South Korea’s SK Enmove is ramping up its push into the North American base oil market through a partnership with major U.S. refiner HF Sinclair. The agreement, centered on long-term supply and exclusive distribution of premium Group III base oil, is drawing attention as it comes amid persistent Middle East-driven supply risks.

SK Enmove announced on the 20th that it held a signing ceremony with HF Sinclair on the 19th at SK Seorin Building in Jongno-gu, Seoul, to formalize their North American Group III base oil supply and distribution partnership. The two companies had signed the long-term supply contract on the 3rd of this month, and the ceremony served to make it official.

Under the agreement, SK Enmove will supply Group III base oil to HF Sinclair’s lubricants and specialties division on a long-term basis. HF Sinclair will use SK Enmove’s YUBASE base oil brand to produce its own lubricant products, while also exclusively distributing YUBASE in select North American regions.

HF Sinclair is a refiner headquartered in Dallas, Texas, with refining facilities in Kansas, Oklahoma, and New Mexico. The company produces engine oils and specialty lubricants in the United States, Canada, and the Netherlands, supplying more than 80 countries worldwide, making it a major lubricant player in North America.

The two companies plan to combine SK Enmove’s stable, high-quality base oil production capabilities with HF Sinclair’s North American sales network to strengthen market competitiveness.

Premium Base Oil Demand Grows Amid Middle East Risks

Base oil is the core raw material for lubricants such as automotive engine oil. Among these, Group III is classified as a premium base oil produced through advanced refining of crude oil. Recently, geopolitical risks originating in the Middle East have disrupted refining operations, intensifying Group III base oil supply shortages in the global market.

SK Enmove operates production bases in three countries—South Korea’s Ulsan, Spain, and Indonesia—and exports Group III base oil to approximately 40 countries across the Americas, Europe, and Asia. This agreement significantly expands its North American sales channels and further strengthens its global market influence.

Heo Jeong-uk, head of SK Enmove’s Base Oil Business Division, said, “Our stable supply system based on three production bases in Ulsan, Spain, and Indonesia was the key competitive advantage that made this partnership possible.” He added, “With demand for premium Group III base oil growing amid recent Middle East supply risks, we will work to ensure stable supply of our world-class YUBASE products to North American customers through this collaboration with HF Sinclair.”

Executives from Both Companies: “An Opportunity to Strengthen North American Business Foundation”

Kim Won-ki, CEO of SK Enmove, said, “This agreement will serve as an opportunity to further strengthen SK Enmove’s North American business foundation by securing stable sales channels in the region.” He emphasized, “By combining SK Enmove’s stable supply capabilities with HF Sinclair’s extensive distribution network, we will provide North American customers with an even more reliable product supply foundation.”

Matthew Joyce, senior vice president and president of HF Sinclair’s Lubricants & Specialties division, also commented, “This long-term premium Group III base oil supply agreement marks an important milestone for our business.” He added, “We will leverage our North American distribution network to expand YUBASE supply, and combine SK Enmove’s stable supply capabilities and consistent quality with our blending and technical expertise to deliver high-quality lubricant solutions that meet customer expectations.”

The signing ceremony was attended by executives from both companies, including CEO Kim Won-ki, division head Heo Jeong-uk, Senior Vice President and President Matthew Joyce, and HF Sinclair Vice President Leanne Cleland.