As a result of the ever expanding nature of GOL activities in the downstream sector it was decided in 1984 to float a Lubricant Department that will take care of manufacturing and sales of | lubricant products which the Nigerian Market offers. The Department started in earnest in 1985 with procurement, branching 7 and sales of all range of General Oil Lubricants by third party | blending arrangement with existing lubricant plants owned by the | multinationals. (See list of General Oil range of lubricant product).
In view of the increasing demand for these products, the idea of building an own lube plant came into being. This is to maximize our market potential and at the same time get into the serious business of manufacturing of our own products. A feasibility study for the setting up of the lubricant blending plant was made. The plant as envisaged is a medium size plant with capacity to produce at least 15,000 metric tons of various lubricant grades per annum. This might have to be expanded in future as our share of the market increases.
The idea of the lube plant is based on using locally produced Base Oils from Kaduna refinery blended with imported additives. The additives will account for just only 6 per cent of the inputs. The total cost of constructing the plant (fabrication and installation of machinery) is put at N12 million (including land); added to this is the initial working capital of N8 million. Effort is now geared towards looking for alternative location probably at Kaduna for siting of the project.