Saudi Aramco has signed one agreement and nine Memoranda of Understanding (MoUs) with leading Korean entities to advance its downstream strategy and support development of low-carbon energy solutions, while creating new financing options for the company.
The agreements were announced on Tuesday on the sidelines of a meeting between Crown Prince Mohammed bin Salman bin Abdulaziz, Deputy Prime Minister and Minister of Defense, and South Korean President Moon Jae-in.
The signings took place at the Saudi-Korean Investment Forum in Riyadh, an event hosted by Saudi Arabia’s Ministry of Investment, which was also attended by the South Korean President, Aramco President & CEO Amin H. Nasser, and senior corporate executives from both countries.
Aramco signed an agreement with Korea’s Doosan Heavy Industries & Construction Company and the Saudi Arabian Industrial Investments Company, Dussur.
The partnership aims to establish a casting and forging facility that could supply the Kingdom’s manufacturers with industrial and process equipment such as valves, pumps, compressors, wellheads, flanges, heat exchangers, and gas and wind turbines, with the objective to enhance local content.
The agreements include MoUs with Korean energy companies KEPCO, S-Oil, POSCO, Hyundai Oilbank, H2Korea and Lotte Chemical to explore among other things potential collaboration in the supply, transportation, utilization and certification of hydrogen and ammonia.
Aramco also signed a Heads of Terms agreement with the Export-Import Bank of Korea (K-EXIM) to explore strategic financing solutions in support of the Company’s business and investment activities involving Korean companies.
“Our partnership with Korean companies spans decades and today we are pleased to broaden these ties in technology, manufacturing and finance. In addition to focusing on cutting-edge development in a range of areas, they also support our shared goal of finding climate solutions and lowering greenhouse gas emissions through the development of low-carbon hydrogen and ammonia production, as well as carbon capture and storage,” said Nasser.
“Together, these initiatives with Korea’s industry leaders will further enhance our downstream expansion and integration strategy.”
