Hyundai Oilbank Wins Export Medal

First private oil refiner in Korea clinches $5 bln Export Tower medal for exporting oil to diversified markets overseas

Hyundai Oilbank Co., the first private oil refiner in Korea, won the $5 billion Export Tower medal for exporting more than $5 billion of its oil products this year.
Hyundai Oilbank’s stunning record did not come easy. It had to fight to get through all the problems induced by the world economic crisis.
The company explored niche markets around the world to fight off the slumping demand in oil products and increased production of oil in such countries as China and Vietnam.
Hyundai Oilbank signed an agreement with Morgan Stanley to supply 80,000 tons of aviation fuel per month, securing 50 percent of its aviation fuel oil export target for this year. The company also turned to Southeast Asian countries for new niche markets for its oil to make up for reduced oil demand in China. The company also signed an agreement to supply 55,000 tons of heavy oil to ExxonMobil, the largest oil refiner in the world, an accomplishment that took seven years to attain due to difficult quality conditions. But the deal produced more profit than the same amount of heavy oil exported to China ― about $2 million ― and was also a great help for the company’s drive to improve the quality of its oil products and expand its global market.
The company also has been able to diversify its heavy oil markets overseas including Japan, Singapore and New Zealand, among others. In markets other than China, the share climbed to 30 percent of the company’s heavy oil exports, up from 12 percent in 2007.
Hyundai Oilbank has been able to increase its sale of bunkering oil as shipbuilders built many new ships in Korea and many foreign vessels docked in Korean ports and got bunkering services from the oil company.
The company invested a total of 2.1 trillion won in building a heavy oil cracking center at its oil refinery, which is known as an oil well on land because it extricates more expensive light oil products such as gasoline and diesel. The company expects to add $2 billion more to its annual oil exports from the second half of 2011 when the cracking center goes on stream, solidifying its image as an exporter of oil around the world.
Hyundai Oilbank Co. first introduced the Oil Bank brand for its service stations in 1964 and has continued with its policies to create customer value by investing heavily in its oil refining facilities including facilities to produce low-sulfur oil products.
Hyundai Oilbank President and CEO Seo Young-tae took over the helm of the company in 2002 and turned the company around, bringing it out of the red. The oil company was born again in the hands of the new CEO and became a true blue-chip concern under its new name Hyundai Oil Bank Co.
The newly named oil company has been turning a profit year after year since then with a new “Open 2005 Vision,” making its operation transparent and always ready to overcome any crisis that may beset it.
Hyundai Oilbank’s annual sales revenue skyrocketed in 2006 to 9.17 trillion won thanks to expanded exports of high value light oil, rising to 9.45 trillion won in 2007, and jumping in 2008 to 14.76 trillion won. This year it is projected to rise to around 15 trillion won, an increase over last year despite the economic slump that reduced demand for oil.
Hyundai Oil set up a branch in Singapore in 1992, but upgraded it to a wholly-owned subsidiary in 2005 to handle such matters as the import of crude oil at inexpensive prices and strengthening its overseas operations including exports of oil and international financial affairs.
In 2008 the company signed a tie up with Cosmos Oil of Japan to cooperate in such matters as the exploration of overseas oil markets and the export of refined oil to Japan.
“Vision 2012” states that the aim is to equip the company with highly competitive refining facilities and a sales network by 2012 with the aim of becoming Korea’s leading oil refining and marketing company, representing the highest efficiency.
This ambitious plan is part of the Hyundai Oilbank’s strong commitment to become a company that is trusted by its customers as a provider of the highest quality products and services produced by advanced production facilities. The company has been firm in its determination to become one that is respected by its customers for its dedication to the well being of the local community, the fulfillment of its environmental responsibilities and the pursuit of ethical management.
Hyundai Oilbank contributes to Korea’s economic and social development by fulfilling the goals and responsibilities set forth by the company through strengthening its core competence, thereby providing its customers with the highest quality products and services and generating profits for customers, employees, partners, shareholders and local communities. nw

President Seo Young-tae of Hyundai Oilbank Co. which won the $5 bln Export Tower medal at the 46th Trade Day ceremony held on Nov. 30.