S-Oil Celebrates
30th Anniversary

Oil refinery aims to increase sales to 20 tln won in 2010

S-Oil Corporation (Representative Director and CEO: Dr. Samir A. Tubayyeb) aims to join the ranks of world-class oil refiners in 2010 by achieving 20 trillion won in sales and 2 trillion won in income.
S-Oil held a ceremony on June 28 to mark the 30th anniversary of its foundation. At the ceremony held at both the Ulsan factory and the Yeoido head office, Dr. Samir A. Tubayyeb, CEO of S-Oil, announced values shared among all S-Oil officers and employees for their company's leap into a world-class oil refiner. He also pledged the successful completion of the No.2 BCC Project, which would lay the groundwork for the refiner's future growth.
Saying that a vision of "the most competitive, specialized oil refiner in the Asia-Pacific region"has made what S-Oil is today, CEO Tubayyeb promised to continue to pursue the vision. To do so, he added, S-Oil is seeking to construct a second bunker-C cracking center (BCC), a platform for S-Oil's future growth, by 2010.
Completion of No.2 BCC Project, S-Oil's platform for growth, in 2010
The S-Oil CEO said about his company's future stature ambitiously, "In 2010, when the No.2 BCC Project is completed, we'll have a refining capacity of over 1 million bpd, retain our No. 1 ranking in the upgrading facilities ratio, and become a star oil refiner that acts as a global market leader with the largest exports of petroleum products among Korean refiners. Furthermore, we'll emerge as a world-class oil refiner with 20 trillion won in sales and 2 trillion won in income.'Even at present, S-Oil is evaluated as the most competitive oil refiner in Korea, thanks to its highest upgrading facility ratio and largest export volume among domestic refiners. In 2010, when its ongoing No.2 refinery construction project is completed, the company will become a world-class, specialized oil refiner both in size and in competitiveness, the CEO said confidently.
At the anniversary ceremony, S-Oil officers and employees resolved to pursue a clear set of values, dubbed "5S-SPIRIT"to help their company achieve the above goals for 2010.
The "5S-SPIRIT"values are Superiority (Top quality and service), Sincerity (Transparent management), Satisfaction (Customer satisfaction-oriented management), Sharing (Management based on "sharing", and Smart People (Cultivate the best and the brightest). Moreover, the "5S-SPIRIT"values include S-Oil officers and employees'will to take their company one step closer to both customers and society by keeping the values in mind during their management activities.
S-Oil was established in 1976 to ensure a stable supply of petroleum products.
S-Oil was established in 1976, right after the first oil shock, to meet the national and economic demand that petroleum products should be supplied steadily through the stable import of crude oil. Though a latecomer, the company kept growing remarkably since its foundation, and finally has become the most profitable oil refiner in Korea.
In 1980, S-Oil began commercial operation of its Onsan refinery with a processing capacity of 60,000 bpd. But now, the company has grown into an advanced, state-of-the-art oil refiner as its Onsan plant was equipped with a 580,000-bpd crude oil distillation unit, a 290,000-bpd bunker-C cracking center, and BTX and lube oil facilities with a production capacity of 900,000 tons a year and 26,500 barrels a day respectively (as of the end of 2005).
It is said that the most important moment in S-Oil's 30-year history is the signing of joint venture agreement with Saudi Aramco, Saudi Arabia's state-run oil company, in 1991. In other words, the signing of the joint venture agreement contributed most to what S-Oil is today. The joint venture agreement ensured S-Oil stable, long-term supplies of crude oil, thereby enabling the company to make a massive investment in its B-C cracking center (BCC)---a facility essential for its competitiveness---ahead of others. This has, in turn, led the domestic oil refining industry to move one step forward.
CEO Tubayyeb expressed his gratitude to all S-Oil officers and employees, saying, "As a latecomer, we had met a lot of difficulties and obstacles since our foundation. But we overcame such difficulties and finally have become what we are today. This could not be possible without your ceaseless efforts and devotion."And then he asked his employees to be united again for another leap forward, on the occasion of the 30th anniversary of the refiner'a foundation.
In 2005, S-Oil posted 12.232 trillion won in sales, 888.5 billion won in operating income, and 654.9 billion won in net income. And the refiner exported 6.885 trillion won (about $7 billion) worth of petroleum products that year, which accounted for 56% of its total sales. Currently, S-Oil ranks 13th among domestic firms in terms of sales and 12th in terms of market capitalization (8.2323 trillion won as of the end of 2005). So the business world and the oil refining industry are paying their attention to what S-Oil will be in 2010, when its second refinery is completed. nw

S-Oil executives led By Chairman Kim Sun-dong and CEO Dr. Samir A. Tubayyeb celebrate the oil refinery'a 30th anniversary on June 28.

Dr. Samir A. Tubayyeb, CEO of S-Oil speaks during the anniversary ceremony.

S-Oil'a Onsan plant