Nov 2007 Overview for Korea Bunker Market Overview for Korea Bunker Market “Markets tell the truth.”

1 Fuel oil Production by Each Process 22 Contents Target Sales Volume for FFOV Market 44 Serching for Cracking Margin 33 Korea Refiner’s Capacity vs Forecast Korea Cargo Premium

2 Korea Refiner’s Capacity vs Forecast Production in SKGSS-OILHYUNDAI 840,000 BPCD 650,000 BPCD 580,000 BPCD 390,000 BPCD 800,000 BPCD 650,000 BPCD 580,000 BPCD 330,000 BPCD Capacity Forecast SK INCHON TOTAL 275,000 BPCD 2,735,000 BPCD 275,000 BPCD 2,635,000 BPCD

3 Fuel oil Production by Each Process CDU CDU Bunker-C Bunker-C Ard 49% Bunker-C Bunker-C Ard 49% Gas Oil Gas Oil Ard 21% Ard 21% Gas Oil Gas Oil Ard 21% Ard 21% RFCCHOU AR / VGOASPHALT MIDDLE OILHEAVY OIL SKGS 60,000 BPCD 55,000 BPCD Standard Yield Secondary Unit Type (New Built)

4 Serching for Cracking Margin(Last Month to This Month ) Why do they change running ratio? Fuel Oil(Cargo) Target value: 80~85% of Dubai Curent value :100~110% of Dubai 1) Complex margin > “ 0 “ 2) Complex margin < “0” Complex Margin Cracking Margin Gas Oil Target value : 110~120% of Dubai Current value : 130~140% of Dubai Critical Point

5 Target Sales Volume for FFOV Market in 2008 FFOV MARKET SKGSS-OILHYUNDAISKINCHONTOTAL Normal Volume 200,000150,00060,000100, ,000 Variation -150, , ,000 (UNIT :MT) Forecast Volume 50,000250,00060,000100,000200,000660,000 SK ENERGY : RFCC & LS CRUDE GS CALTEX : HOU Sk INCHON : FULL CAPACITY

6 Korea Cargo Premium in 2007 Second Half: Second Half: Rare demand from China Even Low avails in S’pore Second Half: Second Half: Rare demand from China Even Low avails in S’pore First Half: First Half: Shortage stocks in S’pore First Half: First Half: Shortage stocks in S’pore