NESTE OIL AND BAPCO TO MOVE AHEAD WITH LUBRICANT BASE OIL JOINT VENTURE

Neste Oil Corporation
Press Release 18 August 2005 at 8:30 am EET

Neste Oil Corporation and the Bahrain Petroleum Company (Bapco) are proceeding with their plans for a joint venture to produce high-quality lubricant base oil - and have signed an agreement covering the commercial terms for a project to design, build, and operate a base oil production facility at Bapco's Bahrain oil refinery. The facility will be capable of producing 400,000 t/a of sulfur-free Very High Viscosity Index (VHVI) base oil, used for blending top-tier lubricants.
 
Neste Jacobs Oy will complete the active design phase of the project within the next six months. The final decision on construction of the facility is expected to be made in spring 2006, and the plant is due to come on stream in the first half of 2008.
 
"We are very pleased to be moving ahead with this project, which underlines Neste Oil's and Bapco's commitment to new-generation, high value-added base oils," said Kimmo Rahkamo, Executive Vice President, Components at Neste Oil. "Demand for these sulfur-free base oils is increasing globally thanks to their ability to meet current and future performance requirements, as well as more stringent environmental standards. I strongly believe this project will prove a success for both parties."
 
Feedstock for the new base oil facility will be provided by Bapco's low-sulfur diesel hydrocracker unit, which is due to come on stream in mid-2007. Neste Oil will be responsible for sales and marketing the output of the joint venture plant.
 
Neste Oil is an industry leader in the production and marketing of VHVI base oils under the NExBASE® brand, and this new joint venture with Bapco will further extend the global reach of its business in this field.
 
Neste Oil Corporation
Osmo Kammonen
Senior Vice President, Communications
 
Further information:
Kimmo Rahkamo, Executive Vice President, Components, tel. +358 10 458 4247
Ilkka Poranen, Vice President, Base Oils, tel. +358 10 458 5070
 
 
Neste Oil Corporation is a leading independent Northern European oil refining and marketing company, with a focus on advanced, clean traffic fuels and lubricants. Neste Oil's refineries are located in Porvoo and Naantali, Finland, and have a total refining capacity of approx. 250,000 bbl/d. Net sales in 2004 totaled some EUR 7,900 million, and the company employs around 4,400 people. Neste Oil is listed on the Helsinki Stock Exchange (symbol: NES1V). For further information, see www.nesteoil.com.
 
The Bahrain Petroleum Company B.S.C. (Closed) - Bapco - has interests in oil exploration and prospecting, drilling, production, refining, distribution of petroleum products and natural gas, and sales and exports of crude oil and refined products. The company owns a 260,000 bbl/d refinery, storage facilities for more than 14 million barrels, a marketing terminal, and a marine terminal for its petroleum products. Bapco's prime customers for crude oil and refined products are based in the Middle East, India, the Far East, South-East Asia, and Africa. Bapco's refinery exports 95% of its products.