January 21, 2020
Volume 3 Issue 7
Lukoil Joint Ventures Post Strong 2019
Lukoil joint venture Intesmo’s grease production was flat in 2019 compared to the year before, while another of its joint ventures, LLK-Naftan, increased its lube additives production by 6 percent, the company said.
Intesmo is a joint venture between Lukoil and Russian Railways, a state-owned railway transportation monopoly. The company’s grease plant in Volgograd, Russia, produced 32,000 tons of grease last year, the same as in 2018. “In 2019 Intesmo increased its premium product production by 12 percent, while we led an aggressive campaign in the international markets,” a Lukoil spokesperson told Lube Report.
The company exported to 30 countries in 2019, 13 of which were new export destinations in Europe, Asia, South America and Africa
Moscow-based Lukoil said it now produces 130 types of grease products, over two-thirds of which are for machinery used in the mining, agriculture, commercial transportation, oil production and metallurgy industries. Around 25 percent of the company’s product portfolio is for the railway transportation industry.
LLK-Naftan is a joint venture between Lukoil and Belarus-owned oil company Naftan. In 2019, the company produced 35,000 tons of lubricant additives, 6 percent more compared to the year before, it said. Its additive production is located in Novopolotsk, Belarus.
“In 2019, more than 45 percent of the total production was used as additives for marine lubricants, while 20 percent of the production was additives for automotive and industrial lubricants,” the company said in a release detailing its yearly business results, adding that the production process was upgraded to achieve formulation of additives for heavy-duty automotive engine oils, hydraulic fluids and locomotive engine oils.
LLK-Naftan ships product to over 90 companies in Russia and other ex-Soviet states, the European Union, the Middle East, Asia and Africa.
The company predicts increased demand for its additives and additive packages in 2020, especially in Europe, and said it plans to expand its production capacity to 40,000 t/y this year.