Arab News, Wednesday, Jan 19, 2022 | Jamada Al-Aakhirah 16, 1443
Aramco signs 10 agreements during Saudi-Korean Investment Forum
Saudi Arabia:
The Saudi Arabian Oil Company signed one agreement
and nine MoUs with leading Korean entities, which aim to advance its downstream
strategy and support development of low-carbon energy solutions, while creating
new financing options for the company.
The signings took place at the Saudi-Korean
Investment Forum in Riyadh, which was also attended by the President of the
Republic of Korea Moon Jae-in, Aramco President and CEO Amin Nasser, and senior
corporate executives from both countries.
The agreements seek to unlock new opportunities in
the fields of advanced technology, manufacturing and finance, illustrating
Aramco’s commitment to driving development through global partnerships,
according to a statement.
Nasser said in the statement: “Our partnership
with Korean companies spans decades and today we are pleased to broaden these
ties in technology, manufacturing and finance. In addition to focusing on
cutting-edge development in a range of areas, they also support our shared goal
of finding climate solutions and lowering greenhouse gas emissions through the
development of low-carbon hydrogen and ammonia production, as well as carbon
capture and storage. Together, these initiatives with Korea’s industry leaders
will further enhance our downstream expansion and integration strategy.”
Local manufacturing of industrial equipment
Aramco signed an agreement with Korea’s Doosan
Heavy Industries & Construction Co. and the Saudi Arabian Industrial Investments
Company, Dussur. This partnership aims to establish a casting and forging
facility that could supply the Kingdom’s manufacturers with industrial and
process equipment such as valves, pumps, compressors, wellheads, flanges, heat
exchangers, and gas and wind turbines, with the objective to enhance local
content.
The planned joint venture has a production target
of 60,000 tons per year, primarily from sand-casting and open-die forging
processes, complemented by machining capabilities. It also has potential to
supply original equipment manufacturers in the rig, drilling, maritime and
engine fields, with the possibility of expanding to the wider GCC market.
Low-carbon energy solutions
The agreements also include MoUs with Korean
energy companies KEPCO, S-Oil, POSCO, Hyundai Oilbank, H2Korea and Lotte
Chemical to explore potential collaboration in the supply, transportation,
utilization and certification of hydrogen and ammonia. The companies also plan
to study the feasibility of converting exported ammonia into hydrogen – a
process known as ammonia back-cracking.
This represents a first step towards a potential
large-scale production facility for hydrogen and ammonia in Saudi Arabia, which
would also include a carbon capture and storage facility.
Finance solutions
Aramco also signed an agreement with the
Export-Import Bank of Korea, known as K-EXIM, to explore strategic financing
solutions in support of the Company’s business and investment activities
involving Korean companies.
The following agreement in the field of
construction was signed:
Doosan and Dussur – agreement for a casting and
forging facility in the Kingdom.
The following MoUs in the field of technology
were signed:
Korea Electric Power Corporation, or KEPCO – an
intention to study the ammonia supply chain.
S-Oil – an agreement to explore potential
collaboration in the field of ammonia offtake and logistics.
S-Oil – an agreement to explore opportunities
in R&D collaboration on low-carbon energy solutions.
Two separate agreements with POSCO and Hyundai
Oilbank to exchange information and explore potential collaboration in the field
of blue ammonia and blue hydrogen.
H2KOREA – an agreement to exchange information
on hydrogen certification and regulatory requirements.
S-Oil – an agreement to exchange information
related to Aramco’s Thermal Crude to Chemicals technology and explore potential
collaboration.
The following MoUs in the field of finance and
investments were signed:
Export-Import Bank of Korea, KEXIM – Heads of
Terms for strategic financing solutions.
S-Oil – an agreement to collaborate on venture
capital investment and start-up financing.