SK Energy plans to spin off its lubricant business, according to a South Korean Yonhap News Agency report cited by Bloomberg on Friday. Yonhap, quoting an unidentified company official, stated that SK Energy will maintain management control over the new unit while selling part of it, Bloomberg said.
SK Energy officials yesterday declined to comment on the report.
The Seoul-based company operates a base oil plant in Ulsan, South Korea, with 17,000 barrels per day of API Group III and 4,000 b/d of Group II capacities. With Pertamina, it also operates a joint venture plant in Dumai, Indonesia, with 7,000 b/d of Group III capacity.
At the ICIS Asian Base Oils & Lubricants Conference last month in Malaysia, SK outlined plans to double its Group III base oil production to 48,000 barrels per day, opening two new plants in 2012 and 2014 in Europe, South Asia and/or East Asia.