3. Holding • SK Holdings Sales Ratio
Company
• SK Energy
• SK E&S
Energy
• SK Chemicals
& • SKC
Chemicals • SK Incheon Oil
• Dopco
• K-Power
• SK Telecom
• SK C&C
Telecom • SK Telink
• SK Telesys
• Helio
• SK Networks • Sales : 73.7 billion USD
Trading • SK Engineering & Construction
& • SK Shipping • Total Assets : 63.3 billion USD
Services • Sheraton Walkerhill • Employees : About 30,000
• SK Securities
* Includes the sales from SK Networks
(Data in 2006)
4. History
Established in 1962 as Korea’s first domestic oil refining company.
Korea Oil Company Acquired by SK Group in 1982, and called YUKONG.
Name changed to SK Corporation in 1997.
1962-1982
Split into SK Holdings and SK Energy in July 1, 2007
YUKONG Business Areas
1982-1997 Refining, Petrochemicals, Exploration & Production, Coal, Lubricants, etc.
Leading Energy & Petrochemical player in Korea
Largest refiner in Korea’s oil industry, holding over 1/3 of the market
share, and leading Petrochemical, Lubricant player in Korea.
1997- 2007
Globalization
SK Energy is in a transitive phase, increasingly penetrating into
overseas markets with a view to becoming a major player in the Asia-
Present Pacific region.
SK Corporation(Former SK Energy) has been ranked as 98th in Fortune
Global 500 company list, 2007
5. Domestic market share: 34% Ethylene: 830,000 Ton/Yr
CDU capacity: 1,115 m b/d Propylene: 540,000 Ton/Yr
Gas station: 4,185 BTX: 3,600,000 Ton/Yr
Engaged in 24 blocks
Lubricant: 4,000 B/D in 14 countries
Oil equivalent reserves
Base Oil: 20,000 B/D : 510 million Bbl
Grease: 6,000 Ton/Yr Production(E) : 25,000 B/D
6. Production Capacity World Top 10 Base Oil Suppliers
• Lubricants : 4,000 bbls/day • Capacity : 20,000 bbs/day
Grease : 6,000 tons/year
50% world M/S in Group III base oil market
No.1 player in Korea since 1968 in the
competition of worldwide majors Brand name is ‘YUBASE’
Premium brand name is ‘ZIC’ Has worldwide supply network for global
customers
Has a 30% M/S in engine oil market
(Total 16% market share in Korea) Found JV with PT. PERTAMINA for new
350,000MT/year capacity refinery in Dumai
Continuing to expand markets abroad
Launched co-branding product named
‘ZIPEX’ with PT. PERTAMINA in Pakistan
7.
8. Saturates Sulfur
API Category Viscosity Index
(%) (%)
Group I 80-120 < 90 ＞0.03
Group II 80-120 ≥ 90 ≤ 0.03
Group III 120 + ≥ 90 ≤ 0.03
Group IV PAO
Group V All others
9. ASTM
Item YUBASE 4 YUBASE 6 YUBASE 8
Method
KV @ 40°C, cSt D445 19.6 36.9 47.0
KV @ 100°C, cSt D445 4.25 6.46 7.60
Viscosity Index D2270 123 130 128
NOACK Volatility, wt% D5800 14.7 7.1 5.0
Pour Point, °C D92 -15 -12 -12
Flash Point, °C D97 230 240 260
10. [KMT] 10~%
7~8%
Group III
30,000 4%
2%
Group II
25,000
20,000
Group I
15,000
10,000
5,000
2000 2005 2010 2015
12. Chemical Type Structure VI Pour Oxidation Toxicity
Very High Solid Excellent Low
n-Paraffin (Wax) ~175 @50°C
iso-Paraffins with
High Good Excellent Low
Branched chains
~150
iso-Paraffins with
Good Good Excellent Low
highly branched
~130
chains (PAO's)
cyclo-Paraffin- Good Good Good Low
single ring with ~130
long chains
Poor Good Medium Low
Naphthenes, ~60
polycondensed
Poor Good Medium Medium
Monoaromatics, ~60
long chains
Very Poor Good Very Poor Very High
Polyaromatics
<0
13. YUBASE
High Isoparaffin Content
Some Naphthenic Compound
Small or Zero Aromatic
Low Isoparaffin Content
Group I
N
Some Naphthenic Compound
S
High Aromatic
15. Features
• Low Wax
• Very High VI
• Low Volatility
• Narrow Boiling Ranges
• High Saturates
• Good Additive Response
• Very High VI
• Low Aromatics
• Low Aromatics
• Low volatility
16. Features Reasons
• Low Wax
• Better Low Temp. Performance
• Very High VI
• Low Oil Consumption • Low Volatility
• Higher Flash Points • Narrow Boiling Ranges
• Higher Thermal/Oxidative • High Saturates
Stability (Longer life) • Good Additive Response
• Good Friction Behavior • Very High VI
• Wear Reduction • Low Aromatics
• Low Aromatics
• Environmentally Friendliness
• Low volatility
17. Reduce Fuel Costs
Reduce Lubricant Costs
Reduce
Personal and
Social Costs
Reduce Emissions
Reduce Maintenance Costs
18. AP
IG Ash
rad
Backward e
Emis
sion Compatibility Wear
y Oxid
om atio
on n
l Ec ns
o
ue M icati
F OE ecif
Viscosity Dep Sp
os
it e Su
ACEA Sequenc lfu
th etic? r
Syn Low T Phospha
emper te
Soot Perfor ature
mance
19. 2004 2005 2006 2007 2008 2009
ILSAC GF-4 Gasoline ILSAC GF-5
US
API CI-4+ Diesel API CJ-4
Japan
GM Dexron IIIH ATF GM Dexron VI
ACEA C3, C2 ACEA ??
MB 229.31 Gasoline MB 229.??
Europe Euro IV Euro V
ACEA E6 ACEA ??
MB 228.51 Diesel MB 228.??
20.
21. PM
(g/km) Emissions Standards
Legislation - Passenger Car Diesel -
Euro 3
• Set Emission Target
• Reduce PM/NOx/SAPS
• Increase Fuel Economy
Euro 4
US Tier 2 bin 5
Euro 5
OEMs
NOx (g/km)
Source: Lubrizol
22. P content
in oil
GF-1:
Legislation
(wt%)
0.12 max
0.12
GF-2: GF-3:
0.10 max 0.10 max
0.10
• Set Emission Target
0.08
• Reduce PM/NOx/SAPS
GF-4
• Increase Fuel Economy 0.08 max
0.06
0.04
OEMs 1995 2000 2005
1990
ILSAC : Phosphorus Content Limit
Source: Lubrizol
25. High
LTHS HTHS
Major
Cranking, Startability Wear
Performanc
e
CCS, KV@40℃ HTHS, TBS Test Item
Fuel
Economy
MRV, Brookfield NOACK, KV@100℃
Pumpability Oil Consumption
Low LTLS HTLS
Low High
26. x SAE 40 Lubricating
General Benefits of
Multi-grade Lubricants
Area
Max. Viscosity
(Low Temp) Good Startability
Better Bearing Lubrication
Reduced Oil Consumption
Better Fuel Economy
SAE 10W/40
Min. Viscosity
(High Temp)
SAE 10W
x
Low High
27. High
Low Viscosity Index
High Viscosity Index
Low
Low High
28. Solutions to Increase
Viscosity Index
High Viscosity Modifier
High Viscosity Index Base Oils
Consideration Points
Formulation Economics
Toxicity
Impacts on Other Performance
Low
Low High
32. Features
• Very Low Sulfur (≤ 0.03 %)
• Very High Viscosity Index (120 + )
• Excellent Low Temperature Performance
• Low Volatility & High Flash Point
• Excellent Thermal and Oxidative stability
※ Can be marketed as ‘Synthetic’
Group III Base Oils
37. Technical Needs
− Drive Towards Lighter Viscosity Multigrades
− With Tightened Approval Specifications in Lube Industry
− Limitation of using Harmful Additives to meet Demanding Performance
Marketing Needs
− Drive Cost effective, ‘Synthetic’ labeling High Quality Lubricants
− Is Encouraged by availability of large volumes of Group III/GTL production
