The Properties of GS Caltex Base Oil (Kixx LUBO) 2008. 06. 19 Dong H. Lee GS Caltex

Contents Introduction Base Oil Market Trends Production Process Properties & Applications of Kixx LUBO Advantages of Kixx LUBO 220N Summary

The Leader in Providing Total Energy Service Introduction The Leader in Providing Total Energy Service 50/50 JV of GS Holdings and Chevron since 1967 A Leading energy company in Korea Crude Oil Refining : 770,000 BPCD Heavy Oil Cracking : 153,000 BPCD Aromatics : 2.8 million Ton/year Lubricants : 9,000 BPCD Base Oils : 17,000 BPCD Business Areas Petroleum & Petrochemical Power generation LNG & City gas supply Alternative energy

Group II demand is increasing Group I demand is relatively flat Market Trends Growing demand for high performance lubricants are driving growth in Group II base oil capacities in Asia [kTons] 4255 3954 3675 3415 3174 2950 2615 2319 2057 1825 Group II demand is increasing 9288 9106 8927 8752 8581 8413 8280 8150 8021 7895 Group I demand is relatively flat 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Overview of HOU Invested $1.6 billion in heavy oil upgrading facility Joint-design with Chevron Lummus Global Vacuum Distillation Unit : 150 KBPCD Hydrocracker : 60 KBPCD Lube Base Oil Plant : 17 KBPCD Mechanical Completion August 31, 2007 Commercial Production End of October, 2007 [Hydrocracker]

Base Oil Manufacturing Using the newest ISODEWAXING® technology Jointly designed with Chevron Lummus Global Multiple Group II / III production flexibility Group II : 13,000 BPCD (150N / 220N / 600N) Group III : 4,000 BPCD (2cSt / 4cSt / 6 cSt / 8 cSt) Start-Up November 2007 [LOP Process]

Production Process 2 stage hydrocracker produces lube oil plant feed ISODEWAXING produces high quality Group II/III VDU VGO Waxy Group II Oil HCR1 HDF IDW Group II/III Fuel Products HCR2 Vac. Column LOP Group III Oil *Remark : VDU(Vacuum Distillation Unit), VGO(Vacuum Gas Oil), HCR(HydroCRacker) LOP(Lube Oil Plant), IDW(Iso Dewaxing), HDF(Hydro Finishing)

Introduction Kixx LUBO GS Caltex Base Oil Kixx : GS Caltex Family Brand Name LUBO : Lube Base Oil

Kixx LUBO Properties Kixx LUBO Color Cold Property Volatility

Color (ASTM color & Saybolt color) The color of Kixx LUBO 150N (Group II) compared to others (Group I/II) Available for use as white oil feedstock 0.5 (0) 0.0 (7) L0.5 (0) 0.0 (9) 0.0 (30) A B C D E Group I Group II Kixx LUBO

Cold Property (CCS @-25℃, cP) Preliminary cold property of Kixx LUBO 150N (Group II) compared to others (Group I/II) 4113 3270 3721 2707 2877 A B C D E Group I Group II Kixx LUBO

Volatility (NOACK, wt.%) Preliminary cold property of Kixx LUBO 150N (Group II) compared to others (Group I/II) 16.0 15.3 16.3 15.0 13.2 A B C D E Group I Group II Kixx LUBO

Kixx LUBO 600N Produced from HCR process Higher Quality Water-white color

Formulated lubricant Benefits High performance lubricant products Cost effective formulation

Formulation Benefits Formulation Benefits Hydraulic Oil Turbine Oil Engine Oil Formulation Benefits

Turbine Oil (formulation benefit) Performance test (Regal R&O 32) Additive package is the same for all the oils tested Kixx LUBO shows better oxidation & thermal stability Oxidation Stability (ASTM D 2272, RPVOT) 319 272 314 339 428 A B C D E Group I Group II Kixx LUBO

Turbine Oil (formulation benefit) Performance test (Regal R&O 32) Additive package is the same for all the oils tested Kixx LUBO shows better oxidation & thermal stability Thermal Stability A B C D Kixx LUBO ASTM D2070 method (150℃, 168h) In-house Method (140℃, 240h) About thermal stability, two test methods are used. Modified ASTM D2070 and In-house method. Original ASTM D2070 test temperature is 135 degree Celsius, but to make more severe condition, temperature has been up to 150 C. and in-house methd was conducted with 140C, lower temperature than ASTM D2070, but 240 hours, much longer period than ASTM D2070 These photos are the sludge filter after filtering the after-test lubricants. It is very easy to say Kixx LUBO has much less sludge than others, even color is totally different.

Hydraulic Oil (formulation benefit) Performance test (HVI Hydraulic Oil) Additive package is the same for all the oils tested, except VM content Kixx LUBO shows better thermal stability Thermal Stability A B C D Kixx LUBO ASTM D2070 method (150℃, 168h) In-house Method (140℃, 240h)

Hydraulic Oil (formulation benefit) Performance test (HVI Hydraulic Oil) Additive package is the same for all the oils tested, except VM content Kixx LUBO shows better thermal stability & cost effective formulation VM Contents (KV 44.00 @40℃, VI 157) 6.07 5.87 5.65 4.69 5.00 A B C D E 17.6% Group I Group II Kixx LUBO

Engine Oil (formulation benefit) Formulation test (15W40 Engine Oil) Additive package is the same for all the oils tested, except VM content Kixx LUBO shows cost effective formulation VM Contents (KV 15.00 @100℃, VI 140) 14.0 13.4 12.6 11.8 11.0 A B C D E 21.4% Group I Group II Kixx LUBO

Engine Oil (formulation benefit) Formulation test (15W40 Engine Oil) Additive package is the same for all the oils tested, except VM content Kixx LUBO shows better cold property & volatility Cold Property (CCS @-20℃, cP) 5549 5500 6112 5389 5079 A B C D E Group I Group II Kixx LUBO

Engine Oil (formulation benefit) Formulation test (15W40 Engine Oil) Additive package is the same for all the oils tested, except VM content Kixx LUBO shows better cold property & volatility Volatility (NOACK, wt.%) 11.7 11.8 11.1 8.4 A B C D E Group I Group II Kixx LUBO

Advantages of 220N Grade High performance lubricant products Cost effective operation in production

Engine Oil (220N benefit) Formulation test (15W40 Engine Oil) Additive package is the same for all the oils tested Kixx LUBO 220N shows better cold property & volatility Properties 150N+600N 5079 A 220N 4850 B 8.4 A 5.4 B Cold Property Volatility

Engine Oil (220N benefit) Distillation distribution (Simulated distillation) Kixx LUBO 150 Kixx LUBO 220 Kixx LUBO 600 Base Oil Engine Oil Sample A Sample B Sample A shows double peaks, which come from 150N & 600N base oil. Sample B shows only one peak.

Summary Market trends suggest Asia Pacific market need for high performance base oils Kixx LUBO : the newest high performance base oils in Asia Pacific Base oil grades and properties Latest cutting edge base oil manufacturing technology Formulation benefits

The newest high performance base oils in Asia Pacific Thank You!