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.

Diversification of crude procurement sources and product export

There is a wide range of crude oils and the economics of each type varies depending on transportation costs from crude-producing locations, the structure of refinery processing facilities and prices for refined products. We aim to procure the most economical crude oils by utilizing ExxonMobil Group’s global network. Accordingly, we purchase a variety of crude oils from different locations and our dependency on Middle East crude oil is lower than other oil companies. Similarly, we export products to various locations to maximize profitability.

Improvement of refining process efficiency

To produce more value added products, we are working toward more effective use of secondary units such as fluid catalytic cracking units (FCC) and resid hydroconversion units (H-OIL). The effective use of secondary units is a key for efficient crude refining as crude throughput declines due to a decrease in domestic oil product demand. We aim to improve efficiency in the refining process and maximize utilization of secondary units by procuring crude oils containing more feedstock elements for secondary units, as well as semi-products that can be used as secondary unit feedstock, through the utilization of ExxonMobil’s expertise and network.