Kazakhstan industry depends heavily on petrochemical imports from Russia, and the trade between both states is regulated to protect the market and avoid domestic shortages by re-export to third countries. Citing re-export problems, Russia banned base oil and other petrochemical exports to Kazakhstan in January. In response, Kazakhstan banned the export of naphtha, gasoline, gasoil, diesel, base oils and lubes outside of the customs union (Russia, Belarus and Kazakhstan).

In 2013, Russia held 63 percent of the total trade between the countries of the custom union, according to the unions official website. Exports to Kazakhstan total around 85,000 tons of base oils annually. Almost half of these supplies come from Gazprom Nefts Omsk refinery.

Gazprom Neft is also the biggest finished lubricant supplier in Kazakhstan, and it held 40 percent of the countrys lubricant sales in 2013. The countrys only big blender is Hill (High Industrial Lubricants and Liquids), with a 70,000 t/y plant in Shymkent, southern Kazakhstan. Hill focuses on supplying the domestic market, although some of its production is exported to China. Before being put on hold, these shipments enjoyed the absence of an export tax.

Q8Oils Repurposes Leeds Location

Q8Oils spent 80,000 to convert its Leeds, U.K., location from lubricant blending to filling and storage. The reengineering involved upgrading bulk storage tanks and tank gauging equipment, and installing new pipework and a new filling line, as well as converting vessels that were originally used for blending lubricants into storage tanks. The facility will now serve as a storage hub and filling location for bulk lubricants imported from its sister plant in Antwerp.

The U.K. is key … particularly at a time when it is emerging from the economic downturn faster than most of Europe, Q8Oils sales director Gianluca Fenaroli said in a press release. One of the main reasons Q8Oils decided to invest in reengineering the Leeds plant was to discontinue importing base oils and additives from mainland Europe.

The Leeds plant has stopped importing base oils and additives for blending lubricants, nearly all of which were imported by truck, Q8Oils brand and communications manager, Neil Grieve, said. These same trucks will now be importing blended lubricants in bulk from the Antwerp plant. The bulk imports will be broken down into small bulk drops for Q8Oils U. K. customers, or used for filling intermediate bulk containers, barrels, pails, small bottles, and more at Leeds.

The company is also upgrading its Antwerp facility, which will have blending capacity of 125,000 metric tons per year along with additional storage tanks for raw materials and finished lubricants. Everything is on schedule for being fully operational by the end of October, Grieve said.

BP Marine Now Castrol

Castrol has announced that it will become the sole brand for the BP groups marine lubricants offerings. Consolidation of the marine lubricants currently provided under both BP Marine and Castrol Marine brands creates a single product and service portfolio. The transition has been in progress for over two years, beginning with the gradual migration of ancillary products from BP to Castrol. Main grade marine lubricant products and services will be moved to their Castrol equivalents in the coming months. During the transition period, customers will start to receive Castrol products in place of BP grades. Castrols main grade portfolio is fully compatible and miscible with corresponding BP lubricants.

Fuchs Acquires Batoyles U.K. Business

Fuchs Petrolub SE acquired the lubricants business of Batoyle Freedom Group in the United Kingdom on June 20 and will integrate it into its subsidiary Fuchs Lubricants (UK). Terms were not disclosed.

Batoyle and Freedom, based in Huddersfield, recorded combined sales of 15 million (U.S. $20.4 million) in financial year 2013-2014. Following a transition period, manufacturing will be integrated into Fuchs’ plant in Hanley.

Mannheim, Germany-based Fuchs said in a news release that it made the acquisition to gain access to product technology, customer base and personnel, especially in the glass manufacturing lubricants sector. A Fuchs spokesperson stated, With regard to the glass business, we acquired a product line for the hot end of the glass manufacturing process: sheer lubricants, shot gun lubricants and lubricants for the so-called independent section machines. We intend to use Batoyles global footprint to develop the glass technology.

The Fuchs spokesperson said that all 70 employees will transfer to Fuchs.

According to Batoyles website, the company is one of the largest independent lubricant manufacturing companies in the U.K. Its five main lubricant divisions serve the automotive, glass, industrial, textile and tube and wire industries. It exports lubricants to more than 50 countries.

Batoyles other product lines complement the lubricants portfolio of Fuchs’ automotive and industrial businesses. The industrial product range consists of metalworking fluids and industrial oils including compressor oils. Automotive products are sold to agricultural customers and resellers.

ExMo Opens European Products Center

ExxonMobil opened its first lubricants products technology center in Europe, where it will collaborate with original equipment manufacturers and other European customers on testing, research and development. Located at ExxonMobils ESSO Deutschland GmbH campus in Hamburg, Germany, the research facility, known as its European Products Technology Center, will parallel the U.S.-based fuel and lubes giants primary product technology facility in Paulsboro, New Jersey.

The new center will work closely with ExxonMobils facility in Paulsboro and with third-party test labs, said Peter Passlack, manager of the new facility. We are also looking forward to taking advantage of the engineering talent at Europes top universities and hope to use the European Products Technology Center as a platform for training the next generation of technical experts and leaders.

The centers Hamburg location will enable engineers to work more closely with automotive, aviation, marine and industrial equipment manufacturers to conduct field testing and proof of performance in Europe, Passlack said. The facility will help align ExxonMobil with Europes key OEMs and equipment builders, the companys vice president of lubricants, Nigel Searle, said.

Gulf Petrochem Targets Sah

United Arab Emirates-based oil products trader Gulf Petrochem Group is in the midst of an initiative to buy Indian lubricant supplier Sah Petroleums, according to stock exchange records and a Sah official. Gulf Petrochem already operates a grease plant, but acquisition of Sah would immediately make it one of the largest suppliers of industrial lubricants in India.

According to a June 25 filing on the Bombay Stock Exchange, two Gulf Petrochem arms – Gulf Petrochem Energy Pvt. and Gulf Petrochem Pte. – offered to pay up to Rs 20.02 crore (Rs 200.2 million or U.S. $3.3 million) for the 25 percent of Sah stock that is publicly traded.

Sah Petroleums Secretary and Compliance Officer D. Malla Reddy confirmed that Gulf Petrochem also offered to buy the 75 percent of Sah shares that are privately held. Indian business news group VC Circle previously reported that Gulf Petrochem had reached an agreement to pay Rs 60 crore to buy out the Sah family, which owns 75 percent of the company.

The June 25 filing and a follow-up July 1 filing indicate that owners of publicly traded shares have until September 1 to accept Gulf Petrochems offer. Reddy said the transaction for the privately held shares is proceeding.

Aramco Ups S-Oil Stake

Saudi Aramco has agreed to purchase Hanjin Groups 28 percent stake in S-Oil Corp. The transaction would give Aramco majority control of the South Korean refiner, one of the worlds largest suppliers of highly refined base oils.

Aramco said the conceptual agreement calls for its subsidiary, Aramco Overseas Co. B.V., to pay Hanjin 2.0 trillion won (U.S. $1.95 billion). The deal is contingent on execution of a formal agreement and regulatory approval.

This transaction underscores Saudi Aramcos confidence in the Korean economy and its strategy to enhance its presence in the growing Asian markets and AOCs commitment to S-Oil growth, Saudi Aramco President and Chief Executive Officer Khalid A. Al-Falih said in a written statement.

Aramco already owns 35 percent of S-Oil, so the acquisition would increase its stake to 63 percent. South Korean investors own the other 37 percent. Hanjin, a Seoul-based conglomerate, said in December that it wanted to sell its S-Oil shares to raise funds for one of its flagship businesses, Korean Airlines.

S-Oils oil refinery in Ulsan, South Korea, is one of the worlds largest and includes a base oil plant with capacity to make 1.9 million metric tons per year of API Group II and III base stocks. The base oil plant is second-largest in the world. Aramco is the worlds largest crude oil supplier.

BRB Names Business Development Manager

Dutch additives and chemicals producer BRB International BV has appointed Ralph Peeters as Global Business Development Manager. Peeters has been with the company for 12 years in various positions. In his new function, he will focus on expanding the customer base, looking for new business possibilities and exploring new areas for BRB. He will be involved in new product development and support the regional sales teams at the same time.