A new commercial agreement defines a renewed cooperation model for calendar year 2018. It secures Neste a significant share of the output of the base oils joint venture plant for 2018, allowing Neste to continue supplying its full customer portfolio, and enabling Bapco to launch its own brand to the global market from January 1, 2018.
In 2008, Finland-based Neste Oil, Bahrain's Oil & Gas Holding Company and the Bahrain Petroleum Company announced plans to establish a joint venture known as the Bahrain Base Oil Company, to build a high-quality lubricant base oils plant in Bahrain.
Neste continues to hold a 45% share of the JV manufacturing plant, while Bapco and OGHC own a total of 55% shares. The JV agreements remain unchanged, and Bapco continues to be the sole operator of the plant located at the Bapco oil refinery in Bahrain.
The Bapco Lube Oil plant, located in Sitra, Bahrain, has the capacity to produce up to 8,200 bpd (430,000 tons/year) of Group III base oil.
The Bahrain plant output continues to complement the production volumes of Neste's own plant in Porvoo, Finland, and ensures continued supply of Neste's top-quality Group III base oils, branded as NEXBASE(TM), to its global customers. Altogether, Neste will bring more than 500,000 tons of top-quality base oils to the global market in 2018.
Neste's Porvoo, Finland base oil plant has the capacity to produce up to 5,100 bpd Group III base oil.
Neste has co-developed a very large suite of industry and OEM formulation approvals with all of the major additive companies. The company continues to explore new commercial opportunities to further its global reach and to introduce new high quality Group III products under its NEXBASE(TM) brand.