0. Base Oils Produced by GS Caltex
Jong H. Lee & Brent K. Lok
Chevron presents

1. Contents Introduction Asia Pacific Marketplace Production Process
Introducing Kixx LUBO
Pilot Plant Oil Performance
Chevron presents
Summary

2. 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 : 722,500 BPCD
Heavy Oil Cracking : 90,000 BPCD
Aromatics : 2.2 million Ton/year
Lubricants : 6,000 BPCD
Business Areas
Petroleum & Petrochemical
Power generation
LNG & City gas supply
Alternative energy
Chevron presents

3. Group II demand is increasing Group I demand is relatively flat
Asia Pacific Marketplace
Growing demand for high performance lubricants are driving growth in Group II base oil capacities in Asia
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
9288
9106
8927
8752
8581
8413
8280
8150
8021
7895
4255
3954
3675
3415
3174
2950
2615
2319
2057
1825
Group II demand is increasing
Group I demand is relatively flat
Chevron presents
Message: Industry is predicting growth of Group II demand in AP; Group II demand will double by 2015; Group I demand will be relatively flat. Prediction by our analysts – consistent with predictions from other industry experts. Why is group I even growing? Does Doug or Brent know?

4. Asia Pacific Marketplace
2006 PCMO demand
China
Japan
Indonesia
Thailand
Taiwan
India
S.Korea
Malaysia
Australia
Philippines
Singapore
Vietnam
≥ API SJ
≤ API SF
API SG/SH
kTones finished oil
500
400
300
200
100
23% of total AP PCMO
12% of total AP PCMO
Chevron presents
Message: difference in split of API grades between countries. China has largest demand.
Call out percentages of main volumes-done, needs arrows.

5. Asia Pacific Marketplace
2006 HDMO demand
China
India
Japan
S.Korea
Indonesia
Australia
Thailand
Malaysia
Philippines
Vietnam
Singapore
Taiwan
kTones finished oil
1800
200
400
600
1200
≥CG-4
API CC/CD/CF
CF-4
100
53% of total AP HDMO
17% of total AP HDMO
CG-4 Multi-Grade Oils are Advantaged by Group II
Chevron presents
Need a good seque.
Message: China has largest demand. Quality level is generally several generations behind NA and Europe. Re-Order to go from highest to lowest-done. Call out percentages of largest volumes-done, but needs arrows.

6. Overview of HOU Invested $1.6 billion in heavy oil upgrading facility
Joint-design with Chevron Lummus Global
Vacuum Distillation Unit : 150 KBPCD
Hydrocracker : 55 KBPCD
Lube Base Oil Plant : 16 KBPCD
Mechanical Completion
August 31, 2007
Commercial Production
End of October, 2007
[Hydrocracker]
GSC presents

7. Base Oil Manufacturing
Using the newest ISODEWAXING® technology
Jointly designed with Chevron Lummus Global
Multiple Group II / III production flexibility
Group II : 12,000 BPCD (150N / 325N / 600N)
Group III : 4,000 BPCD (2cSt / 4cSt / 6 cSt / 8 cSt)
Start-Up
November 2007
[LOP Process]
GSC presents

8. Production Process Group II/III
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
GSC presents
*Remark : VDU(Vacuum Distillation Unit), VGO(Vacuum Gas Oil), HCR(HydroCRacker)
LOP(Lube Oil Plant), IDW(Iso Dewaxing), HDF(Hydro Finishing)

9. Chevron Pilot Plant Production of GS samples
GSC presents
Chevron pilot plant oils approximate commercial production

10. Introducing Kixx LUBO GS Caltex Base Oil
Kixx : GS Caltex Family Brand Name
LUBO : Lube Base Oil
GSC presents

11. Kixx LUBO Properties Kixx LUBO Color Cold Property Volatility
GSC presents

12. 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
GSC presents
Group I
Group II
Kixx LUBO*
* from pilot plant production

13. Cold Property (CCS @-25℃, cP)
Preliminary cold property of Kixx LUBO 150N (Group II) compared to others (Group I/II)
4113
3270
3721
2707
2423 A B C D E
GSC presents
Group I
Group II
Kixx LUBO*
* from pilot plant production

14. Volatility (NOACK, wt.%)
Preliminary volatility of Kixx LUBO 150N (Group II) compared to others (Group I/II)
16.0
15.3
16.3
15.0
13.5 A B C D E
GSC presents
Group I
Group II
Kixx LUBO*
* from pilot plant production

15. Kixx LUBO 600N Produced from HCR process Higher Quality
Water-white color
GSC presents

16. High performance lubricant products
Formulated lubricant Benefits
High performance lubricant products
Cost effective formulation
GSC presents

17. Formulation Benefits Hydraulic Oil Turbine Oil Engine Oil
GSC presents

18. 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
431 A B C D E
GSC presents
Group I
Group II
Kixx LUBO*
* from pilot plant production

19. 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
ASTM D2070 method (150℃, 168h) A B C D
Kixx LUBO*
GSC presents
In-house Method (140℃, 240h) A B C D
Kixx LUBO*
* from pilot plant production

20. 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
Thermal Stability A B C D
Kixx LUBO*
ASTM D2070 method (150℃, 168h) A B C D
Kixx LUBO*
In-house Method (140℃, 240h)
GSC presents
* from pilot plant production

21. 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 VI 157)
6.07
5.87
5.65
4.69
5.00 A B C D E
17.6%
GSC presents
Group I
Group II
Kixx LUBO*
* from pilot plant production

22. Engine oil (formulation benefit)
Formulation test (CF-4 Engine Oil)
Additive package is the same for all the oils tested, except VM content
Kixx LUBO shows cost effective formulation
VM Contents (KV VI 140)
14.0
13.4
12.6
11.8
11.0 A B C D E
21.4%
GSC presents
Group I
Group II
Kixx LUBO*
* from pilot plant production

23. Engine oil (Engine test)
A test used for API CJ-4 Approval Testing
The result for Sequence IIIG BOI with Kixx Lube (15W40)
Parameter
Pass Limit
Kixx Lube
Viscosity increase
150%
128%
Weighted piston deposits
3.5 min.
5.92
Average cam-plus-lifter wear
60㎛ max.
43.0㎛
Hot stuck rings
None
Oil consumption
4.65L max.
3.15L
GSC presents

24. 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
GSC presents

25. The newest high performance base oils
in Asia Pacific
GSC presents
Thank You!