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Pertamina exports lubricants to Bangladesh
As part of its expansion into the global market, state oil and gas firm PT Pertamina began shipments of three brands of lubricants comprising a total of 16,000 liters to Bangladesh
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s part of its expansion into the global market, state oil and gas firm PT Pertamina began shipments of three brands of lubricants comprising a total of 16,000 liters to Bangladesh.
Company spokesperson Mochamad Harun said in a press statement that Bangladesh, which has a population of 162 million people and a gross domestic product (GDP) of US$94.5 billion, offered a relatively big demand
for lubricant of 70,000 metric tons a year.
He said that the exports to Bangladesh show that Pertamina’s lubricant technologies are compatible with compressed natural gas- (CNG) based vehicles, which were recommended by the Bangladeshi government to promote environmentally friendly transportation policies.
In Bangladesh, Pertamina’s lubricants will compete with products from other major lubricant suppliers, including Shell, BP, Castrol, Fuchs, Total, Conoco, Caltex and 45 other brands, Harun reported. He said he hoped that by penetrating the Bangladeshi market, the image of Pertamina as a world class company could be improved.
Bangladesh is Pertamina’s 19th lubricant export destination. Earlier, the company has also sold its lubricants to Australia, Belgium, China, Japan, Korea, Malaysia, Myanmar, Nepal, Philippines, Saudi Arabia, Singapore, Taiwan, Thailand, Timor Leste and the United Arab Emirates.
“The addition in the number of export destinations implies that more consumers believe in Pertamina’s lubricant products,” Harun said in the statement.
According to the company’s data in 2010, the sales volume of lubricants for four-wheeled vehicles reached 99,836.89 kiloliters, jumping 3 percent from a year earlier.
The sales were dominated by semi-synthetic products, such as Prima XP, due to its affordable price and high quality. The sales of Prima XP hit 24,502.12 kiloliters last year, increasing 4 percent from 2009.
For full-synthetic lubricants like Fastron, the sales were not as high as the semi-synthetic lubricants. However, demand increased by 286 percent to 4,642.17 kiloliters in 2010 compared to 2009. The increase was stimulated by the after market and original equipment manufacturer (OEM) sectors like Toyota with its Toyota Genuine Motor Oil (TGMO).
Last year, the company sold a total of 458,000 kiloliters of lubricant in the domestic and global markets. This year, sales are estimated to reach 546,000 kiloliters.
According to the company’s data, in the first quarter of this year, Pertamina booked Rp 37.5 billion (US$4.18 million) in unaudited gross profits from overseas lubricant sales. During the period, the company’s total revenue from lubricants topped Rp 2 trillion.
As reported earlier, Pertamina plans to build a lubricant production facility in an Asian country with a total investment of $35 million. The location for the plant might be in Japan or China, as the company cited these two countries as the most lucrative lubricant markets in Asia.
Pertamina’s lubricant marketing manager for overseas markets, Redesmon Munir, also said that to boost the company’s lubricant businesses, it would set up a subsidiary company called PT Pertamina Lubricants, which was expected to begin operating in January next year at the latest.
The planned company is estimated to have total assets of Rp 1.5 trillion and will aim to hold an initial public offering two years after its establishment, he revealed.
—JP/ Rangga D. Fadillah
