Saudi Aramco to acquire stake in South Korean Hyundai Oilbank

Dhahran, Saudi Arabia / Seoul, South Korea – The Saudi Arabian Oil Company (Saudi Aramco) and Hyundai Heavy Industries Holdings announced that they have reached an agreement for Saudi Aramco’s subsidiary,  Aramco Overseas Company B.V (AOC), to purchase a 17% stake in South Korea's Hyundai Oilbank, a subsidiary of Hyundai Heavy Industries Holdings.

Saudi Aramco and Hyundai Heavy Industries Holdings (HHIH) formalize the agreement for the Hyundai Oilbank share purchase in Seoul, South Korea. Saudi Aramco is represented by Ziad Murshed, Vice President of International Operations (left) while HHIH by Jong-chul Kim, Senior Vice President and Head of Corporate Management Office (right). The signing ceremony were witnessed by Saudi Aramco Senior Vice President of Downstream, Abdulaziz Al Judaimi (right, standing) and HHIH’s Ki-sun Chung, Senior Executive Vice President and Head of Group Corporate Planning (left, standing)
Saudi Aramco and Hyundai Heavy Industries Holdings (HHIH) formalize the agreement for the Hyundai Oilbank share purchase in Seoul, South Korea. Saudi Aramco is represented by Ziad Murshed, Vice President of International Operations (left) while HHIH by Jong-chul Kim, Senior Vice President and Head of Corporate Management Office (right). The signing ceremony were witnessed by Saudi Aramco Senior Vice President of Downstream, Abdulaziz Al Judaimi (right, standing) and HHIH’s Ki-sun Chung, Senior Executive Vice President and Head of Group Corporate Planning (left, standing)

The investment is valued at approximately $ 1.25 billion. AOC’s’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.

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

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

Hyundai Oilbank 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 5 subsidiaries includes oil refining, base oil, petrochemicals, and a network of gas stations. 

AOC is a subsidiary of Saudi 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.

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