Saudi Aramco said on Monday that a subsidiary will buy a 17 percent stake in South Korea's Hyundai Oilbank for about $1.25 billion.
Saudi Aramco and Hyundai Heavy Industries Holdings announced that they have reached an agreement for Aramco Overseas Company (AOC) to purchase the stake.
AOC’s investment in South Korea’s Hyundai Oilbank will support Saudi Aramco’s crude oil placement strategy by providing a dedicated outlet for Arabian crude oil to South Korea, a statement said.
Abdulaziz Al Judaimi, Saudi Aramco’s senior vice president of downstream, said: "Saudi Aramco continues to strengthen its position in the downstream sector. This acquisition demonstrates our investment in the highly complex refining sector in Asia, and continuous commitment to the region’s energy security and development."
He added: "The investment supports Saudi Aramco’s broader downstream growth strategy, as well as providing long term crude oil options and offtakes as part of our trading business."
Hyundai Oilbank is a private oil refining company established in 1964. The Daesan Complex, where Hyundai Oilbank’s major facilities are located, is a refining plant with a processing capacity of 650,000 barrels per day.
The business portfolio of Hyundai Oilbank and its five subsidiaries includes oil refining, base oil, petrochemicals, and a network of gas stations.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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