Saudi oil giant signs 12 agreements with South Korean firms to expand international ops, supply crude oil to Asian markets
Saudi Aramco and its affiliates has announced it has signed 12 agreements worth billions of dollars with major South Korean companies.
The deals aim to reinforce relationships with South Korea, expand international operations, and support the region's energy security with the expansion of Arabian crude oil supply to Asian markets, the state-owned oil giant said in a statement.
Saudi Aramco president and CEO, Amin H Nasser, said: "Today's agreements mark a new era of cooperation with our Korean partners who will play an increasingly important role in our strategy to capitalize on new initiatives that include long-term energy supply, maritime and infrastructure development, and breakthrough research and development in the automotive, crude to chemicals, and non-metallic sectors."
He added that the agreements are part of Saudi Aramco's long-term downstream growth and diversification strategy.
They include an agreement between Saudi Aramco, Hyundai Heavy Industries (HHI), and the Saudi Arabian Industrial Investments Company (Dussur) will establish a joint venture for a world class engine manufacturing and aftersales facility in Saudi Arabia. Under the partnership, Saudi Aramco will own 55 percent of the JV, while HHI and Dussur will own 30 percent and 15 percent respectively.
A MoU was also signed between Saudi Aramco and HHI to extend the existing collaboration to develop ship building, engine manufacturing, refining, and petrochemicals.
A crude oil sales agreement was inked between Saudi Aramco and Hyundai Oilbank for the oil major to supply Arabian crude oil to Hyundai Oilbank while a MoU between Saudi Aramco and Hyundai Motor Company will create a strategic collaboration to accelerate the expansion of the hydrogen eco-system in the Saudi Arabian and South Korean markets.
The agreements also include a deal between Saudi Aramco and Korea National Oil Corporation that will allow Saudi Aramco to explore the potential of crude oil storage in South Korea and a MoU with Hyosung Group to build a carbon fibre manufacturing facility in Saudi Arabia.
Also signed was a MoU between Saudi Aramco and GS Holdings which aims to identify specific investment opportunities in Saudi Arabia while Saudi Aramco and Daelim Industrial also agreed to collaborate on petrochemical projects.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.