Aramco Signs 12 Agreements with South Korean Partners 

Thursday, 27 June, 2019 - 04:30
Seoul - Asharq Al-Awsat

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.

Commenting on the agreements on Wednesday, Saudi Aramco President and CEO, Amin 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,” he added.

The agreements are part of Saudi Aramco’s long-term downstream growth and diversification strategy.

A deal between Saudi Aramco, Hyundai Heavy Industries (HHI), and The Saudi Arabian Industrial Investments Company (Dussur) will 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 percent of the JV, while HHI and Dussur will own 30 percent and 15 percent respectively.

An MoU between Saudi Aramco and HHI extends the existing collaboration to develop ship building, engine manufacturing, refining, and petrochemicals.

Other agreements include an MoU between Saudi Aramco and Hyundai Motor Company to 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.

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

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

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