Aju Business Daily

SEOUL -- SK Lubricants, a top lube base oil producer in South Korea signed a supply contract with China's state-run oil and gas producer, PetroChina. Financial terms of the contract were not given.

SK Lubricants affiliated with South Korea's top refiner, SK Innovation, is a global player in the production of lubricant-grade base oil. Base oil, the name given to lubrication grade oils initially produced from refining crude oil or through chemical synthesis, is used to manufacture products including lubricating greases, motor oil and metal processing fluids.

"It is significant in that it is the first contract with a state-run company in China, the world's largest lubricant market, to supply 'Yubase Plus' that has significantly improved performance," Cha Kyu-Tak, head of SK Lubricants' base oil business division, said in a statement on Monday.

"SK Lubricants will grow together in China's lube base oil market by strengthening partnership such as technical cooperation, including a supply contract with PetroChina to supply premium lube base oil," Cha said. China's premium lubricant market is expected to grow fast on the back of tightening environmental regulations and strong demands for luxury cars.