DHAHRAN / WAM
The Saudi Arabian Oil Company (Saudi Aramco) and Hyundai Heavy Industries Holdings on Monday announced that they have reached an agreement for Saudi Aramco’s subsidiary, Aramco Overseas Company BV (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, Saudi Aramco’s Senior Vice President of Downstream, said, “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.”
Al Judaimi added, “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.”
The business portfolio of Hyundai Oilbank and its five subsidiaries includes oil refining, base oil, petrochemicals, and a network of gas stations.