Abu Dhabi National Oil Company signs agreement with Indian Oil Corporation, one of the world's largest companies
Abu Dhabi National Oil Company (Adnoc) announced on Tuesday that it has signed another significant long-term sales agreement with Indian Oil Corporation for its base oil, ADbase.
IndianOil is one of the world’s largest companies, ranked 137 on the Fortune 500 list and is the largest seller of finished lubricants in the Indian market with approximate volume of 450,000 tons per annum.
The total Indian market for finished lubricants is 2 million tons and is growing at the rate of 2.4 percent per annum. IndianOil said it will use the ADbase oils to manufacture high end engine oils for India’s growing automotive sector.
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 another major base oil consumer in a large and growing market, is testament to the quality and reliability of Adnoc’s Group III base oil, ADbase.
"We look forward to working with IndianOil and to increasing the supply of ADbase to the Indian market, which continues to see strong demand for high quality base oil and finished lubricants.”
Subimal Mondal, executive director (Lubes) at IndianOil added: “IndianOil is a long-standing partner of Adnoc and we look forward to building on and strengthening the links between our two companies. The high quality of Adnoc’s ADbase product, combined with strong logistics support and the proximity of the UAE to India, was key in our decision to sign this agreement.”
The signing of this agreement follows a recent signing with Xiamen Sinolook Oil Company to supply ADbase into China, and the 2017 and 2018 exclusive agreements with Penthol and Chemlube for the supply of ADbase into the United States of America and Europe.
Adnoc Refining 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.