All base oil supplies are contracted based on the average quotations published by the international agency Argus on fob European Export basis.
Base oils are supplied on CPT and FOB basis with a priority to use the infrastructure of the LUKOIL Group of Companies.
There are 2 pricing mechanisms for base oils supplies:
quotation on the date of a railway bill stamp for CPT basis deliveries
quotation on the Bill of Lading date for FOB basis shipments
Financial guarantee acceptable for base oil supplies comprise prepayment and Letters of Credit.