Neste Oil forms JV for Bahrain base oil unit

16 June 2008 10:40  [Source: ICIS news]

MUMBAI (ICIS news)--Neste Oil will establish a €250m-300m ($385m-462m) joint venture with two Bahrain-based companies to build a high-quality lubricant base oils plant in the Gulf state, the Finnish company said on Monday.

The joint venture would set up a 400,000 tonne/year very high viscosity index (VHVI) base oil plant for use in blending top-tier lubricants, it added in a statement.

Neste Oil would have a 45% share in the JV, which would be called Bahrain Base Oil Co, and the remaining stake would be held equally at 27.5% each by Bahrain's Oil & Gas Holding Co (OGHC) and Bahrain Petroleum Co (Bapco), the company said.

"Demand for these sulphur-free base oils is increasing globally, thanks to their ability to meet current and future performance requirements, as well as more stringent environmental standards," said Neste Oil specialty products executive vice-president Kimmo Rahkamo.

Feedstock for the new base oil facility will be provided by the hydrocracker unit commissioned in 2007 at Bapco's oil refinery, the company added.

OGHC is owned by the government of Bahrain and owns 100% of Bapco, the company said.

($1 = €0.65)

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By: Isha Jha
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