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January 4, 2017

Volume 17 Issue 52

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Rosneft Lubes Soared in 2015

Russian oil major Rosneft produced 779,000 metric tons of base oils, finished lubricants and additives combined in 2015, 6 percent more than the year before, solidifying its position as the second-largest lubricant marketer in Russia, according to the company’s annual report.

Rosneft, in which the Russian government owns a majority stake, said 457,000 tons of the total were finished lubricants marketed on the domestic market by subsidiary RN-Lubricants. The company did not specify the volume of base oils or additives.

RN-Lubricants’ sale of premium automotive and industrial lubricants jumped 14 percent to 55,000 tons – a development that Rosneft attributed to the Russian government’s import substitution policy. After the imposition of international economic sanctions over Russia’s alleged role in Ukraine’s civil war, the government encouraged Russian companies consuming imported products to replace them with domestic alternatives.

“Last year, we launched a number of marketing initiatives for expansion at home and in nearby countries such as Belarus and Kazakhstan,” Rosneft said. “We opened representative offices in Kazakhstan, China and Turkey, and signed a number of supply contracts and strategic partnership agreements with many companies and large enterprises in Russia and in neighboring markets.”

Rosneft focuses on production of industrial lubricants for large Russian energy and mining companies. 

The company expanded its product portfolio to include a new line of Plastex-branded greases, a new line of hydraulic oils under the Gidrotec brand, and MEI-20, a new line of electro-insulation oils. In addition, it also rolled out a program for distribution of its products through Avtovaz car manufacturer’s service stations.

Rosneft said it is working on developing its own technology for producing polyalphaolefin oils (API Group IV base oils) with a high viscosity index of 140-170 and a low pour point of minus 50 to minus 65 degrees Celsius. “In 2015, we finished the project documentation for the construction of a testing and production facility capable of producing 300 tons of PAOs annually,” Rosneft said.

After Lukoil, Rosneft is the second largest lubricants marketer in Russia. It operates two lubricant production facilities, the Novokuibyshevsk Oils and Additives plant and Nefteprodukt in Moscow. It also operates two Group I base oil plants, the 230,000 t/y facility in Angarsk and the 230,000 t/y plant in Novokuibyshevsk. Rosneft also shares a Group I base oil plant with Gazprom Neft through Slavneft, a 50-50 joint venture.