Arabian Business, Thursday, Jul 11, 2019 | Zul Qaadah 8, 1440
Saudi Aramco signs multi-billion dollar South Korea deals
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
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
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
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.