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ADNOC signs long-term agreement for base oil sales into China

Published by , Editorial Assistant
Hydrocarbon Engineering,

The Abu Dhabi National Oil Co. (ADNOC) has announced that it has concluded a significant long-term sales agreement with the Xiamen Sinolook Oil Co. Ltd for its high-quality base oil, ADbase.

ADNOC Refining, an ADNOC subsidiary, produces up to 500 000 tpy of Group III base oil at its Ruwais refining and petrochemicals complex. Group III base oils are typically used to manufacture top-tier, high-performance engine oils. The company also produces around 100 000 tpy of Group II base oil.

Ahmad Bin Thalith, Acting Senior Vice President of Refined Products Sales, in ADNOC’s Marketing, Supply and Trading Directorate, said: “The signing of this important sales agreement, with a major base oil consumer and distributor in a large and growing market, marks another significant milestone for ADbase. This agreement once again underlines ADNOC’s commitment to delivering the highest-quality products and service, while achieving the best commercial value through innovative and competitive marketing strategies, expansion of our client base and penetration of new markets.”

Established in 2011, Xiamen Sinolook Oil is one of China’s biggest importers and distributors of base oils, with a 5% share of the 7.17 million tpy market. In 2018, demand for base oils across China increased by 6.4% and is forecast to grow by more than 6% in 2019.

Qingchun Lin, General Manager, Xiamen Sinolook Oil, said: “We have been importing Group III base oils produced by ADNOC since 2016, and we have more than 300 end-user customers throughout China. We have great confidence in the quality and reliability of ADNOC’s base oil products and believe that ADbase can help meet the growing demand of the Chinese market for high-quality Group III base oils.”

Murban, Abu Dhabi’s light, high paraffinic crude, is used as feedstock for ADNOC’s base oil plant in Ruwais, which ensures a consistent, high-quality product. ADbase has a high viscosity index (VI) making it an ideal lubricant component, ensuring efficiency and fuel economy for high-performance engines, whilst meeting environmental regulations.

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