Hyundai Oilbank begins upgrades

South Korea’s smallest refiner Hyundai Oilbank Corp. said it has begun construction of a 2.1 trillion won (US$1.58 billion) upgrading plant, becoming one of a few refiners to proceed with secondary unit projects amid an economic slump. The refiner, whose major shareholder is Abu Dhabi-based International Petroleum Investment Co. (IPIC), will build the secondary unit in Daesan, south of Seoul, by the end of June 2011. The plant will process about 52,000 barrels of heavy fuel oil per day into more profitable gasoline or diesel fuel. Hyundai Oilbank has gone ahead with its project while global energy firms have been cancelling or postponing upgrading plant projects since last year due to weak economics. Hyundai Oilbank aims to lift its upgrading ratio to 30.8% from the current 17.4% with the new unit. The refiner has a total refining capacity of 390,000 barrels per day (bpd). (April 14, 2009)