GS Caltex Expands Its Presence
in Overseas Oil Exploration

Secures a 30 percent interest in two mining blocks in Thailand

GS Caltex will participate in overseas oil exploration by acquiring a stake in mining blocks near Thailand's overland petroleum field of Sirikit.
The Korean refinery has recently signed a deal to take over a 30 percent stake in L10/43 and L11/43 mining zones, wholly owned by MOECO of Japan. GS Caltex confirmed on July 10 that the refinery will submit the deal to the Thai government for approval.
GS Caltex's acquisition in the Thai mining blocks will be the third one the company will explore in the form of stock-taking following its acquisition in stakes in the Mining Block A in Cambodia and a mining block in Western Kamchaka, Russia. The deal will bring to eight the number of mining blocks GS Group has explored. GS Caltex now has a 15 percent stake and a 4 percent interest in the Cambodian and Russian mining zones, respectively. GS Caltex's holding company, GS Holdings is participating in five exploration zones in Indonesia and Yemen.
The Sirikit oil mining area, the largest one in Thailand, is said to have been already verified for oil exploration.
Starting with the drill of a test well in the first half of this year, GS Caltex and MOECO will prospect the mining block by 2010.
GS Caltex Chairman Hur Dong-soo said his company will aggressively participate in oil exploration projects in Southeast Asia, the Middle East and Central Asia in the years to come with the goal of raising its own petroleum development share to 10 to 15 percent of its refinery capacity of 650,000 barrels per year.
nw

GS Caltex Chairman Hur Dong-soo

For Friendship, Solidarity

GS Caltex Oil Chairman Hur Dong-soo unexpectedly showed up at the reception to celebrate the 30th anniversary of its rival S-Oil in the evening of July 13 at the Seoul Grand Hyatt Hotel and to his surprise he was presented with a large bouquet.
He was exchanging talks with other guests at a table at the reception when a female member of the "Dream Cat"trio came around and gave him a bouquet in the middle of their performance. After the performance, the MC asked the lucky chairman what it was like to receive the flowers. Chairman Hur replied the bouquet was given to the top executive officer of the rival oil refinery meant that the rival companies should have fair competition for harmony in the oil refining industry in the country to be a world-leading oil refining industry. He walked over to the head table and had a toast with S-Oil Chairman Kim Sung-dong amid large applauses.
Hur stayed until the end of the reception held by his rival oil company in a gesture for his sincere congratulation to S-Oil due to his steadfast and long enduring friendship with its chairman. Hur majored in chemistry at Yonsei University, while Kim also majored in chemistry at Seoul National University and joined the oil companies in the early and middle '70s to stay with the oil industry throughout their careers.
Chairman Hur, whose family owns a majority stake of GS Caltex, became chairman in 2002 and has built a reputation as a CEO of one of the largest companies in the country both in and out of the company. Kim also was promoted to take over as chairman of S-Oil in 2000 and exercising power equal to those of owners. The two have been the twice peaks of the oil refining industry ever since and became fast friends due mostly to their similar career paths and personal backgrounds. nw