Gazprom Neft develops cooperation with the regions in import substitution of lubricants

Press-release

Gazprom Neft has concluded agreements with the governments of four regions of the Russian Federation regarding cooperation on import substitution of motor oils and lubricants. The respective agreements (with St Petersburg Governor Georgy Poltavchenko, Governor of the Madagan Oblast Vladimir Pechyony, Governor of the Stavropolsky Krai Vladimir Vladimirov, and acting Governor of the Yamalo-Nenets Autonomous Region Dmitry Kobylkin) were signed during the 2015 St Petersburg International Economic Forum.

Under these agreements, Gazpromneft Lubricants (operator of the Gazprom Neft lubricants business) will broaden cooperation with city and municipal agencies throughout these regions in identifying high-quality domestically produced lubricants to replace expensive imports.

The company is in the process of organising training in the use of various lubricants and service fluids, as well as providing support from qualified engineering and service personnel. The agreements also provide for the supply of Gazpromneft Lubricants’ products to various enterprises. Key priorities include cooperation in public transport services, utilities, freight transport, specialist road transport, and servicing of heating networks.

Similar agreements were signed with the Orenburg Oblast and the Khanty-Mansi Autonomous Okrug earlier in 2015. The transition to domestically produced lubricants will deliver significant economies for regional governments.

Gazprom Neft CEO Alexander Dyukov commented: “The Gazprom Neft lubricants business has been growing at a phenomenal rate in recent years. The past year has seen us complete construction of the most up-to-date lubricants facility in Russia and Europe, in Omsk. Thanks to the implementation of cutting-edge technologies, products under our G-Energy and Gazprom Neft brands have all necessary approvals by leading international manufacturers of motor transport and power-generation equipment. As a result, the quality of our products is more than a match for those produced under some of the best-known brands in the world; having our own new production facilities in Russia will allow us to become even more price-competitive against international manufacturers. By extending cooperation in import substitution we are setting in place mutually beneficial partnerships with the regions, supporting the development of their economies and infrastructure, and improving the effectiveness and efficiency of municipal agencies.”

Reference

Gazpromneft Lubricants Ltd (“Gazpromneft Lubricants”) is a subsidiary of Gazprom Neft, specialising in the production and sale of oils, lubricants and service fluids. Established in 2007, Gazpromneft Lubricants Ltd has five production facilities throughout Russia, Italy and Serbia. Total production volumes stand at 500,000 tonnes of premium oils, lubricants and service fluids per year.

The second phase of a high-technology complex for the blending, filling and packaging of engine oils was brought into production at the Omsk lubricants plant in 2014. This new facility, the most significant of its kind in Russia, is expected to produce 300,000 tonnes of oils, lubricants and service fluids per year.

Management policies at Gazpromneft Lubricants and its production assets are fully compliant with international ISO standards, including ISO 9001, ISO 14001, ISO 16949 and OHSAS18001.

The company supplies its products to the production lines of Mercedes-Benz Trucks Vostok, Rosteselmash, Derways Automobile Company, KAMAZ, and the Avtotor group of companies (producing Hyundai vehicles). The company’s products are used by corporate organisations including Severstal, SIBUR, Gazprom, Evraz, MMK (OJSC Magnitogorsk Iron and Steel Works), and others. The company’s product range includes 500 branded oils and lubricants across all market sectors (more than 1,000 products in total). The company’s products have more than 250 endorsements from leading manufacturers including BMW, Mercedes-Benz, Volkswagen, Volvo, Renault, General Motors, Caterpillar, MAN, Scania, KamAZ, Bosch Rexroth, and others.

The company currently commands a 14-percent share of the Russian lubricants market, as well as operating in the markets of the Mediterranean, the Balkans, Eastern and Western Europe, and the CIS.

G-Energy is the premium motor oils brand from Gazprom Neft. G-Energy oils are designed for the most up-to-the-minute American-, European- and Japanese-produced cars, approved by leading car manufacturers worldwide.