10/30/20181

ENGINE OILS FOR 2020:THE LUKOIL PERSPECTIVE

TMS Tanker Conference 16th October 2018, Dubai

• Leading Russian company in exploring, producing, refining and marketing petroleum products

• Founded in 1991 through the merger of a group ofoil- and-gas production companies located in thewestern Siberian cities Langepas, Urai and Kogalym

• First Russian Company listed in the LondonStock Exchange 2002.

• LUKOIL is the 2nd largest oil company worldwide byproven hydrocarbon reserves behind ExxonMobil and ahead of BP, Chevron, Shell and Total.

• 2% of world crude reserves & 1% of world crude Production

• 2nd biggest producer of Group 1 Base oils worldwide

• AMONGST THE TOP 10 LUBRICANT PRODUCERS WORLDWIDE.

LUKOIL is present in all sectors of the industry

• Founded in 2008

• Subsidiary of LUKOIL specializing in the production and marketing of marine lubricants worldwide

• Presence in all marine markets through a network of eight regional offices and several local ones

• Complete range of state-of-the-art marine grades which comprises of high quality main and minor grades, all OEM approved

• Global supply network with supply facilities in more than 900 ports

• Run by people who know the business, from our Order Manager to the CEO

• 15 % OF GLOBAL MARKET SHARE IN 2017 – ACHIEVED IN 10 YEARS

LUKOIL Marine Lubricants

New York

AntwerpBaltic Sea(Nizhniy Plant)

Black Sea(Perm & Volgograd Plants)

Jebel AliCanary Islands

Mumbai

Colombo

ChittagongHong Kong

BusanKobe

KaohsiungBangkok

Singapore

Jakarta

Melbourne

Algeciras

Genoa

Durban

ShanghaiHouston

LUKOIL Marine Lubricants

Worldwide: > 500 Customers >5000 Contracted Vessels

LUKOIL Marine Lubricants

Some Valued Customers in this region

GETTING READY FOR 2020

LUKOIL Marine Lubricants

STRONG & SUSTAINED FOCUS ON R&D

• Successful and timely response to new Challenges from marine market (Navigo 100 MCL in 2012)

• Innovative solutions (iCOlube in 2013)• Full range of EAL products (2014)• Improved ME System Oil (2015)• Cyloil for ULSFO (2016)

GETTING READY FOR 2020

LUKOIL PREPARATIONS

2-STROKE ENGINES

• Navigo 140 MCL Field tests for OEMapproval

• Performance monitoring of Navigo MCLUltra & Navigo MCL Extra for GAS fuel

4-STROKE ENGINES

• Performance monitoring of Low BN TPEOs forGAS, ULSFO,VLSFO

GETTING READY FOR 2020

OEM RECOMENDATIONS FOR 2-S ENG CYLINDER OIL

MANMin KV 18.5cSt at 100°C

WINGDMin KV 18.5cSt at 100°C

INTRODUCED IN 2012

ECA SULPHUR LIMIT 2015

ULSFOLubrication Concerns

Too little sulphur leading to lack of corrosion leading to bore-polishing – leading to scuffing & wear

chemical bore polishing

Too much additive leading to deposits- leading to scuffing & wear mechanical bore polishing

DEPOSITS

• Deposits on Piston Topland disturb oil film

• Deposits behind piston rings obstruct movement

TEST ENGINE, 4T50ME-GI-XCylinder Lubrication test results

Navigo MCL Ultra

INTRODUCED IN 2015

2020 SULPHUR LIMITLubrication Concerns

• The 40 BN lubricants which are available in the market do not seem to provide sufficient detergency to handle 0.1 and any 0.5% fuels as one single cylinder oil.

• This would create the need to have both 20 BN and 40 BN cylinder oil on board in 2020.

• Or there is a need for a rebalanced 40 BN cylinder oil to cover the future needs.

LUKOIL Navigo MCL Extra

• LUKOIL MCL Extra is such a rebalanced 40 BN product

• Launched in May 2017, NAVIGO MCL Extra in May 2017, a 40 BN marine cylinder oil for distillate, ultra-low Sulphur fuel oil(≤ 0.1%S) and very low Sulphur heavy fuel oil (≤0.5%S) applications.

NAVIGO MCL Extra shows excellent piston cleanliness on M.V. E.R. TALINN at end of trial inspection

Navigo MCL Extra

INTRODUCED IN 2017

Competition recognize need to update cyloils

September 2018

CHOICE OF CYLINDER LUBRICANTS

NavigoMCL UltraBN 20, SAE 50

Permanently<0.1% SNavigo

MCL ExtraBN 40, SAE 50

Permanently<1% S

Navigo

70 MCLBN 70, SAE 50

All engines

Navigo

100 MCLBN 100, SAE 50>Mk8; RT-Flex,

WXNavigo

140 MCLBN 140, SAE 50Latest engines

iCOlubeIntelligent Cylinder

Lubrication

UTILISING

High BN Cylinder oil with Fresh System oil, or Used System oil, or Low BN Cylinder oi

to OPTIMIZE

Cylinder lubrication with the right BN Cylinder oil inline with the Sulphur content of the fuel in use

iCOlube PRINCIPLE

LUKOIL CYLINDERLUBRICATION; current

MCL Application

• Current Cylinder Oil Application by:- %S- Fuel kinds- Engine designs- Operating condition- etc.

• Cylinder Oil Application for: 2020 and Beyond

• Cylinder Oil Application with iCOlube for:2020 and Beyond

LUKOIL CYLINDER LUBRICATION;for 2020 & beyond

MCL Application

• Current Cylinder Oil Application by:- %S- Fuel kinds- Engine designs- Operating condition- etc.

• Cylinder Oil Application for: 2020 and Beyond

•Cylinder Oil Application with iCOlube for:2020 and Beyond

LUKOIL CYLINDER LUBRICATION;with iCOlube for 2020 & beyond

MCL Application

• Current Cylinder Oil Application by:- %S- Fuel kinds- Engine designs- Operating condition- etc.

• Cylinder Oil Application for: 2020 and Beyond

• Cylinder Oil Application with iCOlube for:2020 and Beyond

LUKOIL 4-STROKEENGINE OILS

TPEO Application

LUKOIL TPEO products cover all Sulphur range

However, the right BN, Viscosity grade shall be applied practicially based on OEM Requirement and actual operating condition.

Questions?