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ADNOC signs agreement with Penthol for Group III Base Oil Sales into US

posted on 18/05/2017: 1952 views

The Abu Dhabi National Oil Company, ADNOC, yesterday announced that it has signed an exclusive agreement with Penthol, a global organisation in the supply and distribution of oil products and petrochemicals, appointing them as exclusive seller of ADNOC's Group III base oil in the United States of America.

In line with its strategy to maximise value from its refining and petrochemical business, ADNOC produces up to 500,000 metric tonnes per year of high quality Group III base oil through the Abu Dhabi Oil Refining Company, Takreer, an ADNOC Group Company. Group III base oils are typically used to manufacture top tier, high performance, engine oils.

Abdulla Salem Al Dhaheri, Marketing, Sales and Trading Director at ADNOC, said, "We are focused on achieving the best commercial value from our crude and petroleum products, through innovative and competitive marketing strategies and the expansion of our client base. Our Group III base oil uses Murban, Abu Dhabi's light, sweet crude oil, as feedstock, setting new standards for quality and consistency."

"Tighter emissions regulations are driving the use of high performance lubricants in transportation. This is in turn driving up the demand for Group III base oils, which deliver improved performance and increased fuel economy."

"We aim to capitalise on ADNOC's long-established reputation for high quality products to market ADNOC base oil to leading lubricant makers in the USA, and worldwide. The USA is one of the world's largest importing markets of Group III base oils and we are therefore excited to work with Penthol to deliver our high-quality product into an important global market," added Al Dhaheri.

Faruk Erkoc, Chairman at Penthol, said, "Penthol was proud to lift the very first cargo from the new ADNOC plant in June 2016, and we have been exceptionally pleased with the quality and consistency of the product we have received since. We look forward to expanding our relationship with ADNOC and to delivering greater volumes of Group III base oil to customers in the USA."

ADNOC's Group III base oil has a high Viscosity Index, which means it will thicken less as it gets cold and will thin out less at higher temperatures, providing better lubricant performance at both temperature extremes. It also has Low Volatility and a low Cold Cranking Simulator viscosity.

Group III base oils are greater than 90 percent saturates, less than 0.03 percent sulfur and have a viscosity index above 120. These oils are refined more than Group II base oils, the most widely used base oils for engine lubricants, and generally are severely hydrocracked, using higher pressures and heat. This longer process achieves a purer base oil.

ADNOC has already completed API approval, GF-5, and 0w20 for full synthetic motor oils, and is actively working with additive companies to achieve Original Equipment Manufacturers formulation approvals.


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