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Aramco Buys 17% Stake in S.Korean Refiner Unit

Aramco Buys 17% Stake in S.Korean Refiner Unit

Tuesday, 16 April, 2019 - 04:45
Aramco and Hyundai Heavy Industries Holdings officials at the signing of the agreement ceremony. Asharq Al-Awsat
Dhahran - Asharq Al-Awsat
Saudi Aramco and Hyundai Heavy Industries Holdings have reached an agreement for Aramco’s subsidiary, Aramco Overseas Company B.V (AOC), to purchase a 17 percent stake in South Korea's Hyundai Oilbank, a subsidiary of Hyundai Heavy Industries Holdings.

The investment is valued at approximately $1.25 billion. AOC’s investment in South Korea’s Hyundai Oilbank will support Saudi Aramco’s crude oil placement strategy by providing a dedicated outlet for Arabian crude oil to South Korea.

Abdulaziz Al-Judaimi, Aramco’s Senior Vice President of Downstream, said: “This acquisition demonstrates our investment in the highly complex refining sector in Asia, and continuous commitment to the region’s energy security and development.”

“The investment supports Saudi Aramco’s broader downstream growth strategy, as well as providing long term crude oil placement supply options and product offtakes as part of our trading business,” Judaimi added.

AOC is a subsidiary of Aramco. It provides support services to Saudi Aramco and, through its investments and joint ventures, forms an integral part of the global Saudi Aramco oil, gas, and chemicals enterprise.

As for Hyundai Oilbank, it is a private oil refining company established in 1964. The Daesan Complex, where Hyundai Oilbank’s major facilities are located, is a fully integrated refining plant with a processing capacity of 650,000 barrels per day. The business portfolio of Hyundai Oilbank and its five subsidiaries includes oil refining, base oil, petrochemicals, and a network of gas stations. 

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