SK Energy may absorb SK Incheon

South Korea’s SK Energy’s board of directors reviewed the possibility of merging with SK Incheon. SK has since been toying with various options for the refining subsidiary, including a partial listing on the London Stock Exchange and selling a stake to a strategic partner. The acquisition of Incheon Oil boosted SK’s refining capacity from 840,000 to 1.115 million barrels per day, making it Asia’s fourth-largest refiner after Sinopec and PetroChina and Japan’s Nippon Oil. “If the merger with its subsidiary is completed, SK Energy expects to increase the efficiency of its entire value chain including the purchase, production, sales and ramp of products,” SK said. (September 7, 2007)