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Aramco and HHI officials at the signing

Aramco and HHI officials at the signing

Aramco inks 12 deals with S Korean firms


Saudi Aramco and its affiliates 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.

Commenting on the agreements, 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. The agreements mark a new era of cooperation with our Korean partners who will play an increasingly important role in our strategy to capitalise 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, which were signed with Hyundai Heavy Industries (HHI), Hyundai Oilbank, The Hyundai Motor Group, Korea National Oil Corporation, Hyosung, GS Holdings and Daelim Industrial.

An agreement between Saudi Aramco, Hyundai Heavy Industries (HHI), and The Saudi Arabian Industrial Investments Company (Dussur) seeks to establish a joint venture (JV) for a world class engine manufacturing and aftersales facility in Saudi Arabia. Under the partnership, Saudi Aramco will own 55 per cent of the JV, while HHI and Dussur will own 30 per cent and 15 per cent respectively.

Another MoU between Saudi Aramco and HHI extends the existing collaboration to develop ship building, engine manufacturing, refining, and petrochemicals. The third MoU between Saudi Aramco and HHI seeks to increase HHI’s equity share in the International Maritime Industries (IMI) from 10 per cent to 20 per cent. The fourth one between HHI, Bahri, and IMI (Joint Venture between Saudi Aramco, HHI, Lamprell, Bahri), covers ship building, and transportation as potential areas of cooperation and the fifth between HHI and IMI seeks to explore business opportunities in the shipbuilding business.

To MoUs were signed with Hyundai Oilbank - a crude oil sales agreement between Saudi Aramco and Hyundai Oilbank for Aramco to supply Arabian crude oil to Hyundai Oilbank; and Aramco Trading Company signing a crude oil agreement to supply non-Arabian crude oil to Hyundai Oilbank.

The MoU between Saudi Aramco and Hyundai Motor Company 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.

The MoU between Saudi Aramco and Korea National Oil Corporation will allow Saudi Aramco to explore the potential of crude oil storage in South Korea to complement its marketing and supply activities.

The MoU with Hyosung Group seeks to build a carbon fibre manufacturing facility in Saudi Arabia. This MoU will also provide a collaboration platform for the two companies on research and development, and deployment of carbon fibre technology.

The MoU between Saudi Aramco and GS Holdings is aimed at identifying specific investment opportunities in the Kingdom of Saudi Arabia and finally 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.

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