Shell to build lubricants blending plant in Indonesia
Nov 14, 2012
Today, Shell announced its plan to build a new lubricants blending plant in Indonesia, with construction starting after completion of a tender process over the coming months.
The plant is due to be located at the Marunda Center, just north of Jakarta, and will produce a range of high quality consumer, transport, industrial and marine lubricants. It is expected to have a capacity of 120,000 tonnes per year, making it the largest lubricants blending plant operated by an international oil company in the country.
Mark Gainsborough, Executive Vice President, Shell Global Commercial said “We are delighted to confirm this significant new investment in our supply chain in Indonesia, a fast-growing lubricants market. We continue to implement our strategy of being close to our lubricants customers – driving business growth by offering the right products and services in the right places.”
Strong growth in lubricants demand is expected from Indonesia, driven by new vehicle ownership and production, construction and industrial activity – especially in the power generation and oil and gas production sectors. Shell is the largest international supplier of lubricants in the country, currently importing finished products from its blending plants in Singapore and Malaysia.
Darwin Silalahi, Country Chairman for Shell Companies in Indonesia, said “Shell has strong lubricants brands and brand preference in Indonesia and the region. It is exciting that products such as Shell Helix, Shell Advance, Shell Rimula, Shell Tellus and Shell Omala will be made in Indonesia in the coming years. This investment is testament to Shell’s confidence in the Indonesian market.”
The plant will be constructed to incorporate world-class lubricant blending, filling and packaging technology. Processes in the plant will be automated and the plant will be equipped with a stringent quality control system that will test at all stages of production to ensure products meet the quality specifications associated with Shell’s brands.
Here’s an inside look at a Shell lubricants blending plant, this one was recently opened in Torzhok, Russia.
Shell Media Relations (Asia): Serene Loo, +65 97297294, firstname.lastname@example.org
Shell Media Relations (International): +44 (0) 20 7934 5550
Shell Indonesia: Sri Endah +62 21 75924700
Photos to accompany this press release
A selection of supporting images (photos and video) is available on request. The latest advertising campaign (Shell Helix) launched in Indonesia on 1 June 2012, can be reviewed at:http://www.youtube.com/shellhelix
Notes to editors
- Shell will own 100% of this plant, thus ensuring full control over product quality.
- To date, Shell has imported lubricants to Indonesia. Bringing world-class production capacity closer to customers in Indonesia will allow Shell to supply a full range of high-quality motor oils, transmission oils and industrial lubricants to the market, with the potential to expand distribution to neighbouring countries in the future.
- This new Indonesia blending plant will be designed to meet high environmental standards including measures to reduce waste and carefully control waste disposal to ensure no harm to the environment. All processes at the plant are automated and controlled at all stages by operators based at the control room. A plant management system will be installed and control all stages of production.
- In Asia, Shell also has lubricants blending plants in China, Singapore, Thailand, Malaysia, the Philippines, Vietnam, South Korea, Pakistan and India.
- In August 2012, Shell also announced its plan to build a new, state-of-the-art lubricants blending plant in Tianjin, China.
- In addition, three of Shell’s eight global base oil manufacturing plants are in Asia: Pulau Bukom in Singapore; Kaosiung in Taiwan and Yokkaichi in Japan. In early 2012, Shell signed a conditional Joint Venture agreement with Hyundai Oil Bank to develop, construct and operate a base oil manufacturing plant at the Daesan Refinery in South Korea.
About Shell Indonesia
The history of Royal Dutch Shell in Indonesia has started over 120 years ago, following its first oil discovery in Pangkalan Brandan, North Sumatra.
Shell today has a strong downstream presence in Indonesia. It was the first international petroleum retail brand in the country and is now a leading international oil company (IOC) with 65 operating sites in Greater Jakarta and Surabaya. In 2006, Shell started its commercial fuels, marines and bitumen businesses in Indonesia, providing oil products and related technical support to the industrial, transport and mining sectors. Shell is also recognised as a leading international company with the largest lubricant market share, after Pertamina, serving motorists and industrial customers.
Shell brings in significant investment to build fuels supply chain infrastructure in Indonesia, in cooperation with its local partners. The fuel storage facilities in Gresik and Pulau Laut, the lubes warehouse facility in Bekasi, Surabaya and Balikpapan, and the bitumen storage facility in Cirebon, are examples of successful joint ventures with leading Indonesian companies such as Astra International and Adaro Energy.
Last year, Shell re-entered the upstream business in the country of its birthplace. It signed an agreement to be the strategic partner with Inpex who operates the Masela PSC which includes the Abadi gas field. Shell’s participation in the Abadi field underpins its growth strategy and recognizes its world leader position in both LNG and Floating LNG (FLNG) developments.
About Shell Lubricants
The term “Shell Lubricants” collectively refers to Shell Group companies engaged in the lubricants business. Shell sells a wide variety of lubricants to meet customer needs across a range of applications. These include consumer motoring, heavy-duty transport, mining, power generation and general engineering. Shell’s portfolio of lubricant brands includes Pennzoil, Quaker State, Shell Helix, Shell Rotella, Shell Tellus and Shell Rimula. We are active across the full lubricant supply chain. We manufacture base oils in eight plants, blend base oils with additives to make lubricants in over 50 plants, distribute, market and sell lubricants in over 100 countries.
We also provide technical and business support to customers. We offer lubricant-related services in addition to our product range. These include: Shell LubeMatch –the market leading product on-line recommendation tool, Shell LubeAdvisor - helps customers to select the right lubricant through highly trained Shell technical staff as well as online tools, and Shell LubeAnalyst - an early warning system that enables customers to monitor the condition of their equipment and lubricant, helping to save money on maintenance and avoid potential lost business through equipment failure.
Shell’s world-class technology works to deliver value to our customers. Innovation, product application and technical collaboration are at the heart of Shell lubricants. We have leading lubricants research centres in Germany, Japan (in a joint venture with Showa Shell), the UK and the USA. We invest significantly in technology and work closely with our customers to develop innovative lubricants. We have a patent portfolio with 150 + patent series for lubricants, base oils and greases; more than 200 scientists and lubricants engineers dedicated to lubricants research and development.
Customer benefits include lower maintenance costs, longer equipment life and reduced energy consumption. One of the ways we push the boundaries of lubricant technology is by working closely with top motor racing teams such as Scuderia Ferrari. These technical partnerships enable us to expand our knowledge of lubrication science and transfer cutting-edge technology from the racetrack to our commercial products.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this release refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this release, associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect (for example, through our 23% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended 31 December, 2011 (available at www.shell.com/investor and www.sec.gov). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this release, 14 November 2012. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this release. There can be no assurance that dividend payments will match or exceed those set out in this release in the future, or that they will be made at all.
We use certain terms in this release, such as resources, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330