Saudi Aramco earlier on Wednesday announced it has signed twelve agreements with South Korean companies as part of the Saudi firm’s long-term downstream growth and diversification strategy.
Below is an overview of the signed agreements between both the Saudi and the South Korean sides:
Hyundai Heavy Industries (HHI)
Saudi Aramco has signed five agreements with HHI; an agreement between Saudi Aramco, Hyundai Heavy Industries (HHI), and the Saudi Arabian Industrial Investments Company (Dussur) to create a joint venture (JV) for a world-class engine manufacturing and aftersales facility in the kingdom. Upon this deal, the Saudi company will own 55% of the JV, while both HHI and Dussur will own 30% and 15%, respectively.
The second agreement is a memorandum of understanding (MoU) to boost the existing collaboration in order to develop shipbuilding, engine manufacturing, refining, and petrochemicals.
The third signed agreement aims at raising HHI’s equity share in the International Maritime Industries (IMI) to 20% instead of 10%.
Furthermore, the third agreement is MoU between HHI, Bahri, and IMI which is a JV between Saudi Aramco, HHI, and Lamprell, Bahri. This deal covers shipbuilding and transportation as potential areas of cooperation.
Finally, the last agreement is also an MoU between HHI and IMI to explore investment opportunities in the shipbuilding business.
Two agreements were signed with Hyundai Oilbank; a crude oil sales deal for Saudi Aramco to supply Arabian crude oil to Hyundai Oilbank, while the second agreement is between Aramco Trading Company and the South Korean company over supplying non-Arabian crude oil to Hyundai Oilbank.
The Hyundai Motor Group
Saudi Aramco signed a deal with Hyundai Motor Company to create a strategic collaboration that can accelerate the expansion of the hydrogen ecosystem in the markets of the kingdom and South Korean, and also to explore the use of advanced non-metallic materials in various fields such as the automotive industry.
Korea National Oil Corporation
Saudi Aramco inked an agreement with Korea National Oil Corporation to allow the Saudi company to explore the potential of crude oil storage in South Korea to balance its marketing and supply activities.
The Saudi oil company signed a deal with Hyosung Group to build a carbon fiber manufacturing facility in the kingdom; this deal will also offer a collaboration platform for the two sides for research and development, as well as the deployment of carbon fiber technology.
Saudi Aramco and GS Holdings penned a deal to identify specific investment opportunities in Saudi Arabia.
Lastly, Saudi Aramco and Daelim Industrial signed a joint agreement on petrochemical projects, in addition to a new MoU to foster collaboration on value-added chemical products in Saudi Arabia.