Saudi Aramco's subsidiary Aramco Overseas Company B.V (AOC) will purchase a 17 percent stake in South Korea's Hyundai Oilbank, a subsidiary of Hyundai Heavy Industries Holdings, Saudi Aramco announced on Monday.
According to the press release, AOC's investment in the Korean private oil refining company, valued at approximately $1.25 billion, will support Saudi Aramco's crude oil placement strategy by providing a dedicated outlet for Arabian crude oil to South Korea.
AOC provides support services to Saudi Aramco and forms an integral part of the global Saudi Aramco oil, gas, and chemicals enterprise through its investments and joint ventures.
Saudi Aramco's Senior Vice President of Downstream Abdulaziz Al-Judaimi said the acquisition supports the company's broader downstream growth strategy, as well as providing long-term crude oil placement supply options and product offtakes as part of its trading business.
According to the statement, the business portfolio of Hyundai Oilbank and its five subsidiaries includes oil refining, base oil, petrochemicals, and a network of gas stations.
By Hale Turkes