Shell Indonesia Lubes plant ramps up production, now producing Marine Lubricants
Jakarta, 9 November 2016 – 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.
Enquiries:
Shell Marine Global:
Oliver Lim +65 67999477, o.lim@shell.com
Shell Lubricants Global:
Mary B. Walsh, +32478402934, mary.walsh@shell.com
GM External Relations Indonesia:
Haviez Gautama, +622129970315, haviez.gautama@shell.com
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 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.
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.
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
Disclaimer
Disclaimer
Cautionary Note
The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this content “Shell”, “Shell Group” and “Group” are sometimes used for convenience to reference Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this content refer to entities over which Shell plc either directly or indirectly has control. The terms “joint venture”, “joint operations”, “joint arrangements”, and “associates” may also be used to refer to a commercial arrangement in which Shell has a direct or indirect ownership interest with one or more parties. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.
Forward-Looking statements
This content contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions, including (without limitation) those concerning Shell’s strategy and operating plans, macroeconomic conditions, future energy demand, supply and product mix, commodity prices, demand for Shell’s products, production results and reserve estimates, development, execution and management of projects, energy transition and climate change, management of safety and environmental risks, costs, cash capital expenditures, technology advancements, legislative, judicial, fiscal and regulatory developments, regional conflicts and trading conditions, and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”; “ambition”; ‘‘anticipate’’; “aspire”, “aspiration”, ‘‘believe’’; “commit”; “commitment”; ‘‘could’’; “desire”; ‘‘estimate’’; ‘‘expect’’; ‘‘goals’’; ‘‘intend’’; ‘‘may’’; “milestones”; ‘‘objectives’’; ‘‘outlook’’; ‘‘plan’’; ‘‘probably’’; ‘‘project’’; ‘‘risks’’; “schedule”; ‘‘seek’’; ‘‘should’’; ‘‘target’’; “vision”; ‘‘will’’; “would” and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this content, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks, including climate change; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including tariffs and regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, regional conflicts, such as the Russia-Ukraine war and the conflict in the Middle East, and a significant cyber security, data privacy or IT incident; (n) the pace of the energy transition; and (o) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this content are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2025 (available at www.shell.com/investors/news-and-filings/sec-filings.html and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this content and should be considered by the reader. Each forward-looking statement speaks only as of the date of this content. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this content.
Shell’s net carbon intensity and net-zero emissions target
In this content we may refer to Shell’s “net carbon intensity” (NCI), which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell’s NCI also includes the emissions associated with the production and use of energy products produced by others which Shell purchases for resale. Shell only controls its own emissions. The use of the terms Shell’s “net carbon intensity” or NCI is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.
Shell’s operating plan and outlook are forecasted for a three-year period and ten-year period, respectively, and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next three and ten years. Accordingly, the outlook reflects our combined Scope 1 and 2 target, NCI target and our oil products ambition over the next ten years. However, Shell’s operating plan and outlook cannot reflect our 2050 net-zero emissions target, as this target is outside our planning period. Such future operating plans and outlooks could include changes to our portfolio, efficiency improvements and the use of carbon capture and storage and carbon credits. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans and outlooks to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.
The information provided above regarding Shell’s NCI and net zero emissions target are not intended, nor should they be construed as introducing, suggesting or making any claim, target or representation thereof other than what is included in the content.
Forward-Looking non-GAAP measures
This content may contain certain forward-looking non-GAAP measures such as free cash flow and underlying operating expenses. We are unable to provide a reconciliation of these forward-looking non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements. These forward-looking non-GAAP measures are provided to assist readers in understanding management’s use and expectations of such measures and may not be appropriate for other purposes.
The contents of websites referred to in this content do not form part of this content.
We may have used certain terms, such as resources, in this content that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.
