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. 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, which were signed with the following South Korean companies:
Hyundai Heavy Industries (HHI)
- 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 aftersales facility in Saudi Arabia. Under the partnership, Saudi Aramco will own 55% of the JV, while HHI and Dussur will own 30% and 15% respectively.
- An MoU between Saudi Aramco and HHI that extends the existing collaboration to develop ship building, engine manufacturing, refining, and petrochemicals.
- An agreement between Saudi Aramco and HHI to increase HHI’s equity share in the International Maritime Industries (IMI) from 10% to 20%.
- An MoU between HHI, Bahri, and IMI (Joint Venture between Saudi Aramco, HHI, Lamprell, Bahri), covering ship building, and transportation as potential areas of cooperation.
- An MoU between HHI and IMI to explore business opportunities in the shipbuilding business.
- 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.
The Hyundai Motor Group
- An 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.
Korea National Oil Corporation
- An MoU 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.
- 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 research and development, and deployment of carbon fiber technology.
- An MoU between Saudi Aramco and GS Holdings is aimed at identifying specific investment opportunities in the Kingdom of Saudi Arabia.
- 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.