Shell becomes first international oil company to build lubricants blending plant in Russia

The plant, which is being built in Torzhok in the Tver region, north-west of Moscow, will have a capacity of 200 million litres a year (about 180,000 tons), making it one of the largest in the Shell network worldwide. Commercial operation is expected to begin by the end of 2010.

As a leading international supplier of lubricants and greases to Russia, Shell will bring advanced technology to the local market and ensure high quality products through stringent quality control. Bringing world-class production capacity closer to customers will allow Shell to supply a full range of high-quality motor oils, transport oils and industrial lubricants to the Russian market, with the potential to expand distribution to neighbouring countries in the future. Large industrial customers will benefit from the bulk delivery of technologically advanced products, speeding up delivery times and reducing storage costs.

David Pirret, Executive Vice President for Shell Lubricants, said: “Russia is a country of strategic importance for Shell, and today’s announcement is further evidence of our commitment to grow our business here, not only in upstream but also in downstream. Russia is the third largest lubricants market in the world and it is vital that Shell, as the leading global lubricants supplier has a significant presence here. Shell Lubricants has seen seven consecutive years of profitable growth in Russia and we believe that setting up lubricants production facilities will help us capitalise on further growth opportunities.”

Dmitry Zelenin, the Governor of the Tver region, noted: “We are glad that Shell is building a lubricants blending plant in the Tver region. The plant will use advanced operational and organizational technologies, employ Russian workforce – from maintenance to managers, and create around 150 new jobs. The regional administration will continue supporting our foreign partners. I am confident that there will be no difficulties to hinder the project implementation, and commercial operation will start by the end of next year as planned.”

For more information please contact:
Rainer Winzenried, Shell International - Media Relations 
Telephone: +31 70 377 2282 

Vera Surzhenko, Shell Moscow office
Telephone: (office) +7 (495) 792-3550, ext 1417 (mobile) +7 962 905 2711

Notes to Editors:
Shell has a history of lubricants innovation stretching back more than 70 years. For example:

• In the 1960s Shell was the first to launch multi-grade engine oil for use in all vehicles in all seasons
• In the 1970s Shell pioneered the use of detergents in vehicle oils to help keep engines clean
• In the 1990s, Shell was first to market with a ‘low SAPS’ engine oil, with lower levels of Sulphated Ash, Phosphorous and Sulphur. Using low SAPS oils can help to reduce diesel exhaust emissions, by protecting after-treatment devices
• In the 2000s, Shell Lubricants in the US introduced the first aftermarket motor oil specifically designed for the special needs of hybrid vehicles - Pennzoil Platinum® Full Synthetic for Hybrid Vehicles.

Shell Lubricants has leading lubricants research centres in the US, UK, Germany and Japan staffed by world-class scientists. Their focus is on developing products and services that provide customers with superior protection and efficiency. Customer benefits include lower maintenance costs, longer equipment life and reduced energy consumption.

The term ‘Shell Lubricants’ collectively refers to Shell Group companies engaged in the lubricants business. They manufacture and blend products for use in a range of applications from consumer motoring to mining and power generation to commercial transport. Shell’s portfolio of lubricant brands includes Pennzoil®, Quaker State®, Shell Rotella T, Shell Helix, Shell Rimula, Shell Tellus, Monarch, a portfolio of car care products and Jiffy Lube®.

Disclaimer Statement
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this document the expression “Shell” is sometimes used for convenience where references are made to Group companies in general.  Likewise, the words “we”, “us” and “our” are also used to refer to Group companies in general or those who work for them. These expressions are also used where there is no purpose in identifying specific companies.