Aramco unit buys stake in Hyundai Oilbank

Aramco Overseas Company BV, a subsidiary of Saudi Aramco, will purchase a 17% stake in South Korean refiner Hyundai Oilbank, supporting Aramco’s oil placement strategy by providing a dedicated outlet for Arabian crude to South Korea.

Abdulaziz Al-Judaimi, Aramco’s senior vice-president of downstream, said the US$1.25-billion investment strengthens Aramco’s position in its downstream business, demonstrates its investment in refining in Asia, and provides “long-term crude oil options and offtakes as part of our trading business.”

The Daesan petrochemical complex in South Korea’s Chungnam Province, 130 kilometres south-west of Seoul, where Hyundai Oilbank’s major facilities are located, has a capacity to process 650,000 b/d.

The business portfolio of Hyundai Oilbank and its five subsidiaries includes refining, base oil, petrochemicals, and a network of retail outlets.

Source: Oil & Gas Journal