Saudi Aramco signs MoUs with Daelim, Hyundai Heavy Industries
State-held oil and gas giant signs 12 South Korean deals covering automotive, crude, chemicals, and industrial sectors
Saudi Aramco and affiliates the signing of 12 agreements worth billions of dollars with major South Korean companies to “reinforce relationships" with the Asian country, in addition to expanding its international operations and supporting "the region's energy security with the expansion of Arabian crude oil supply to Asian markets”.
The multi-industry agreements signed by Aramco in Seoul include one between Saudi Aramco, Hyundai Heavy Industries (HHI), and Saudi Arabian Industrial Investments Company (Dussur) to establish a joint venture for an engine manufacturing and after-sales facility in Saudi Arabia.
Under the partnership, Saudi Aramco will own 55% of the joint venture, while HHI and Dussur will own 30% and 15% respectively.
A memorandum of understanding (MoU) between Saudi Aramco and Hyundai Motor Company has been formed to drive 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.
Also signed was a deal between Saudi Aramco and Korea National Oil Corporation that will allow Aramco to explore the potential of crude oil storage in South Korea.
A MoU has also been signed with Hyosung Group to build a carbon fibre manufacturing facility in Saudi Arabia.
The state-held oil giant has also signed a deal with GS Holdings to identify investment opportunities in Saudi Arabia.
Another deal will see Saudi Aramco and Daelim collaborating on petrochemical projects, the Saudi Arabian firm said in a statement.
Commenting on the developments, Saudi Aramco’s president and chief executive officer, 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."