Gazprom Neft updates motor oil business development strategy 2025

Gazpromneft Lubricants, the Gazprom Neft subsidiary that specializes in the production and sale of motor oils, lubricants, and technical fluids, has updated its long-term development strategy by defining targets to be reached before 2025.
Gazpromneft Lubricants plans to grow its overall motor oil production to 633,000 tons by 2025, which is 40% higher than 2012. That figure includes 330,000 tons of high-grade packaged oils to be sold both in Russian and international markets. The company expects to take approximately 18% of the Russian lubricants market as a result of the growth.
In the mid- to long-term, Gazpromneft Lubricants will complete a number of its major investment projects, among which is the building of a dedicated production capacity at the Omsk Lubricants Plant for Groups II and III base oils, which are currently not produced in Russia.
The company is also planning to expand the Moscow Lubricants Plant’s capacity and modernize its lubricants production facilities. Construction of the second blending and packaging line at the Omsk Lubricants Plant will be completed in 2013. The first line was commissioned in May 2012. The company will invest a total of US$660 million in lubricants infrastructure between 2013 and 2025.
“Expanding Gazprom Neft’s motor oil business in combination with long-term industry forecasts will allow us to maintain current growth rates until 2025 and strengthen the company’s market positions. One of Gazpromneft Lubricants’ competitive advantages is its strong engineering base and its aspiration to implement the latest world-class technologies at Russian production sites in order to provide quality products to Russian consumers,” noted head of Gazprom Neft Commercial Directorate Levan Kadagidze.
Gazpromneft Lubricants’ share on the Russian motor oil market rose in 2012 from 10 to 14%. The sales volume of G-Energy premium brand motor oils in Russia reached 10,000 tons per year. Over the past year, the company increased its packaging capacity by 70%, up to 172,000 tons. It invested US$158.9 million in developing production between 2008-2012.
(March 28, 2013)