The Abu Dhabi National Oil Company (ADNOC) signed a long-term sales agreement with the Indian Oil Corporation (IndianOil) for its high-quality base oil, ADbase, ADNOC announced Tuesday.
IndianOil will use the ADbase oils to manufacture high-end engine oils for India's growing automotive sector.
According to ADNOC's statement, Group III base oil ADbase has a high viscosity index making it an ideal lubricant component, ensuring efficiency and fuel economy for high-performance engines, while meeting environmental regulations.
ADNOC Refining, an ADNOC subsidiary, produces up to 500,000 metric tonnes per year of Group III base oil and around 100,000 metric tonnes per year of Group II base oil at its Ruwais refinery, it said.
According to the press release, the signing of this agreement follows a recent signing with Xiamen Sinolook Oil Company to supply ADbase to China, and the 2017 and 2018 exclusive agreements with Penthol C.V., and Chemlube for the supply of ADbase to the U.S. and Europe.
IndianOil is one of the world's largest companies, ranked 137 on the Fortune 500 list. It is also the largest seller of finished lubricants on the Indian market with an approximate volume of 450,000 tons per year, according to the press release.
The total Indian market for finished lubricants is 2 million tons and is growing at the rate of 2.4 percent per year, it added.
ADNOC is a major diversified group of energy and petrochemical companies that produces about 3 million barrels of oil and 10.5 billion cubic feet of raw gas a day.
By Hale Turkes