Abu Dhabi’s National Oil Company (ADNOC) has signed an exclusive agreement with Switzerland-based Chemlube SA, appointing the company as the exclusive seller of its Group III base oil product in Europe.
The agreement was signed at an event in London, which also saw the launch of ADbase, ADNOC’s new base oil brand.
Chemlube SA is a sister company of New York-based Chemlube International, which deals with the trading and distribution of base oils.
ADNOC Refining, an ADNOC subsidiary, produces up to 500,000 metric tonnes per year of Group III base oil at its Ruwais refining and petrochemicals complex.
Murban, Abu Dhabi’s light, high paraffinic crude, is the only source of feedstock for the plant in Ruwais. It has a high Viscosity Index.
Group III base oils are typically used to manufacture high performance engine oils.
The Abu Dhabi company is currently pursuing a strategy to increase value from its downstream refining and petrochemical operations, with plans to expand its client base and penetrate new markets.
The latest deal follows a similar agreement signed with Penthol CV, an international organisation dealing with the supply and distribution of oil products and petrochemicals.
Under the deal, signed in May last year, Penthol was appointed as the exclusive seller of ADNOC Group III base oil in the US.
ADNOC has completed API SN approval, GM Dexos 1, ILSAC GF-5, and 0w-20 for full synthetic motor oils, and is now working with additive companies to achieve Original Equipment Manufacturers (OEM) and European Automobile Manufacturers Association (ACEA) formulation approvals.