Aramco, S-Oil sign long-term supply deal

By OGJ editors

Saudi Aramco has signed a rare long-term crude oil supply deal with S-Oil of South Korea in an apparent attempt to defray fears in the Asian country about supply losses from Iran.

Last month, the European Union’s imposed sanctions (OGJ Online, Jan. 26, 2012).

The deal assures S-Oil, in which an Aramco unit is the largest shareholder with a 35% interest, of the crude it needs for its 669,000 b/d refinery at Onsan. Aramco has been filling most of the refinery’s crude needs under contracts renewed annually.

The package of sanctions imposed by the EU in response to Iran’s nuclear development, coupled with a toughening of sanctions in place in the US, embargoes purchase of Iranian crude by EU members and complicates financing by other countries.

South Korea recently has imported about 240,000 b/d of Iranian crude, about 10% of its supply.

Related Articles

Judge bars Anadarko e-mails as evidence in Macondo blowout hearing

03/21/2014 A federal district judge in New Orleans refused to accept e-mails between Anadarko Petroleum Corp. and BP PLC as evidence in a hearing to determine...

Industry group welcomes most UK budget moves

03/21/2014 Oil & Gas UK voiced support for all but one of several measures affecting the offshore producing industry announced in the UK government’s annu...

MARKET WATCH: Crude oil, gas futures prices slide entering spring

03/21/2014

The first day of spring in the northern hemisphere was marked by lower crude oil and natural gas futures prices.

OMV acquires West of Shetland licenses from Hess

03/21/2014 OMV AG has reached an agreement with Hess Corp. to acquire four licenses in West of Shetland, UK, including Cambo field and the Blackrock prospect,...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected