Basic Strategy

The most effective use of facilities is the critical challenge given the significant decrease in domestic product demand. To cope with this, our R&S segment is working to enhance the integration of our business lines by effectively utilizing the secondary units at our refineries and maximizing synergies with our petrochemical business, optimizing marketing channels including exports, while taking full advantage of the ExxonMobil Group's global network for feedstock procurement, product supply systems and product manufacturing technologies.

Effective utilization of secondary units

Since the oil shock of the 1970's, the relative demand for mogas, kerosene, and diesel oil, called "Light Oils," has significantly increased versus lower-value products such as heavy fuel oil. To realize higher value-added refining operations in response to these demand structure changes, we have focused on minimizing production of heavier fuel products and to maximizing production of lighter oils. In this effort, we aim at maximum use of secondary units such as Fluid Catalytic Cracking Units (FCC) and our Resid Hydroconversion unit (H-OIL) through, among other things, optimum feedstock selection.

Cost reduction through optimum feedstock

We reduce feedstock procurement costs and improve profitability by taking full advantage as a member of ExxonMobil Group through crude diversification and technical know-how.