Saudi Aramco mentioned on Monday that a subsidiary will get a 17 % stake in South Korea’s Hyundai Oilbank for about $1.25 billion.

Saudi Aramco and Hyundai Heavy Industries Holdings announced that they have reached an agreement for Aramco Overseas Corporation (AOC) to obtain the stake.

AOC’s investment in South Korea’s Hyundai Oilbank will assistance Saudi Aramco’s crude oil placement tactic by delivering a devoted outlet for Arabian crude oil to South Korea, a statement mentioned.

Abdulaziz Al Judaimi, Saudi Aramco’s senior vice president of downstream, mentioned: “Saudi Aramco continues to strengthen its position in the downstream sector. This acquisition demonstrates our investment in the very complicated refining sector in Asia, and continuous commitment to the region’s power safety and improvement.”

He added: “The investment supports Saudi Aramco’s broader downstream development tactic, as nicely as delivering extended term crude oil possibilities and offtakes as element of our trading small business.”

Hyundai Oilbank is a private oil refining organization established in 1964. The Daesan Complicated, exactly where Hyundai Oilbank’s key facilities are situated, is a refining plant with a processing capacity of 650,000 barrels per day.

The small business portfolio of Hyundai Oilbank and its 5 subsidiaries consists of oil refining, base oil, petrochemicals, and a network of gas stations.

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