Lubezine Volume 14 Sep. 2015 | Page 4

Turn to Gulf Petrochem plans to expand in East Africa Nigeria agencies fight to curb counterfeit lubricants  P.12 Fully synthetic lubricants can enhance the bottom line P.28 www.lubesafrica.com VO L .1 4 • S E PT E MB E R 20 1 5 P.8 EDITOR’SDESK VOL 14 • SEPTEMBER 2015 Editorial MAIN FEATURE SPECIAL REPORT: AFRICAN BASE OIL MARKET IN CONTEXT Septmber 2015 • | Lubezine Magazine PLUS: Lubricant requirements for hybrid vehicles P.26 1 Publisher: Lubes Africa Ltd Editor: Nyakundi H Nyagaka Design & Layout: Monda Fred Contributors: Yusuf Kipruto Nyakundi H. Nyagaka Olaolu Olusina James Gooder Thomas Norrby Darrell Taylor Photography: Agencies Lubezine library Art Direction: Propixels Media [email protected] [email protected] Advertising & Subscription: Africa Yusuf Kipruto [email protected] www.lubesafrica.com Europe, Middle East, Asia Melissa Skinner [email protected] Subscriptions: Lubezine is free to qualified subscribers who are involved in the lubricants industry as manufacturer’s end-users, marketers and suppliers to the oil industry. Lubezine is a quarterly publication of Lubes Africa Ltd. All rights reserved. No part of this publication may be produced or transmitted in any form including photocopy or any storage and retrieval system without prior written permission from the publishers. 2 Africa base oil market report is there a looming shift? T ransitioning into a rapidly growing economy, Africa has become a major center of focus for the many oil dealers seeking outlets for their surplus production. This is especially true for producers of base oil, whose prices now suggest a fresh market dynamic. We welcome you to this edition of Lubezine, which takes an insightful look at this new market trend. Globally, the price difference between group I and group II base oils has been shrinking substantially, drawing the interest of lube blenders toward use of group II base oils. This has created the hope that – going forward – more engine oils will be blended using group II base oils, a blending shift that will translate into greater use of higher lubricants quality in the region’s market. Meanwhile, the first ever Argus African base oils and lubricants conference went down in South Africa in June. The event provided a forum for players in the industry to make presentations regarding various aspects of Africa’s lubricants market. In this edition, we report on the various expert-analyses that were presented during the conference. West Africa will be holding its second lubricants summit in November this year, courtesy of Nigeria – one of the leading lubricants markets in Africa. Endorsed by the Nigeria Standards Organization and the Department of Petroleum Resources, the conference will come in the wake of data released by the Lubricants Producers of Nigeria (LUPAN) indicating that the country loses $3 billion annually to counterfeited lubricants. In Kenya, there is an obvious increase in the vibrancy of the lubricants market, characterized by new product launches and relaunches by the top lubricants marketers in the country. There is also an apparent shift to consumption of better quality products, which is likely to continue benefitting end users. With a readership of over 3000 professionals and growing, Lubezine continues to provide the industry with a platform to exchange information and ideas that can grow the market and bridge knowledge gaps. We thank our loyal advertisers for their continuing support. ■ Globally, the price difference between group I and group II base oils has been shrinking substantially, drawing the interest of Africa's lube blenders to use group II base oils Joseph Ndung’u September 2015 • | Lubezine Magazine