Petronas makes plans for lubricants and exploitation

Petronas oil company of Malaysia, has ambitious growth plans for Brazil until 2017, when you want to be among the five largest distributors of lubricants. The value, William de Paula, group Chairman for Latin America, said the oil company will invest r $ 300 million in the region, of which r $ 160 million in Brazil. The company also is participating in the 11th round of bidding for exploration blocks, scheduled to happen on days 14 and 15 may, promoted by the national agency of petroleum, Natural gas and biofuels (ANP). The State-owned Malaysian group has already been enabled by the Agency to participate as an operator.
"We have a clear plan to expand investment in lubricants until 2017," said the Executive. The company also is negotiating to buy a slice of OGX, oil company of businessman Eike Batista. On this subject, however, the Executive avoided to comment. William de Paula said the Group has an interest to participate in the round of the ANP to block grant both alone and in partnership with other companies in the industry. "We are analyzing the documentation and we will have a resolution up to the end of the month," he said.
Petronas occupies the sixth position in the country's lubricants market, with 8.6%, behind Giants BR Distribuidora (Petrobras), Ipiranga (Ultra), Cosan, Shell and Chevron, according to the National Union of fuel and lubricant distribution companies (Sindicom) in 2012. The marketing of lubricants totalled 1.382 billion liters, according to ANP. Sindicom related companies negotiated 1.2 billion liters in the period. The lubricants market moves about R $ 15 billion a year, according to industry experts. "In February, we came to 10.6% of market share," said the Executive.
Fifth-largest global oil and gas company, Petronas, the controllers by the Government of Malaysia, won $ 100 billion in 2012. The global lubricant business had revenue of $ 4.5 billion. The Brazil already represents a fat slice of that business – 14%. The revenue of this Division in the country ended at $ 650 million. "We estimate grow 12% this year and we plan to double our revenues until 2017," he said.
In Brazil, the expansion plan will include partnerships to sell the products of the group in various distribution channels, such as gas stations, chain stores, auto parts and dealers. "We have no own distribution channel in the country, unlike many of the Giants in this sector, as BR, Ipiranga and Shell," he said. "Consider partnering with networks of independent stations, "he said. The Brazil has about 36 thousand gas stations, of which half is not connected to networks. Chevron, for example, has distribution agreement with AleSat. Petronas also wants to advance in the industrial segment.
With the Selenia-whose acquisition was the port of entry in Brazil-as flagship, Petronas has also has an agreement with Fiat, which ensures that the cars already leave the automaker with your product. "We will invest in media to consolidate our brand," he said.
With a production unit in Contagem (MG), this factory, which received recent investment, has a capacity of 220 million liters per year, and exports to 15 countries. The current production volume of 140 million liters/year. In 2014, the company will analyze new expansion program to 2017. "We will expand in Latin America through acquisitions and organically. We are looking at deals in three countries. In Brazil, does not rule out new acquisitions. "
The lubricants market, although it has registered annual growth shy in recent years, has been coveted by major companies. The Japanese multinational Nippon Oil and Idemitsu arrived in the country discreetly, but plan to move forward, according to industry sources.
The Cosan Group, which owns the Mobil brand when it acquired the assets of Esso in Brazil, recorded significant growth in this segment in recent years. With the joint venture with Shell to the formation of Raízen, the company's lubricants business were left out. Last year, Cosan bought assets of lubricants in South America and in England, the Comma, which opened its doors in Europe and Asia.
According to Vaz, President of Sindicom trade wind, the entity has a job with the ANP to inspect product quality in the country. "Many products marketed in the country still do not meet the specifications, low quality."