S-OIL, First Overseas Production of Lubricants

[Asia Economy Reporter Hwang Yoon-joo] S-OIL announced on the 28th that it has signed a long-term strategic partnership with Gulf Oil Lubricants (Gulf Oil), a leading lubricants company in India, and will manufacture and sell its premium lubricant brand 'S-OIL SEVEN' locally in India.

S-OIL SEVEN lubricants began production in August at the Gulf Oil plant located in Chennai on the east coast of India, and preparations are underway for a full-scale launch in the Indian market in the fourth quarter.

This is the first time S-OIL is producing and distributing its products overseas locally. S-OIL plans to actively cooperate with Gulf Oil to successfully establish the 'S-OIL SEVEN' lubricant brand in India, the world's third-largest lubricant market.

Since 2006, S-OIL has been exporting base oils, the raw material for lubricants, to Gulf Oil, a representative lubricant manufacturer in India. Through this strategic alliance, the two companies have advanced from a simple raw material sales and purchasing customer relationship to a long-term and expanded partnership.

S-OIL has a production capacity of 44,700 barrels per day of base oils and has led the domestic lubricant industry. It operates the world's largest single plant producing Group I, II, and III base oils according to international quality standards. In particular, at the Magok Technology Development Center (TS&D Center), established in 2017, S-OIL has developed eco-friendly, high-quality lubricants that meet stringent environmental regulations as well as the demanding quality requirements of consumers and domestic and international automobile manufacturers. Recently, in response to the increasing adoption of electric vehicles, S-OIL has also completed the development of four types of lubricants optimized for electric and hybrid vehicles.

Hussain Al-Qahtani, CEO of S-OIL, said, "The production of S-OIL lubricants in India was made possible by the long-term relationship based on mutual cooperation with Gulf Oil," adding, "It is even more meaningful that we have strengthened our partnership to pioneer the Indian market, one of the world's largest lubricant markets, overcoming the difficulties posed by COVID-19."