ESPOO, FINLAND -- (Marketwire) -- 02/28/11 --
Neste Oil Corporation Stock Exchange Release 28 February 2011 at 2.45 pm (EET)
Neste Oil and ADNOC into a partnership in VHVI base oils
Finland's Neste Oil and Abu Dhabi National Oil Company (ADNOC) have entered into a partnership concerning VHVI (very high viscosity index) base oils. Along with the co-operation, 600,000 metric tons per annum of NEXBASE® base oil is expected to be brought onto the market at the end of 2013. Takreer, a subsidiary of ADNOC, will supply the feedstock as well as operate and maintain the plant while Neste Oil will be responsible for the sales and marketing of the base oil on behalf of ADNOC. There will be no investment costs for Neste Oil related to this activity.
The plant will have an annual capacity of 500,000 metric tons of Group III base oil to be used in blending top-tier lubricants, as well as 100,000 metric tons of Group II base oil. The output of the plant is flexible and consists of high- quality base oils with viscosity grades from 2cSt up to 6cSt. Demand for these sulfur-free base oils is increasing globally, thanks to their ability to meet current and future performance requirements, as well as more stringent environmental standards.
Commercial production is expected to start at the end of 2013. In May 2010, Takreer awarded the EPC (Engineering, Procurement and Construction) contract to Hyundai Engineering, and the project is proceeding on-scedule. The plant is based on EMRE's (ExxonMobil Research and Engineering) hydroisomerization technology and Neste Jacobs' distillation technology. The planned facilities also include a revamp of Takreer's existing Hydrocracker Unit, new storage tanks and integration with Takreer's existing refinery units and utilities, and are designed to comply with UAE and international environmental standards.
'We are very delighted about this partnership. It represents an important milestone in implementing Neste Oil's strategy as the new unit will increase the total NEXBASE® base oil capacity to 1.3 million metric tons per year. The partnership strengthens Neste Oil's position as one of the leading top-tier base oils suppliers. We offer high-quality NEXBASE® product slate to the global market, and we are committed to delivering technical support and car manufacturers' extensive approval portfolio for our customers,' says Matti Lehmus, Executive Vice President, Oil Products and Renewables from Neste Oil.
'Neste Oil is one of the world's leading producers and marketers of VHVI base oils, and its products are marketed under the NEXBASE® brand. The new partnership will further extend the global reach of the company's business in this field. ADNOC is renowned for its long and successful experience in the Upstream and Downstream business within the hydrocarbons industry,' says Sultan Al Mehairi, Marketing & Refining Director at ADNOC.
Neste Oil Corporation Hanna Maula Director, Corporate Communications
Neste Oil in brief
Neste Oil Corporation is a refining and marketing company concentrating on low- emission, high-quality traffic fuels. The company produces a comprehensive range of major petroleum products and is the world's leading supplier of renewable diesel. The company had net sales of EUR 11.9 billion in 2010 and employs around 5,000 people. Neste Oil's share is listed on the NASDAQ OMX Helsinki.
Neste Oil has been selected into the Dow Jones Sustainability World Index and is also featured in the Ethibel Pioneer Investment Register. The company is included in The Global 100 list of the world's most sustainable corporations. Forest Footprint Disclosure (FFD) has ranked Neste Oil as the best performer in the oil & gas sector. Further information: www.nesteoil.com.
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Source: Neste Oil Oyj via Thomson Reuters ONE
For further information:
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Oil Products and Renewables
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