Shell Indonesia lubes plant ramps up production, now producing marine lubricants

9 November, 2016 (Jakarta) – Just over one year from the start of its operations, Shell’s newest lubricant oil blending plant (LOBP), located in Marunda Centre, near Jakarta, Indonesia, has more than doubled its production slate and is now producing 99 different products.

This includes its latest additions, Shell marine engine oils Shell Argina, Shell Gadinia, and Shell Melina. Shell Argina and Shell Gadinia engine oils are used in marine propulsion engines for small to mid-size vessels, marine auxiliary engines and for stationary power generation. Shell Melina is an advanced multifunctional crankcase system lubricant for low-speed marine diesel engines.

The local production of these marine lubricants is in response to the increase in demand for marine lubricants, due to the growing domestic maritime sector in Indonesia. This came about as a result of the Indonesian government’s maritime highway programme, which involves developing the country’s maritime infrastructure by upgrading ports throughout the archipelago. To support this initiative, Shell Marine ensures continuity of supply by providing stock point centres located in major ports in Indonesia to serve domestic and international marine customers with the product they need, when and where they need them.

The plant has also added new variants of Shell’s popular brands Shell Helix (passenger car motor oil), Shell Advance (motorcycle oil), Shell Rimula (heavy duty engine oil), Shell Spirax (transmission oil) and Shell Tellus (hydraulic oil), serving Indonesia’s growing vehicle population and rapid development in key industrial sectors like construction, power generation and mining.

This plant has also enabled Shell to transition from almost exclusively importing its lubricants products from overseas to a vast majority of it being produced locally. Today, almost 70% of Shell’s lubricants in Indonesia are “Made in Indonesia”. These are produced out of the fully automated facility with 3 small pack filling lines, 2 drum filling lines and 1 bulk filling line. The quality of Shell’s products is ensured by regular testing at the world-class test laboratory located on-site.

“We are pleased by the progress we have made in one year of manufacturing operations here in Indonesia. This local capability enables us to be close to our customers and nimbly react to market demand, including our marine lubricant customers. This plant also enables our business to expand its reach, and support our customers’ needs in Eastern Indonesia, particularly in Kalimantan, Sulawesi, West Nusa Tenggara, East Nusa Tenggara, Ambon and Papua,” said Alex Marpaung, Lubricants Supply Chain Operations Manager for Indonesia.

From a safety perspective, the plant is also a great example that, with the right systems and promoting a safety-conscious culture among its employees, it can achieve great safety results. From the beginning of construction in October 2012, till now, the site has achieved zero lost-time incidents (LTIs).

Shell is also a good neighbour. Shell Marunda LOBP works together with local NGO Pusdakota (Center for Urban Empowerment) of University of Surabaya to run Desa BERSEMI (Clean, Healthy and Self-sufficient village) programme in nearby villages – Segaramakmur and Pantaimakmur. The program aims to increase community awareness and initiative in building a clean, healthy, environmentally friendly and productive neighbourhood. The programme trains people in the two villages in initiating and developing projects such as: a community compost area, a “waste bank” where residents can sell their waste; a small-scale urban farm for medicinal plants and common vegetables; and small handicraft businesses using non-recyclable waste. To date, the programme has trained 60 focal points in the two villages, doubling the number from its initial phase in December 2015.

Notes to Editors

• Shell owns 100% and operates this plant, thus ensuring full control over product quality.
• It is the largest lubricants oil blending plant (LOBP) operated by an IOC in the country. The plant is in close proximity to Tanjung Priok, Indonesia’s busiest seaport, as well as major road transportation networks, that enable Shell to efficiently produce and deliver lubricants to customers throughout Indonesia.
• This Indonesia blending plant is designed to meet high environmental standards including measures to reduce waste and carefully control waste disposal to ensure no harm to the environment. All processes at the plant are fully automated and controlled at all stages by operators based at the control room. A plant management system has been installed and controls all stages of production.
• In Indonesia, Shell delivers its marine lubricants to customers in Balikpapan, Banjarmasin, Batam, Bitung, Cikarang, Cilegon, Jakarta, Makasar, Medan, Samarinda, Sorong and Surabaya via its dedicated distributors that can deliver products safely and meet vessels’ location and schedule.
• Shell is also active in both in the consumer and industrial lubricant markets in Indonesia. Aside from direct sales, Shell is also supported by over 30 authorised distributors throughout Indonesia.
• Shell operates over 40 lubricant blending plants in 32 countries, 18 of which are in located in Asia, specifically, in China, India, Indonesia, Malaysia, Pakistan, Singapore, South Korea and Vietnam. Three out of Shell’s eight base oil plants are located in Asia, as well as ten of Shell’s grease manufacturing plants globally.

ABOUT SHELL INDONESIA

• The history of Royal Dutch Shell in Indonesia started over 120 years ago, following its first oil discovery in Pangkalan Brandan, North Sumatra.
• Shell today has a strong downstream presence in Indonesia. It was the first international petroleum retail brand in the country and is now a leading international oil company (IOC) with 79 operating sites in including in Greater Jakarta, Bandung, and Surabaya. In 2006, Shell started its commercial fuels, marines and bitumen businesses in Indonesia, providing oil products and related technical support to the industrial, transport and mining sectors. Shell is also recognised as a leading international company with the largest lubricant market share in Indonesia, after Pertamina, serving motorists and industrial customers.

About Shell Lubricants

The term “Shell Lubricants” collectively refers to Shell Group companies engaged in the lubricants business. Shell sells a wide variety of lubricants to meet customer needs across a range of applications. These include consumer motoring, heavy-duty transport, mining, power generation and general engineering. Shell’s portfolio of lubricant brands includes Pennzoil, Quaker State, Shell Helix, Shell Rotella, Shell Tellus and Shell Rimula. We are active across the full lubricant supply chain. We manufacture base oils in seven plants; blend base oils with additives to make lubricants in over 40 plants; distribute, market and sell lubricants in over 100 countries. We also provide technical and business support to customers. We offer lubricant-related services in addition to our product range. These include: Shell LubeMatch –the market leading product on-line recommendation tool, Shell LubeAdvisor – helps customers to select the right lubricant through highly trained Shell technical staff as well as online tools, and Shell LubeAnalyst – an early warning system that enables customers to monitor the condition of their equipment and lubricant, helping to save money on maintenance and avoid potential lost business through equipment failure. Shell’s world-class technology works to deliver value to our customers. Innovation, product application and technical collaboration are at the heart of Shell lubricants. We have leading lubricants research centres in China, Germany, Japan (in a joint venture with Showa Shell), and the USA. We invest significantly in technology and work closely with our customers to develop innovative lubricants. We have a patent portfolio with 150 + patent series for lubricants, base oils and greases; more than 200 scientists and lubricants engineers dedicated to lubricants research and development. Customer benefits include lower maintenance costs, longer equipment life and reduced energy consumption. One of the ways we push the boundaries of lubricant technology is by working closely with top motor racing teams such as Scuderia Ferrari and BMW Motorsport. These technical partnerships enable us to expand our knowledge of lubrication science and transfer cutting-edge technology from the racetrack to our commercial products.

Royal Dutch Shell plc

Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit www.shell.com

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