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

2. 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 11 55 Korea Cargo Premium

3. 2 Korea Refiner’s Capacity vs Forecast Production in 2008. 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

4. 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)

5. 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

6. 5 Target Sales Volume for FFOV Market in 2008 FFOV MARKET SKGSS-OILHYUNDAISKINCHONTOTAL Normal Volume 200,000150,00060,000100,000 610,000 Variation -150,000+100,000 - - +50,000 (UNIT :MT) Forecast Volume 50,000250,00060,000100,000200,000660,000 SK ENERGY : RFCC & LS CRUDE GS CALTEX : HOU Sk INCHON : FULL CAPACITY

7. 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