Saudi Aramco has signed an agreement with Korea’s Hyundai Heavy for the purchase of a 19.9% stake in Korean refiner Hyundai Oilbank for 1.8 trillion won ($1.6bn), according to a regulatory filing on the Seoul stock exchange. Hyundai Heavy owns 91.13% of Hyundai Oilbank, which operates a 650,000 b/d refinery at Daesan. Aramco is already the main shareholder in Korea’s S-Oil, operator of a 669,000 b/d refinery at Onsan, with a 63.4% stake.
The Hyundai Oilbank agreement is the latest in a series of moves by Aramco to expand its downstream operations in Asia and the US, usually with investments linked to crude oil supply deals (MEES, 14 December 2018). Aramco is already Korea’s largest crude supplier, delivering an average 875,000 b/d in 2018, equivalent to almost 30% of total imports (MEES, 11 January). (CONTINUED - 128 WORDS)