Shell Moves Ahead on Indonesian Lubricants Investment
Aug 20, 2013
Shell progressed its plan to build a Lubricant Oil Blending Plant in Indonesia with a groundbreaking ceremony
The groundbreaking ceremony is officiated by Indonesia’s Minister for Industry Mohamad S. Hidayat; Shell Global Commercial Executive Vice President Mark Gainsborough and Shell Indonesia President Director Darwin Silalahi.
The plant, to be built on 75,000 square meters of land in Marunda Center (north of Jakarta), is about the size of ten football fields, and will supply a range of high quality lubricants for consumer, transport, industrial, and marine markets in Indonesia. The facility is expected to have a capacity of 120 thousand tonnes per year, producing Shell’s major brands like Shell Helix, Shell Advance, Shell Rimula, Shell Tellus, Shell Spirax, and Shell Omala, making it the largest lubricants blending plant operated by an international oil company in the country.
Darwin Silalahi, President Director of Shell Indonesia, said, “This latest milestone marks our continuous commitment to Indonesia, working with the local and the national government to create more jobs for the local economy, and bring products made with the latest in Shell lubricant technology closer to our customers.”
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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.
- Shell Lubricants is active both in the consumer and industrial markets in Indonesia. Aside from direct sales, Shell is also supported by over 30 authorised distributors in the country.
- One of Shell’s lubricant brands, Shell Helix, earned the local Top Brand Award in the category of “4-wheel engine lubricant” this year.
- In Asia, Shell also has lubricants blending plants in China, India, Thailand, Malaysia, Pakistan, the Philippines, Singapore, South Korea and Vietnam.
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 79 operating sites in including in Greater Jakarta, Bandung, 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 in Indonesia, 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 partnership with 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.