December 04, 2008

Takreer, Neste Oil and OMV form a JV to make base oil

It is reported that Abu Dhabi Oil Refining Company’s subsidiary Takreer, Finland's Neste Oil and Austrian OMV are planning form a 60:20:20 JV to make base oil. The parties signed the agreement in Abu Dhabi which includes basic principles for the design, construction and operation of the base oil facility and the commercial terms of the project.

The Front End Engineering Design is planned to be assigned by the 2nd quarter 2008. The parties intend to make a final decision on the investment after the Feed phase.

The new JV will have an annual capacity of 500,000 tonnes. The plant will produce sulfur free, Very High Viscosity Index VHVI Group III base oil at Ruwaisin Abu Dhabi. The base oil will be used for blending top tier lubricant.

The project combines the strengths of all 3 parties in design, production and marketing high performance base oils. Neste Oil will bring in technology and production knows how and will initially be responsible for marketing of the products. OMV will bring in know how in base oil blending and marketing experience.