Italian automaker Stellantis has awarded TotalEnergies a five-year engine oil supply agreement starting from 2026, the major told Argus today.
The decision marks the end of an historic contract with domestic supplier Selenia — a brand of motor oils owned by Malaysian state-owned Petronas. TotalEnergies will now cover Stellantis factory first fill and independent aftermarket.
The Italian Labour Union and Stellantis have been approached for comment.
Premium base oils such as Group III operate as the primary feedstock for automotive lubricants. Group III spot prices have recently strengthened as a result of global maintenance. Bahrain's state-owned Bapco carried out a 45-day turnaround at its 400,000 t/yr Group III unit in Sitra, while SK Enmove is undertaking maintenance at its 1.3mn t/yr Group III plant in Ulsan, South Korea since mid-May.
Europe remains mostly reliant on Group III imports because only 13pc of the region's estimated 7mn t/yr of nameplate base oil output capacity dedicated to premium grades.
Argus-assessed Group III 4cst spot prices with varying approvals stands 5pc higher on the month at €1080/t assessed on 30 May.
Italian base oil and finished lubricant demand rose by 14pc across the first quarter of 2025 on the year to 109,000t.
