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

Operations resume at Ghana’s sole refinery

01/08/2015 State-owned Tema Oil Refinery Co. Ltd. (TOR) has resumed crude oil processing at its 45,000-b/d refinery in Tema, Ghana, after a nearly 4-month ope...

Kazakhstan advances refinery modernization program

01/07/2015 Kazakhstan’s state-owned KazMunaiGas (KMG) has secured financing from the Development Bank of Kazakhstan JSC (DBK) for the continuing modernization...

BP lets contract for Belgian petrochemicals complex revamp

01/06/2015 BP Chembel NV, a wholly owned subsidiary of BP PLC, has let a contract to Jacobs Engineering Group Inc., Pasadena, Calif., to provide basic and det...

Petrotrin’s downstream takes hit from US shale, poor margins

01/06/2015 Trinidad and Tobago’s state-owned oil company Petrotrin is blaming the shale oil revolution in the US and poor refining margins overall for a $60 m...

Tall Oak expanding Oklahoma natural gas midstream

01/06/2015 Tall Oak Midstream, LLC began natural gas gathering operations on its 150-mile STACK System, serving producers in Oklahoma’s STACK play (Sooner Tre...

Pemex advances clean energy plans at Salina Cruz refinery

01/06/2015 Mexico’s Petroleos Mexicanos (Pemex) is in the process of converting its Antonio Dovali Jaime refinery in Salina Cruz, Oaxaca, to operate on cleane...

HollyFrontier wraps extended Kansas refinery maintenance

01/05/2015 HollyFrontier Corp., Dallas, has completed a 3-month planned maintenance turnaround at its 135,000-b/d El Dorado, Kan., refinery following extended...

Essar commissions unit at Vadinar refinery

01/02/2015 Essar Oil Ltd., a subsidiary of Essar Energy PLC, has commissioned a second hydrogen manufacturing unit (MHU) at its 405,000-b/d Vadinar refinery i...

FERC approves Cheniere’s Corpus Christi Liquefaction project, pipeline

01/02/2015 The US Federal Energy Regulatory Commission has authorized Cheniere’s Corpus Christi Liquefaction LLC and Cheniere Corpus Christi Pipeline LP to co...

White Papers

What is System Level Thermo-Fluid Analysis?

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

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Available Webcasts



The Future of US Refining

When Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

When Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST



On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

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