The Jakarta Globe has reported that state-owned Indonesian energy firm Pertamina has expanded its lubricants business in the United Arab Emirates, through its partner Sharjah National Lube Oil Company, in its first foray in that Middle Eastern nation.
Pertamina will sell its lubricants to tankers passing by the oil-rich country, the companys vice president of corporate communication Ali Mundakir said, adding that the company entrusted Sharjah, a private lubricant maker, to produce lubricants under Pertaminas supervision and using the Pertamina label.
Ali said that Pertamina is targeting customers of oil tankers in upcoming expansion plans. He added that Pertaminas move to outsource its production activities is a part of the companys strategy to get marine consumers for its lubricant products in the United Arab Emirates, which plays a significant role in the global oil shipping industry. Production and marketing of Pertamina lubricants in the area is a solution to meet demands for marine consumers, he added.
The value of the transaction was not disclosed.
The Jakarta Globe further stated that Pertaminas lubricants have been widely distributed through the United Arab Emirates since 2007 and that Pertamina has also outsourced its production facilities to Singapore.
Pertamina is aiming to become one of the 20 largest lubricant producers in the world. The company projected that it will sell 680,000 kiloliters of lubricants this year, representing a 10 percent increase from last years estimate of 617,000 kiloliters. Pertamina markets its lubricant products to 22 countries, with export volume topping 110,000 kiloliters in the first half of last year.
Sharjah National Lube Oil Co. Ltd is a private limited liability company that owns and operates a blending plant in the Emirate of Sharjah, UAE. The company has been in the business of manufacture and marketing of lubricants for the previous 35 years.