Shell Opens Largest Internationally Operated Lubricants Plant In Indonesia
Nov 05, 2015
Jakarta, November 5, 2015 – As part of its continued growth strategy, Shell today opened its latest lubricant blending plant in Asia and the largest operated lubricant plant among the international oil companies in Indonesia.
The facility is located at the Marunda Centre, North of Jakarta and sits on 75,000 square metres of land, equivalent to ten football fields. The plant is capable of producing 136 Million Liters (120K Tons) of finished lubricants a year, enough to change the motor oil of more than 460,000 motorcycles or almost 90,000 cars every day.
“This plant is testament to our confidence in the strength of the lubricants market in the country. Indonesia is the largest lubricants markets in Southeast Asia and is one of the growth engines for the industry in the region, alongside China and India. This plant brings our world-class lubricant production capability here in Indonesia, strengthening our supply chain. It enables us to meet the lubricant needs of our Indonesian customers, with our high quality and premium lubricants, made here in this new facility. Indonesia’s economy has grown rapidly in recent years and lubricants are an essential enabler for this country’s growth ambitions in almost every sector,” said Mark Gainsborough, Executive Vice President of Shell Lubricants.
Meanwhile President Director and Country Chairman of Shell Indonesia Darwin Silalahi added, “We are proud with the establishment of this Lubricants Oil Blending Plant in Indonesia. It’s a form of commitment to implement our strategy of being close to our customers - driving business growth by offering the right products and services in the right places. Moreover, this new investment is a realization of our mission and vision to energise Indonesia’s progress.”
The plant will produce Shell’s leading lubricants brands like Shell Helix (passenger car motor oil), Shell Advance (motorcycle oil), Shell Rimula (heavy duty engine oil), Shell Spirax (transmission oil), as well as other industrial lubricants. These products will support Indonesia’s growing demand for vehicle motor oils and other lubricants for applications in sectors like mining, power generation, transportation and the growing infrastructure building sector in the country.
In 2015, Shell was recognised for the third year in a row as the top international lubricants brand by the Indonesia WOW Brand Award, especially for Shell Helix, Shell Advance and Shell Spirax. In 2014, independent research confirmed that Shell was the most preferred international brand of passenger car motor oil in Indonesia. The same survey shows that in Asia, Shell also ranked first or second in China, Malaysia and Thailand.
The plant has world-class, highly automated lubricant blending, filling and packaging technology. It is equipped with a stringent quality control system that tests lubricants at all stages of production to ensure products meet the high quality specifications associated with Shell’s brands. As part of the focus on quality products, the plant has been equipped with a dedicated world-class lubricant-testing laboratory.
Shell Global Media Relations: +44 207 934 5550
Shell Lubricants Global: Mary B. Walsh, +32 478402938, firstname.lastname@example.org
Shell Indonesia : Sri Endah, +62811840605, email@example.com
Notes to Editors:
- Shell owns 100% and operates this plant, thus ensuring full control over product quality.
- This new Indonesia blending plant is 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 fully 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 throughout Indonesia.
- To date, Shell has imported lubricants to Indonesia. With this new lubricant plant, Shell is able to manufacture and supply a full range of locally produced, high-quality motor oils, transmission oils and industrial lubricants to the Indonesian market.
- Shell operates close to 50 lubricant blending plants in 34 countries, 18 of which are in located in Asia, specifically, in China, India, Indonesia, Malaysia, Pakistan, Singapore, South Korea and Vietnam.
- Three out of Shell’s eight base oil plants are located in Asia, as well as ten of Shell’s grease manufacturing plants globally.
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 78 operating sites in Greater Jakarta and Bandung. 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. We run the lubes warehouse facility in Bekasi, Surabaya and Balikpapan, and the bitumen storage facility in Merak,
In Upstream, Shell has been appointed as the Operator of the Pulau Moa Selatan PSC. This important milestone marks Shell’s return to Upstream business in its birthplace, and builds on our 2011 re-entry to Indonesian Upstream through our participation in the Inpex-operated Abadi FLNG project.
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 China, Germany, Japan (in a joint venture with Showa Shell), 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 and BMW Motorsport. These technical partnerships enable us to expand our knowledge of lubrication science and transfer cutting-edge technology from the racetrack to our commercial products.
Royal Dutch Shell plc
Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit www.shell.com
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “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 presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control. Companies over which Shell has joint control are generally referred to as “joint ventures” and companies over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This announcement contains forward looking statements concerning the financial condition, results of operations and businesses of Shell and the Shell Group. 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 Shell and the Shell Group 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", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "seek", "should", "target", "will" and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward looking statements included in this announcement, 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 regulatory measures addressing climate change; (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 announcement 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 Shell's 20-F for the year ended 31 December 2014 (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 announcement, 5 November 2015. Neither Shell nor any of its subsidiaries nor the Shell Group 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 announcement.