LUKOIL BUYS OMV LUBRICANT BUSINESS IN EUROPE

Friday, June 28, 2013

LUKOIL and OMV Refining & Marketing GmbH signed a contract to finalize the purchase of OMV’s lubricant blending plant located in the suburbs of Vienna, Austria, by ООО LLK-International (a wholly-owned LUKOIL subsidiary). Besides the plant with a capacity of 35 thousand tons per year, the contract includes a number of distribution units for finished products in Austria, Bulgaria, Hungary, Germany, Romania, Slovenia, Slovakia, the Czech Republic and Serbia.

“This transaction is in line with our company’s strategy that provides for further expansion of LUKOIL’s lubricant business on the global market. The favorable geographic location near foreign car makers and industrial enterprises, a well-tuned distribution system in Europe, modern production facilities, unique scientific developments and the vast professional experience of the company’s employees are the significant factors that became decisive for us”, Vagit Alekperov, OAO LUKOIL President, commented.

The transaction will also create synergy with LLK-International’s plants in Romania and Finland, optimize the supply logistics of lubricants to the company’s strategic partners and strengthen LUKOIL’s scientific and technical potential for the development of new lubricants.

The popularity and customer loyalty to the goods manufactured by a leading European company will broaden the product range, support the positions of the LUKOIL-branded oils in the foreign markets and create new sales opportunities for LUKOIL’s premium-class lubricants in all other regions of the company’s presence.