Aramco Overseas Co. 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 $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 km southwest of Seoul, where Hyundai Oilbank’s major facilities are located, has a capacity to process 650,000 b/d (OGJ Online, Sept. 26, 2016). The business portfolio of Hyundai Oilbank and its five subsidiaries includes refining, base oil, petrochemicals, and a network of retail outlets.