SK Corp. cuts bid for Inchon Oil Refinery

Eric Watkins
Senior Correspondent

LOS ANGELES, Oct. 28 -- South Korean refiner SK Corp. has reduced its bid for Inchon Oil Refinery Co. Ltd. by 160 billion won to about 3.04 trillion won, industry sources said.

In September, SK agreed to a total investment of 3.2 trillion won, including purchase of 1.6 trillion won worth of new shares issued by Inchon Oil and 1.6 trillion of new bonds from the refiner.

But sources said SK and the Inchon District Court recently reached an agreement that the refiner will instead buy 1.44 trillion won of bonds from Inchon Oil.

Inchon Oil has been under court receivership since March 2003 after going bankrupt in 2001. It operates a 270,000 b/cd hydroskimming refinery east of Seoul.

SK plans to sign a final contract to buy Incheon Oil next year after receiving approval from the South Korea's Fair Trade Commission, the country's antitrust agency, for the takeover.

With the purchase, SK will become Asia's fourth-largest refiner, with a refining capacity of 1.1 million b/d.

In January, creditors led by Citigroup Inc. rejected a 685 billion won offer from China National Chemical Import & Export Co. (Sinochem), China's largest chemicals trader, saying it was too low.

In August, a South Korean court instead chose a consortium led by SK as the preferred bidder for the sale of the refinery (OGJ Online, Aug. 19, 2005).

Contact Eric Watkins at hippalus@spidernet.com.cy.

Related Articles

Chinese plant commissions propylene unit

01/30/2015 Sanyuan Petrochemical Co. Ltd. (SPCL), a subsidiary of Zhejiang Fuling Holding Group, has commissioned a 450,000-tonne/year propane dehydrogenation...

Shell, Iraq ink deal for petrochemicals complex

01/29/2015 Royal Dutch Shell PLC has entered a preliminary agreement with Iraq to construct an $11-billion grassroots petrochemicals complex in the country’s ...

Citing lower oil prices, Sasol delays Louisiana GTL plant investment

01/28/2015 South Africa’s Sasol Ltd. says it will delay the final investment decision on a large-scale, gas-to-liquids (GTL) plant in Louisiana as part of the...

Trinidad ULSD plant won’t be built in 2015, Petrotrin executive says

01/28/2015 Trinidad and Tobago’s state-owned Petrotrin has announced that its $500 million ultralow-sulfur diesel (ULSD) plant cannot be commissioned because ...

Geismar plant begins first methanol production

01/27/2015 Methanex Corp., Vancouver, BC, has completed the first production of methanol from its newly commissioned 1 million-tonne/year plant in Geismar, La.

ETP, Regency to merge in $18-billion deal

01/26/2015 Energy Transfer Partners LP (ETP) and Regency Energy Partners have agreed to merge in a unit-for-unit transaction, plus a one-time cash payment to ...

Vietnam advances Dung Quat refinery expansion plans

01/26/2015 Binh Son Refining & Petrochemical Co. Ltd. (BSR), a subsidiary of state-owned Vietnam National Oil & Gas Group (PetroVietnam), has unveiled...

Varo Energy plans upgrades for Swiss refinery

01/23/2015 Varo Energy BV, a midstream company owned by The Carlyle Group and Vitol Group, plans to invest more than 50 million Swiss francs ($56 million) thi...

BASF plans capacity expansion at Geismar petrochemicals plant

01/22/2015 BASF Corp., the North American affiliate of BASF SE, Ludwigshafen, Germany, plans to boost production of 1, 4-butanediol (BDO) at its Geismar, La.,...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected