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APPLICATION OF HIGH QUALITY (GROUP II, III) BASE OILS TO SPECIALTY LUBRICANTS

JANUARY 28, 20006th ANNUAL FUELS & LUBES ASIA CONFERENCESINGAPORE

SK Corporation

WOO-SIK MOON,YONG-RAE CHO and

JUNG-SIK CHUNSK Corporation

Presentation Overview

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• Introduction- High Quality Base Oils

•High Quality Base Oils and White Mineral Oils from Fuels Hydrocracker Residue

•Product Quality of UCO Lube Process- General Performance- Dissolving Ability

•Applications UCO Process Products in Specialties- Agricultural Spray Oils- White Oils- Coning Oils- Transformer Oils

•Summary

High Quality Base Oils

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•Low Volatility•Excellent Oxidation Stability•Excellent Low Temperature Properties• Inherent VI being above 120


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Market Forces of High Quality Base Oils

Fuel efficiency

Energy saving

Volatility

Environ. friendly

OEM

People

Oil Co.

Formulation

Cost

Safety

Performance

Maintenance

Value

Push Pull

High QualityBase Oils

Use


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Four Main Options of High Quality Base Oils

•PAOs•Di-Esters•Wax Isomerised Base Oils•Severely Hydrocracked Base Oils

High Quality Base Oils and White Mineral Oils from Fuels Hydrocracker Residue

SK Corporation

SK UCO Lube Process

VacuumDistil'nUnit

HDTReactor

VacuumStripperReduced

Crude

Fuels

Fuel Hydrocracking Complex

HDCReactor

VGO

VR

UCO (Hydrocracker Residue)

Gases

HDWReactor

BASE OILS,WHITE OILS

VacuumStripper

HDTReactor

Lube Hydrodewaxing Complex

VacuumDistil'nUnit

High Quality Base Oils and White Mineral Oils from Fuels Hydrocracker Residue

SK Corporation

Catalysts and Operating Conditions in Hydro-Finishing Unit for Production of White Mineral Oils

Former CurrentCatalyst Description Ni, W on Alumina Pd on high Surface

with Promoter CarrierTemperature, ‘C 245 ~ 340 230 ~ 300Pressure, kg/cm G 155 ~ 190 155 ~ 190Space Velocity, kg/l/hr 1.0 1.0

2

High Quality Base Oils and White Mineral Oils from FuelsHydrocracker Residue

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•Severe Hydrocracking and Recycling of Fuels hydrocrackerResidue (UCO)

•UCO is Feedstock for High Quality VHVI Base Oils Production•All Hydro-processing Route- Utilization of Hydro-isomerized Dewaxing with fuelsHydrocracker Residue and High Pressure Hydro-finishing

•Economic Process for Production High Quality Base Oils andWhite Mineral Oils- Integration of Fuels Hydrocracker and Lube Process withNoble Metallic Catalysts

Summary

Product Quality of UCO Lube Process

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•3 Viscosity grades in 2 Quality levels with VI’s in the range 110 - 135

•API Group 2, Group 3 Base Oil•Severely Hydro-Cracked Base Oil

A VHVI Base Oil, YUBASE


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Typical Properties of YUBASE

YUBASE-3 YUBASE-4 YUBASE-6(API Gr-II) (API Gr-III) (API Gr-III)

Viscosity @ 40'C, cSt 12.3 19.1 32.5 Viscosity @100'C, cSt 3.1 4.2 6.0 Viscosity Index 115 126 133 Flash point, COC, 'C 196 220 234 Pour point, 'C -24 -15 -15 CCS vis. @-25'C, cP <500 770 2220 Noack volatility, wt% 40.0 14.5 7.0 Sulfur content, ppm <1 <1 <1 Aromatics, wt% <0.5 <0.5 <0.5


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Property Comparison of 150N Grades

Solvent Lube Hydro VHVI SyntheticRefined Cracking YU-6 PAO-6

Viscosity @ 40'C, cSt 30.3 29.8 32.5 31.0Viscosity @100'C, cSt 5.0 5.1 6.0 5.9 Viscosity Index 95 99 133 135 Flash point, COC, 'C 216 222 234 234 Pour point, 'C -12 -12 -15 -60 CCS vis. @-25'C, cP 4500 4000 2220 900 Noack volatility, wt% 17.0 16.5 7.0 6.8 Sulfur content, ppm 5800 300 <1 <1 Aromatics, wt% 22.5 3.5 <0.5 <0.5RBOT, +0.3%AO, min 185 250 520 540 PCT, mg (1) 158 140 58 32

Note (1) : with 13.0% ACEA A3/B3 DI + 10.0wt% OCP VII


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Dissolving Ability Comparison of 150N Grades

Solvent Lube Hydro VHVI NaphtheneRefined Cracking YU-6 150N

Aniline point, 'C 100 116 126 79 Vis.-Grav. Constant 0.82 0.80 0.78 0.87 Carbon type distributionCp, % 57 64 79 47Cn, % 38 35 21 42 Ca, % 5 1 0 11


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•Very Good Viscosity-Temperature Behaviorand Good Low Temperature Properties

•Excellent Oxidative and Thermal Stability•Very Low Volatility •Similar to PAO in General Performances •No Toxic Potential •Lack of Dissolving Ability

Summary

Applications of UCO Process Product

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High Quality Base Oils Based Lubricants Advantages

Properties / Improvements Reasons •Better Low Temp. Properties Low Wax, High VI •Low Oil Consumption and Low Volatility, Narrow Boiling

Higher Flash, Fire Points Ranges •Higher Thermal and Oxidative High Saturates, Good Additive Stability (Longer Life) Response

•Good Friction Behavior and High VI, Low AromaticsWear Reduction

•Environmentally Friend Low Aromatics, Low Volatility

Applications of UCO Process Product

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Principal Uses of UCO Process Products

Automotive Oils Industrial Oils SpecialtiesPCMO Hydraulic Fluids Heat transfers HDDO Turbine Oils Quenching Oils Gear Oils Compressor Oils Cutting Oils ATFs Vacuum Pump Oils Process Oils Tractor Fluids Rolling Oils Spray OilsShock Absorber Oils White Oils

Textile OilsTransformer Oils

Applications of UCO Process Product in Specialties

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Agricultural Spray Oils

Base Oil Properties for Citrus Spray Oils

General YUBASE-4 Criteria

Viscosity @40'C, cSt 19.1 60N~100N Unsulfonated Residue, vol% >99 >92 Paraffinic Carbon (Cp), % 78 >60 Boiling Range by GCD10% off, ‘C 395.090% off, ‘C 541.590% - 10% off, ‘C 56.5 <65

Carbon No. by GCD Data 10% ~ 90% off point 24~30 16~30


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Surfactants for UCO Process Product in Citrus Spray Oils

General Spray Oil Dosage

YUBASE-4, wt% 99.35 balance Emulsifier Package, wt% 0.65 1 ~ 3

Nonylphenoxypolyetoxy ethanol1-Decanol1-Octanol


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Field Test Results of UCO Process Product based Spray Oil

Spray Oil Chemical PesticideTest Field Northern Cheju Island, Korea Applying Plants 9 Trees of Citrus Fruit Target Pests Mites (Panonychus Citri)Spraying Pesticides 1% Emulsion 0.2% Tebufenpyrad% Mortality

@ 3days after spraying 93.8 100@ 7days after spraying 98.7 100@14days after spraying 99.4 99.7@21days after spraying 99.4 99.5

Phytotoxicity none -in 2%Emulsion Spraying


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White Oils

Test Results of UCO Process Product as White Oils

PHAZOL-3 PHAZOL-4 PHAZOL-6 General CriteriaViscosity @40'C, cSt 12.3 19.1 32.5 Sulfur, ppm <1 <1 <1 <1 UV Absorbance, DMSO

@260~350nm 0.018 0.020 0.021 <0.100Readily Carbonizable pass pass pass pass

Substance


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White Oils

Property Comparison of 70N Grade White Oils for Cosmetics

PHAZOL-3 Conventional RemarkFeedstock - Lube Hydrocracking

Base Oils Yield Test by 3% Oleum

Acid Treating, vol% - 89 + 5% EtOH Composition Analysis

Paraffins, wt% 41.7 30.6 ASTM D2549Naphthenes, wt% 58.3 69.4 and D2786 Aromatics Trace Trace

GC-Mass AnalysisBelow C18, vol% 1.0 3.4 Spike Peak Spike Peak in GC Graph. None Detected n-Paraffins


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Coning Oils

Surfactants for UCO Process Product in Coning Oils

Coning OilYUBASE-3, wt% 92.0 Emulsifier Package, wt% 8.0

Polyoxyethylene oleyl etherSorbitan monooleatePhosphate esterEtoxylated nonyl-phenolOleic acid


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Coning Oils

Property Comparison of UCO Process Product based and Conventional Base OiIs based Coning Oils

YUBASE-3 based Convent’l (A) Convent’l (B)Appearance of Emulsion Milky White Yellowish Milky WhiteEmulsion Stability (1)

Light Emulsion, % - 90 -Clear Emulsion,% 100 8 100 Oil Layer, % - 2 -

Evaporation Loss, wt% 4.0 13.7 13.0

Note (1) : Stability of 10% Solution in Tap Water, after 24hrs


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Transformer Oils

Property Comparison of UCO Process Product based and Conventional Base OiIs based Transformer Oils

HydrotreatedYUBASE-L3 Naphthene Paraffin Oil

Viscosity @40℃, cSt 12.1 11.7 8.4 Flash Point, PMCC, ℃ 194 136 144Pour point, ℃ -42 -33 -21Copper Corrosion @100℃/3hrs 1-a 2-a 1-bDissipation Factor, % 0.03 <0.001 0.002Impulse Breakdown Voltage, 77.5 48 90

Point/Sphere @3.2mm, kVGassing Tendency +31 -19 -4

@8KV/50℃, ? l/minOxidation Stability @125℃/75Hrs 0.19 0.20 0.38

TAN, mgKOH/g


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Transformer Oils

Improving Gassing Tendency Performance of UCO Process Product based Transformer Oils

YU-L3 + C13 Aro. Compound (1)YUBASE-L3 1% C13 2% C13 3% C13

Gassing Tendency +31 -23 -26 -29@8KV/50℃, ? l/min

Note (1) : C13 Aro. Compound is Aromatic Hydrocarbon Mixture of Carbon No.10~ 13 with Two Benzene Ring.


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• Increasing their Applications to Industrial Lubricating Oilsand Specialties.

•Expected Limitation of Applications in Specialty Lubricant Areas- Lack of Dissolving Ability by More Paraffinic Nature

•Can be Solved by Careful Selection of Additives and/or Formulation with Adequate Aromatic Compounds

•Provide Various Advantages over Conventional Base Oilsbased Specialty Lubricants

Summary

Business

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