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September/October 2009 Number 1

Africas Thirstfor Mining LubesChanges Loomfor Engine Oils

Africas Thirstfor Mining LubesChanges Loomfor Engine Oils

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Who are they? Where are they?

LubesnGreases Europe-Middle East-Africa

Audited circulation: 7,500

Lube manu-facturers/marketers, 57%

Base oilsuppliers, 4%

Additivesuppliers, 10

Testing,equipment, packaging

& others, 23%

End users, 6%

Europe, 75%

Africa, 12%

MiddleEast, 11%

Rest of world, 2%

Managng EdoTim SullivanPhone: +1 [email protected]

A DecoThierr Hausermann, ALIASgraphixwww.aliasgraphix.ch

Cclaon ManageDeborah Wessmiller

Conng EdoRay Masson, David Ray, Scott Gould,Lisa Tocci, Mark T. Townsend, George Gill,Olaolu Olusina

PleNanc J. DeMarco

Adeng DecoGloria Steinberg BriskinPhone: +1 [email protected]

Podcon AanMegan Matchett

LubEsnGrEAsEsEurope Mid-dle East Africa (ISSN1935-8490) isan independent trade magazine, pub-lished bimonthl b LNG PublishingCo., Inc., 6105-G Arlington Blvd., FallsChurch, VA 22044, USA.

Copright 2009, LNG Publishing Co., Inc.

Printed in the United Kingdom.

Subscriptions are free to qualied subscribers in Europe, thMiddle East and Africa who are active in the lubricants industr as manufacturers, marketers, volume buers and users, oas suppliers who maintain close ties to the lubricants industrQualication is subject to publishers approval.

Subscriptions outside Europe, the Middle East and Africare U.S. $48 for six issues; U.S. $90 for 12 issues.

LubEsnGrEAsEsEurope Middle East Africais a registered trademark of LNG Publishing Co., Inc.

LNG Publishing Co., Inc.6105-G Arlington Blvd.Falls Church, VA 22044 USAPhone: +1 703-536-0800Fax: +1 703-536-0803Web: www.LNGEU.com,

www.LNGpublishing.comEmail: [email protected]

To make our free weekl e-mail news-letter Lube Report even more accessi-ble to readers around the world, weveadded a new feature. Stories can now betranslated from the original English to34 languages, including Arabic, Chinese,Czech, French, German, Greek, Hindi,Italian, Japanese, Korean, Russian and 23more, with a simple click of our mouse.Visit www.LubeReport.com, click on

an full stor link, and oull nd theGoogle Translator in the upper right cor-ner of the page.

Amazing Advertising OffersIf the Europe-Middle East-Africa lu-

bricants industr is our market, please

More for You, from LNG

consider the terric deals that ad direc-tor Gloria Steinberg Briskin is offeringfor 2010 advertisers.

LenGeae Eope-Mddle Ea-Afca: Were turning back the clock onpricing. Advertisers who commit b 15December will receive 2008 publishedprices! LNG EUis the onl independent-l audited lubricant industr trade publi-cation serving this region, so ou are as-

sured that our message is reaching theindustrs decision-makers. LNG EUde-livers the highest qualit, independentnews and features six times a ear to its7,500 100-percent qualied subscribers.

Le repo: Commit to advertis-ing b 15 December, and oull pa the

rate that corresponds to the next highefrequenc. For example, if ou commito just 8 placements oull receive thelower 12-time rate; for 12 placementsoull receive the 16-time rate. Lube Report reaches 13,200 subscribers in ove100 countries. Its the global lube industrs trusted source of breaking newand base oil prices, alwas free and nowavailable in 35 languages.

bae soc Gde fo Eope-Mddle Ea-Afca:Ad rates are unchangedfor this hugel popular wall chart listing data for the regions ke base oil reners and nonconventional base stockmanufacturers. Mailed with the JulAugust issue of LNG EU, the Guide is avaluable reference tool all ear long.

And of course if oure targetingNorth America and the global lube industr, take a look at LubesnGreasesour agship magazine that reache15,300 audited, qualied subscribers ev

er month.E-mail Gloria toda for more terric

deals: [email protected].

Nanc J. [email protected]

LnG | Europe Middle East Africa | September/October 2009 |

PubLishErs LEttEr

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EuropeMiddle EastAfrica

sEPtEMbEr/OCtObEr 2009Number 15

4 | LnG | Europe Middle East Africa | September/October 2009

Publishers LetterTransportation Trends

Marketing Matters

Base Oil Report

Industry Calendar

36

10

14

24

NewsmakersProduct News

Advertisers Index

Last Word

4448

49

50

18

26

34

38

Table of contents

Features

Departments

Page 18

Page 26

Page 38

Cover: Chrome mining plantin Rustenburg, South Africa

Remaking PetrominSaudi Arabias largest lubricant supplier has two new co-owners, a leaner structureand a strateg that calls for increased sales in other countries. The compan is alsopreparing to conduct its initial public stock offering.

More Changes Loom for Engine OilsThis decade has been a period of unprecedented change for engine oil formulators,but there is no respite in sight. Stricter fuel econom standards will force a widevariet of engine design changes, an engineering rm predicts, and correspondingchanges in lubricant.

Africas Appetite for Mining LubesAfrica has not escaped the global recession, but its mining industr continues todevelop new projects. That provides a rare bit of good news for lubricant compa-nies that suppl that industr.

Environmental Issues Propel GreasesInterest is spreading in the grease industr to provide greases that are better for theenvironment. There are a variet of interpretations, however, of what that means.

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CONTINUED ON PAGE 8

One Riders Searchfor a Motorcycle Engine Oil

Earlier this ear, I joined the growingranks of born-again bikers. Thirt-someears after last owning a motorccle, Ionce again found mself in possession ofone. M new bike is in fact 13 ears old,a 750 cubic centimeter twin-valve cruiser.

M rst task was to give it a full service.One of the rst is-

sues I had to addresswas what oil to use. Thehandbook stated thatthe crankcase oil shouldbe API grade SE or SF,at a minimum. M bikeis prett old, so I tooka look at the ownersmanual from an equiva-lent modern bike to seewhat the current recom-

mendations were. Theowners manual fromthe 2005 model simpladvises to use a premi-um qualit four-strokemotor oil of API classi-cation SF or SG.

These oils are, of course, passengercar motor oils, and I started wonder-ing whether the reall are appropriatefor an air-cooled engine with integralgearbox and a wet clutch? Manuals formotorccles made after 2005 also rec-

ommend SF or SG but additionall ad-vise against the use of fuel econom orfriction modied oils.

There are important differences be-tween the engine oil environments ofmotorccles and most passenger cars.Traditionall, cars have separate enginesand gearboxes, each with their own spe-cic lubricant. In a motorccle, space ismore limited, so engines and gearboxesusuall are packaged together and sharethe same lubricant.

A few car models, however, have in-corporated engine designs that weresimilar to motorccles. In the late 1950sand earl 1960s, Austin/Morris (later tobecome British Leland) and Peugeotwanted to make shorter vehicles. The

turned engines sidewas so clinders rantransversel across thevehicle, instead of frontto back. This alloweda much shorter bonnet(or hood) section, but iteliminated space for thegearbox. Designers putthe gearbox under theengine and had themshare the same lubri-cant.

While working on

m bike, I recalled thatlubrication issues hadarisen in vehicles withtransverse engines. Inthe 1970s, the Peugot204 was used for shearstabilit engine tests.

Its gearbox chopped up (or sheared) vis-cosit index improvers so quickl that20W-50 oils were converted to 20W-25in less than 50 hours.

Internal combustion engines andgearboxes also have different friction

needs. In an engine, the lubricant is sup-

posed to reduce friction. The gearbox,however, has snchromesh sstems thatrel on friction to snchronize gears be-fore the engage. For this reason, Brit-ish Leland would onl approve oils fortheir integral-gearbox engines if the

showed adequate friction in the BLgear-cone friction test.

Passenger cars with integral gear-boxes have not been produced for manears. But if the had had issues withshear stabilit and wet clutch friction,might motorccles have such issues,too? Are there an lubricant specica-tions specicall for motorccles and, ifso, wh are the not cited in motorccleowners manuals?

A quick trawl of the Internet showsthat the Japanese Standards Organisa-

tion, JASO, introduced a specicationfor four-stroke motorccle oils as farback as 1999. This standard has three ma-

jor requirements: phsical properties,engine performance and friction per-formance. The phsical properties seemprimaril to limit phosphorous levelsin order to avoid incompatibilit withcatalsts in future motorccles. Engineperformance is addressed b citing pas-senger car oil classications from API,ILSAC (the International Lubricants

JAsO fo-oe mooccle ol andad, 2005 reon

Engine performance, API SG to SMor Engine performance, ILSAC GF-1, GF-2, GF-3or Engine performance, ACEA A/B, C2, C3or Engine performance, CCMC EliminatedSAE viscosit grades Allowed if sta-in-gradePhosphorous level 0.08 0.12 percent b weightFriction Performance MA2, MA1, MA, MB


trANsPOrtAtiON trENDs By David Ray

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Standardization and Approval Commit-tee) and ACEA (the European Automo-bile Manufacturers Association). Fric-tion performance is divided into fourcategories: MA2, MA1, MA and MB.Clearl there is a belief within JASOthat wet clutches create specic frictionneeds in motorccle oils.

Still uncertain about what oil I shoulduse in m bike, I resorted once more tothe Internet. A number of companies spe-cialize in motorccle oils, and I checked

with several for their recommendations.Luckil, the all agreed that what I need-ed was a 10W-40 oil that met JASO MA,so this is what I purchased.

I wondered what other bikers do when

choosing oil for their motorccles. I amsure that the oil companies specializingin motorccle oils have done their mar-ket research, but not having access tosuch information, I conducted m ownsmall, random surve. The majorit saidthe never add oil between services andthat the leave the choice of oil to thedealer who performs the maintenance.

Others, particularl those with old-er bikes, tend to do their own servic-ing but generall are onl aware of vis-cosit grade. The purchase oil from

a trusted compan, usuall one whospecializes in motorccle oils. One bik-er who works on a tugboat alwas usesthe tugboat engine oil, apparentl withno problems!

Do motorccles need engine oils thatdiffer from passenger cars? To me, itshard to be certain. The environmentthat motorccle oils have to endure iscertainl harsh. The integral gearbox-es are likel to shear the lubricant anddegrade their multigrade performance.

But do motorccle oils have greatershear stabilit than premium passen-ger car oils? If motorccle VI improv-ers were better that is, more stable would the not also be used in pas-senger car oils?

When I rst got m bike I noticedthat if I rode it hard, making rapid up-shifts, the clutch took a while to bite.After installing the JASO MA oil, theclutch bites more rml, making accel-eration more positive and pleasant.

I will stick with m JASO MA oilfrom now on. It is much more expensivethan passenger car oils, but the positiveclutch engagement that it delivers isworth the extra cost. It makes me won-

der if lubricant companies and motor-ccle manufacturers should do more topromote the use of engine oils formulat-ed specicall for motorccles.

David Ray has 30 years of experiencein lubricant, fuel, emissions and

vehicle testing and test development,and he has served as chairman of

many fuel and lubricant committees.He is now director of Draycon Consulting

Ltd., in Torpoint, Cornwall, U.K.,and can be reached at [email protected]

Clacaon MA2 MA1 MA Mb

Static friction index 1.70 X

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CONTINUED ON PAGE 12

Will U.A.E. Recover?Recession Slows Lubricant Hub

Since its inception in 1971, the UnitedArab Emirates has established itself as

a ke business hub in the Middle East.However, with the current recession,there is uncertaint as to whetheror not the countr will be able toreturn to the prosperit that pre-ceded the downturn, and this leadsin turn to questions about the fu-ture of its burgeoning lubricantindustr. We believe the U.A.E.will rebound from the recessionand that it will maintain its posi-tion as a multi-regional hub in thelubricants industr.

Prerecession ProsperityBefore the current recession,

Dubai was ourishing and servedas a prox for the prosperit ofthe United Arab Emirates. Dubaisgross domestic product grew ap-proximatel 7.4 percent in both2007 and 2008, buoed b sizeableconstruction projects (totalingU.S. $350 billion) and a thrivinghousing market. The U.A.E. wasalso accumulating high revenues

from oil sales and internationaltrade activit, including lubri-cants trade, driven in large partb the construction boom.

In earl 2008, U.A.E. lubricantsconsumption was growing at dou-ble-digit rates, in addition to theconsiderable volumes that werebeing exported to member countries ofthe Gulf Cooperation Council and be-ond. During this time, the U.A.E. es-tablished itself as a center for lubricants

production, as well. A large number ofblenders established facilities near ma-

jor ports Sharjah, Fujairah, and JebelAli and at reneries and Dubai cor-

porate centers. There are approximatel20 blending plants in the countr, withmuch of the production slated for exportmarkets.

In the fourth quarter of 2008, econom-ic activit appeared to grind to a halt.

Construction sites were deserted,fewer workers were moving into Dubai

(and man leaving), and inter-national trade was stied bslowdown around the world indemand for man different com-modities.

Other emirates fared slightlbetter than Dubai, due to the oilreserves on which the sit. Butthe impact was felt throughoutthe region, especiall as crudeprices dropped from all-time

highs to levels not seen in thepast ve ears. Kline estimatesthat the ear ended with nishedlubricants demand in the federa-tion down more than 10 percentfrom 2007, even though the cri-sis did not hit until the fourthquarter. Lubricant productiondropped b a larger amount, asman companies that had keptlarge inventories allowed themto dwindle.

The dire situation in Dubai has

not improved as quickl as in oth-er emirates, due to its dependenceon nancial institutions, the realestate industr, and internationalmarkets. Dubais deep recessionhas been created b the overallglobal slowdown and Dubais re-liance on other countries to feed

its econom. Dubais econom is pro-jected to contract b 1.7 percent this ear

A slowdown in construction has idled equipment in Dubai.


MArkEtiNG MAttErs By Scott Gould

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Scott Gould is a manager in thePetroleum & Energy consultingpractice at Kline & Company,

a worldwide managementconsulting and market research

rm. He can be reached [email protected]

before rebounding with 4.4growth in 2010.

Road to RecoveryThe recessions impact on

the U.A.E., and in particularon Dubai, poses the questionof whether the will be vi-brant trading hubs in the fu-ture. A large expatriate work-force and high reliance on oilpose considerable long term

challenges. While business iscurrentl stagnant, Kline ex-pects that it will be revived,though it will take severalears to return to its previouspace. There are man factorswhich point to the U.A.E.srecover. Among those arethe following:

Its lubricant manufactur-ing is more about exportthan about suppl of thedomestic Emirates market;

In addition, the U.A.E. iswell positioned to supplthree of the big growthregions, the Middle East,Asia, and Africa;

The recover of oil pricesto twice the beginning-of-2009 levels hasprovided some of thelift needed both b oilcompanies and b thosethat service the industr;

The U.A.E. econom goesbeond the oil-drivenfocus of other countries,encompassing cement,power generation, andothers;

The government hasdeclared a willingnessto undertake a budgetdecit for infrastructureprojects that acceleratethe economic rebound.

It ma take some time, how-ever, for the U.A.E. to returnto prerecession activit levelsfor lubricants. At the momentthe industr is taking a doublehit. Due to the need to conductbusiness more cost-effective-l, man businesses turn tohigh-performance, energ-ef-cient lubricants resulting infurther drop in consumption.At the same time, the current

recession causes a reduction inmanufacturing activit.As businesses continue to

shift toward snthetics, therewill be a market with lowerlubricant demand, althoughwith higher value and high-er-margin products. In orderto remain viable the industrhas to adapt and offer a largerarra of products, which willrequire the abilit to produceconventional lubricants fordeveloping countries and alsosnthetic lubricants for moreadvanced markets. This is easto accomplish for the U.A.E.,as it has alread developed thefoundation to continue to besuccessful in the lubricantsbusiness for ears to come.


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Base Oil Traders:Procurement Outsourced

A large portion of the worlds base oilis bought and sold under long-term con-tracts, usuall moving within nationalboundaries, often over relativel shortdistances. The transactions for such traf-c are relativel simple. But a signicantportion of base oils move under deals

that are much more complex, and thesefrequentl involve traders or brokers.Of course, thats good news for ourstrul and others who make their livingin this kind of business. But most antrader will argue that their services alsoprovide signicant benet to the indus-trs suppliers and buers.

To understand when traders get in-volved and when the dont it helps todivide transactions into three categories.Historicall, base oil plants were builtas part of reneries primaril to suppl

the reners own lubricant operations.An excess production was then sold tothird part blenders. The rst categorof transactions not counting transfersto in-house lube operations is directsales from rener to domestic blenders.Traditionall reners were oriented to-ward this tpe of national busi-ness, partl because base oilsdid not travel well for longdistances. Truck and railwere the preferred modesof transportation, and sea-

going cargoes were rare.

The second categor of transactionsis base oil trades with other reners.Reners conduct such deals to ll holes geographical or otherwise in theirown portfolios. The third categor isexports, which are conducted mostlwhen blenders cannot nd the base oils

the need locall.

Direct contract sales are simple be-cause the become routine. Rener and

blender know each other and dont haveto re-invent terms for ever purchase.When the blender needs more oil thesimpl place another order followingterms that were used previousl.

Sales that cross national boundaries aremore complicated, partl because the

tend to be spot transactions, partlbecause the mode of transportationis likel to be ship, and often alsobecause of cultural and languagedifferences between producer and

blender. This is where

traders and bro-kers come in, so

it is worth pausing to explain the differ-ence between the two.

A trader will actuall transact a con-tract with a producer (or another trad-er), bu and pa for the material beingshipped, and in turn is ultimatel paidb the receiver, hopefull making a mar-

gin somewhere in the middle. A brokermerel facilitates the sale and purchasebetween buer and seller, and receives acommission from either side (or both) inthe process.

Some buers have a perception thata trading compan can cover the mar-ket much more efcientl than the canthemselves. This is largel true, sincetime zones and language differences canimpinge on the possibilit of direct rela-tionships between some producers andcertain receivers. As the ees and ears

of the market, traders often know notonl which reners are capable of mak-ing the needed grade of base oil, but alsowhich have the required grade and vol-ume at that point in time.

Finding the oil is onl the rst step.The freight angle is a major part of anbase oil transaction in which the mate-rial must be shipped to the receiving lo-cation. Freight costs are usuall a signif-icant portion of the overall expense, sohaving the expertise in chartering andnegotiating with ship owners is funda-

mental to a successful transaction. In-deed, traders often make their marginsnot from the straightforward sale andpurchase prices of the base oils, but bnding economical transportation. A va-riet of practices can help achieve this,from use of combination cargoes or par-cel carriers (as opposed to stand-alonevessels), to the tailoring of cargo size toll out space on particular ships, to the

There are specialisttraders who focus on one

geographical area orperhaps one type of baseoil, such as naphthenics.


bAsE OiL rEPOrt By Ray Masson

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Ray Masson is director ofPumacrown Ltd., a trader andbroker of petroleum products inEast Grinstead, U.K. Send him

comments or topic suggestions [email protected]

contracting of ship owners with dedi-cated tonnage.

The nancial aspects of base oil trans-actions can also be complicated, andtraders can help bring exibilit. Some

reners have terms and conditions that

are written in tablets of stone. Traders,on the other hand, can accept pamentterms out of the norm, for example ac-cepting local issue pament guaranteesthat major plaers would reject. Traders

are able to accept lower margins than

their counterparts within the oil ma-jors, due to lower overheads and overallcosts.

Some traders have special relation-ships with certain producers, gaining

exclusive position when it comes to re-leasing that reners barrels. Such an ar-rangement benets the producer b at-tracting receivers to this suppl source.There are specialist traders who focuson one geographical area, for exampleNigeria, or perhaps one tpe of baseoil, such as naphthenics, or base stocksbeing used transformer oils. One trad-ing compan carries expertise solel inwhite oils.

When lubricant blenders use tradersthe are essentiall outsourcing all or

most of the activities associated withpurchasing at least for that transac-tion. The close relationships betweentraders and receivers are cultured andnurtured, since both parties see poten-tial gain coming from that relationship.Use of traders and brokers ma tempo-raril subside from time to time, for ex-ample if a rener decides for a time toincrease its direct sales. Balanced againstthis, however, will alwas be a desire toincrease netback value at the renergate, without additional overheads of

marketing and ancillar costs.The author is biased, of course, but be-lieves the latter desire will win out inthe long run, at least for a portion ofbase oil trade. If so, the market shouldcontinue to have a place for traders forsome time to come.


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Remaking PetrominNew Owners RestructureSaudi Blender

Photos courtesy of PetrominFilling line at Petromins blending plant in Jeddah, Saudi Arabia. It is adjacent to a fuel renery and the Luberefbase oil plant (inset), which supplies base oils to Petromin.


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The past two earshave been a peri-od of dramatic re-

structuring for Sau-di Arabias largest lubricantssupplier, Petromin Oils. Since2007 it has gone from beingco-owned b the national oilcompan and a U.S. petroleumgiant to being a joint venturebetween a local investment

group and a lubricant market-er with Indian roots. The tran-

sition required rst a switchfrom state control to the pri-vate sector and then the inte-gration of two fundamentalldifferent business cultures.But management sas it nowhas a streamlined structureand revamped strateg need-ed to become a dnamic forcein the market.

lubes sector and that it mahave actuall lost monePetromins current Presiden

and Chief Executive OfceSamir M. Nawar insisted thathe compan made moneeach of the two ears beforeit was sold. But he and otherofcials agree that the joinventure seemed not to meeits potential.

Each [parent] had itown strateg, Nawar toldLubesnGreases Europe Middle East Africa during a Ma interview. Mo

bil used to have their ownbrand, and there was someconict of interest. At boardlevel ou could see therewas no clear focus to makethe required changes. Executive Vice President Sa

jid Saeed said the change inownership was probabl aleast partl due to losses. am sure it was one of the reasons, he said. If [Petrominwas one of their best prot

making ventures the wouldnot have gotten rid of it.Petromin was also the onldownstream compan in theAramco portfolio.

Following the modication in ownership, Petrominhas been undergoing an internal overhaul to make itselmore competitive. There are

Petromin was formed in1968 as a joint venture be-tween Saudi Aramco, the gi-

ant national oil compan, andMobil Investments, whichis now part of U.S.-basedExxonMobil. Aramco helda 71-percent stake. In 2007,the partners sold Petrominto Advanced Petroleum Ser-vices Ltd., a joint venture be-tween Dabbagh Groups Na-tional Scientic Services Ltd.,and Gulf Oil International,part of Indian conglomerateHinduja Group. Dabbagh is

a Jeddah-based private rmwith interests in industrialand agricultural businesses.Hinduja is headquartered inChennai, India, and involvedin trading, banking and en-erg. Gulf is an offshore sub-sidiar based in the CamanIslands.

Gulf was selling lubricantsin Saudi Arabia before thetransaction 30,000 met-ric tons per ear, accord-

ing to ofcial statements atthat time. Petromin was al-read the market leader andhad sales of approximatel100,000 t/.

Energ analsts sa thatunder Aramco and Mobilsownership Petromin mahave struggled to cope withincreasing competition in the

Samir M. Nawar Sajid SaeedSource: Petromin Oils

sAuDi ArAbiAsbiGGEst LubriCANt

suPPLiErstoal: 350,000 /

Compan Market Share

Petromin 27 %

Fuchs 25 %

Shell 19 %

Mobil 15 %

Gulf 8 %

Others 6 %

LnG | Europe Middle East Africa | September/October 2009 |1

By Mark T. Townsend

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some earl signs of success,but ofcials sa the companalso beneted signicantlthe past two ears from highoil prices and a benign mac-

roeconomic environment.When ou look at the

compans performance post-transaction, it has denitelchanged, Saeed said. Howmuch of that is a result of thetransaction and how much isbecause of the economic situ-ation is difcult to sa. Dab-bagh and Gulf clearl wantto ensure the business willattract major institutionalinterest when it conducts

its stock offering, and thatthe stock achieves an appro-priate valuation. The newowners have implementeda radical change which hasseen the compan organizedunder business groups, andthis is the inuence of theircontribution, Nawar added.

The news that the com-pan is considering a pub-lic listing in Saudi Arabiawill likel excite the local

derlining the fact that Sau-di Arabia remains relativelimmune from crises on WallStreet. (B comparison, Jul1 saw the Dow Jones Indus-

trial Average still recoveringfrom a 25 percent drop dur-

ing the rst quarter.)

The compan has to beread [for a stock offering],but also the market has tobe read, Saeed said. Petro-min will also need to com-pl with corporate gover-nance issues as required bthe Saudi market regulator,the Capital Markets Author-it, a point that Petromin de-scribes as work in progress.To achieve those standardsthe compan does not rule

stock market. For one thing,it would be the rst lubri-cant compan to offer stockto the public. In addition, in-vestors here look favorabl

on anthing in the energsector. The specic timing

is naturall subject to board

approval and ultimatel mabe difcult to call. Linger-ing uncertaint over oil pric-es and the precise extent towhich local capital marketsremain affected b the glob-al turmoil will require care-ful deliberation. Still, oneanalst said an IPO is prob-abl close. Saudi Arabiasbenchmark Tadawul stockindex rose 11 percent duringthe rst half of the ear, un-

out collaboration with a ma-jor oil compan. If its goodfor business then wh not,commented Saeed.

Petromins business reve-

nues are split approximatel60 per cent from the indus-trial sector and 40 per centfrom the automotive sector,with passenger car motor oildominating the latter. In theindustrial segment Petrominsupplies primaril the con-struction, transport, powerplant and oil segments.

Data on the Saudi lubri-cant market are notoriousldifcult to obtain, however

Petromin estimates that totalsales are around 350,000 t/.That makes it the second- orthird-largest lubricant mar-ket in the Middle East, wellbehind Iran, which accord-ing to local sources consumes740,000 t/, but perhaps closeto the size of Turke. Esti-mates of Turkes consump-tion also var, but Kline andCo. pegs it at approximatel400,000 t/. Saudi Arabia has

blending capacit of 700,000t/, according to EmiratesNational Oil Co., of Dubai.It could even be larger, butnobod will be able to giveou that gure, Saeed said.

Petromin does not disclosesales data but is likel to do soin the run-up to listing in or-der to compl with regulato-r requirements. As part of anongoing rationalization driveto optimize production and lo-

gistics, Petromin will consoli-date all blending productioninto a single newl expandedfacilit in Jeddah with a ca-pacit of 250,000 t/, the larg-est in Saudi Arabia. The con-solidation will be completedb the end of 2009.

All Petromin lubricantsconform to API standards

Each [former parent company] had itsown strategy. At board level you could

see there was no clear focus to makethe required changes.


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and the minimum API re-quirements set b the Sau-di government: API SH forpassenger cars that run ongasoline; and API CF-4 for

heav-dut diesel trucks.We are not at the top end ofthe specs in the car market,Saeed said.

Like man other markets,Saudi Arabia faces the chal-lenge of substandard andfake lubricants. Does it rep-resent 5 percent or 20 per-cent of the total market wedont know, but it is de-nitel signicant and poses achallenge, Nawar stated. He

added that the Ministr of

Commerce in Saudi Arabia istaking steps to clamp downon rogue production, but inpractice it is eas to moveproduction quickl to avoiddetection.

Petromin uses numeroussales channels including di-rect business-to-businesssales, resellers, direct sales toworkshops and a quick lubenetwork where the sales aremade direct to the consumer.

Our reseller and industrialchannels are the bulk of oursales, and quick lube is prob-abl our smallest channel,Saeed explained. The compa-n also produces custom-madeproducts for Aramco andthe power generation mar-ket. Petromin sells upwardsof 250 products currentland the combined portfoliowith Gulf Oil is around 500,

lineage. Luberef deals witheverbod equall, and a larg-er volume customer such asPetromin will be treated ac-cordingl. The rening in-

dustrs gradual shift to morehighl rened API Group IIand Group III is not an issue,according to Saeed, despite Lu-berefs producing onl GroupI base oil. Luberef exports

Group I base oil to Europe,and the are as good or as badas an Group I rener.

The change in the price ofbase oil in the last six monthshas been a major challenge for

Petromin, according to Saeed.There is a common percep-tion that a downward revi-sion in price is alwas help-ful, he said. It isnt. We weresitting on huge inventor, andwe had to pull ever trick inthe book to reduce it.

Petromin also faces thechallenge of increasing com-petition both in Saudi Arabiaand the broader Middle East,

though Nawar acknowledgesthere is a degree of overlap.The challenge is to reducethe number of products as itis affecting our inventor lev-

els, he stated.Prior to the change in own-

ership Petromin obtained itsbase oil from Luberef, theSaudi Aramco LubricatingOil Rening Co., the sole re-

ner of base oil on the Ara-bian Peninsula. At that time,Luberef was also a joint ven-ture between Aramco andExxonMobil, although Exx-onMobil has since exited the

partnership. Petromin con-tinues to source from Lu-beref, and Petromin sas itis no worse off, even thoughsuch transactions might havebeen viewed as in-house inthe past.

No, said Nawar, suggest-ing that an previous advan-tage for Petromin would havebeen due to scale of purchase,not shared parent compan

which Saeed called more com-petitive now than at an timein the past 15 ears. Its majorcompetitors are Fuchs, Shell,and Castrol. To meet the grow-

ing challenge it is planning toenter new markets and growits export business with a par-ticular ee on Africa. Current-l it is in advanced discussionsto begin selling automotive

and industrial lubes in Alge-ria, Sudan and Mauritania,probabl under a licenseeagreement. Petromin alreadhas a full-owned subsidiarin Egpt and commercial re-

lationships in several otherAfrican countries. Within thenext twelve months Petrominis planning to enter severalother new markets and con-centrate on specic productareas that include agricultureand power generation.

The Jeddah blending plant is undergoing an upgrade which will expand its capacity to 250,000 t/y.

The companyhas to be ready[for a stock offering],but also the markethas to be ready.


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INDUSTRy CALENDAR

As the compan goes for-ward it plans to underpin itsmarket share b placing amajor emphasis on market-ing and brand positioning. Itis also in the process of hir-ing new staff to support itsgrowth strateg. Selectingthe right people for specif-ic positions is sometimes achallenge even in the currentenvironment, Nawar said.

Saudi Arabia, despitechanges to its regulator andoperating environment, re-mains a demanding marketin which to do business. Nev-ertheless recent reforms arerapidl beginning to pa off.In its recent report DoingBusiness 2009, the WorldBank ranked Saudi Arabia16th overall for ease of do-ing business, 28th for ease ofstarting a business and rstamongst its regional peers.According to the report, ittakes approximatel 12 dasto start a business in Saudi

sleeping giant. In addition tothe growth prospects in theoil sector, the constructionmarket has signicant poten-tial upside. The countr stillhas a huge shortage of hous-ing, and according to the Jed-dah Chamber of Commerceand Industr the kingdommust build at least one mil-lion new homes in the nextve ears to address grow-

Arabia. The report surveed181 countries, with Singaporeranked rst overall.

The econom remains sta-ble, recording a massive bud-get surplus in 2008 as a re-sult of high crude prices thatreached U.S. $147 a barrel.Ination is continuing to re-cede and fell to 5.2 per centin April, the Saudi ArabianMonetar Authorit said.However the banking sstemis beginning to show signsof strain, with local busi-nesses reporting that credithas tightened. One of Sau-di Arabias most venerablecompanies, Ahmad HamadAl-Gosaibi and Brothers Co.is reported to have defaultedon $1 billion of debt repa-ments, according to the Lon-don-based Middle East Eco-nomic Digest.

Notwithstanding the out-look for the global econom,the Saudi market looks robust,with man describing it as a

ing demand. Current infra-structure and public sectorbuilding is valued at approxi-matel $35 billion, the trade

journal Construction Weeksaid in a recent report.

Of course, all of that con-struction boosts lubricant de-mand. Thats good news forthe market leader as its newowners continue working tomake it more protable.

Petromin has a chain of 106 oil change centers in Saudi Arabia.

OCtObEr 200913-14.6th ICIS Middle Eastern Base Oils and Lubricants Con-ference, Grand Hatt Hotel, Dubai. Contact: Siobhan Abbott,Events Registration, ICIS, Quadrant House, Sutton, Surre,SM2 5AS, UK.Phone: +44 (0) 20 8652 3887 E-mail: [email protected]: www.icisconference.com

20-22.International Trade Fair for Corrosion Protection, Pres-ervation and Packaging, Exhibition Centre Stuttgart, Stutt-gart, German. Contact: Hartmut Herdin, Managing Director,fairXperts GmbH, Hauptstrasse 7, 72639 Neuffen, German.Phone: +49 (0) 7025 8434 0 E-mail: [email protected]: www.corosave.com

22-23.UEIL Congress 2009, Hilton Istanbul, Istanbul. Con-tact: Independent Union of the European Lubricants Indus-tr, c/o Interel, Rue du Luxembourg, 22-24, B-1000 Brussels,Belgium.Phone: +32 2 761 66 85 E-mail: [email protected] Web: www.ueil.org

NOvEMbEr 200911-12.5th International Conference Lubricants Russia 2009, Re-naissance Hotel, Moscow. Contact: RPI, Krasnopresnenskaa nab.,12, Suite 1406A, World Trade Center, Moscow 123610 Russia.Phone: +7 495 778 45 97 E-mail: [email protected]: www.rpi-conferences.com/conference

13-14.2008 International Lubricants & Waxes Meeting, Hous-

ton Marriott Westchase, Houston. Contact: National Petro-chemical & Reners Association, 1667 K Street, NW, Suite700, Washington, D.C. 20006 USA.Phone: +1 202 457 0480 E-mail: [email protected] Web: www.npra.org

JANuAry 201019-21. 17th International Colloquium Tribolog, TechnischeAkademie Esslingen, Ostldern, German. Technische Akade-mie Esslingen, An der Akademie 5, 73760 Ostldern, German.Phone: +49 711 3 40 08-0 E-mail: [email protected] Web: www.tae.de/de/kollo-quien-smposien/17th-international-colloquium-tribolog.html


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British engineering and con-sulting rm, a growing move-ment to improve fuel economwill spur a wide range of en-gine adaptations in comingears, and these once againwill impact the oils that lu-bricate those engines. RicardoUK Ltd., a unit of Ricardo plc,predicts that oils will see fur-ther viscosit reductions, that

the will encounter greaterdemands for oxidative stabil-it and that the will need tobe compatible with a varietof new materials.

In a few locations withinengines, the oils job ma be-come somewhat easier as de-sign changes contribute towear protection. But thesewill be outnumbered b thewas in which lubrication

Engine oil formula-tors have spent thisdecade struggling toadapt to changes in

engine design. Pollutant con-trol hardware deploed in re-sponse to clean air mandatesforced development of newadditive technologies andnew oil formulations. At thesame time, pressures to im-

prove fuel econom pushedlubricant companies to re-duce viscosit. Combinedwith the never-ending pushfor improved lubricant per-formance, it made for a peri-od widel acknowledged asthe most difcult in memorfor formulators.

Dont look now, but thecoming ears could bring moreof the same. According to a

MoreChangesLoom forEngine OilsCO2MandatesChallengeAutomakers,Lube Formulators

Photo courtesy of Ricardo


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becomes more difcult, suchas the need to handle soot

and biofuels in oils and pro-tect against acid build up.As Ricardos director of fu-

els and lubricants said duringa 29 April presentation to theAdditives 2009 conferencein york, U.K., the forces ofchange ma differ, but engineoil formulators will again bechallenged to keep up.

Fuel econom will becomethe major driver in determin-

ing what [lubricant formula-tors] are working on over the

next ve ears, Craig Good-fellow said. It will lead to atremendous amount of change more than what weve seenin the last six ears.

Clearing the AirIn one respect, the forces

affecting engines and engineoils in coming ears will be acontinuation of those at worknow: government mandates to

reduce air pollution. In a morespecic sense, though, regulation is entering a new eraFor the past couple decades

those efforts focused largelon nitrous oxides and particulate matter, and automakerreduced emissions of thesepollutants b installing technologies that captured them diesel particulate ltersselective cataltic reductionand exhaust gas recirculationAs a result, oil formulatorhad to cut out chemicals thaconicted with these technologies and cope with soot tha

was dumped into oil sumps.

Now attention is turning tocarbon dioxide because of itrole in global warming, andthe idea is to emit less b generating less b consumingless fuel rather than capturing. Targets are aggressiveThe European Commissionhas proposed legislation thawould require member coun

tries to reduce average eeemissions levels of CO2to 130grams per kilometer no latethan 2015. Current levels areapproximatel 160 g/km. Australia and China have both segoals to cut 2002 levels b aleast 12 percent b 2010.Japan, where vehicles al

read emitted lower rates oCO2 than anwhere in theworld, became the rst na

Ricardos Near-Zero Emissions Dieselengine features a sequential two-stagevariable turbocharger and advancedexhaust gas recirculation.

Fuel economy willbecome the majordriver in determiningwhat [lubricantformulators] areworking on overthe next ve years.


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tion to introduce fuel econo-m legislation for heav-duttrucks. In 2002 it set a goal fora 15 percent reduction b 2015.

Canada is taking steps that bnext ear would reduce 2002CO2levels b 17 percent. Evenin the United States, whichhas lagged behind other coun-tries in making such chang-es, Congress is consideringfuel econom mandates thatwould cut CO2emissions b 4percent b 2012.

The Way to FuelFrugality

According to Ricardo, thesetargets, which in some casesare supported b stiff nes,will require a range of solu-

tions. The rm conducted acost-benet analsis to tr topredict the course of actionthat automakers are most like-l to take. It concluded thatno single measure is both ef-fective and affordable enoughto meet the challenge.

The most efcient solutionremains application of mansmall improvements to vehi-cles, although hbridization

will continue to offer highbenets within certain mar-ket sectors, Goodfellow said.

One of the larger contribu-

tions for reducing CO2willcome from reducing enginesize. Goodfellow and the co-author of his presentation,Ricardo Technical SpecialistPhil Carden, predicted thatoriginal equipment manu-facturers will downsize en-gines signicantl, and thewarned that this ma in-

crease normal sump operat-ing temperatures b up to10 degrees C. That ma notsound like much, but it couldmake quite a difference inthe oxidative stress to whichthe lubricant is subjected.

It could indeed be signi-cant, particularl at the high-er temperature end, Good-fellow said. The relationshipbetween the rates of changein oxidation and temperatureis non-linear. As temperaturegoes up, the rate of oxidationincreases more rapidl.

Goodfellow and Cardenalso expect a continued moveto reduce engine oil viscos-

it. Specicall, the pre-dicted that OEMs will low-er minimum thresholds forHTHS high-temperature/

high-shear viscosit, a gaugeof an oils tendenc to owbetween the small spacesthat separate rapidl movingengine parts. Such behavioravoids wear b preventingmetal surfaces from touch-ing, but it also exerts dragon moving parts. Some in-dustr insiders have alreadraised concerns that viscosi-t levels are approaching thepoint where engine protec-

tion would be compromised.But Goodfellow said viscos-it levels for the industr as awhole will continue falling.

Whilst there is a rangeof viscosities in the market-place toda, there is focus onfurther reductions, he said.The future is likel to bringthinner lubricants to themarket for both light-dutand heav-dut segments.

Catching a Breakon WearThe good news is that auto-

makers ma make other mod-ications that reduce needsfor wear protection. CertainOEMs have alread begunto coat ke wear sensitivecomponents, such as slidingvalvetrain parts, with ultra-thin laers of materials thatare hard enough to provideextra wear resistance. These

coatings also have phsicalcharacteristics sometimesdue to treatment or methodof application that reducefriction. Less friction con-tributes directl to improvedfuel econom, while betterwear resistance allows otherchanges, such as downsizingengines which increasesloads on certain parts andreducing oil viscosit.

Among the new genera-tion of coating materials, di-amond-like carbon coatingshave received the most at-

tention so far and are alreadused on a few car models. Butindustr is also researching arange of other alternatives,such as titanium nitride orchromium nitride, that toler-ate much wider temperatureranges, provide good wearprotection and that ma bemore cost effective.

Goodfellow and Cardensaid use of new coatings willspread to other vehicles and

to other areas of the engine.It has been claimed b onesupplier that a full-coatedengine could reduce fuel con-sumption b 2 percent, thesaid, although this would bean expensive wa to achievesuch a benet.

Formulators could alsogain relief on requirementsfor cold-temperature perfor-mance. It is known that a dis-proportionate amount of fuel

is consumed immediatel af-ter an engine starts and be-fore it heats up. There are alsoseveral thermal managementtechnologies that can reduceengine warm-up times fol-lowing starting. Ricardo con-ducted tests showing that thefuel consumption penalt fora cold start compared to a hotstart in gasoline-powered carsis tpicall 8 percent and thata penalt of 10 percent is tpi-

cal in light-dut vehicles thatrun on diesel. These guresindicate the magnitude of theprize possible with advancedrapid warm-up strategies.

Obviousl, faster enginewarm-up would partiall re-lieve cold-temperature re-quirements for lubricants.Currentl these are generall

Photocou

rtesyofGehringTechnologies

Cylinder liner with etchings created to hold engine oil so as to promotehydrodynamic lubrication of pistons.


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achieved b a combination ofbase stock choice and pour-point depressants. But coldstarting needs in cold climates

can be difcult to satisf.

Challenges AplentyIf requirements for a few

parameters ease somewhat,there are still plent of oth-er was in which engine lu-brication could become moredifcult. Ricardo predictsthat the ght against air pol-lution will lead to further de-ploment of exhaust gas re-circulation. Higher levels of

EGR creates a couple prob-lems. First, soot level in theoil can increase and serve asan agent of wear.

Second, it can lead to in-creased build up of acids, somore EGR could revive acidi-t concerns that had begun toease the past few ears. Theshift throughout much of the

world toward lower-sulfurfuels had reduced needs foroils with high TBN (total basenumber), since sulfur was one

of the chief causes of acidi-cation. Now TBN levels might

need to increase again withhigher EGR levels, Goodfel-low said, a development thatwould make life more dif-

cult for formulators.Engine oil formulators

ma also be confronted withadditional performance pa-rameters in the foreseeablefuture. The auto industr isconsidering wet timing belts camshaft drive belts thatare enclosed in the engineand therefore exposed to the

engine oil as a wa to im-prove engine packaging andreduce cost. To the extentthat wet belts win out over

chains, oils would need to becompatible.

Automakers are also tringout new seal materials, andoils must be compatible withthem. The lubricants indus-

tr has et to prove full com-patibilit with new coatings,Goodfellow said.

There are a number ofpublications indicating thatcurrent lubricant technologcan work with coatings suchas diamond-like carbon, heexplained, but there are alsodata to suggest there ma

be conditions where thereis less compatibilit. Whilstman tribological studieshave been performed on di-

amond-like carbon surfaces,there are man other tpesof new coatings which re-quire further work.

Piston Chambers:Room to Improve

According to Ricardo, mod-ications loom for a numberof components in and aroundpiston clinders, a criticalarea for lubrication. Onemight assume that there was

little to improve upon con-cerning the shape of clin-der bores that a perfect cl-inder was the perfect shapeand a smooth surface ideal. Infact, automakers are depart-ing from that ideal as part ofthe push to reduce friction.

For example, a techniquecalled form honing is beingused to make bores that areout of round, in order to com-pensate for distortions in

the block and liner that areknown to occur under me-chanical or thermal opera-tional stresses. This meansthat when the engine is oper-ating normall, the clinderbore distorts closer to a trueround shape. This in turn en-ables the use of lower tensionrings to control blow-b andoil consumption and reducesfriction within the engine.

Engine manufacturers are

also using laser technologiesto smooth and harden boreliner surfaces but at the sametime are using lasers andother technologies to createetchings and pockets thatcan store lubricant, therebpromoting hdrodnamic lu-brication.


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Many of the design changes that OEMsare making can affect engine operatingconditions and lubricant requirements.



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There is more. Liners arebeing made with surface ma-terials that combine elementssuch as silicon with aluminum(Alusil). These are harder thanpure aluminum, the tradition-al material, with exposed sili-con crstals at the surface pro-viding the primar runninglaer. The surface topographand metallurg on Alusil issignicantl different from a

traditionall honed cast ironclinder, et lubricants are re-quired that provide equal lev-els of protection in both tpesof environment.

As Goodfellow said, all ofthese changes can affect theoperating conditions and re-quirements of the lubricant.

Hbrid vehicles are gain-ing in popularit and, accord-ing to Ricardo, can pose their

own challenges for engineoils. On one hand, Goodfel-low said, a plug-in full h-brid operated mostl overshort journes in urban areaswould likel run mostl inelectric mode, meaning thatthe petroleum-powered en-gine would seldom run andmight rarel reach normaloperating temperatures. Thiswould allow accumulation

in the sump of condensationand other contaminants thatare normall driven off athigher temperatures.

On the other hand, engineswith stop-start sstems ttedcould be subjected to hightemperature thermal soaksunder circumstances wherethe engine is shut down aftersustained high speed opera-tion the freewa exit ramp

scenario. This can lead toproblems with turbochargerbearing fouling, for example.

Collectivel, the hugerange of changes looming forengine designs will pose anenormous challenge for theengine oil industr. The in-crease in operating tempera-tures and reduction in viscos-it ma be the most difcultproblems, Goodfellow said,

but formulators will alsohave man additional de-mands to juggle.

As this issue went to press,Ricardo announced that itwill lead an effort to form aconsortium of automakers,tier 1 equipment manufactur-ers, lubricant companies andadditive suppliers to confrontthe challenges of reducingCO2emissions. Ricardo said

the initiative has alread gar-nered interest from leadingcompanies from those groups,and it invited others to partici-pate. It offered to provide fur-ther information in responseto e-mails sent to [email protected]

Lubricant industr insid-ers frequentl complain thatautomakers do not involveoil and additive companies

in design changes that affectlubes. According to Goodfel-low, now more than ever it istime for such collaboration.

In order to enable the nextcrucial steps on the path toimproving fuel econom andreducing the carbon emissionsof road transport, it is essen-tial that the oil, lubricant addi-tive and automotive industriescan work together.

COMPENsAtiNG FOr DistOrtiONs

tog dealed degn of clnde loc ce and ecnqe c a onng,manface ae conollng eeal a n c clnde can ecome doed.

Source: Gehring Technologies

MachiningDeviations

Conventional machining techniquescan cause clinders to be out of shape

b as much as 7 microns.

asseMblyDistortions

Steps such as tightening of screwscan bend clinders.

DistortionsoffireDengine

Operating temperatures can causethermal distortions.



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Africas MinesMean BusinessLube Demand Grows Despite Recession

Africa has not es-caped the damageinicted b therecession, with

countries across the continentwatching their economiescontract. But one of the con-tinents strongest industries,mining, has continued hum-ming along. That has beenwelcome news for lubricantsuppliers, as mining becamea rarit for the industr a

customer segment whose de-mand was growing.

The qualit of lubricantsused b mines is also rising,and African lubricant mar-keters are working to breakthe grip that oil majors haveheld on the market. It ap-pears that mining will be astrong point for the regionslube industr for the foresee-able future.

Our view is that for the next

few decades, mining will con-tinue to grow, and demandsfor lubricants will increase asmore modern techniques areused, said Adnaan Emeran,lubricants marketing managerfor Engen Petroleum. Blasting team sets charges in gold mine in Zimbabwe.


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Mining ManiaAfrica ma be the worlds

poorest region, but it is rich inmineral resources, and it hascertainl drawn the miningindustrs attention. Accord-ing to the International Coun-

cil on Mining and Minerals,an industr group, since 199760 percent of the globes in-vestment in mining explora-tion has been spent in Africa.

Signs of investment are ev-erwhere. Kenmare Resourc-es Plc, an Irish compan, isramping up production of itstitanium mine in Moma, Mo-zambique, which is project-ed to see investments total-ing U.S. $450 million over a

20-ear lifespan. Paris-basedAreva Resources this earopened a $920 million ura-nium mine at Trekkopje, Na-mibia. South Africas AfricanMinerals Ltd. is preparing tobegin production on its $2.6billion iron ore project inTonkolili, Sierra Leone.

China Non-ferrous MetalCorp. plans to spend $400million expanding a cop-per mine in Baluba, Zambia,

and building a second mineand plant in Mulashi, Zam-bia. A British rm, VedantaResources Plc, is spending$500 million to develop Af-ricas deepest copper mine atKonkola, Zambia. CIC Ener-

Shaft mining involves thedigging of tunnels and is usedwhen the mineral is furtherunderground. This methoduses rock drills, winches,conveors and elevators andsometimes crushers, as well.

Shaft mining makes use ofmechanised trackless meth-ods and consumes more lu-bricant, than open-cast min-ing, Emeran said. With thesemining methods, the mainlubricants are once again atop qualit diesel engine lu-bricant, good gear oils andthen a standard hdraulic oil.The hdraulic oil once again[has the highest volume] dueto the high incidence of h-

draulic pipes bursting in thisharsh environment.

g, an offshore rm, is pur-suing a $6.3 billion project tobuild a coal mine and energplant on Botswanas Mmam-abula Coal Field b 2012.

Mines in the Democrat-ic Republic of Congo, tra-

ditionall one of the conti-nents mining centers, mabe struggling at the moment,but other areas are starting toreceive more focus, for exam-ple the 16-member EconomicCommunit of West AfricanStates. Ghana has attracted$5 billion in investment formining projects since 1997.Mali attracted $850 millionin gold mining investmentsduring the same period.

Pit or TunnelThe mining industr has

two basic methods for ex-tracting minerals open castoperations and shaft mining.Open cast mining digs largeopen pits and is used whenthe minerals are located nearthe surface. It uses equipmentsuch as earth movers, crush-ers and treatment plants.

Open cast mines use pre-

dominatel three lubricants a high-specication engineoil, good qualit gear lubri-cant and hdraulic uids,Emeran said. Hdraulic oilsprobabl being the highestvolume consumed.

Should shaft mining operations revert to the old conventional methods which aremore labour intensive thenone would see a swing backto higher grease consumptions due to winches and rock

drills being reintroduced on abigger scale.

Although mines tpicalluse multiple suppliers, moslink fuel and lubricant purchases, giving advantageto international oil majorsSources said most of the leading plaers are indeed big oicompanies. Shell controls approximatel 60 percent of themarket in West Africa, according to Emmanel Dadson

a former lubrication specialist with a multinational oi

Miners drill core of a uorite mine in South Africa.


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compan who now runs aconsulting business for goldminers in Accra, Ghana.

Total follows with about 20percent [of the West Africanmarket], and the rest is sharedamongst other independentsuppliers, he said, adding thata small volume is brought inb OEMs who sell genuineoils for warranted equipment.In the past few ears, Totalalso bought up chunks of in-dustrial lubricant businessesthat BP had left idle in Zam-bia and Malawi. The French

oil major made the acquisi-tions in order to serve newmining projects in Zambia,Malawi and Mozambique.

Shell appears to also bethe biggest supplier of lubri-cants to mining operationsin South Africa, according toEmeran. Other leading pla-ers include Engen, Caltex, BPCastrol, Total, Fuchs and Mo-bil, he said, noting that En-gen is the sole supplier for

Mobil lubricants in SouthernAfrica. A few specialt lubri-cant companies, such as Klu-ber, Bechem and Flexilube,are also present.

Africans Take AimA few indigenous com-

panies are striving for con-tention. Kobil Zambia, afull-owned subsidiar ofNairobi-based Kena OilGroup (Kenol), entered two

major ventures in Zambiaas part of a strateg to pene-trate a market long dominat-ed b majors. Kobil Zambiaacquired from Total a 15 per-cent shareholding of LublendLtd., a lubricants blendingplant in Ndola, in Zambiascopper belt.

Kobil also signed a long-term fuel suppl deal withAlbidion Mining Ltd. Albidi-

but also reporting and man-aging the equipment usageand reliabilit aspects.

Quality RisingUnlike some parts of Af-

ricas lubricant market, thequalit of lubes used in min-ing is steadil advancing,keeping pace with the intro-duction of new equipment.

For example, between2002 and this ear, Caterpillarexcavators and dump trucks,Liebherr excavators and oth-er equipment have movedfrom using API CF-4 oils tothe CI-4 specication for therecommended drain interval

of 250 hours, Dadson said.The improvement in qual-it is also driven b an end-user desire for longer drainintervals.

We are experiencing theneed for top-tier lubricants toextend drain intervals, Emer-an said, for example from 250to 350 hours on modern ellowplant machines. Certain mineshave successfull explored the

on, currentl in the nal stag-es of its site construction, willbe mining nickel in the south-ern region of Zambia for theexport market. Preliminarmining activities have start-

ed and Kobil has commencedsupplies of low-sulphur die-sel to Albidion.

Engen, which is based inCape Town, South Africa,has expanded its presence inthe mining industr over thepast couple decades, landingaccounts in countries suchas Angola, Mozambique, Na-mibia and Botswana. Nowit is tring to continue thattrend, partl b increasing its

service offering.We are now selectivel of-fering uid management pro-grams in neighbouring coun-tries to not onl suppl fuelsand lubricants but to managethe stock and dispense theproducts into the mine equip-ment, Emeran said. Hence[we are] not onl addingvalue in high-performanceproducts and extra services,

use of long-life lubricants inwinch gears in order to ob-tain two ears life versus six

months, which is tpical forexisting equipment.

Less progress has come froma push for the industr to usemore environmentall be-nign lubricants in rock drill-ing, a process that uses greas-es or oils to lubricate drill bitsand also to remove loosenedrock. As a result, the lubricantenters the environment. Bio-degradable products are avail-able but have et to catch on

in Africa, Emeran said.The have not taken off

due to the costs involved andlack of legislation drivingchange, he said.

Sources said the lubricantindustr is generall meetingthe needs of the mining in-dustr; there is alwas roomfor improvement, but thereare no glaring problems in-volving inadequate lubrica-tion. The biggest problem,

Emeran said, at least in SouthAfrican mines, is a shortageof workers with skills to op-erate and maintain the so-phisticated machiner thatthe industr uses.

Mining equipment, espe-ciall ellow plant is gettingmore advanced b the da,he said. OEMs such as CAT,Komatsu and Atlas Copco arefocusing more and more onthe performance and cleanli-

ness of the lubricant.That ma explain the grow-ing emphasis on uid man-agement and other ancillarservices. Lubricant marketerscertainl have an interest inhelping mining operators toavoid breakdowns. The moremines keep running, the morelikel the are to offer an op-portunit for sales growth even during a recession.

Namdeb Diamond Mine in Namibia.


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What makes alubricatinggrease bet-ter for the

environment? For some, itssimpl a grease thats rap-idl biodegradable, with notoxic effects. Man will in-sist on a grease made witha high amount of renewablecontent. Some advocate acleaner, safer work place and

less exposure to harmful in-gredients or processes. Andothers will point to longer-lasting greases that extendequipment life and reducethe waste of frequent relu-brication.

All these factions werepresent at the European Lu-bricating Grease Institutesannual general meeting inlate April in Gothenburg,Sweden, putting forth argu-

ments and ideas for makinggreases healthier, strongerand more environmentallacceptable.

Alan Begg, senior vice pres-ident of SKF Group, whichis headquartered in Gothen-burg, pointed out that about80 to 90 percent of all rollingelement bearings are grease-lubricated. Grease dominatesthe service life of bearings and

the bearing is 44,000 hours,the grease should be able togo 11,000 hours between re-lubrications. But if the op-erating temperature goesup, ever 15 degrees thatsadded will halve the life ofthe grease and it wont domuch for the life of the bear-ing either, Begg said drl.

Among SKFs latest advanc-es are E2 Low Friction bear-

ings. The E2 stands for Ener-g Efcient, and the bearingsare designed to have preciselcontrolled motion, polmermaterials and speciall for-mulated low-friction greases.Together, these can cut fric-tion b 30 percent, whichmeans lower operating tem-peratures, which in turn candouble the grease life. Theresult will be longer bearinglife, and less wasted grease.

Thomas Norrb, R&Dmanager at Statoil Lubri-cants in Nnashamn, Swe-den, and a professor at theLulea Universit of Technol-og in Sweden, told the ELGImeeting that such efforts arepart of the overall trend hecalls Lubricants Designedfor Environment or DfE. Hedescribed a clear trend overtime for issues to move from

gives a major contribution, hesaid. Sustainabilit of bear-ings therefore depends ongreases, and their biodegrad-abilit needs to be addressed.For the most part though, hezeroed in on grease life as theke to sustainabilit.

About 5 percent of SKFsbusiness now is supplingbearings, control sstems andgreases for windmill energ,

noted Begg. We make nogrease ourselves we con-tract that out to others butwe carr out a wide range ofresearch and tests to under-stand lubrication so we canoffer the best greases to ourcustomers.

Ideall, we would have nolubricant at all, he continued,but thats not possible, ofcourse. The one drawback togrease lubrication is the lim-

ited life. Its common to sathat a bearing fails, or thelubrication fails. But its alsonot true. Usuall its the sealthat fails, and grease leaksout, leading to the damage.

In rolling contacts, SKF ex-pects the potential bearinglife to be three or even fourtimes the life of the grease,if operating at 70 degrees C.That is, if the expected life of

local to global, when it cometo acting upon environmental signals or issues.

In the 1980s, he noted, biolubricants were rst introduced to industr and werenot alwas up to the job. Buthose earl products servedas an ee-opener and a dooropener, Norrb said. Todatheres a recognition thaboth the grease and the ap

plication must be designedwith an ee to the environment. This requires life-ccle analsis, weighing theproducts renewable contentits biodegradabilit, and balancing those attributes withits performance. For everproduct ou develop, ouneed to do these calculations, he urged.

Norrb also pondered therelevance of biodegradable

lubes, given lubricants tinrole as part of the crude oibarrel. Ninet-seven percent of crude oil equivalentis combusted, he pointed outand onl 1 percent becomelubricants. Changes such ausing biodiesel or ethanoin gasoline will have a muchbigger environmental impactBut as petroleum suppliedwindle, nding a reliable

Environmental IssuesPropel Greases


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suppl of longer and slippermolecules eventuall will bea challenge, he predicted.And using environmental-l acceptable lubricants is agood rst step for energ sav-ings, and still offers plent ofopportunities.

Mineral oil based uidswill remain with us for a verlong time, Norrb added, al-though were soon supposedto have gas-to-liquids and

coal-to-liquids base uids. But10 ears ago these were justaround the corner and thestill are. Meanwhile, triglc-erides derived from vegetableoils, plant-derived fatt acidcomponents for making sn-thetic esters, and geneticallmodied designer fatt ac-ids and triglcerides ma bethe next steps for bio-lubes,Norrb said.

Another view into environ-

mentall acceptable greaseswas offered b Eric Nehlsof Basel, Switzerland-basedCiba. Nehls, who coordinatesthat compans initiatives inbiodegradable lubricants inEurope, observed that biolu-bricants have been commer-ciall available for decades,but the earl versions wed-ded relativel poor perfor-mance with high cost, whichnaturall created resistance

in man end users. Thoseearl defects have been tack-led and are being overcome,he assured. Toda biolu-bricants can match or out-perform standard lubricantsbased on petrochemical baseoils in the market, and on thecost side, the situation hasslightl relaxed.

Over the same period, theworld saw a multitude of

safet, eco labels, nationallegislation and cost savings.

But what exactl is a biolu-bricant? Theres a range ofthought. Some sa its whatsnon-toxic, others think itshould be based on renew-able resources, others insist

on a high level of biodegrad-abilit. But generall thereare two major areas that haveto be addressed, said Nehls.

First, there are ecologicaland toxicological require-ments. And second, technicalrequirements must be satis-ed, such as OEM specica-tions, national and interna-tional norms, and end-usersspecications.

For greases that hope toachieve the EEL, all the com-ponents must be carefullconsidered and selected. Tp-

schemes and requirements Germans Blue Angel, theNordic Swan, Swedens SPstandard, others that aimedto dene and promote bio-lubricant uses. These effortshelped a bit, but overall re-sulted in a fragmented and

niche market, said Nehls. In2005, the EU Ecolabel broughtman of these standards un-der a single banner. The EEL

is now regarded as the largestspecication for lubricantsworldwide, he said, coveringsome 240 lubricant tpes.

A stud b Frost & Sullivansaid Europes biolubes mar-ket could grow from 120,000metric tons per ear in 2006to 180,000 tons in 2013, Nehlssaid. Driving this growth aregreen public procurementpolicies, industrial health and

icall, a grease contains 65 to95 percent base oil b weight,5 to 35 percent thickener, and0 to 10 percent additives. Ofthese, the base uids areprobabl the most straightfor-ward when it comes to evalu-ation, he said. Vegetable oilsand either natural or snthet-ic esters are usuall preferredto meet the EEL standards forrenewabilit, biodegradabil-it and aquatic toxicit. Some

ver high-performing uidsthat are acceptable on biode-gradabilit such as PAO andPAG unfortunatel will notmeet the renewabilit tar-gets, though the ma nduse in some blends.

B contrast, the biggestproblem is the thickener ss-tems. We see big uncertaintabout which thickener ss-tems might be able to earn theEU-Ecolabel. The two major

tpes of thickener sstemsare soap-based and non-soap,and both have some opportu-nities as well as drawbacks.Soap-based thickeners, for ex-ample, are created b chemi-cal reaction. So while the EELaspects of the raw materialsma be known, the proper-ties of the reaction productdemand separate evaluation.And the non-soap thickenersinclude puzzlers like graphite,

PTFE, bentonite and others,man of which have mixedresults when evaluated forEEL status. For example,Nehls said, Were now seeingconcern about the unknownrisks of nano products, so itsbest to use graphite in a non-nano form.


SKF believes that reduced friction promotes sustainability by prolonging thelife of bearings and grease.

PhotocourtesyofSKF


ENvirONMENtALLy sENsitivE GrEAsEs

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tO stArt, stOP Or ChANGEA subsCriPtiON,visit www.LNGEu.COM.

SUBSCRIPTIONS ARE FREE TO QUALIFIED SUBSCRIBERSIN EUROPE, THE MIDDLE EAST AND AFRICA.

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ELsEs COPy? stArtyOur OwN FrEEsubsCriPtiON tODAy !

Thomas Rossrucker, seniormanager, technical applica-tions, at Rhein Chemie Rhei-

nau in Mannheim, Germa-n, approached grease safetfrom another direction: inthe grease plant. Grease pro-duction can be made safer bavoiding handling toxic andharmful chemicals, he told themeeting. While safeguardsma be in place in the morehigh-tech grease plants, thereare man operations that coulduse help to reduce health andsafet risks, he opined.

Polurea grease manufac-turing, for one, is regarded asa ver high-risk operation,Rossrucker observed, sincethese greases involve han-

provided the right manufac-turing method is used. In thiscase, the grease maker needs

to have ver high-shearingequipment to ensure the pre-formed powder and base oilcome together properl.

Another concept advancedb Rossrucker was the idea ofusing special chemical bind-ers to control the dusting ef-fects of man solid ingredi-ents. Among the ingredientsthat ma create clouds of dustare boric acid used for greasebases, and additives such as

silica, molbdenum disuldeand graphite. These powderadditives can lead to a dust,even explosive atmosphere,and should not be breathed b

dling ver hazardous di-iso-canates, as well as amineswhich can be toxic and cor-

rosive. Due to the high safe-t standards and expensiveequipment involved, mangrease manufacturers cannotproduce polurea greases.

One solution, Rossruck-er said, is to leave it up to achemical supplier to managethe basic reaction with thehazardous materials, and sim-pl obtain a nonhazardous,pre-formed polurea pow-der to make the grease. Rhein

Chemie pioneered this ap-proach several ears ago, andtests show that the resultingpolurea grease can be equiv-alent to in-situ made greases

workers. The chemicals alsocan compact, making themresist owing and hindering

their dispensing.The use of these additivesrequires additional equipment,like exhaust sstems to pre-vent formation of dust explo-sive atmospheres, Rossruckersaid. Workers ma need towear cumbersome protectivegear, and have special training.Industrial hgiene and workoor cleanliness also need tobe addressed, he said.

Another Rhein Chemie

business area, the rubber in-dustr, suggests the answer:Lock dusting chemicals intoa stable, safe-to-handle pol-meric structure. Field trials



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show that dusting additivestpicall used for grease pro-duction such as molbde-

num, graphite, zinc oxide,calcium carbonate or oth-er powder solids can bebonded with polmers andthen pelletized. The pelletsthen can be handled withoutcreating a mess, and lead to acleaner work place with noexposure for workers. Exam-ples of such polmeric bind-ers include EPDM, waxesand thermoplastics.

Tpicall, the ratio of ac-

tive substance to binder is80:20 (ie., 20 percent binder),but the biggest problem sofar is in nding a polmerwhich is compatible with

all grease tpes and all baseuids, Rossrucker conceded.Two essential properties to

consider are the polmerssoftening temperature andits solubilit in the base uid both necessar to achieve ahomogenous distribution ofthe encapsulated additives.

At the ver least, the addedbinder should show no detri-mental effects on the grease no change for example inthe grease dropping point,oil separation and mechani-cal stabilit. Better et, Ross-

rucker suggested, the pol-mer could be selected for itsfunctionalit, boosting theperformance and value ofthe nished grease. Rhein Chemie is working to make grease production safer.



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Grease Production SlipsTotal reported grease production

worldwide was 1.02 billion kilogramsin 2008, down slightl from the 1.05

billion kg reported in 2007, accordingto the latest grease production survefrom NLGI International.

On a comparative basis, includ-ing onl production data for the com-panies that responded in both ears,worldwide production slid 2.2 percent,European production declined 3.1 per-cent, and North American productiondropped 5.1 percent.

The 2008 Grease Production SurveReport from Kansas Cit, Mo.-basedNLGI International covers calendar

ears 2005 through 2008, breaking pro-duction data down b geographic re-gion and thickener tpe.

In Europe, total reported grease pro-duction was 211,874,000 kg in 2008.Looking at European production bthickener tpe on a comparative basis,aluminum soap grease output was vir-tuall unchanged from 2007 to 2008,when it totaled 10.7 million kg. Calciumsoap production declined 6 percent to30 million kg from 2007 to 2008. Lithi-

um slipped 1 percent to 136.8 million kg.Polurea production went down 4 per-cent to 5.8 million kg.

Reported production in Africa and theMiddle East totaled 33.4 million kg in2008, down signicantl from the 49.5million kg reported in the 2007 surve.

Copies of the 25-page report are avail-able from NLGI at www.nlgi.org

BASF to Close Ciba Sites?On the heels of its acquisition of Ciba,

BASF in Jul said it is considering re-

structuring, selling or closing 23 formerCiba production sites. BASF also plansto consolidate more than half of Cibassales and administrative sites and to cut3,700 jobs.

It was April when BASF, the Ludwig-shafen, German-based chemical giant,completed its acquisition of Ciba, whichwas headquartered in Basel, Switzer-land. Ciba offered a wide range of lubri-cant additives, including antioxidants,antiwear agents, metal deactivators, cor-

rosion inhibitors and pour-point depres-sants. Its process and lubricant additivesbusiness fell under a plastic additivessegment, which is being integrated intoBASFs performance chemicals division.

Ciba had 55 production sites. BASFplans to decide b the rst quarter ofnext ear what to do with the 23 thatare up for disposition. Ciba also had70 sales and administrative ofces, 36of which are to be consolidated b theend of 2010. Job cuts are scheduled to becompleted b 2013, though most would

take effect b the end of next ear.

Court: Monomers Must beRegistered

The European Unions highest courtafrmed in Jul a provision of theREACH chemical regulation that re-quires registration of monomers eventhough the law exempts polmers madefrom them. Some monomers are used inthe production of a variet of chemicalsused b the lubricants industr.

Newsmakers

Worldwide:

1.02 billion kg

Polyurea, 4%

Aluminum, 4%

Calcium, 11%

Other, 9%

Lithium,73%

Europe:

212 million kg

Polyurea, 3%

Other, 8%

Calcium, 15%

Aluminum, 6%

Lithium,68%

Africa & Middle East:

33 million kg

Other, 1%Organophilic Clay, 3%

Sodium, 3%

Calcium, 31%

Lithium,57%

Other Metallic, 5%

2008 GREASE PRODUCTION, BY THICKENER

Source: NLGI International


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Plaintiffs in the case included Germanchemical maker C.H. Erbsloeh KG.; Lake

Chemicals, a British provider of chemi-cal services; the former Hercules Inc.,which is now part of Ashland Inc.; andS.P.C.M., a French supplier of organicchemicals. The argued that it is neitherfair nor logical to require registration ofmonomers when polmers made fromthem need not be registered.

In its decision, the court noted thatpolmers were exempted from registra-tion largel because there are so manof them and because in practical termsit would have been difcult to register

them. The REACH law states that pol-mers ma be subject to registration atsome point in the future.

The court also concluded that somedeference should be given to the lawbecause of the importance of its pur-pose to protect human health.

With few exceptions, REACH requiresthe registration of chemicals made in orimported into the EU. Suppliers are re-quired to provide documentation of safe-t testing and to show that the havecommunicated down their suppl chains

about the safe use of their products.

Lanxess Buys Polyalcohols MakerLanxess AG announced in June an

agreement to acquire the business andproduction assets of Chinese-based Ji-angsu Polols Chemical Co., a produc-er of polalcohols that can be used inlubricants. Lanxess said it alread is amajor supplier to China of trimethlo-propane (TMP), a polalcohol used inthe production of snthetic lubricants,solvent-free coatings, polurethanes

and alkd resins.Lanxess, which is based in Leverkus-en, German, said it plans to integrate

Jiangsu Polols into its global opera-tions. Jiangsu Polols is located in Ji-angsu Provinces Liang Liqiang Indus-tr Zone and produces approximatel15,000 t/ of TMP, 2,000 t/ of di-TMP,2,500 t/ of cclic TMP and 10,000 t/ ofcalcium fornate.

It reported sales of 10 million for2008 and emploed 170.

Prista Acquires Bogdany PetrolBulgarian lubricant marketer Prista

Oil agreed in June to bu 92 percent ofHungarian petroleum specialt manu-

facturer Bogdan Petrol Ltd. Prista saidit plans to double the size of Bogdan

Petrols operations and to use it as a vehicle for increased lubes sales in Hungar


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Bogdan Petrol is located in the citof Nirbogdan, in northeastern Hun-gar. It manufactures industrial oils

such as quenching and cleaning uids,technical white oils, and insulating par-afns and gels, among other products. Itwas founded in 2000 and reported salesrevenue of of 6.2 billion Hungarian o-rint (23 million) in 2007.

Prista said the transaction is part ofits strateg to diversif both its range ofproducts and raw material suppl. It add-ed that Bogdan Petrol also gives it great-er access to an attractive countr market.

Hungar is undoubtedl one of themost developed countries of Eastern

Europe, a good place for investment anda [unique] position for development ofPrista Oil in Central and Northeast-ern Europe, too, said Plamen Bobokov,chairman of the Management Board ofPrista Oil. We believe the acquisition will help develop the business of Pris-ta Oil as a whole and in particular themain business of Prista lubricants.

Prista said it sees opportunities for sn-ergies between the two companies sup-pl chains, production activities and mar-keting. Prista ofcials also believe the

can help turn Bogdan Petrol into one ofEuropes largest suppliers in its sector.

Prista, which is based in Soa, alread

claims to be one of the largest lubricantsuppliers in Eastern Europe. It reportedsales revenue of 254 million on 178,000metric tons of lubricants in 2008. It alsoowns a batter business.

Neste, Bapco Form Joint VentureNeste Oil, Bapco and a government

holding compan formall created a pre-viousl announced base oil joint venturein June. The agreement gives oil compa-n Bapco and Oil and Gas Holding Co.a combined 55 percent of Bahrain Lube

Base Oil Co., which will operate an APIGroup III base oil plant in Sitra, Bahrain.Neste holds the remaining 45 percent.

Neste ofcials said construction hasbegun and that the plant is scheduled toopen in the second half of 2011. Designscall for it to have capacit of 400,000metric tons per ear.

Neste is a rener based in Espoo, Fin-land. Bapco is Bahrains national oil com-pan, and Oil and Gas Holding is a jointstock compan controlling the govern-ments energ sector investments.

The project is expected to cost be-tween U.S. $400 million and $450 mil-lion. Last ear the partners awarded a

$314 million contract to Samsung Engi-neering for engineering, procurementand construction.

Lee Replaces Ong at PetronasPetronas has promoted S.K. Lee to the

position of senior manager of technicalservices. He replaces Eng Kiang Ong,who retired 1 June to start a consultan-c, EK Energ, in Selangor, Malasia.

Emarat Links with Al YousufEmirates General Petroleum Corp.,

better known as Emarat, agreed inJul to have its lubricants and specialtproducts sold in Al yousuf Motors spareparts stores. The oil products marketer,which is based in Dubai, hailed the dealas a wa to offer its lubricants to a wid-er audience.

Emarat alread markets lubricantsthrough its chain of 174 service stations,its Lube Express chain of oil changecenters and other facilities such as carwashes and tire centers.

Al yousuf, which is also headquar-tered in Dubai, operates a chain of 21parts stores in the United Arab Emir-ates. The compans Commercial andRetail unit also owns supermarkets, h-permarkets and repair shops that willcarr Emarat lubricants.

S.K. Lee

Pristas new Hungarian base, Bogdany Petrol, in Nyirbogdany. Photo courtesy of Prista


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E-mail company news and personnelannouncements to [email protected],or fax to +1 703 536 0803.

Hocem Adds Group II, IIIOil products supplier Hocem has be-

gun carring API Group II and III base

stocks, adding to the Group I stocksthat it carried in the past. The compan,which is based in Hamburg, German,said its base stocks can be delivered tocustomers around the world b tran-shipment through ports in the Balticand Black seas.

The expansion of the base stock port-folio comes after the compan begandistributing slack wax and parafn waxlast ear. Hocem, formall known asHaase Oil Chemical GmbH, operateschemical tank terminals in Antwerp

and in Eastham, U.K. The compan didnot disclose the source of its Group IIand III base oils.

Smith Takes Lead at PolartechPolartech Ltd. in June appointed Bar-

r Smith to be its chief executive of-cer. Smith has more than 20 ears ofexperience in the industrial lubricantssector and comes to his new post fromCastrol, where he was marketing andtechnolog director for industrial lubri-cants and services.

Polartech is based in Manchester,U.K., and markets metalworking uids,as well as additives and additive pack-ages for metalwor

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