The ADNOC (Abu Dhabi National Oil Company), the UAE’s state-owned oil company, has reportedly entered into a long-term agreement with the Indian Oil Corporation Limited (IOCL), for the sale of its superior-quality base oil known as ADbase.
According to Subimal Mondal, the Executive Director (Lubes), IndianOil, the company is now a long-term partner to ADNOC and intends to consolidate and build on the mutual association. The superior quality of the ADbase product of ADNOC, together with the UAE’s robust logistics support and proximity to India, has been IOCL’s prime focus while signing this agreement, added Mondal.
Ahmad Bin Thalith, the Acting Senior VP of Refined Products Sales at Marketing, Supply & Trading directorate of ADNOC, was quoted saying that this sales agreement with another major base oil consumer like IOCL, is an apt instance proving the quality & reliability of ADbase – ADNOC’s Group III base oil. He further affirmed that the company looks to working with IndianOil and majorly enhancing the supply of ADbase to the Indian market that has been witnessing burgeoning demand for high-quality base oil and finished lubricants.
Reportedly, the materialization of the latest deal follows ADNOC’s recent agreement with Xiamen Sinolook Oil Company for the supply of ADbase to China, as well as the exclusive 2017 & 2018 agreements with Penthol C.V. and Chemlube, for ADbase supply to Europe and the US.
As one of the largest companies around the world, IndianOil is ranked at number 137 on the Fortune 500 list and is the biggest seller of finished lubricants, with about 450,000 tpy of volume, in the Indian market. IndianOil will expectedly deploy ADbase in the manufacture of high-end engine oils for the growing automotive sector of India, claimed sources with the knowledge of the matter.