VHVI BASE OILS FROM FUELS HYDROCRACKER BOTTOMS AIChE National Meeting March 16, 1999

Contents o Current Market Needs o UCO Lube Process o Product Quality o Applications of UCO Process Products

High Quality Base Oils o Low Volatility o Good Oxidation Stability o Good Low Temperature Properties o VI above 120

High Quality Base Oils Four Main Options for High Quality Base Oils o PAOs (Poly Alpha Oleffins) o Di-esters o Wax Isomerized Base Oils o Severely Hydro-Cracked Base oils

High Quality Base Oils Severely Hydrocracked Base Oils o Classified as API Group 3 o The Most Cost Effective o Provide the Best Overall Performance in Products

The Yukong UCO Lube Process Excess Distillates VGO Lights to Refinery Recycle Oil Surge Drum Lube Heater Products Hydrogen Unconverted Oil (UCO) Hydrocracker Reactors Fractionator Distillation Intermediate Storage Catalytic Dewaxing

The Yukong UCO Lube Process Without Lube Production (Flows in BPSD) 35,000 [30,000 fresh feed + 5,000 recycle feed] 35,000 50,000 50,000 30,000 [Diesel and lighter oils] R1 R2 F VGO 15,000 20,000 UCO V1 5,000 AR VR

The Yukong UCO Lube Process With Lube Production (Flows in BPSD) 35,000 50,000 35,000 [all fresh feed] 50,000 30,000 [Diesel and lighter oils] R1 R2 F 15,000 5,000 20,000 UCO 10,000 15,000 100ND or 80ND AR V1 V2 5,000 150ND VR

The Yukong UCO Lube Process Advantages Hydrocracker fuels production unchanged Produces high quality VHVI base stocks Product quality independent of crude source Low investment and operating costs

UCO Lube Process Product Quality Typical Properties of YUBASE Oils YU-3 YU-4 YU-6 Viscosity @ 40'C, cSt 12.2 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 17.5 7.8 Sulfur content, ppm <5 <5 <5 Aromatics, wt% 1. 1. 1.

UCO Lube Process Product Quality Low Temperature Property : CCS Viscosity @-20'C/-25'C, 150N Grades cP

UCO Lube Process Product Quality Oxidation Performance : RBOT(ASTM D2270) with 0.3wt% Phenolic A/O min

UCO Lube Process Product Quality Thermal Oxidation Performance : PCT with 13.0wt% A3/B3 DI Additive, 10wt% VII mg

UCO Lube Process Product Quality Volatility Property : Noack Volatility (250'C, 1hr) wt%

UCO Lube Process Product Quality Summary : o Excellent Oxidative and Thermal Stability o Very Low Volatility o Very Good Viscosity-Temperature Behavior and Low Temperature Properties o Similar to PAO in General Performance o No Toxicity

VHVI Base Oils Application Principal Uses of VHVI Base Oils Automotive Oils Industrial Oils Specialties Gasoline Eng. oils Hydraulic fluids Heat transfers Diesel Engine oils Turbine oils Electrical fluids Gear oils Compressor oils Quenching oils ATFs Vac pump oils Cutting oils Tractor fluids Rolling oils Textile oils Shock absorber oils Process oils White oils

Applications of UCO Process Products ACEA A3/B3, SAE 10W/40 PCMO YUBASE PAO DI Additive, wt% 13.0 13.0 VII, wt% 10.8 10.0 SR 150N, wt% 58.2 62.0 YUBASE 5, wt% 18.0 - PAO 6 - 15.0 Vis. @100'C, cSt 14.5 14.5 Viscosity Index 151 152 CCS Vis. @-20'C, cP 3270 3210 < 3500 HTHS Vis., cP 3.90 4.06 > 3.5 Noack Volatility, wt% 11.8 12.1 < 13

Applications of UCO Process Products ACEA A3/B3, SAE 10W/40 PCMO : VW 1302 Engine Test YUBASE PAO Piston Demerits 86 85 70 min Viscosity Increase, % 24 31 40 max Piston Ring Wear, mg 39.9 36.2 150 max Crankshaft Bearing Wear, mg 9.9 8.3 100 max Camshaft Bearing Wear, mg 8.9 2.5 30 max Con. Rod Bearing Wear, mg 8.2 12.5 30 max Oil Consumption, g/kwh 0.53 0.52 0.55 max Piston Ring Sticking none none none

Applications of UCO Process Products API CG-4/SH, SAE 10W-40 HDDO YUBASE SR Base (15W-40) DI Additive, wt% 13.3 13.6 VII (+PPD), wt% 10.5 9.5 SR 150N, wt% - 66.9 SR 500N, wt% - 10.0 YUBASE 6, wt% 76.2 - Vis. @100'C, cSt 14.2 14.9 Viscosity Index 153 139 CCS Vis. @( )'C, cP 3280(-20) 3250(-15) < 3500 HTHS Vis., cP 4.1 4.1 >2.9,>3.7 Noack Volatility, wt% 8.7 11.1

Applications of UCO Process Products API CG-4/SH, SAE 10W/40 HDDO : Caterpillar 1N Engine Test YUBASE SR Base Weighted Demerits No. 183.7 190.0 286.2 max Top Groove Fill, % 7 10 20 max Top Land Heavy Carbon, % 0 0 3 max Brake Specific Oil Con.,g/kwk 0.12 0.23 0.5 max Piston Scuffing, % 0 0 Piston Ring Scuffing, % 0 0 Piston Liner Scuffing, % 0 0 Piston Ring Sticking none none none

Applications of UCO Process Products API CG-4/SH, SAE 10W-40 HDDO : Mack T-8 Engine Test YUBASE SR Base Vis. Increase @ 3.8% 3.58 4.78 11.5 max. TGA Soot, cSt Filter P, psi 6.2 9.0 20 max.

Applications of UCO Process products Summary : VHVI Based Lubricants o Replacement for PAOs : More Cost Effective than PAOs in Achieving Synthetic Performance in European Top-Tier PCMO o Useful in Severe Applications: US type SAE 10W/40 HDDO and High Quality Specialties can be made with VHVI Base Oils like YUBASE o Lower Additive Costs in Lubricants Applications