To this, an S-Oil official responded, "Our import price is relatively higher than other rivals because we purchase lighter, higher-grade crude oil. Still we can keep the final cost low as lighter oil takes less refining cost."

 

S-Oil imports most of its oil from Saudi Arabia's Aramco, its largest stakeholder with 35 percent. The company, 28.41 percent owned by Hanjin Group, signed a 20-year long-term supply contract with Aramco in 1991, followed by another 20-year contract last year. In contrast to S-Oil that relies on a stable stream of oil from a single source, other oil companies such as SK Energy (25 countries) and GS-Caltex (21) take oil delivery from multiple sources.