The agreement is regarding Group III base oils manufactured at Bahrain plant
Neste and Bapco has renewed an agreement for commercial cooperation between the two. The pact secures Neste a considerable share of the output of the base oils joint venture (JV) plant for 2018. In addition to allowing Neste to continue supplying its full customer portfolio, Bapco is enabled to launch its own brand to the global market beginning 1 January 2018.
The ambitions of both partners to not only cement their respective positions as players in the Group III base oils market, but also address an ever-changing industry by being flexible and agile in their relationship, ensuring both continue to thrive in any market situation is evident by the commercial agreement.
A 45% share of the JV manufacturing plant is held by Neste, while a total of 55% shares is owned by Bapco and OGHC. With the JV agreements remain unchanged, Bapco continues to be the sole operator of the plant located at the Bapco oil refinery in Bahrain.
The production volumes of Neste's own plant in Finland is continued to be complemented by the Bahrain plant output, ensuring continued supply of Neste's top-quality Group III base oils, branded as NEXBASE(TM), to its global customers. In 2018, Neste will altogether bring more than 500,000 tons of top-quality base oils to the global market. New commercial opportunities continue to be explored by the company to further its global reach and to introduce new high quality Group III products under its NEXBASE(TM) brand.
Neste is conducting research on completely new high-quality products based on renewable raw materials, in addition to working on expanding its base oils portfolio with new products and new supply sources. Neste's expertise in the base oils business and its world-leading role as a developer and producer of renewable fuels is combined in the Renewable Base Oil project. It supports Neste's base oils goal of always being at the cutting edge of new developments, while leading the industry to a higher quality and sustainable future. PWKD10112017