Construction of New Production Complex Started at Omsk Lubricants Plant

A ceremony of laying a symbolic capsule in the foundation of a future production complex for mixing, packaging, storage and shipment of oils was held at the Omsk Lubricants Plant. The event was attended by Deputy General Director of JSC Gazprom Neft for Logistics, Processing and Sales Anatoliy Cherner.

The estimated capacity of the complex comprises 120 thousand tons of packed products. The complex is aimed at producing car engine oils as well as industrial oils. The construction is to be executed in two stages. At the first stage, until the end of 2011, a complex with automatic packaging lines, raw materials and end-product storage facilities as well as a state of art tank farm for commercial oils will be constructed. At the second stage, an automated lubricant blending facility will be constructed with a capacity of 70 thousand tons.

It is planned that the construction project will be finished before the end of 2012. The projected volume of investment will total ca. 2 billion rubles. 5 billion rubles should be invested as a whole in the modernization and production development program and creation of new high-tech products of Gazprom Neft-Lubricants.

"The construction of a complex in Omsk is a part of the Company strategy aimed at increasing sales of packed and premium products in Asian Russia and Kazakhstan as well as at exploring new markets in Central Asia and the Middle East", said Deputy General Director of JSC Gazprom Neft Anatoliy Cherner. "Following the launch of the new complex, the Omsk Lubricants Plant will become the most modern enterprise in Asian Russia that will allow the Company to gain 20% of packed lubricants market in Asian Russia and 30% of packed oils market in Kazakhstan by 2012".

Reference

The Omsk Lubricants Plant is a production branch of Gazprom Neft-Lubricants situated in the grounds of the Omsk Refinery. Today the peak Omsk Lubricants Plant capacity comprises 65 thousand tons of packaged production marketed under the SibiMotor and Gazprom Neft brands. It is planned that after launching the new Omsk Lubricants Plant complex the production of G-Energy oils currently produced in Italy will be partially localized in Russia.

Gazprom Neft-Lubricants LLC is a Gazprom Neft's subsidiary established in November 2007 that is producing and selling oils, lubricants and technical fluids. The company holds assets in Western Siberia (Omsk), European Russia (Yaroslavl), and Western Europe (Bari, Italy). In April 2008, a Gazprom Neft-Lubricants business development strategy up to 2020 was approved, supposing aggressive growth in all lubricants market sectors and active entries into foreign markets. In 2009, the company sold 425 thousand tons of products, achieving a 15% share of the Russian lubricants market. In 2010, the company launched a premium brand G-Energy. Besides G-Energy, Gazpromneft-Lubricants markets production under the SibiMotor (economy class oils for cars and commercial vehicles) and Gazprom Neft (industrial lubricants) brands.