31 Dec 2010 12:52

Lukoil boosts motor oil production 32% in 2010

MOSCOW. Dec 31 (Interfax) - Lukoil produced about 1.4 million tonnes of motor oil and specialty petroleum products in Russia in 2010, LLK International, a 100% subsidiary in charge of production and sale of motor oil, said, citing preliminary data.

That was a 32% increase over production last year, 1.06 million tonnes.

The company utilized 100% of production capacity in 2010. It also produced 111,000 tonnes of paraffins (87,800 tonnes in 2009) and 46,900 tonnes of oil extracts (31,100 tonnes).

Sales of lubricants totaled 1.376 million tonnes in 2010. Sales of product packaged for industrial users rose 73% in 2010 compared with 2009. Sales of Lukoil branded product in consumer packaging amounted to 105,000 tonnes, 8% more.

Major customers include Urals Mining and Metallurgical Company (UMMC), Metalloinvest, Mechel , MMC Norilsk Nickel and Severstal . All the contracts were concluded in open tenders, Lukoil said.

Lukoil began selling lubricants on the St. Petersburg International Raw Material and Commodity Exchange in December 2010. It offers industrial lubricants and motor oils.

The company has developed 40 new kinds of lubricants and has 80 certified production processes. It has almost 230 production technology certifications, and Lukoil's global line of lubricants exceeds 550 brands. Lukoil motor oil provides the first fill at the factory for cars produced by Avtovaz , GAZ , Kamaz and MAZ, and for Ford Cargo trucks.

Lukoil produces lubricants at facilities in Russia and abroad: Perm Refinery, Volgograd Refinery, Nizhny Novgorod Refinery, the LLK International subsidiary in Tyumen, LLK Finland Oy, LLK Lubricants Romania S.R.L., LLK Eurasia in Turkey and the LLK-Naftan joint venture in Belarus.

The Lukoil group accounts for over 40% of motor oil production in Russia.

LLK International plans to begin producing synthetic oil in a joint venture with Russian Railways (RZD) in 2012.