www.korealc.co.kr
Higher VI Group III Base Oils
in the Merchant Market
www.skenergy.com
Asia’s Leading Energy and Petrochemical Company
Contents
High Quality Base Oil and the Global Demand
Market Forces and Key Drivers for Increased Use
of High Quality Base Oils
SK’s Base Oil Production
No.3 LBO Plant and YUBASE plus
Is YUBASE plus the Same Slate ?
Summary
2
2
High Quality Base Oil and the Global Demand
Group I
Group II
Group III
Group IV
Group V
80 < VI < 120
% Sat < 90%
% S > 0.03
80 < VI < 120
% Sat > 90%
% S < 0.03
VI > 120
% Sat > 90%
% S < 0.03
PAOs
PIOs
Esters
etc.
1& 2-R Aromatics
Naphthenes
Polar Compounds
iso-/n-Paraffins
Naphthenes
Iso-/n-Paraffins
Iso-Paraffins
High Quality Base Oils
 Low Volatility
 Excellent Thermal & Oxidation Stability
 Excellent Low Temperature Fluidity
 Good Friction Behavior and Wear Reduction
3
3
High Quality Base Oil and the Global Demand
10%~
[KMT]
30,000
2%
4%
7~8%
Group III
Group II
25,000
20,000
Group I
15,000
10,000
5,000
2000
2005
2010
2015
Source : SK Energy
4
4
Market Forces and Key Drivers for Increased Use of HQBO
Legislation
Consumers
Global
Economy
OEMs
Lubricant
Manufacturers
5
5
Market Forces and Key Drivers for Increased Use of HQBO
PM(g/km)
Emissions Standards
- Passenger Car Diesel -
Euro 3
Legislation
Euro 4
US Tier 2 bin 5
• Set Emission Target
• Reduce PM/NOx/SAPS
• Increase Fuel Economy
Euro 5
NOx (g/km)
P (wt%)
OEMs
GF-1:
0.12 max
0.12
0.10
0.08
0.06
0.04
GF-2:
0.10 max
GF-3:
0.10 max
GF-4
0.08 max
1990
1995
2000
2005
ILSAC : Phosphorus Content Limit
6
6
Market Forces and Key Drivers for Increased Use of HQBO
Seq.VIB F/E improvement
%(vs.5W-30)
Seq.VI F/E improvement
%(vs.20W30)
Legislation
ILSAC : F/E Requirement
3
5
• Set Emission Target
• Reduce PM/NOx/SAPS
• Increase Fuel Economy
2
4
3
GF-2
2
1
GF-1
1995
• Newly Designed Engines
• Severer Operating Condition
• After-treatment Devices
GF-3
0
5W-20 & 0W-20
5W-30 & 0W-30
10W-30
SG
1990
OEMs
1
GF-4
2000
2005
Source: Lubrizol
Lubricant
Manufacturers
7
7
Market Forces and Key Drivers for Increased Use of HQBO
Consumer
Longer Drain Intervals
Better Fuel Economy
Price Efficiency
Lubricant
Manufacturers
8
8
Market Forces and Key Drivers for Increased Use of HQBO
High Quality
Base Oils
 Formulation
 Cost Efficiency
 ‘Synthetic’ Claims
 Product Differentiation
 Operational Conveniences
Lubricant
Manufacturers
9
9
SK’s Base Oil Production
Refining Technology Trends in Base Oil Production
Chemical Type
Structure
VI
Pour
Oxidation
Toxicity
Very High
~175
Solid
@50°C
Excellent
Low
High
~150
Good
Excellent
Low
iso-Paraffins with
highly branched
chains (PAO's)
Good
~130
Good
Excellent
Low
cyclo-Paraffin-single
ring with long chains
Good
~130
Good
Good
Low
Naphthenes,
polycondensed
Poor
~60
Good
Medium
Low
Monoaromatics, long
chains
Poor
~60
Good
Medium
Medium
Polyaromatics
Very Poor
<0
Good
Very Poor
Very High
n-Paraffin (Wax)
iso-Paraffins with
Branched chains
10
10
SK’s Base Oil Production
Production of High Quality Base Oils using Fuels Hydrocracker Residues
The most cost effective option for producing high quality base oils
Provide the best overall performance in lubricant products
Classified as API Group III base oil
Limited to getting higher VI Group III base oils at practical yield
in existing Hydro-cracking routes
11
11
SK’s Base Oil Production
3rd
2nd
1st
World Largest Group III Base Oil Manufacturer
Hydro-Cracked / CDW / All Hydro Processing Route
Total Production Capacity is about 1.35 MTPA
12
No.3 LBO Plant and YUBASE plus
No.3 LBO Plant
JV with PT. PERTAMINA in Dumai of
Sumatra Island, Indonesia
Higher VI Group III base oils from
fuels hydrocracker residues
Ulsan
Dumai
The First Higher VI Group III Base Oils
in the Merchant Market
Annual Production : ~ 350k Mton
2 Years Project
- M/C : ~ 50 days earlier than schedule
- C/O : ~ 2 months earlier than schedule
13
13
No.3 LBO Plant and YUBASE plus
 Physical - Chemical Properties of YUBASE plus (Commercial Product)
YU-4 plus
YU-4
YU-6 plus
YU-6
Vis. @40℃, cSt
17.6
19.5
33.0
36.9
Vis. @100℃, cSt
4.07
4.22
6.34
6.48
Viscosity Index
134
122
145
130
Pour Point, ℃
-18
-15
-15
-12
CCS @-25℃, cP
-
-
2080
2920
CCS @-30℃, cP
1130
1590
3820
5200
Noack (A), wt%
14.0
15.2
5.8
7.5
14
No.3 LBO Plant and YUBASE plus
 Physical - Chemical Properties of YUBASE plus (Commercial Product)
[Noack Volatility
(A method), wt%]
Comparison of CCS and volatility, 4cSt
18
Group Ⅲ a
17
16
Group Ⅲ b
15
14
13
12
11
10
YUBASE plus
Group Ⅲ d
Group Ⅲ c
PAO
GTL
1000 1100 1200 1300 1400 1500 1600 1700 1800
[CCS Vis. @-30℃, cP]
15
No.3 LBO Plant and YUBASE plus
 Blending Study w/YUBASE plus – SAE 0W-20, API SM/ILSAC GF-4 PCMO
Formula [wt%]
A
B
C
D
E
YUBASE 4
82.75
72.75
-
-
-
YUBASE 4 plus
-
-
82.75
63.75
63.75
100N (Group II)
PAO-4
YUBASE 6
VII
-
-
-
-
20.00
-
10.00
-
-
-
-
-
-
20.00
-
7.00
7.00
7.00
6.00
7.00
Additives
balance
balance
balance
balance
balance
Vis. @40℃, cSt
43.5
43.0
40.9
43.5
43.4
Vis. @100℃, cSt
8.41
8.33
8.21
8.38
8.40
Viscosity Index
173
174
181
173
173
CCS @-35℃, cP
6,250
5,760
4,560
5,830
5,390
< 6200
Noack (A), wt%
14.4
13.2
12.3
11.5
14.6
< 15.0
HTHS Viscosity, cP
-
2.63
-
2.69
2.68
> 2.60
Properties
16
No.3 LBO Plant and YUBASE plus
Highly Paraffinic Base Oils are Beneficial in Overall Performance ?
Low Temperature, Low Shear Performance
Solubility and Seal Compatibility
Fuel Economy in Multi-Grade Engine Oils
17
No.3 LBO Plant and YUBASE plus
 Low Temperature Low Shear Performance
- MRV Results (Nase Oils with 0.3wt% PPD)
[cP]
20,000
YU-6
16,000
16,800
YU-6 plus
14,118
12,000
YU-4 plus
8,969
8,000
SWI-5
5,468 4,295
4,707
3,816
4,000
1,633
0
YU-4
17,210
1,170
-25
1,737
-30
2,824
1,235
-35
-40
[℃]
18
No.3 LBO Plant and YUBASE plus
 Seal Compatibility in 5W-40 PCDO
YUBASE 4 plus based 5W-40 PCDO
Seal Type
Results
Limits
-1
-8/+2
- Tensile strength, %
-8.8
-20 max.
- Elongation at break, %
-33
-35 max.
- Volume change, %
0.4
0/+10
- Hardness change, point
-1
±5
- Tensile strength, %
-20
-50 max.
- Elongation at break, %
-23
-55 max.
- Volume change, %
0.2
0/+5
■ NBR 34, Nitrile Butadiene
- Hardness change, point
■ AK 6, Viton
■ ACM E7503, Acrylate
■ EAM D8948-200, Vamac
■ CEC L-39-T-96, Silicone (RE3-04)
pass
pass
pass
19
No.3 LBO Plant and YUBASE plus
 Friction Property, HFRR Charts in 5W-40 PCDO
0.5
140
0.45
0.4
0.35
100
80
0.25
0.2
Temp
0.3
Friction
YU-4
Step1
Step2
Step3
Step4
Step5
Step6
Friction
0.123
0.126
0.128
0.148
0.155
0.158
Film, μ
77.7
50.6
28.3
17.3
19.1
18.5
Temp.
40
60
80
100
120
140
YU-4 +
Step1
Step2
Step3
Step4
Step5
Step6
Friction
0.119
0.112
0.120
0.146
0.148
0.152
Film, μ
73.4
77.6
34.7
22.4
18.8
17.8
Temp.
40
60
80
100
120
140
120
60
0.15
40
0.1
20
0.05
0
0
300
600
900
1200
1500
0
1800
Time (secs)
0.5
140
0.45
0.4
120
0.35
100
80
0.25
0.2
60
0.15
40
0.1
20
0.05
0
0
300
600
900
1200
1500
0
1800
Temp
Friction
0.3
In essence, both oils performed similarly,
including the wear scar average
YUBASE plus based oil sample shows
marginally thicker oil film and lower
friction coefficient
Time (secs)
20
Is YUBASE plus the same slate ?

Definition of Base Stock and Slate by API 1509 Appendix E
E.1.2.1 A base stock is a lubricant component that is produced by a
single manufacturer to the same specifications (independent of feed
source or manufacturer’s location); that meets the same
manufacturer’s specification; and that is identified by a unique
formula, product identification number or both. ……..
E.1.2.2 A base stock slate is a product line of base stocks that have
different viscosities but are in the same base stock grouping and
from the same manufacturer
E.1.2.3 A base oil is the base stock or blend of base stocks used
in an API-licensed oil
21
Is YUBASE plus the same slate ?

Definition of Base Stock Slate by ATIEL CoP
A base stock slate is a product line of base stocks that:
(i) are produced by the same manufacturer
(ii) meet the ATIEL definition of base stock
(iii) are in the same ATIEL Base Stock Group
(iv) may have different specified viscosities and other properties
(v) have been demonstrated, in lubricants for which compliance with
ACEA Oil Sequence is claimed, to be technically substitutable by
other appropriate base stocks on the same slate
A manufacturer may have more than one base stock slate
22
Is YUBASE plus the same slate ?
YUBASE plus is the same slate
SK’s base stock slate, Group III slate:
- YUBASE
- YUBASE
- YUBASE
- YUBASE
- YUBASE
4
4 plus
6
6 plus
8
SK’s base stock slate, Group II slate:
- YUBASE 2
- YUBASE 3
- YUBASE L3
YUBASE plus is the same slate, but DIFFERENT BASE STOCK !
23
Is YUBASE plus the same slate ?
Base Oil Interchange Guideline for API SM/ILSAC GF-4
From/To
GP I
GP II
GP III
GP IV
GP I
GP II
BRT (O, all)
IIIG (O, all)
IVA (X,c)
VG (X)
VIB (O, k)
VIII (X)
All except
VIBh,i, IVAc, VIII
All except
VIBh,i, IVAc, VIII
GP III
≤30%d, VIB
>30% and ≤50%d
All except IVAc, VG, VIII
>50%d, All except IVAcj, VGj VIII
≤30%d, VIB
>30% and ≤50%d
All except IVAc, VG, VIII
>50%d, All except IVAcj, VGj, VIII
All except
IVAcj , VGj, VIIIj, VIBh,i,j,k
≤30%d, IVAc, VG, VIB
>30%d, All
GP IV
≤30%d, IVAc, VG, VIB
>30%d, All
c Test not required provided the new candidate oil’s base oil blend viscosity at 100°C is greater than or equal to
the base oil viscosity of the original candidate oil, within the precision of the test.
d Represents mass percentage of the PCMO formulation.
h Test not required provided the CCS viscosity of the new candidate oil is less than or equal to the CCS
viscosity of the original candidate oil, within the precision of the test.
I Test not required provided the HTHS viscosity of the new candidate oil is less than or equal to the HTHS
viscosity of the original candidate oil, within the precision of the test.
j Data set used to establish the BOI guidelines is based on a b/o VI range up to 126 VI, within the precision of the test
k VI of the base oil blend must be less than or equal to the VI of the base oil blend of the original candidate oil,
within the precision of the test.
24
Is YUBASE plus the same slate ?
 Sequence IIIG Test Results in API SM/GF-4
Formula [wt%]
A
B
C
YUBASE 4
65.86
-
-
YUBASE 4 plus
-
65.86
46.31
YUBASE 6
15.09
15.09
36.38
VII
9.25
9.25
7.50
Additives
balance
balance
balance
Physical Characteristics
Viscosity @100℃, cSt
10.84
10.33
10.01
CCS @-30℃, cP
4820
3310
4090
CCS @-35℃, cP
9290
6050
8010
Viscosity Incr. @%40C
76.4
50.8
47.3
150 max
Average Cam+Lifter wear
32.4
22.2
32.6
60 max
3.24 (*)
4.01
3.77
3.5 min
3.21
2.91
2.81
4.65 max
Seq. IIIG Results
Weight Piston Deposits
Oil Consumption
(*)
Formulation A was passed in original program. But showed different result in this study due to different severity between testing laboratories and testing time,
25
Is YUBASE plus the same slate ?
 Sequence VIB Test Results in API SM/GF-4
Formula [wt%]
A
B
C
YUBASE4
65.86
-
-
YUBASE 4 plus
-
65.86
60.65
YUBASE 6
14.51
14.51
20.21
VII
9.25
9.25
8.75
Additives
Balance
Balance
Balance
Viscosity @100℃, cSt
10.73
10.01
9.93
CCS @-30℃, cP
4750
3120
3410
CCS @-35℃, cP
9230
5810
6457
FEI 1, %
1.7 (*)
2.0
2.0
1.8 min
FEI 2, %
1.2 (*)
1.3
1.5
1.5 min
Physical Characteristics
Seq.VIB Results
(*)
Formulation A was passed in original program. But showed different result in this study due to different severity between testing laboratories and testing time,
26
Is YUBASE plus the same slate ?
 Ball Rust Test Result in API SM/GF-4
Formula [wt%]
A(5W-30)
B (0W-30)
C (5W-30)
YUBASE4
65.86
-
-
YUBASE 4 plus
-
65.86
60.65
YUBASE 6
14.51
14.51
20.21
VII
9.25
9.25
8.75
Additives
Balance
Balance
Balance
Viscosity @100℃, cSt
10.73
10.01
9.93
CCS @-30℃, cP
4750
3120
3410
CCS @-35℃, cP
9230
5810
6457
131
126
137
Physical Characteristics
BRT Results
Avg. Gray Value
100 min
27
Is YUBASE plus the same slate ?
 Demonstration Test Plan for ACEA Oil Sequence
Test Items
TU5JP
Seq VG
TU3MS
ACEA A3/B3/B4/C3
M111SL
ACEA A5/B5
DV4 (or XUD11)
SAE 5W-30
M111 FE
SAE 5W-40
OM646LA (or OM 602A)
VW Tdi
28
Summary
Higher VI Group III Basestock, now available
Base oil manufacturers continue to search for innovative ways to
maximize iso-paraffins and small-ring naphthenes in base oils
YUBASE plus is the first higher VI Group III base stock in the
merchant market
There are no advisable effects in low temperature low shear
property, seal compatibility and fuel economy
YUBASE plus is the same slate as SK’s Group III base stock,
but different base stock
In several API engine tests, YUBASE plus based oils showed better
results, and ACEA engine tests are conducting to demonstrate
Base Oil Read Across between existing YUBASE and YUBASE plus
29