SOCAR and Tatneft explore joint venture for lubricant production

The State Oil Company of Azerbaijan (SOCAR) and Russia's PJSC Tatneft are discussing the possibility of establishing a joint venture for the production of lubricants.

According to Report, which quotes Rufat Mahmud, General Director of SOCAR RUS (a subsidiary of SOCAR), that SOCAR works closely with Tatneft.

"The parties have already signed two roadmaps. It's about trading in oil products and ideas for creating joint ventures in oil refining. Issues of [joint] production of lubricants are being discussed."

Interestingly, the proposed lubricant production facility may be located either in Azerbaijan or in third countries.

Mahmud emphasized, "Definitely not in Russia. Here, the market is already quite saturated with local producers who successfully manufacture quality products," he said.

SOCAR is also exploring similar plans with the Russian company SIBUR. Mahmud highlighted the importance of maintaining friendly relations and communication with competitors, stating,

"We have a lot to learn, and we have many joint initiatives, so to speak. This includes digitalization of production and exchange of experience in the production of petrochemical products. Again, opportunities for joint entry into new markets are being considered."

In November 2023 and May 2024, SOCAR and PJSC Tatneft signed roadmaps for cooperation in various spheres, including oil production and refining, sale of oil and petrochemical products, exchange of experience, human capital development, and other areas.