By the OGJ Online Staff
LONDON, Mar. 13�Statoil AS advanced its Chief Executive Olav Fjell's stated aim to become a "dominant player" in the Baltic States' lubricants market with the announcement Tuesday that it had inked a production and sales deal with compatriot Pemco AS covering Estonia, Latvia, and Lithuania.
The agreement with Pemco, a Norwegian oil and chemicals trading and industrial group, will mean that Statoil Lubricants will become a leader in the sale of lubes in Lithuania, with a market share of almost 30%, said Statoil.
Statoil will take over Pemco's sales organization and clients in the Baltic states, explained Anders Åkerlund, head of international sales in Statoil Lubricants. Pemco will retain its lube oil factory in Lithuania, produce lubricants for both Statoil and for export to countries outside the Baltic region.
The deal, said Åkerlund guarantees Statoil access to 22 million l./year of locally produced lubes.
Åkerlund added that the agreement will mean an increase in the sales of Statoil lubricants, from some 2 million l./year. to over 14 million l./year.
Assuming the competition commission in Lithuania approves to the deal, Statoil will take over Pemco's sales activities next month.
