GS Caltex to begin its first-ever LO Blending Technology Export

GS Caltex, the nation’s leading refiner, marked the key milestone of exporting its LO Blending Technology for the first time.

It has been confirmed that GS Caltex signed a Technical License Agreement with Karam to export its LO Blending Technology, according to the oil industry. Acceded to a request by Karam, this is the first time that GS Caltex signed overseas transfer of LO Blending Technology.

An official from GS Caltex says, “Karam has depended entirely on lubricant product imports, but I understand that there were signs of discontent with the quality, which finally led to Karam being determined to produce its own lubricants.” “For a major change to producing its own lubricants, Karam began looking for companies with LO blending technology and came to inquire about possible technology export.”

Lubricant oils are formulated from the base oil and an additive package. GS Caltex's lubricant products are distinguished as world-class lubricant, and its representative lubricant brand, KIXX, has won the Korea First Brand Award in the lubricant category. The annual Korea First Brand Awards are one of the largest brand award ceremonies in South Korea.

Karam requested GS Caltex to export technology for 15 lubricant products. Among them, GS Caltex had developed new technologies for one product at the request of Karam. The GS Caltex lubricant technology development team was in charge of the technology development.

With this Technology License Agreement, GS Caltex will receive technology license fees from Karam for the next 10 years. In addition, GS Caltex will supply its lubricant products until commercial operation of Karam’s lubricant oil blending plant in Iraq. Such Agreement has a great significance as GS Caltex has secured stable export deals to the Iraq market. However, the terms and amount of the Agreement are kept confidential and may not be released in public domain.

GS Caltex has been investing in the Middle East market. In particular, Iraq is one of the major importers of lubricant oil. GS Caltex's sales of lubricant products in Iraq more than tripled in 2019 compared to 2015. As finished lubricant products are utilized in the overall industry such as automobiles and construction equipment, one interpretation is that the sales have risen sharply along with Iraq's economic growth.

GS Caltex is expected to expand sales of lubricant products and export of LO blending technology in the Middle East. An official from GS Caltex said, “In recognition of product quality and technology, we will do our best to expand exports of products and technologies.”