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Saudi Aramco Signs 12 Agreements with South Korean Partners Worth Billions of Dollars
Reinforcing Relationships with South Korea
Saudi Aramco Signs 12 Agreements with South Korean Partners Worth Billions of Dollars
  • By Jung Min-hee
  • June 26, 2019, 16:22
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Executives of Saudi Aramco and Hyundai Heavy Industries Holdings (HHIH) pose for a photo after signing a set of agreements.

Saudi Aramco and its affiliates have signed 12 agreements with major South Korean companies 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 agreements covered a wide range of industrial fields, including shipbuilding, engine manufacturing, refining, petrochemicals, as well as crude supply, sales and storage.

Commenting on the agreements, 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.”

The agreements are part of Saudi Aramco’s long-term downstream growth and diversification strategy. The company signed the following deals with South Korean companies:

Hyundai Heavy Industries

An agreement between Saudi Aramco, Hyundai Heavy Industries (HHI), and the Saudi Arabian Industrial Investments Company (Dussur): The agreement will establish a joint venture (JV) for a world class engine manufacturing and after-sales 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.

An MOU between HHI and Saudi Aramco that extends the existing collaboration to develop shipbuilding, engine manufacturing, refining, and petrochemicals.

An agreement between HHI and Saudi Aramco to increase HHI’s equity share in the International Maritime Industries (IMI) from 10 percent to 20 percent.

An MOU between HHI, Bahri, and IMI (a joint venture between Saudi Aramco, HHI, Lamprell, Bahri), covering shipbuilding, and transportation as potential areas of cooperation.

An MOU between HHI and IMI to explore business opportunities in the shipbuilding business.

Hyundai Oilbank

A crude oil sales agreement between Saudi Aramco and Hyundai Oilbank for Saudi Aramco to supply Arabian crude oil to Hyundai Oilbank.

Aramco Trading Company signed a crude oil agreement to supply non-Arabian crude oil to Hyundai Oilbank.

Hyundai Motor Group

An MOU between Saudi Aramco and Hyundai Motor Co. will create a strategic collaboration to accelerate the expansion of the hydrogen ecosystem in the Saudi Arabian and South Korean markets, and to explore the use of advanced non-metallic materials in various fields including the automotive industry.

Korea National Oil Corp.

An MOU between Saudi Aramco and Korea National Oil Corp. that will allow Saudi Aramco to explore the potential of crude oil storage in South Korea to complement its marketing and supply activities.

Hyosung Group

An MOU with Hyosung Group to build a carbon fiber manufacturing facility in Saudi Arabia. This MOU will also provide a collaboration platform for the two companies on R&D and deployment of carbon fiber technology.

GS Holdings

An MOU between Saudi Aramco and GS Holdings is aimed at identifying specific investment opportunities in the Kingdom of Saudi Arabia.

Daelim Industrial

Saudi Aramco and Daelim Industrial are collaborating on petrochemical projects and signed a new MOU to foster collaboration on value-added chemical products in the Kingdom.