GROUP III BASE OILSthe new European

Standard

HANS GROEN

Drivers

Automotive Engine oil specifications drive the base oil performance

Most formulations supporting the new ACEA specifications and OEM specifications are based on group III

Fuel economy requirements drive formulations towards lower viscosities

Base Oil

AdditivesViscosity Improver

Legislation

Air Quality Improvement

After treatment

Low Sulfated Ash Phosphor Sulfur

Manufacturer Lubrication

CO2 Reduction +

Base Oil

AdditivesViscosity Improver

Low Viscosity

Fuel Economy

Legislation Manufacturer Lubrication

Recycling / Durability

Base Oil

AdditivesViscosity Improver

Low Volatility

Good Stability

Extend Oildrains

Legislation Manufacturer Lubrication

New Registrations 2008Western Europe Passenger Car

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000BMWDAIMLERFIATFORDGMHONDAHYUNDAIKIAMAZDAMITSUBISHINISSANOthersPSARENAULTSUZUKITOYOTAVOLKSWAGEN

Source: Association Auxiliaire de l'Automobile

New Registrations 2008Western Europe Heavy Duty >3.5t

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000 DAF

DAIMLER

FIAT

FORD

GM

MAN

MITSUBISHI

NISSAN

Other

PSA

RENAULT

SCANIA

TOYOTA

VOLKSWAGEN

VOLVO TRUCKS

New developments for passenger cars ACEA A/B are group III centered

ACEA A/B category

Main Viscosity

Main base oil (High Saps)

A1/B1 0W-305W-30

PAOGroup III

Fuel economy

A3/B3 10W-40 Group I Most common

A3/B4 5W-305W-40

Group IIIGroup III High Saps

A5/B5 0W-305W-30

PAOGroup III

Fuel economy

New developments for passenger cars ACEA C are group III centered

ACEA C category

Main Viscosity

Main base oil

C1 5W-30 Group III Low Saps

C2 5W-30 Group III Mid Saps

C3 5W-305W-40

Group IIIGroup III

Mid Saps

C4 5W-30 Group III Low Saps

New developments HEAVY DUTY ACEA E are group III centered

ACEA E category

Main Viscosity

Main base oil

E4 10W-40 Group III

E6 10W-40 Group III Low saps

E7 15W-40 Group I

E9 15W-40 Group II Low saps

Global base oil production

Group I65%

Group II20%

Group III6%

Naphtenic9%

Total

Global base oil production (Gr.I+II+III+napht / nameplate )

South America4%

North America26%

Western Europe15%

Central & Eastern Europe12%

Middle East And Africa13%

China9%

Japan5%

Korea6%

South Asia/Pacific11%

Australia0.4%

total production approx . 1 million bbls/pd

Global base oil production per area

98%

1%1%

Central & Eastern Europe

85%

2%6% 7%

Western Europe

36%

46%

1% 17%

North America

89%

11%

Latin America

98%

2%

Middle East And Africa

58%12%

30%China

80%

6%

7% 7%

Japan

55%

33%

12%

South Asia/Pacific 1%

52%

47%

Korea

100%

Australia

Split of 5 % of world production

Japan

Group 1 80 %Group II 6 %Group III 7 %Naphtenic 7 %

80%

6%7%

7%

Japan

Split of 26% of World production

North America:

Group I 36 %Group II 46 %Group III 1 %Naphtenic 17 %

36%

group I

46%

group II

1% groupIII

17%

Naph.

North America

Split of 11 % World production

Latin America

Group I 89 %Naphtenic 11 %

89%

11%

Latin America

Split of 15 % of World production

Western Europe

Group I 85 %Group II 2 %Group III 6 %Naphtenic 7 %

85%

2%

6% 7%

Western Europe

Split of 12 % of World production

Central & Eastern Europe

Group I 98 %Group II 1 %Naphtenic 1 %

98%

1%1%

Central & Eastern Europe

Split of 6 % of world production :

Korea

Group I 1 %Group II 52 %Group III 47 %

1%

52%

47%

Korea

Split of 11 % of world production

55%33%

12%

South Asia/Pacific

South Asia/Pacific

Group I 55 %Group II 33 %Group III 12 %

Passenger car engine oil – Western European base oil demand

2006 2008 20100%

10%20%30%40%50%60%70%80%90%

100%

Group VGroup IVGroup IIIGroup IIGroup I

In 2010 split will be approx : Group I : 40 % Group III : 49 % Group IV :10 % Group V : 1 %

Diesel engine oil– Western European base oil demand

2006 2008 20100%

10%20%30%40%50%60%70%80%90%

100%

Group VGroup IVGroup IIIGroup IIGroup I

In 2010 will be approx : GROUP I : 75 % GROUP II : 8 % GROUP III : 16 % GROUP IV : 0,5 % GROUP V : 0,5 %

Engine oil– Western European base oil demand

2006 2008 20100%

10%20%30%40%50%60%70%80%90%

100%

Group VGroup IVGroup IIIGroup IIGroup I

In 2010 split will be approx Group I: 54 % Group II: 3 % Group III: 35,5 % Group IV: 6,5 % Group V : 1 %

High Quality Lubs demand star Base Oil :

a beautiful product ………. :

A Nice installation …………… produce…

coming from this production train :

Property uom Method Etro 4 Etro 6

Appearance Visual

Bright and Clear

Bright and Clear

Kinematic Viscosity @ 100°C mm²/s ASTM D445 4,23 6,29Kinematic Viscosity @ 40 °C mm²/s ASTM D445 18,9 35,2Viscosity Index ASTM D2270 131 130Pour Point °C ASTM D97 -21 -21Noack Volatility %wt ASTM D5800 11,4 5,8Cold Cranking -30°C mPa.s ASTM D5293 1310 4710Saturates %wt HPLC 99 99Sulfur ppm ASTM D2622 3 3

Meeting the highest quality :

Technical Update as of January 2009 :

ETRO PROGRAM Viscosity Grade

Programme 0W-20 0W-30 5W-20 5W-30 5W-40 5W-50 10W-30

North American PCMO

- ILSAC GF-4 √  √ √  √     √ 

- API SM  √  √  √  √  √  √  √

European Mid-SAPS PCMO/PCDO

- API SL/CF        √  √    

- API SM/CF        √  √    

- ACEA C3-04        √  √    

- ACEA C2-04      √  √      

OEMs

- MB 229.31/229.51        √  √    

- VW 502.00/505.00        √  √    

- VW 505.01         √ √    

- Porsche       √

- BMW LL-04        √  √    

26

PETRONASBase Oil Plant

PETRONAS Base Oil Marketing

•Provides product consistency •Ensures continuity of supply

Life cycle control

PETRONAS Tankers

Customer

PETRONASEquity Crude

VW504//507MB229.51, ACEA C33

Porsche, BWM LL...PETRONAS Formulations

THANK YOU for your attention

My thanks for the production of all data go to Technical Department PETRONAS ( PMN ) Mr Mike Pisani