SAUDI Aramco said it has signed an agreement with Hyundai Heavy Industries (HHI) and Saudi Arabian Industrial Investments Company (Dussur) to jointly set up a company that will manufacture world class engines and also provide after-sales service in the kingdom.

Under this partnership deal, Saudi Aramco will own 55 per cent of the JV, while HHI and Dussur will own 30 and 15 per cent respectively.

This was one among the 12 agreements the state oil giant and its affiliates signed with major South Korean companies to reinforce relationships with the Asian country and also expand international operations, and support the region’s energy security with the expansion of Arabian crude oil supply to Asian markets. The others are:

•An MoU between Saudi Aramco and HHI that extends the existing collaboration to develop ship building, engine manufacturing, refining, and petrochemicals.

Hyundai Motor and Aramco signed an MoU to cooperate on hydrogen energy

•An agreement between Saudi Aramco and HHI to increase HHI’s equity share in the International Maritime Industries (IMI) from 10 per  cent to 20 per cent.

•An MoU between HHI, Bahri, and IMI (Joint venture between Saudi Aramco, HHI, Lamprell, Bahri), covering ship building, and transportation as potential areas of cooperation.

•An MoU between HHI and IMI to explore business opportunities in the shipbuilding business.

•A crude oil sales agreement between Saudi Aramco and Hyundai Oilbank for Saudi Aramco to supply Arabian crude oil to Hyundai Oilbank.

•Aramco Trading Company signed a crude oil agreement to supply non-Arabian crude oil to Hyundai Oilbank. 

•An MoU between Saudi Aramco and Hyundai Motor Company will create a strategic collaboration to accelerate the expansion of the hydrogen ecosystem in the Saudi  and South Korean markets, and to explore the use of advanced non-metallic materials in various fields including the automotive industry.

•An MoU between Saudi Aramco and Korea National Oil Corporation that will allow Saudi Aramco to explore the potential of crude oil storage in South Korea to complement its marketing and supply activities.

•An MoU with Hyosung Group to build a carbon fibre manufacturing facility in Saudi Arabia. This MoU will also provide a collaboration platform for the two companies on research and development, and deployment of carbon fibre technology.

•An MoU between Saudi Aramco and GS Holdings is aimed at identifying specific investment opportunities in Saudi Arabia.

•Saudi Aramco and Daelim Industrial are collaborating on petrochemical projects and signed a new MoU to foster collaboration on value-added chemical products in the kingdom.

Saudi Aramco president and CEO Amin H Nasser said: “Only a few decades ago, Korean firms played a vital role in Saudi Aramco’s upstream offshore  development. Since then, they have moved into other sectors matching Saudi Aramco’s diversification strategy.”

“The agreements mark a new era of cooperation with our Korean partners who will play an increasingly important role in our strategy to capitalise on new initiatives that include long-term energy supply, maritime and infrastructure development, and breakthrough research and development in the automotive, crude to chemicals, and non-metallic sectors,” he stated.