Lukoil benefits from Russian market; SOCAR expands in Azerbaijan


Russia's Lukoil saw a 32% increase in auto lubricants in 2010 on the back of a buoyant domestic market.

The Russian oil producer made around 1.4m tonnes of motor oil and speciality petrol-based products during the year, using 100% of its capacity.  Paraffins and oil extracts added to the company's strong year.

Lubes sales of 1.37 million tonnes for the year, with industrial product sales jumping 73% over the previous year and Lukoil branded consumer products up 8% at 105,000 tonnes.

Much of the company's industrial sales were in the mining industry as well as through the St Petersburg Commodity Exchange.

The strong year will have been helped by recent research, according to Lubes Report, that the Russian DIY oil change market is alive an well, despite an increase in Do-it-for-me (DIFM) oil change demand in Western Europe.  In Russia, DIY accounted for some 60% of the lubes market with just 30% DIFM, as opposed to Spain and Italy for example, where DIFM took 90% of the share.

The report may also be good news for the State Oil Company of the Azerbaijan Republic (SOCAR whose opening of another gas station on the way to its 26-30 station target was boosted by a 4% increase in the domestic market lubes market for the first nine months of 2010.

According to government sources, Azerbaijan consumed 3.6m tonnes of oil, with just over 961,000 tonnes in the form of motor petroleum product.