Dubai: The UAE’s state-run oil company Abu Dhabi National Oil Company (ADNOC) has signed a long-term sales agreement with the Indian Oil Corporation (IOC) for its high quality base oil ‘ADbase’.
Indian Oil will use the ADbase oils to manufacture high end engine oils for India’s growing automotive sector, ADNOC announced Wednesday.
“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,” said Ahmad Bin Thalith, acting senior vice-president of Refined Products Sales, in ADNOC.
“We look forward to working with Indian Oil 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,” Thalith added.
Indian Oil is the largest seller of finished lubricants in the Indian market with approximate volume of 4,50,000 tonnes per annum. The total Indian market for finished lubricants is two million tonne and is growing at the rate of 2.4 per cent per annum.
Subimal Mondal, ED (Lubes division) at Indian Oil said: “Indian Oil 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 the key in our decision to sign this agreement.”
ADNOC Refining, an ADNOC subsidiary, produces up to 5,00,000 metric tonne per year of Group III base oil and around 100,000 metric tonne per year of Group II base oil, at its Ruwais refinery.
