical significance on the site. Zehe said the Worms site has a number of advantages.

Anton Paar Acquires Petrotest

Anton Paar announced the acquisition of Petrotest Group of Dahlewitz, Germany, in what the company calls the largest purchase in its history. Petrotest produces equipment to determine the flash point of petroleum products, using the Pensky-Martens method.

Its equipment is used by refineries; manufacturers of biofuel, vehicles and bitumen; and companies in the chemical, beverage and food industries. The subsidiary will be managed by Florian Wierzbicki, the companys former commercial manager, and Heinz Kindl-hofer, Anton Paars business development manager.

Anton Paar produces instruments to measure density and concentration, dissolved CO2, rheology and surface characteristics. Its customers include soft drink and beer manufacturers, as well as companies in the food, chemical and pharmaceutical industries.

Pars Exec Wins Industry Award

Ali Sadeghi Mojarad, executive manager of Pars Oil Co., was recognized at the Seventh National Ceremony of Iran Champions of Industry and Economy. The award, sponsored by the Minister of Industry, Mines and Commerce, honored Mojarad for his achievements in managing the Iranian lubricants market and incorporating methods to enhance lubricant production and quality.

The award is given to encourage entrepreneurship and improving customer satisfaction. This is the first time the manager of a branded lubricant manufacturing company has won the award.

Mojarad controlled costs by changing the base oil slate that Pars uses, outsourcing some company activities and rearranging the product portfolio. His efforts were credited with helping to raise the companys value on the Iranian Stock Exchange by almost 40 percent.