Chairman of Aramco Arab announced that they will sign 14 agreements with Korean companies for $9bn.
South Korean President and Saudi Crown Prince, Mohammad Bin Salman witnessed the signing of several agreements between the two countries, according to Al-Arabiya.
Saudi Aramco said it had signed 14 agreements with South Korean partners for $9bn in a long-term strategy to grow upstream activities and diversification.
The agreements signed between Saudi Aramco and South Korean companies reflect Saudi Aramco’s commitment to the security and development of energy supplies in Asia.
Saudi Arabia is South Korea’s third largest oil supplier.
The agreements, signed by Aramco with companies, including Hyundai Heavy Industries Holdings (HHI Holdings), such as shipbuilding, engine manufacturing, refining, petrochemicals, crude supplies, sales and oil storage.
“South Korea, through its strong, innovation-based economy, its major companies, and its growing energy market, is an important economic and strategic partner for the success of Saudi Aramco’s business and Saudi oil and gas exports are contributing to its economic prosperity,” Aramco’s chief executive, Ameen Al-Nasser said.
“The series of agreements and memorandums of cooperation we have signed in Seoul will contribute, in conjunction with the visit of crown prince Mohammad bin Salman, to enter a new phase of economic partnership, which in turn strengthens the strategy of Saudi Aramco to grow and achieve more diversity and integration desired.
Al-Nasser pointed out that one of the most important benefits of these agreements is that they include joint investments in both countries. These agreements include vital areas such as refining, chemicals, and oil storage, adding to the areas of localization of the ship and engine industry in Saudi Arabia, and areas of technical development in the means of transport use of hydrogen energy derived from crude oil and gas. They also include the development of the use of non-metallic materials related to the petrochemical industries and will contribute to providing long-term options for marketing Saudi crude oil and meeting the growing demand for energy and chemical products in this important region.
- Saudi Arabia is South Korea’s largest trading partner in the Middle East.
An example of the quality of the new forms of Korea-Saudi cooperation, which were recently launched, Aramco has joined HHI Holdings, the third largest shipbuilding company in the world, to establish a joint venture to build the largest shipyard in the Gulf at Ras Al-Khair. The Korean company will be responsible for the design and engineering work of the shipyard.