Saudi Aramco’s subsidiary Aramco Overseas will purchase a 17% stake in South Korea’s Hyundai Oilbank from Hyundai Heavy Industries Holdings.
The investment, valued at $1.25 billion, will support Saudi Aramco’s crude oil placement strategy by providing a dedicated outlet for Arabian crude oil to South Korea.
Hyundai Oilbank is a private oil refining company and the Daesan Complex, where its major facilities are located, is a fully integrated refining plants with a processing capacity of 650,000 barrels per day. In addition, the company and its five subsidiaries includes oil refining, base oil, petrochemicals and a network of gas stations.
Abdulaziz Al-Judaimi, Saudi Aramco’s senior vice president of downstream, says: ‘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.
‘The investment support Saudi Aramco’s broader downstream growth strategy, as well as providing long term crude oil options and offtakes as part of our trading business.’