A LUKOIL Lubricants Company PublicationJanuary 2019

MILESTONEThe Company Marks Its 10th Anniversary in Turkey

GLOBAL LUBRICANT WEEK 2018 Innovations Serve the Industry

DIGITAL TECHNOLOGY LUKOIL Lubricants Now Available at Amazon.com!

QUALITY MANAGEMENTWe Are the First to Certify Our Plants as per New Automotive Standard

SYNTHETIC MOTOR OIL

LUKOIL AVANTGARDE PROFESSIONAL

* Compared to ACEA E4 requirements ** Compared to ACEA E7 requirements *** Compared to ACEA E7 requirements

Approvals/Meets requirements of:

• MB-Approval 228.5• MAN M3277• Volvo VDS-3• Scania LDF-3• Caterpillar ECF-2• Cummins CES 20077/72• Renault RLD-2, RXD• Ford WSS-M2C212-A1• Deutz DQC IV-10, III-10• MTU Category 3• DAF Extended Drain• MACK EO-N, EO-M PLUS

Extended oil change interval

API: CI-4, СFACEA: E4/E7SAE: 5W-30, 10W-40

Contents

LUKOIL LUBRICANTS, January 2019 LUKOIL LUBRICANTS is a LUKOIL Lubricants Company publication

Publisher: RPIAddress: LUKOIL Lubricants Company, 6 Malaya Yakimanka, Moscow 119180

Phone: +7 495 980 3912 e-mail: Vladimir.Akramovsky@lukoil.comPress run: 200

FIRST PERSON LUKOIL BREAKS GROUND AS FIRST COMPANY TO CERTIFY PLANTS AS PER NEW IATF STANDARD

NEWSLUKOIL DEVELOPS PARTNERSHIP WITH ALROSA

SPECIAL REPORTLUKOIL MARKS 10TH ANNIVERSARY OF ITS OPERATIONS IN TURKEY

NEWSLUKOIL TO SUPPLY INDUSTRIAL OILS TO FEDERAL GRID COMPANY OF UNIFIED ENERGY SYSTEM OF RUSSIA

LUKOIL ЕFFORSE XDI 4004 FOR MOGILEVKHIMVOLOKNO’S MODERN GAS ENGINES

PORTFOLIOLUKOIL METALWORKING FLUIDS:NEW SOLUTIONS FROM RELATED INDUSTRIES

PRO PROFILECHEMISTRY OF IDEAS

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NEWSLUKOIL TO ASSISTIN TRAINING NEW AGRICULTURAL PROFESSIONALS

QUALITY CONTROLOEM’S STAMP QUALITY MARKSON LUKOIL PRODUCTS

EVENTSGLW 2018: INNOVATIONS SERVE THE INDUSTRY

INTESMO FOR METAL MAKERS:BUSINESS DIALOGUE IN FORUM FORMAT

SHAKE HANDS WITH THE CHAMPS!

TRAVELLING WITH LUKOILLUKOIL LUBES POWER DRIVE THROUGH LAND OF FORESTS AND LAKES

DIGITAL TECHNOLOGYLUKOIL STARTS ENGINE OILS SALESON LEADING GLOBAL MARKETPLACE AMAZON

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FIRST PERSON / LUKOIL LUBRICANTS / JANUARY 2019

IATF 16949:2016 is the new international standard of the International Automotive Task Force, an industry organization, which unites leading global car manufacturers. This body puts forward the most advanced demands for quality management systems run by the suppliers of products for the car industry. The world’s leading automakers attach a lot of importance to IATF certification when selecting suppliers of car components and consumables. The previous industry standard ISO/TS 16949:2009 ceased to be effective on Sept. 14, 2018.

LUKOIL BREAKS GROUND AS F IRST COMPANY TO CERTIFY PLANTS AS PER NEW IATF STANDARD

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LUKOIL Lubricants Company has successful-ly completed certification of its manufacturing plants in Russia, Austria and Finland as per the latest international IATF 16949:2016 automo-tive standard. By doing so, the Company has become Russia’s first lubricants producer to confirm compliance of its plants with current demands of the big-gest car manufacturers. This is the outcome of consistent work related to sharing best practic-es and unifying approaches to quality manage-ment at the Company’s manufacturing sites in Europe and Russia.“We deliver our products in Russia and foreign countries to such carmakers as Volkswagen,

Ford, Renault and many others. Their demands for suppliers of spare parts and consumables are very high. IATF certification is a milestone for us since it confirms that today our manufac-turing processes, quality management system, logistics and document flow comply with the most advanced international standards. I want to note that the Tyumen plant, which special-izes in manufacturing lubricants for industri-al equipment, has been internationally audited and certified for the first time. This has to do with expanding first fill oil deliveries to foreign truck and custom machinery producers,” said LUKOIL Lubricants Company general director Kirill Vereta.

Besides IATF 16949:2016, LUKOIL Lubricants Company’s manufacturing plants in Vienna and Perm are also certified as per the VDA 6.3 German automo-tive standard. Both plants have been successfully audited by Renault-Nissan-Mitsubishi and comply with the Volkswagen Formel Q quality management system. The Perm-based plant also owns the Ford Q1 quality management system certification. All these achievements expand the Company’s opportuni-ties for cooperation with automakers in Russia, CIS and other regions.

LUKOIL Lubricants Company general directorKirill Vereta

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LUKOIL Lubricants Company has continued to supply lubricants to ALROSA. In 2018, cooperation with the world’s biggest diamond producer has been expanded and now includes ALROSA sub-sidiaries Severalmaz and Almazy Anabara.In 2018, LUKOIL has increased by 50 percent the volume of sup-plies to Russia-based companies of ALROSA Group year-on-year. Next year, LUKOIL plans to boost the scope of deliveries further by an additional 30 percent.“Since 2017, LUKOIL has been

ALROSA’s largest lubricants supplier, providing the mining giant with over 40 kinds of advanced oils and greases, which have been approved by the world’s leading machinery producers. Many of these products have successfully passed the tests at ALROSA Group companies, while manufacturing sites and LUKOIL research labs have been highly evaluated by the mining company’s experts,” said Rasim Amiraliyev, LUKOIL Lubricants Company deputy general director for sales.Since 2018, the list of delivered products includes the new LUKOIL GEYSER MM 60 hydraulic oil. The Company developed it this year specifically for use in machinery components, which require oils with longer drain intervals, meeting Cat FD-1 – the latest Caterpillar specification.

LUKOIL DEVELOPS PARTNERSHIP WITH ALROSA

deputy general director for salesRasim Amiraliyev

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LUKOIL MARKS 10 TH ANNIVERSARY

OF ITS OPERATIONS IN TURKEY

OUR SUBSIDIARY, LUKOIL LUBRICANTS MIDDLE EAST, HAS MARKED A MILESTONE IN ITS OPERATIONS IN THE TURKISH MARKET. OVER THE PAST 10 YEARS, THE COMPANY HAS GAINED A FOOTHOLD IN THIS MARKET, ESTABLISHED

PARTNERSHIPS WITH MAJOR TURKISH COMPANIES AND BUILT A LARGE DEALER NETWORK IN TURKEY AND NEIGHBORING COUNTRIES

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events, which aim to promote these products — in the last year alone, there were 15 such events. The results were visible soon as the product was quickly becoming popular. This year, the com-pany forecasts a 50-percent annual in-crease in GENESIS sales.

Since 2017, LUKOIL Lubricants Middle East has also been intensively intro-ducing INTESMO plastic greases into the Turkish market. In terms of quality, these greases are superior to competi-tors’ products, boosting the confidence in their consistent sales growth in the future. Further down the road, the com-pany intends to launch sales of speci- alty metalworking fluids and significant-ly expand the product range of specialty products.In the last three years, lubricants sales have grown by a third, while the growth in the passenger car sector totaled 127 percent. Currently, LUKOIL holds approximately 7 percent of the Turkish lubricants market, and intends to further increase its share over the next three years to 10 percent. The company de-livers its products to leading industrial companies, industrial equipment manu- facturers, construction and transpor-tation companies, and municipalities in major cities.

To a great extent, such remarkable suc-cess was achieved thanks to a devel-oped dealer network, which LUKOIL has been building since the moment it en-tered the Turkish market. Today, this net-work includes 25 dealers and around 120 trade representatives. Besides this, LUKOIL products are also marketed via

Implementing its strategy of global business develop-ment, LUKOIL Lubricants Company strengthened its posture in international markets in 2008 by founding a subsidiary in Turkey, LUKOIL Lubricants Middle East. At the same time, LUKOIL acquired Akpet, the Turkish holding, which included a blending and packaging lubricants plant. The manufacturing plant is located in Izmir. The geographically convenient location in the west of Turkey, along the eastern shore of the Aegean Sea, facilitates deliveries of LUKOIL products to markets in the Middle East.

At the time of acquisition, the plant’s production capac-ity stood at 18,600 tons per year. Thanks to full-scale modernization, which has been going on over the last 10 years, today, production capacity has reached 45,000 tons per year. LUKOIL is intensively investing in further devel-opment of its Turkish subsidiary. In the last year alone, the scope of investments surpassed the volume of funds invested in the past three years. In 2019-2021, the Com-pany also plans a number of events directed at further plant upgrades. These include digitalization of all manu-facturing processes, launch of new blending and packag-ing lines, tank farm expansion and upgrades of laboratory equipment.

Today, LUKOIL’s Izmir plant produces more than 500 stock-keeping units (SKU) of engine, industrial lubricants, antifreezes, and specialty fluids. Besides this, LUKOIL Lubricants Middle East manufactures original engine oils bearing the brands of the world’s biggest car manufactur-ers and local leaders in the machine-building sector.

In 2018, the Turkish subsidiary’s portfolio featured new products for passenger cars as well as products for com-mercial vehicles compliant with the Euro 6 standard. The switch to a new product range and design of LUKOIL GENESIS premium engine oils was also an important milestone for the Turkish company.

Currently, 12 products of the LUKOIL GENESIS series are available in Turkey. The marketing team regularly holds

SPECIAL REPORT / LUKOIL LUBRICANTS / JANUARY 2019

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the extensive network of LUKOIL petrol sta-tions, currently numbering over 600 outlets.

This year, the company opened an Internet store at www.lukoilonline.com, launching the online sales of LUKOIL lubricants in Turkey. Currently, its product range includes engine and transmission oils for cars and motorcy-cles, as well as antifreezes. In the future, a separate section will be set up for corporate clients, enabling small- and medium-sized businesses to order LUKOIL lubricants online, by-passing middlemen.

In an effort to support sales, LUKOIL Lubricants Middle East has set up social media accounts, offering customer support to partners and cli-ents, as well as instructional materials. By the way, these options aren’t only available online. LUKOIL experts regularly hold ins- tructional training sessions for dealers, visit the clients’ plants in order to assess opera- tional conditions, select the best-fitting pro-ducts, and monitor lubricants during their use.

“Over the past 10 years in Turkey, we have managed to secure a rather solid position in the local market. We export our products to more than 10 neighboring countries. One of the key contributors to our success – apart from modern manufacturing facilities, high

tech products, international approvals and client-oriented ap-proach – has been the team of our experts. In the future, we intend to continue to make substantial investments in our staff, production and sales development, dramatically increase the level of digitalization of all processes. I am convinced that these efforts will positively reflect on the overall performance of our business,” says LUKOIL Lubricants Middle East general director Vladimir Davidovich.

LUKOIL GENESIS ENGINE OIL SALES IN TURKEY (tons)

631931

356

2016 2017 2018

1000

500

0

162%

One of the key contributors to our success – apart from modern manufacturing facilities, high tech products, international approvals and client-oriented approach – has been the team of our experts

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In 2018, LUKOIL signed a contract to de-liver lubricants to the Federal Grid Com-pany of Unified Energy System (FGC UES) up to 2020. The FGC UES subsidiaries will receive over 2,000 tons of LUKOIL’s mod-ern transformer and compressor oils.These products have been developed in accordance with the requirements of In-ternational Electrotechnical Commission (IEC 60296 Class IIA) for transformer oils and global DIN 51506 VDL specifications for compressor oils. The efficiency of these products was confirmed during the tests on FGC UES’ equipment. Particularly, LUKOIL STABIO application allowed to increase the drain interval twofold com-pared to the previously used lubricants.FGC UES is one of the largest global electricity transmission company based on the length of transmission lines and transformer capacity. FGC UES in charge of more than 143,200 kilometers and 946 electrical sub-stations of total ca-pacity of over 347,300 GVA. The company provides reliable power supply in 77 re-gions of Russia, spanning a total area of 15.1 million square kilometers.

LUKOIL TO SUPPLY INDUSTRIAL OILS TO FEDERAL GRID COMPANY OF UNIFIED ENERGY SYSTEM OF RUSSIA

L U KO I L Е F F O R S E X D I 4004 F O R M O G I L E V K H I M VO LO K N O’S

M O D E R N G A S E N G I N E S LUKOIL has started to supply engine oils for gas engines to Belarus-based Mogilevkhimvolokno, one of Europe’s largest chemical companies.The company will provide MWM gas reciprocating units of Mogilevkhimvolokno power park with low ash LUKOIL EFFORSE XDI 4004 oil. The product was developed specifically for the modern gas motor-generators. The product has received appro- vals from the leading fixed gas engine manufacturers GE Jenbacher and MWM upon successful field tests.Mogilevkhimvolokno produces components for a vast array of plastic products and synthetic fibers for consumer goods in-dustry. The collaboration of LUKOIL and Belarusian partner started in 2016. The chemical company uses in its equipment a wide range of engine, hydraulic, transmission and transformer LUKOIL oils.

NEWS / LUKOIL LUBRICANTS / JANUARY 2019

head of Group for sales to energy and chemical companiesAndrei Paraschak

“FGC UES has been using LUKOIL STA-BIO to service its machinery since 2017. The product possesses a wide range of approvals of Russian and foreign equip-ment manufacturers, including UKZ, the key supplier of compressors to FGC UES. It is worth mentioning that based on the results of the product’s lengthy per-formance tests, UKZ noted that this oil could be used over 1,000 service hours instead of the standard 500. This facili-tates both the optimization of cost of lu-bricants, and the reduction of equipment downtime during maintenance,” said An-drei Paraschak, head of LUKOIL Lubri-cants Company’s Group for sales to ener-gy and chemical companies.

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LUKOIL METALWORKING FLUIDS:NEW SOLUTIONS FROM RELATED INDUSTRIES

AT A TIME WHEN PRICE IS BECOMING A MAJOR COMPETITIVE ADVANTAGE IN THE METALWORKING FLUIDS MARKET, LUBRICANTS PRODUCERS FACE THE TASK OF OPTIMIZING THE CLIENTS’ COSTS BY CREATING MORE EF-FICIENT PRODUCTS, WHICH REQUIRE LESS CONSUMPTION. LUKOIL WILL SOON BE ABLE TO OFFER SUCH PRODUCTS TO ITS CUSTOMERS — THE COMPANY’S EXPERTS HAVE DEVELOPED AND ARE CURRENTLY TESTING A NUMBER OF EXPERIMENTAL PRODUCTS WITH UNIQUE PERFORMANCE PROPERTIES

Competition in Russia’s metalworking fluids market is rather high. Different manufacturers’ product lines feature products with similar properties and characteristics. At the same time, the duration of their use and area of appli-cation are also similar. Under such conditions, the main competitive advan-tage is the price. Lowering the price inevitably becomes the consequence or the reason leading to product quality deterioration. That is why LUKOIL has refrained from competing with low prices.Simple calculations demonstrate that the use of 2-percent metalworking fluids instead of 5-percent helps reduce buying costs more than twice. Moreover, such fluids decrease the metalworking fluids’ carry-over two times, and facilitate logistics costs optimization.The implementation of this bold idea was made possible thanks to using the knowledge from related areas of chemistry, such as pharmacy, water treatment, polymer chemistry, and others. The Company experts found out that many chemical compounds, which are unpopular in lubricants, when used in metalworking fluids are able to demonstrate results many times sur-passing those achieved by classic additives.“For instance, the use of polymer organophosphorus acids in water-soluble products has made it possible to surpass average performance indicators in the industry multiple times in terms of tribological properties, and protec-tion from corrosion. The tests on a four-ball wear test system suggest that the products developed on the basis of this technology sustain load of up to 10,000 N, protecting metal from tear. This surpasses the capabilities of the majority of modern products by several times. According to DIN 51360 test results, another product in the experimental product line demonstrated the corrosion-protecting ability in concentration approaching 1 percent, which

is an unbeatable record,” says Artyom Chaltsev, head of Science and Technology Dept. at LUKOIL Lubricants Company.LUKOIL is the youngest player in the metalworking fluids market. The Company produced its first premium metalworking fluid in 2016. Today, its product range includes two product lines — oil-based LUKOIL INSO metalworking fluids and LUKOIL FREO water-soluble metalworking fluids. When developing these products LUKOIL experts studied the best global practices, but didn’t copy them. Instead of using the additive produc-ers’ ready-made solutions, LUKOIL put a stress on de-velopment of its own formulations.Besides this, LUKOIL was Russia’s first lubricants producer to launch production of its own additives for metalworking fluids. These packages were de-veloped to extend the product’s operating life and boost its performance properties such as corrosion protection or foam forming reduction. “We continue to thoroughly study new market de-mands for process fluids, used at all stages of man-ufacturing metal products. This research resulted in development of a wide range of products serving the full cycle of operations in the machine-building sector. The first products will appear in the market at the end of 2018,” summarized Artyom Chaltsev.

Science and Technology Dept. headArtyom Chaltsev

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C H E M I S T R YO F I D E A S

SHE WANTED TO STUDY NATURAL SCIENCES AT THE PEOPLES’ FRIENDSHIP UNIVERSITY, BUT AS FATE

WOULD HAVE IT, HER “CHEMIST GENES” EVENTUALLY WOKE UP. IN THIS ISSUE, PRO PROFILE, OUR TRADITIONAL SECTION, BRINGS YOU THE STORY OF MARINA TSAPLINA

AS SHE RECOUNTS THE MOST MEMORABLE PAGES FROM HER BIOGRAPHY, WHICH OVER THE LAST 10 YEARS

HAS  BEEN LINKED WITH LUKOIL LUBRICANTS COMPANY

I had wanted to become a physicist since my childhood years. I was interested in micro- and macrocosmos, Einstein’s relativity theory, and I liked memorizing his colorful expres-sions. After I finished school, I decided to enroll at the Peoples’ Friendship University at the Natural Sciences Dept. I successfully passed entrance exams, but eventually it turned out that my father, who was a career military man, a general, with a job at the Gene- ral Staff, could have been fired in case his daughter studied at a college that had foreign students.The fate itself showed me which path to follow. My loved ones convinced me that I should continue our family tradition. My mom was a chemist, as was my grandfather, and his cousin. It was the last day of admissions, 5-6 p.m. on the clock, and the deadline for submitting paperwork at the Gubkin Institute, which was located in our neighbor-hood, was expiring at 8 p.m.! At the last minute, I managed to hand in my papers at the Chemistry Dept., where I subsequently got admitted.

Production Development expert, Technical Support

and Documentation Dept. Marina Tsaplina

Our family’s “dynasty of chemists” deserves a few words. In 1939, on the eve of World War II, my grand-father Ivan Sosnovsky was ap-pointed chief engineer at the Lisi-chansk alkali plant. He had many inventions that were put to use in the Soviet chemical industry. His mom, my great grandmother had noble German roots, and when that fact from her biography be-came widely known, my grandfa-ther was expelled from the Com-munist party ranks.

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PRO PROFILE / LUKOIL LUBRICANTS / JANUARY 2019

However, his professional skills were still in high demand, and that helped our family avoid being re-pressed in those difficult times. Prior to German occupation of Lisi-chansk in 1941, my granddad over-saw the dismantling and liquida-tion of factory equipment, and after the war was over he ran the plant rebuilding effort since soda salt was a strategic product. His cousin Nikolai Sosnovsky also left an impressive legacy in the industry. Together with Veniamin Gurvich, the son of one of the founders of national chemmotology, he co-au-thored in the early 1950s the fa-mous book entitled “Selective Sol-vents in Oil Refining”. By the way, his portrait still hangs on a wall in the All-Russian R&D Institute for oil refining. My gener-ation was very lucky to have had such great teachers. For instance, celebrated professor Leonid Mukh-in was administering our entrance exam in chemistry, and we were taught by such scientific giants as Alexander Sardanashvili, Igor Fuks, Lyudmila Kazakova, Andrei Gureyev, Solomon Krein, Boris Bondarenko, and many other greats in this field. They were lighting up the flame in us, taught us to love our profession, and I will always be immensely grateful to them for that.During my studies for a bachelor’s, and later a master’s degree, my fa-vorite topic was the research and production of paraffin. This was the topic of my graduation paper, as well as my thesis, and it subse-quently kept reappearing in a num-ber of articles and patents.

But there was this one time when I wanted to quit working once and for all in the oil refining sector. During my pre-degree training at the Ryazan oil refinery, I was re-quired to take some readings in the pump room, and just as I was about to enter the room, I heard something inside that seemed like a blast! I was literally „shaken“, and I couldn’t calm down. I phoned my mentor Boris Bondarenko (the au-thor of the famous “Album of Pro-cess Flow Schemes”) and said: “I will probably NEVER be able to work at a plant!” My wise teach-er told me to put myself together. “Honey, why don’t you just go into the very heart of dewaxing (that’s what he called the filter house) and watch the amazingly inter-esting process of filtration in the drum? When you’re done watching, give me a ring,” he advised. It worked. I spent a lot of time watching the drum vacuum filter, detected numerous shortcomings in its operation, rang up my teach-er and proposed to him a number of improvements in the process of wax cake flushing, which con-sequently got incorporated in my first inventor’s certificate. Later in Kremenchug, I had six more pat-ented inventions. That’s when I remembered my fa-ther’s advice: “If you want to be successful, pick the most difficult job, you will have fewer compet-itors and fewer people will envy you. And don’t even think you won’t be able to do it!”And still the unpleasant memo-ries of that incident lingered, and

I needed some time to finally “cancel” my fears. After getting my college degree, I chose a job at an insti-tute of the Soviet Union’s State Planning Commit-tee (Gosplan) over a job at a refinery. At Gosplan, I worked in the Fuel Oil Distribution Dept. of the Fuel Balance Directorate. However, in a couple of years the attraction of practical technology was impossible to ignore. That is why I quit my job and left to work at the Lisichansk industrial rubber products factory. I was appointed laboratory head, and it was here that I fell in love with petroleum plasticizers. Afterwards, I worked for the Kremenchug oil refinery, where I was assigned after completing my postgrad-uate studies in the turbulent 1990s. There, as head of the New Technology and Perspective Develop-ment Bureau I got involved for the first time in de-veloping production of food grade paraffin waxes. By the way, that invaluable experience came in very handy when we were launching food grade paraf-fin wax production at LUKOIL’s plant in Kstovo. This was also practically applied during test runs when feedstock was refined by the catalytic complex for production of lubricants at the Volgograd lubricants plant, as well as production of petrolatum with a low oil content as part of the joint project with Ger- many’s Evonik, which is planned in Perm. Lat-er, I was offered to head lubricants manufacturing at Orsknefteorgsintez, and in spring 2008, I joined LUKOIL Lubricants Company as Production Directo- rate deputy head, and head of Production Develop-ment Dept. Young enthusiasts worked in my depart-ment (a team always performs better than a talented individual), and they consequently became conspi- cuous figures in the lubricants business.There were many interesting projects. I think that the team will always remember the first one — or-ganization of lubricants packaging in tin canisters, proposed by LUKOIL President Vagit Alekperov. To my mind, the Company’s key achievement has been the implementation of the idea to produce new modern LUKOIL lubricants via hydrocatalytic processes by applying new principles. In an effort to launch pro-duction of high-viscosity index, advanced Group III base oils, my colleagues from the Volgograd oil re-

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finery and I jointly developed the idea of using the existing equipment’s capacity at Volgo-grad’s lubricants plant. We also decided to use completely new types of feedstock, including residual fuel oil from the hydrocracking pro-cess.Eventually, my fellow thinkers Ivan Odnolko, head of LUKOIL’s Business Optimization Dept., Vladimir Zyazin, LUKOIL-Volgogradneftepere-rabotka general director, Vasily Anisimov, chief engineer, Roman Pashkin, chief process engi-neer, and I managed to prove the tenability of the new technology.Up until now, it has passed expert reviews by three independent R&D institutes, has been successfully tried in test runs, patented and is currently being adjusted to the existing plant layout. As a result, by 2021 LUKOIL will be able to launch full-scale production of Group II+ and III base oils. Preparation and administration of test runs are currently the most important aspects of my job. It’s the synthesis of my experience, knowl-edge, my own research, and embodiment of my ideas. I love everything at the Volgograd oil re-finery, literally everything, including the smell of “iron”, which differs from one piece of equip-ment to another. I am on the same wavelength with the plant’s employees. They trust me, sup-port me, meet me halfway, advise and help me.Apart from my main job, I teach base oils man-ufacturing technology at LUKOIL Lubricants Company, special courses in plasticizers and paraffin products manufacturing at the Gubkin Oil and Gas University, oil refining technology at St. Petersburg’s State University. At LUKOIL Lubricants Company, I have young talented colleagues who follow in my footsteps, such as Diana Mironova, Yevgeny Anisimov and Pavel Kuznetsov. I intend to consult them as they prepare academic papers, convey my knowl-edge and experience to my students.By 2021, I may finish my career. By then, I plan to complete several ongoing projects such as the implementation of Group II+ and III base oils production technology; introduction of “white” oils production technology; production of a commercial batch of advanced, compet-itive plasticizers; development of procedural regulations on manufacturing of high-viscosi-ty oil component residuals; development of a new technology for production of Au hydrau-lic oil.I rest when I work, that is why my other ideas are probably going to materialize in my dream assignment — a book I plan to write on hydro-catalitic processes in manufacturing advanced base oils. That is going to be my main accom-plishment, in addition to tending to flowers at my countryhouse, and spending time with my grandchildren.

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PRO PROFILE / LUKOIL LUBRICANTS / JANUARY 2019

LUKOIL TO ASSISTIN TRAINING NEW AGRICULTURAL PROFESSIONALS

LUKOIL Lubricants Company held an opening ceremony at the Bashkir State Agricultural University (BGAU) to unveil a specially fitted classroom named “LUKOIL Lubricants Class”. Here, university students will be able to partici-pate in topical lab classes, related to research of present-day lubricants for the latest agricultural machinery.This will help students obtain knowledge and acquire competencies in pro-fessional use of high-efficient oils and greases in the agricultural (primarily foreign-made) machinery.The Company donated the necessary equipment for practical research to the Automobiles and Tractors Chair at the Engineering Dept. In addition to this, LUKOIL’s official dealer, Avtovektor, will be delivering consumables (oils, greases and other process fluids) required in lab work. The consumables will be delivered free of charge throughout the academic year.In the past, no lubricants manufacturer had ever carried out similar projects

in Russia’s agricultural universities. Moreover, “LUKOIL Lubricants Class” became the first cus-tom-built laboratory at a non-chemical chair. The choice of BGAU wasn’t accidental — it is one of the leading agricultural colleges in Russia, which trains future professionals using progressive forms and methods of teaching. The majority of BGAU graduates take up jobs in the field of their degree, and the agricultural sector is one of priority markets for us. It is very important that the students get to know the physical and chemical properties of our lubri-cants from many angles, and are able to appre-ciate the advantages they provide.

expert, Technical Assistance in Lubricants Rollout Dept.Pavel Kolomiets

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OEM’S STAMP QUALITY MARKSON LUKOIL PRODUCTSBY THE MIDDLE OF 2018 THE NUMBER OF EXISTING APPROVALS ISSUED BY ORIGINAL EQUIPMENT MANUFACTURERS FOR LUKOIL LUBRICANTS TOPPED 1,200. TODAY, THESE APPROVALS COVER THE GREATER PART OF FOREIGN AND DOMESTIC MACHINERY USED IN RUSSIA. STEPAN KIRILLOV, OEM COOPERATION DEPT. MANAGER SPEAKS ABOUT THEIR ROLE IN STRENGTHENING THE COMPANY’S POSITIONS AS A MAJOR SUPPLIER OF INDUSTRIAL LUBRICANTS

MANUFACTURER’S GUARANTEE

When we speak about the use of lubricants, the biggest industrial companies prefer the products with “quality guarantee”, confirmed by OEM’s. These are the oils offici- ally approved for use by equipment producers. That is why LUKOIL has organized systemic work on con-ducting tests and obtaining ap-provals.This process can take several months to several years. At any rate, leading equipment produc-ers have that process neatly orga-nized and running smoothly. For instance, in order to make Siemens Flender’s list of approved sup-pliers and products, an applicant needs to undergo the complex test procedure. Namely, a series of lab tests, one of which is FZG (Germ. Forschungsstelle für Zahnräder und Getriebebau — R&D Reduc-tors Center in Germany). The test demonstrates the lubricating abil-

ity of oil and wear on the surface of normal progression acceleration under stress. During the test, gear pinions are under the load, which is transferred via special torsion coupling, which is installed un-der specific conditions related to stress or stages. Gear pinions ro-tate at variable speed, set by an electric motor. The liquid’s temperature is regu-lated by heating and/or cooling agents. All tests are conducted by independent laboratories. Later, Siemens Flender experts in charge of lubricant approvals evaluate re-ceived results.Finally, based on the success of test results, an OEM sends an official letter of approval signed by the ex-ecutives who make decisions on product quality and its compliance with the OEM’s requirements. At small-sized companies the process of obtaining approvals is more cre-ative, and it involves the customer

support experts when conducting field tests. Their in-put includes putting together a program for monitor-ing lubricants during performance, which is signed by both parties. During the testing, lubricant samples are regularly taken for evaluation by independent laboratories.After completing the field tests, the engine is taken apart, and its main parts reviewed visually for wear. In case there is no wear or it is within a minimum permissible range, the OEM issues an official notice confirming successful passage of tests and product use approval.

TOP-TIER PRODUCTS’ APPROVAL

Industrial equipment is often used under harsher conditions than modern cars’ engines, that is why in-dustrial producers issue tougher demands regarding the lubricants’ anti-wear, anti-corrosion and deter-gent properties.A spectrum of lubricant applications in the mining in-dustry is especially wide, ranging from quarry dump trucks to lubricating systems for shearer-loaders for underground mining. In this environment, equipment operates under the most difficult conditions at high pressure, without the possibility to change the lubri-

OEM Cooperation Dept. managerStepan Kirillov

QUALITY CONTROL / LUKOIL LUBRICANTS / JANUARY 2019

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cant regularly as per instructions. That is why demand is increasingly rising for the solutions, which offer a “greater margin of safety” such as LUKOIL AVANTGARDE ULTRA M3 engine oil (the only semi-synthetic oil in the world with the MTU Oil Category 3 approval). Today, LUKOIL has similar solutions for nearly any branch of industry.For example, three product lines of gear oils: LUKOIL STEELO (min-eral gear oils), LUKOIL STEELO PREMIUM (semi-synthetic gear oils) and LUKOIL STEELO SYNTH (synthetic gear oils). The intensity of operation of gearboxes in break-er machinery at mining and proces- sing plants, in roller mills at cement works, in cold- and hot-rolling mills at steelmaking plants requires high quality lubricants. The approvals of the world’s leading gearbox makers

such as Siemens Flender, Dana Brevini, Santasalo, Eickhoff and FLSmidth MAAG Gear, received over the last two years, testify to high quality level. LUKOIL has developed numerous products for use in industrial equipment with oil drain inter-vals significantly longer than required by international standards. These products include the above-mentioned LUKOIL STEELO, AVANTGARDE ULTRA, as well as LUKOIL GEYSER ST (DIN 51524-2 HLP) and GEYSER LT (DIN 51524-3 HVLP) hy-draulic oils. They have been approved by many OEMs, including Ferrit, SMT Scharf, Becker Mining Systems, Eickhoff and Ko-pex Machinery.Our flagship products for the steelmak-ing industry are LUKOIL INTEGO circula-tion oils for oil film bearings (flat mills) and INTEGO PREMIUM (wire mills) with high (ISO 220-460) and low (ISO 100-150) viscosity grades. LUKOIL INTEGO complies with requirements listed in

the SMS Group SN 180-3 X-Roll® Oil  Bearing (Standard Lubricant Specification) standard, whereas LUKOIL INTEGO PREMIUM is com-pliant with SMS Group SN 180-4 X-Roll® Oil Bearing (Advanced Lubricant Specification).LUKOIL INTEGO PREMIUM 100 oil has been listed as compliant with the SMS group SN 180-2 standard, and also complies with the requirements of Morgan No-Twist® Mill. Over the last year, LUKOIL has obtained more than 100 new industrial approvals. However, the best recognition of LUKOIL’s efforts in this field has been the inclusion of a wide range of the Company’s industrial oils and LUKOIL FLEX greases in updated global lubri-cation charts of such industry giants as SMS Group and ThyssenKrupp Industrial Solutions. LUKOIL became the first and so far Russia’s only lubricants producer listed among recom-mended lube suppliers. All this creates new opportunities for expanding the range of lubri-cants supply to industrial companies in Russia and abroad.

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G LW 2018:I N N OVAT I O N S S E RV E

T H E I N D U S T RY

FOR A SECOND STRAIGHT YEAR, MOSCOW’S RADISSON ROYAL HOTEL OPENED ITS DOORS TO PARTICIPANTS OF ONE OF THE BIGGEST GLOBAL FORUMS IN THE LUBRICANTS INDUSTRY

EVENTS / LUKOIL LUBRICANTS / JANUARY 2019

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On Oct. 9-12, the Global Lubricant Week in Moscow gathered busi-nessmen, industrialists and scien-tists to discuss present-day tenden-cies in Russian and international lubricant markets, as well as to try to respond to the challenges the industry is facing today, which re-quire industry players to develop innovative products and provide a wide range of accompanying services.In line with the tradition, the event sparked great interest among the lubricants industry companies: compared with 2017, the number of participants grew by 16 percent year-on-year and totaled 724, the

number of participating companies increased by 41 percent, eventu- ally reaching 289. For the first time, a firm from Lebanon, Royal African Trading Company, was among the delegations representing 24 coun-tries, while the 80-plus compa-nies making their first appear-ance at the show included Ricardo Strategic Consulting Europe (Uni-ted Kingdom), Pall (United States), Jilin Longshun Import and Export Trading Co (China) and the Russian Export Center (Russia).It is also worth noting the mass media’s growing interest in the event. This year, Global Lubricant Week was covered by the report-ers of Lubricant World Magazine (Turkey), Oil, Gas & Energy Magazine (Iran), InnovOil (United Kingdom), Machinery Lubrication (India), Petrolplaza (Germany) and Lube Magazine UKLA (United Kingdom).The forum’s agenda also included III International Conference “CIS Market: Base Oils and Lubricants 2018”, IX Global Summit “Plastic Greases 2018”, three round tables and IX Specialized Exhibition “Ser-vices and Equipment for the Lubri-cants Market 2018”.LUKOIL Lubricants Company gen-eral director Kirill Vereta addressed the audience at the opening cere-mony of XIV International Lubri-cant Conference 2018.“We are entering an interesting era characterized by several global ten-dencies that have taken firm roots. Primarily, it is the rapid growth of digital technology. Digitech, ‘Inter- net of things’, automation have practically entered all spheres of human activity,” Vereta said. “Today, more than half the population of our planet are active Internet users, 70 percent own mobile phones. According to analysts’ calculations, the average person spends over six hours per day on the Internet.”Responding to market challenges, he added, the company gradually transforms its business from pro-duct manufacturing and delivery into a complex customer servicing.“Having launched our own Internet stores, we provided an opportu- nity for customers to place online orders – both retail and wholesale – in all regions of our activity,” Kirill Vereta said. Among other initiatives, the head of LUKOIL Lubricants Company sin-

gled out deliveries to industrial companies of oil-fill-ing units, mobile labs, and online monitoring of tanks at franchised workshops in Europe. According to Kirill Vereta, such solutions help the company get closer to customers and cement their loyalty. The cooperation with car producers and original equipment manufacturers whose lubricant-related requirements shape the industry’s future develop-ment, remains a key direction for the company.“Today, LUKOIL Lubricants Company participates in 20 joint projects with the world’s leading automo-tive and industrial OEM’s to develop future genera-tion engine and transmission oils. These products are intended for use in the latest cars and equipment, which are currently being designed. They will gen-erate big demand in the nearest 5–10 years. We are also looking into the distant perspective by imple-menting a program to develop and test lubricants for electric vehicles,” summarized Kirill Vereta and wished participants fruitful work.Today, the lubricants industry is about to enter anoth-er stage in its development, and only those compa-nies that are ready to respond adequately and time-ly to new market challenges, will be successful. In order to keep abreast of the times, companies need potent research capabilities, and LUKOIL Lubricants Company’s management understands this well from the firm’s inception.

Mikhail Grishanov commercial director, ROLT Trading House

I am participating for the first time in the Global Lubricant Week. Organiza-tion has been excellent, and in regard to discussion topics, I can say that we took part in the “Lubricants in the Energy Industry” roundtable. The event included a topic — lubricants used in gas reciprocating engines — that was interesting to us. We are involved in manufacturing, supply and maintenance of power-generating units, and oil is a product that we always need to have available.

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“R&D centers are the pride of our company,” said deputy general director for development Maxim Myskin. He illustrated his words by sin-gling out the company’s major achievements in this area: setting up its own R&D center in Moscow and seven laboratories in Europe and Russia with over 70 employees; own produc-tion of Group III+ base oils as per API standard; cooperation with independent laboratories in Europe and the United States (certification conducted as per API, ISP, SWRI, INTERTEC and other standards); adoption in 2017 of a pro-gram for cooperation with major OEM’s and intensive development of products for future generation vehicles, targeting the 2019–2025 window. Besides that, added Myskin, in 2019 the company plans to open a laboratory for bench tests.According to him, the company currently has three key development-related focal points: innovation, advanced technology and design of integrated solutions for customer services. “It is impossible to grow in the market with-out these three elements. Regarding digitaliza-tion, due to several factors, the number of tools is growing: on the one hand, the consumption model is changing and the need for integrated approach emerges, on the other hand, all com-panies keep working on growing their efficien-cy,” Myskin said. “On our company’s web portals, our customers will be able to fully satisfy their demand for lubricants and all accompanying services, ranging from monitoring product de-livery in real time, lab test orders, analysis of our products’ performance in the customers’ equipment, etc. Not only does digitalization create an additional advantage for LUKOIL, but it also enhances our partners’ efficiency as these solutions help optimize business pro-cesses, they are available on all platforms, and even at industrial plants this direction is get-ting more and more popular.”According to Kline leading consultant Konstan-tin Melnichuk, among the world’s 20 biggest lubricant markets significant growth over the next four to five years can be expected only in developing countries. In 2017–2022, India and Turkey will be the fastest-growing engine oil markets, Brazil will lead the world in the light commercial vehicles segment, where-

as the biggest leap in the industrial lubricants sector is expected in Nigeria and Mexico. As a result of tightening regulations on engines, the consump-tion structure in terms of viscosity grades is going to change, and the consumption of 0W and 5W low viscosity oils will grow. By 2022, these two types of oil will combine for over 60 percent of the market.Ipsos Automotive Online Research global director Alexander Yakovlev pre-sented a consumer’s view of the future of transportation. According to the Paris Agreement on Climate Change, which was adopted in 2015, the number

ESTIMATED FINISHED LUBRICANT DEMAND GROWTH RATESFOR THE “TOP 20” COUNTRY MARKETS, 2017-2022

Andrianne Philippou editor, Lube Magazine UKLA

I am finding it a very useful experience. I love to hear what people are saying, what the industry is doing, what new technologies, di-rections, trends, are coming through — content-wise it is valuable information for our magazine.

EVENTS / LUKOIL LUBRICANTS / JANUARY 2019

U.S.A.

China

India

Russia

Japan

Brazil

German

y, Aus

tria

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Mexico

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Thail

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Nigeria

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ConsumerCommercialIndustrial*

*Includes process oil and marine engine oil

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of electric vehicles will reach 100 million units in 2030, and their mar-ket share will total 20 percent of all vehicles.This initiative aims to reduce the levels of air pollution by harmful sub-stances. Asked to list the advantages of electric vehicles the consum-ers polled by Ipsos cited environmental friendliness (46 percent), lower costs of rides compared to cars fitted with internal combustion engines (37 percent), benefits/subsidies when buying/owning an electric car (27 percent), the lack of noise while driving (27 percent) and lower mainte-nance costs (26 percent). The list of major shortcomings included diffi-culties in finding public charging stations (40 percent), insufficient bat-tery charge for covering long distances (37 percent), uncertainty over car battery life (36 percent), cost of battery change (31 percent), longer charging times (30 percent).Yakovlev also singled out an important trend — the emergence of driv-erless cars. Today, there are five different levels of autonomous driv-ing, and the switch to the fifth level of full autonomy is expected to be completed by 2030.“Throughout the world, 42 percent of those polled would want to have a driverless car. What’s interesting here is that in the countries that have developed economies this share is lower than in developing countries. In Russia, it totals 51 percent. Meanwhile, 3 percent of Rus-sians totally disapprove of using a driverless car,” said Yakovlev, citing

an Ipsos research that was conducted last year in 28 countries around the globe.Taking into account the global trend of vehicle electrification and hy-bridization, LUKOIL Lubricants Company is developing jointly with the world’s leading OEM’s special oils and testing methods, said OEM Cooperation Dept. head Yevgeny Korneyev. According to him, last year, the Company conducted 220 laboratory and bench tests, 45 engine tests, 25 fuel economy tests, whereas the overall length of field tests totaled 510,000 kilometers.In the nearest five years, Russia isn’t likely to witness a significant shift in the automotive market structure, believes NAPI marketing agency director Tatyana Arabadzhi. According to her, radical changes in the al-ternative fuel car market are possible only in case of full-scale govern-ment support to buyers and car manufacturers.As of July 1, 2018, 96.2 percent (47.2 million units) of passenger cars in Russia ran on gasoline, 3.3 percent of cars (1.4 million units) were powered by diesel fuel, 0.5 percent (240,000 units) had hybrid engines, and the share of electric cars was insignificant (2,500 units or 0.006 percent).According to GFK’s Automotive Market Research head Yulia Polevaya, last year was marked by increasing sales of engine oil as Russia’s car fleet and sales of new cars continued to grow. In terms of product vol-ume, the sales rose by 4.1 percent, in monetary terms – by 7.2 percent.

This was possible due to the redistribution of sold products: while the sales of cheaper semi-synthetic engine oil fell by 4.2 percent, the sales of the most expensive synthetic produces increased by 11.4 percent. “Engine oil sales are falling in the segment of mass merchandise, i.e. in hypermarkets, where the plunge in January-August 2018 totaled 5.6 percent com-pared to the same period last year. Meanwhile, we are also witnessing growth of retail sales via such channels as online sales (9.9 percent), car dealers (8.6 percent) and auto retail (3.3 percent),” said Yulia Polevaya.In line with the established tradition, the conference also showcased a number of technical presentations. LUKOIL Lubricants Company’s Science and Techno- logy Dept. head Artyom Chaltsev spoke about the company’s unique offers in terms of technology and innovation (for instance, new highly efficient metal- working fluids based on the Tribo technology); Severstal Management’s Anastasia Golovina and Olenegorsky Mining and Processing Plant’s Andrei

Grishin presented the consumers’ viewpoint on de-mands for lubricants; Timothy Hadaway (APL GmbH) introduced the concept of innovation technology in engine testing; Colin Morton (Lubrizol) told the au-dience about the growing share of modern turbo-charged direct-injection engines in Russian and East-ern European markets.

Anna Barbara Hahn segment manager Emerging Markets of Europe, BASF

It’s a nice mix of reports and networking, which is one big topic in itself: meeting colleagues, technical experts, talking about relevant trends in the industry... If I were to grade the networking on a 1-to-5 scale, it would defi-nitely be somewhere between four and five. I also think that the interactive Q&A platform is very useful.

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The forums devoted to lubricants’ supply and customer sup-port to different branches of industry, held annually by one of the market leaders, INTESMO, are gradually establishing a nice tradition. In October, the cozy Volga Hall conference center was the venue for discussing the use of lubricants in the steelmaking and metalworking equipment. The event entitled “Metallurgy and Present-day Solutions in Imple-menting and Supporting Lubricants 2018” brought together more than 60 leading applications engineers representing major Russian and foreign companies, as well as teams of LUKOIL Lubricants Company and INTESMO experts.

THE REPRESENTATIVES OF COMPANIES FROM RUSSIA, TURKEY, FINLAND AND KAZAKHSTAN

GATHERED IN VOLGOGRAD TO DISCUSS PROSPECTS FOR USE OF LUBRICANTS

IN STEELMAKING AND METALWORKING EQUIPMENT

INTESMO FOR METAL MAKERS:BUSINESS DIALOGUE

IN FORUM FORMAT

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The event provided a platform for discussing the latest ten-dencies in the development of metallurgical industry from the point of view of their influence on defining present-day and future requirements in regard to lubricants. During the forum, INTESMO presented several cases of the latest de-velopments and tests of its own FLEX plastic greases. These products have demonstrated better performance properties than alternative foreign solutions.Sergei Savilov, candidate of chemical sciences, a promi-nent Russian expert and a lead researcher at the Moscow State University, presented his overview of the opportu-nities for use of nanochemistry in creating and research-ing modern-day metals and additives for greases. Roman Zaitsev, the chief of the Metallurgy Division at the world’s leading bearings manufacturer Schaeffler, showcased the latest trends in the manufacturing of bearings used in met-allurgical equipment, as well as their maintenance, includ-ing the electronic monitoring of the bearings’ performance indicators. The list of participants included representatives of LUKOIL Lubricants Middle East (Turkey), Aktobe Rail and Beam Plant, LUKOIL Lubricants Central Asia (Kazakhstan),

Mikhailovsky Mining and Processing Plant, Lebedinsky Min-ing and Processing Plant, Metalloinvest, TAGMET, NIIneft-etruby, Petropump, Tulachermet-Stal, Elektrostal, Vitriol (Rus-sia). Many of these companies are LUKOIL partners already.Lubricant producers, consumers, and service companies con-ducted a productive dialogue at the forum. LUKOIL experts presented a wide range of specialty products for metal-working and metallurgical equipment, and also announced the launch of new special-purpose metalworking fluids, an expanded product line of HFDU and HFC non-combustible hydraulic oil, preserving compositions and liquids for pipe hydrotesting.“This is an excellent platform for exchanging experience, joint search of opportunities for enhancing efficiency and optimization of technological processes. We managed to discuss the implementation of innovative methods and mate- rials, which in the near future may be potentially used at our plant,” said Aktobe Rail and Beam Plant general director Mikhail Prosyanik.

On the last day of the forum, participants toured the INTESMO plastic greases manufacturing plant and the LUKOIL lubricants plant at the Volgograd oil refinery. The visitors displayed a great deal of interest in INTESMO’s Engineering Center where a wide range of grease and oil tests is conducted on the equipment that is unrivalled in Russia. Partici-pants praised the professionalism of highly qualified experts at the Engineering Center and the spectrum of operating, physico-chemical and rheological tests of greases.Forum participants also visited the automated lubricant production line. One of the company’s undisputed advantages is the use of the pur-est base oils produced at LUKOIL’s oil refinery in Volgograd. The unique physico-chemical properties of these base oils help create formulations of lubricants with performance features that surpass international stan-dards. The Volgograd conference demonstrated the consumers’ growing interest in the Company’s innovative products.

Dmitry Anokhin INTESMO general director

LUKOIL-branded products have been approved by many of the world’s leading machinery producers and featured in lubrication charts of such companies as Danieli, SMS Group and other industrial OEM’s. It is therefore not surprising that the growing number of Russian and foreign companies are showing interest in INTESMO business conferences. For example, this year’s event was attended by our colleagues from Turkey, Kazakhstan and Finland. We are able to see their positive feedback, and that motivates us to continue this well-established tradition and regularly hold INTESMO topical conferences. On behalf of INTESMO I would like to express gratitude to all forum participants for displaying their interest in this event, and to stress the company’s commitment to continued development of solutions that aim to enhance manufacturing efficiency at metallurgical plants.

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Two years ago, Spartak Moscow Football Club players visited LUKOIL’s exhibition stand at the Moscow International Automobile Salon (MIAS), and spent time in a friendly chat with fans during an autograph session. Since then, the team from the Russian capital has had some unforgettable moments — following a 16-year title drought, the Red-and-Whites finally won Russia’s Premier League, and later captured their first domestic Supercup. So it wasn’t surprising at all why large numbers of visitors of the 7th MIAS flocked to LUKOIL’s stand to meet the champions and shake their hands.The meeting took place on Sept. 8 at the Crocus Expo exhibition center. Spartak was represented by midfielders Denis Glushakov and Alexander Samedov, and striker Ze Luis. During a two-hour get-together, any visitor could have received the players’ autographs and had his picture taken with them, as well as participated in a prize lottery. The Spartak fans’ huge drive to get closer to their idols brushed off any doubts: these meetings are turning into a fine tradition, which needs to be continued. This year, MIAS hosted some of the most mem-orable vehicle premieres staged by the leaders of Russia’s automotive market. Such companies as Volkswagen Passenger Cars, Volkswagen Commercial Vehicles, KIA, Huyndai, AVTOVAZ, Geely, GAC, Haval, Lifan, JAC, IKCO and many others unveiled full product lines of their mod-els. The icing on the cake was the premiere of the domestic car brand AURUS. Specially fitted test drive sites provided an opportunity to visi-tors to not only test cars, but also get trained in driving them under difficult conditions.

SHAKE HANDS WITH THE CHAMPS!

EVENTS / LUKOIL LUBRICANTS / JANUARY 2019

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L U KO I L L U B E S P OW E R D R I V E T H RO U G H LA N D O F F O R E S T S A N D LA K E SIN RUSSIA, THERE ARE SO MANY PICTURESQUE PLACES EXPLORED WITH A GREAT DEAL OF INTEREST BY GROWING NUMBERS OF OUR COMPATRIOTS. IN ORDER TO HAVE THE MAXIMUM FREEDOM IN THEIR TRAVELS, AND BE ABLE TO HAVE EVERYTHING ONE NEEDS AT AN ARM’S LENGTH, MANY TOURISTS PREFER TO TRAVEL IN THEIR OWN CARS

This time, an attempt to evaluate comfort and economics of such trips was undertaken by the editorial team of the Kurortny rashchet show. The expedition including two cars, a trailer and a quad bike headed out from Moscow to one of Russia’s most picturesque corners, the northwestern province of Karelia.The team of journalists picked Toyota four-wheel-drive cars for the trip: a gasoline-powered Fortuner and a diesel-powered HiLux pickup with a trailer carrying a quad bike. The distance separating Moscow and the Karelian city of Lahdenpohja is almost 1,000 kilometers. It should be noted that our travellers were lucky — Karelian roads, as well as those connecting the province with the rest of Russia, are rather good. How-ever, enjoying the beauty of the land of forests and lakes, or fishing in a secluded place requires driving over rough terrain. Moving over rugged surface, especially with a trailer, demands the car engine’s full output. In such a situation, engine oil selection is of utmost importance. Both ve-hicles were filled with LUKOIL GENESIS premium engine oil. The diesel engine of Toyota HiLux was filled with LUKOIL GENESIS ARMORTECH A5B5 5W-30, and the gasoline engine of Toyota Fortuner used LUKOIL GENESIS ARMORTECH 5W-40.When driving at a slow speed, especially over running soil such as sand, consumption of engine oil increases considerably. In this regard, it is necessary to check the level of oil in the engine on a regular basis and, if necessary, to refill it to the maximum. This will prevent the engine’s “oil hunger” during strong tilts over rough terrain, and will also improve its cooling. Fortunately, our travellers didn’t have to worry about the refill of oil in case of necessity — LUKOIL GENESIS can be bought at LUKOIL petrol stations that are part of the network spreading along the entire

route of the expedition. This was not the first time that the Kurortny rashchet editorial team picked LUKOIL GENESIS for this kind of trips. Last year, journalists tried to evaluate the budget of an average motorist during an event-packed run to the Black Sea in Volkswagen Multivan and Amarok cars that used GENESIS ARMORTECH VN engine oil.A detailed account of the trip will be published in the Feb-ruary 2019 issue of the Four Wheel Drive magazine, and the Muzhskoi (“Masculine”) television channel will air a special report.

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Yekaterina Yanchevskaya project leader

IT technology has become an inseparable part of people’s lives. The consumer behavior model is changing naturally. Growing numbers of people are shopping with the help of computers and mobile phones. In their search for necessary goods, our customers in retail and corporate sales are beginning to choose online platforms more and more often. At the same time, they demand by default the high class services with the use of advanced technology. We strive to be closer to our customers and meet their highest expectations in each country where LUKOIL operates. Digital technology serves to help us succeed in this endeavor.

LUKOIL STARTS ENGINE OILS SALESON LEADING GLOBAL MARKETPLACE AMAZONLUKOIL has become Russia’s first national lubricants man-ufacturer to start sales on Amazon, one of the world’s largest online marketplaces.Today, LUKOIL GENESIS and LUKOIL LUXE synthetic en-gine oils are available to European buyers online on the retailer’s website. In the nearest future, the Company plans to expand its prod-uct range and to start online sales via Amazon in all re-gions of its operations.The opportunity to buy LUKOIL lubricants online on Amazon has been a genuine breakthrough for the Com-pany in e-commerce. Howev-er, this is only the first step en route to the full-scale digitalization of LUKOIL’s lubricants business, encom-passing all areas of opera-tion including production, R&D, logistics and sales. Last year, LUKOIL struck a partnership with another major international online marketplace, Alibaba.com,

instagram.com/lukoil_masla https://goo.gl/qKK6XC https://goo.gl/Ki8NdM

LUKOIL LUBRICANTS IN SOCIAL NETWORKS

which besides Russian-made LUKOIL products also offers products manufactured by LUKOIL subsidiaries in Austria, Kazakhstan, Turkey and Mexico. The Company also opened Internet stores in Russia, Kazakhstan, Turkey and China. The Russian Internet store contains a section for business, which has become a convenient meeting point for representatives of small- and medium-sized companies. Further plans include the launch of online resources for individuals and busi-nesses in other regions of LUKOIL’s presence, as well as entry into new international marketplaces.

DIGITAL TECHNOLOGY / LUKOIL LUBRICANTS / JANUARY 2019

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LUKOIL@Lubricants | July 2017