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Oils and lubricants

        

Oils and lubricants

in depth:


2011 Annual Report

Adobe PDF version (8.80 MB)


Production and sale of lubricants is an important part of LUKOIL’s business. The Group is constantly improving the quality of products and expanding their range, as well as raising efficiency of the sales system and diversifying the geography of this business sector.


LUKOIL is the leader on the Russian lubricants market, accounting for about 44% of domestic production. Lubricants are produced at Group refineries in Perm, Volgograd and Nizhny Novgorod. The Company also mixes lubricants from readymade components (both produced by the Company and bought from third parties) at facilities in Russia, Finland, Romania and Turkey.

 

 

Lubricant production including mixing from readymade components totalled 1.238 million tonnes in 2011. Branded lubricant production was 316,000 tonnes in 2011, representing an increase of 13% from 2010.


The number of different oils & lubricants and other vehicle chemicals made at LUKOIL’s russian refineries increased from 230 to 261 in 2011 compared with 2010. outputs include motor and transmission oils for all types of transport, lubricants for industrial equipment, and base oils (used as inputs for production of ready-to-use oils, lubricants and additives).


LUKOIL carries out sales of lubricants in more than 40 countries worldwide and its sales geography is constantly expanding. In 2011 the Company began lubricant sales in Afghanistan, Mongolia and China.


In a major breakthrough for LUKOIL’s lubricant business the Company obtained its first-ever contracts in 2011 for lubricant supplies to newly-built ships, winning a tender for first-filling of 71 vessels. MAN limitations on maximum size of engines suitable for LUKOIL lubricants were lifted. Approvals were obtained from Japanese marine engine manufacturers, Daihatsu and Yanmar, and also from the biggest South Korean shipbuilder, Hyundai Heavy Industries. LUKOIL began supplying lubricants to the global shipping companies, Sovcomflot, Maersk, Happag Lloyd and ZIM. The Company’s ship lubricants were available in 550 ports in more than 62 countries worldwide by the end of 2011 and the share of LLK Marine on the global market reached 2%.


LUKOIL motor oils meet international requirements of the Society of Automotive Engineers (SAE), the American Petroleum Institute (API), the European Automobile Manufacturers Association (ACEA) and the Russian Association of Automobile Engineers (AAE). Our oils are produced using the latest technologies and contain high-quality additives supplied by Russian and foreign producers.


High performance qualities of LUKOIL lubricants have been acknowledged by major automotive manufacturers in Russia and abroad. Company motor oils have passed tests at western certification centers on engines made by DaimlerChrysler, BMW, Volkswagen, MAN, Porsche, Volvo, Renault trucks and Cummins, and have been approved for use in these engines. A total of 38 new lubricant products were brought into production in 2011 and 48 manufacturer approvals were obtained.

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