Hyundai Oilbank yesterday said it and Shell Petroleum Co. Ltd. plan to form a joint venture to build and operate a 13,000 barrels per day base oil plant in Daesan, South Korea, with production expected to begin in 2014.
According to Shell, the proposed base oil plant’s initial design capacity is 650,000 metric tons per year, which is about 13,000 b/d. It is conditional upon a successful completion of a front end engineering and design study, that starts with the signature of this joint venture agreement, a Shell spokesperson told Lube Report yesterday. The first step is to successfully complete the study, and then make a final investment decision on the project. It is too early to go into specifics on the investment costs or base oil grades.
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