Saudi oil giant Saudi Aramco has signed twelve agreements potentially worth billions of dollars with major South Korean companies.
Saudi Aramco said the agreements “worth billions of dollars” would 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.
Saudi Aramco signed several deals with Hyundai Heavy Industries which include the establishment of engine making facility JV in Saudi Arabia, collaboration in the space of shipbuilding, engine manufacturing, refining, and petrochemicals.
A memorandum of understanding has also been signed between HHI, Bahri, and IMI (Joint Venture between Saudi Aramco, HHI, Lamprell, Bahri), covering shipbuilding, and transportation as potential areas of cooperation. HHI will increase its share in IMI from 10% to 20%. An MoU was also signed between HHI and IMI to explore business opportunities in the shipbuilding business.
Apart from the Hyundai Heavy Industries agreements, Saudi Aramco signed a crude oil sales agreement with Hyundai Oilbank, Aramco Trading Company signed a crude oil agreement to supply non-Arabian crude oil to Hyundai Oilbank.
Furthermore, an MoU was signed between Saudi Aramco and Korea National Oil Corporation that will allow Saudi Aramco to explore the potential of crude oil storage in South Korea to complement its marketing and supply activities.
Apart from the mentioned agreements, the Saudi company has signed cooperation deals with other Korean companies in the space of carbon fiber manufacturing, specific investment opportunities, petrochemical projects collaboration, hydrogen use, use of advanced non-metallic materials in various fields including the automotive industry.
Saudi Aramco President and CEO, Amin H. Nasser, said: “Only a few decades ago, Korean companies played a vital role in Saudi Aramco’s upstream offshore growth development. Since then, they have moved into other sectors matching Saudi Aramco’s diversification strategy. 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.”
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