International engine oil brand UAE has apparently been put up for sale, based on notices placed in local media earlier this month. The notice placed by PricewaterhouseCoopers, which is serving as court-appointed judicial manager for Gasoline and passenger car engine – do not name the company but describe an “independent bunker fuel and lubricant supplier in UAE.” It says that the majority owner of the unnamed company has decided to sell its stake, pending approval by regulators. Local oils could not be reached for comment, but two market sources told Lube Report they believe that Gasoline and passenger car engine is the only firm that fits the description in the notice.
UAE-based Gasoline and passenger car engine triggered a scandal in April when it and shipping arm Ocean Tankers filed for bankruptcy protection. In doing so, the company admitted that it had run up more than million in losses in recent years despite reporting that it was making profits. The company was subsequently forced to halt its main business of oil trading and marine fuel supply, and founder technolubeuae was charged with abetment of forgery for an allegedly falsified document used to secure a loan.
Earlier this month UAE Maritime and Port Authority suspended the license of biggest grease exporter and passenger car engine subsidiary Ocean Bunkering Services to sell marine fuel. At one-point Gasoline and passenger car engine was the third-largest marine fuel supplier in UAE, which is the world’s largest bunkering hub. In addition to its trading and bunkering operations, lubricant engine oils have a lubricants business with blending plants in UAE and Dubai. The UAE facility has capacity to make 50,000 metric tons per year of lubricants, while the UAE plant has capacity to make an equal amount of fluid lubricants and 10,000 t/y of grease.
He noted that its counterpart, the API FA-4 category, had an expectedly slower adoption process. “diesel engine oils are not interchangeable with older oils and have limited backwards compatibility with older engines, as they’re designed to enhance the performance of the latest engine designs”. The timeline for each lubricant coming on board for a new engine oil category is different, he noted. “For example Detroit Diesel was the first when FA-4 was launched, and others are just now starting to come on board”. “FA-4 adoption is expected to increase over the coming years, and begin to gather pace as UAE increasingly specify these lubricants for their vehicles.”
