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S-OIL Base Oil

We are the sole distributor of S-OIL’s Group II “Aramco Prima” and Group III “aramcoULTRA” base oil in China. As such, our customers are stand to benefit from:

Coordinated pricing

Some refiners use multiple distributors within a given geography. At any given time, there could arise pricing discrepancies for the same set of products within the same geography. This situation can be confusing to customers.
As we are the specially-appointed sole distributor for S-OIL, we internally coordinate our pricing before releasing them to the market.

Coordinated supply across a large geography

Instead of dealing with different distributors selling the same refiners’ products in different areas of the same geography, for S-OIL base oil, you only need to deal with one distributor. This reduces the time and effort you need to coordinate supply.

Coordinated sales support

In our first-class laboratory located at our blending facility in Jingjiang (Jiangsu Province), we are able to provide after-sales support. Traders often need to seek third-party technical assistance. At Feoso Energy, we can provide this service ourselves.

Economies of scale
 

Traders match supply with demand. Often, the demanded quantity cannot be optimized to benefit from economies of scale. Thus certain fixed costs need to be spread out over small volumes. For instance, in a tight freight market, if a trader can only find a 3,000mt vessel to carry 2,000mt worth of base oil, the freight charges are spread over a sub-optimal volume.
Given our distributorship with S-OIL coupled with a long-term and strong relationship with our shipping broker, we are well positioned to integrate demand from many customers, find an appropriate vessel size, and lower our per unit freight cost.


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