The Abu Dhabi National Oil Company (ADNOC) announced that it has concluded a long-term sales agreement with Xiamen Sinolook Oil Co., of China, for its high-quality base oil, ADbase
In line with ADNOC’s strategy to maximise value from its downstream refining and petrochemical operations, ADNOC Refining, an ADNOC subsidiary, produces up to 500,000 metric tonnes per year of Group III base oil, at its Ruwais refining and petrochemicals complex.
Group III base oils are used to produce top-tier, high-performance engine oils. The company also produces about 100,000 metric tonnes of Group II base oil per year.
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,” he added.
Established in 2011, Xiamen Sinolook Oil Co. Ltd. is one of the largest importers and distributors of base oils in China, with a 5 per cent share of 7.17mn tonnes per annum market. Demand for base oils across China increased by 6.4 per cent in 2018 and is forecast to grow by more than 6 per cent in 2019.
Qingchun Lin, general manager, Xiamen Sinolook Oil Co. Ltd., commented, “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.”
The signing of this agreement follows the signings in 2017 and 2018 of agreements with Penthol C.V. and Chemlube for the supply of ADbase into US and Europe.
