The merger announced last week between SK Innovation and SK E&S will create the largest private energy company in the Asia-Pacific region, with assets worth 100 trillion won (U.S. $72 billion).
The new entity includes SK Enmove, which is the world’s largest API Group III base oil producer and the biggest merchant Group III supplier. It operates the 26,000 barrels per day unit at Ulsan in South Korea. It also has partnerships in Spain with Repsol, with capacity to make 16,000 bbl/d of Group II and III, and Pertamina in Indonesia for 10,000 bbl/d of Group III.
Headquartered in Seoul, the company’s diversified portfolio of 175 divisions will span the value chain of crude oil, liquefied natural gas and hydrogen, as well as lubricants and electric vehicle batteries.
Analysts say the merger will also ease the debt load from refiner and battery company SK On. An underperforming electric vehicle market in Europe and the U.S. saw SK On’s debt bloat to 15.6 trillion won after losses for 10 consecutive quarters since 2021.