Saudi Arabian Oil Company “Saudi Aramco” announced the signing of 9 memoranda of understanding and a further agreement with Korean entities, which aim to strengthen their strategy in the refining and chemicals sector, support the development of hydrogen energy solutions as well as finding new financing options for the company.
The signing ceremony took place during the activities of the Saudi-Korean Investment Forum, which was held in Riyadh and hosted by the Saudi Ministry of Investments, and was attended by President Moon Jae-in, the President of the Republic of Korea, the President and CEO of Saudi Aramco, Eng. Amin bin Hassan Al-Nasser, and senior company executives in the two countries.
Aramco has signed an agreement with Doosan Heavy Industries and Construction in Korea and the kingdom’s industrial investment company (Dusur). This partnership aims to create a metal smelting and forming plant in able to supply Kingdom manufacturers with industrial and processing equipment such as valves, pumps, compressors, wellheads, pipelines, heat exchangers, gas turbines and wind turbines in order to improve local content.
The planned joint venture aims to produce 60,000 tons per year and is mainly based on casting in sand and open mold forming, as well as automated processing capabilities. It also has the capability to supply OEMs in the fields of drilling rigs, offshore operations and engines, with the potential to expand into the Gulf market.
The agreements also include memoranda of understanding with several energy companies in Korea, Korea Electric Power Corporation (KEPCO), S-Oil, POSCO, Hyundai Oilbank and Korea Lotte Chemical Company, in the context of exploring potential cooperation opportunities in the supply, transport, use and certification of hydrogen and ammonia. The companies are also planning to study the feasibility of converting the exported ammonia in hydrogen, a process known as back ammonia cracking. This represents a first step towards the creation of a potentially large-scale hydrogen and ammonia production facility in the Kingdom, which will also include carbon capture and storage.
An agreement was signed with the Korean Export-Import Bank (KEXIM) to discuss strategic financing solutions to support the business and investment activities of the company in which Korean companies participate.
Saudi Aramco’s president, engineer Amin bin Hassan Al-Nasser, said these agreements will lead to the exploration of more opportunities with our focus on 4 areas: hydrogen energy development, direct conversion technologies liquids in chemicals, metal forming and casting, as well as financing cooperation with the Export-Import Bank of Korea.
Nasser explained that Aramco is the largest oil supplier to Korea and that it has strategic international investments in Korea within its global refining and chemicals system, the most important of which are the S-Oil Refinery and the Hyundai Bank Refinery. In addition, there is an important partnership with Korea in the King Salman International Complex for Maritime Industries and Services in Ras Al-Khair.
The agreements aim to strengthen cooperation between Saudi Aramco and Korean companies and open up new opportunities in the fields of advanced technologies, construction and finance.
And the Doosan and Dussur agreement was signed, to establish a metal smelting and forming factory in the Kingdom.
The MoUs that were signed in the fields of technology, finance and investment included the following:
Korea Electric Power Corporation (KEPCO) – Intent to study the ammonia supply chain.
S-Oil – Agreement to explore potential cooperation in ammonia procurement and logistics.
S-Oil – Agreement to explore cooperation opportunities in the research and development of hydrogen energy solutions
Two separate agreements with POSCO and Hyundai Oilbank to exchange information and explore potential cooperation in the blue ammonia and blue hydrogen sectors.
H2 Korea – Information Exchange Agreement on Hydrogen Certification and Regulatory Requirements.
S-Oil – Agreement to exchange information related to Saudi Aramco’s technology to convert crude oil in chemicals and explore potential avenues of cooperation.
Korea Export-Import Bank (KEXIM) – Agreement for strategic financing solutions.
S-Oil – Agreement to cooperate in capital investment and financing of start-up.
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