Saudi Arabia-based state-owned oil company Aramco has acquired a 17 percent stake in South Korea’s Hyundai Oilbank. The deal is expected to cost Aramco around $1.2 billion.
Aramco acquired the stakes in Hyundai oilbank from Hyundai Heavy Industries, through its Aramco Overseas Company unit.
In a statement, Aramco said, “The investment in South Korea’s Hyundai Oilbank supports Saudi Aramco’s downstream growth strategy of expanding its global footprint in key markets in profitable integrated refining, chemicals and marketing businesses, which enable Saudi Aramco to place crude oil and leverage its trading capabilities.”
The investment is also a part of Aramco’s broader plan to expand its footprint in Southeast Asian markets. Recently, oil producers from the Gulf region have started shifting their focus further east as the US becomes more reliant on its own shale oil and gas.
The deal also makes Aramco the second-biggest stakeholder in the Hyundai Oilbank, after Hyundai Heavy Industries, which owns a 74.1 percent stake.
In September, Aramco signed a memorandum of understanding to acquire a 9 percent stake in the Zhejiang integrated refinery and petrochemical complex in China.
Aramco also signed an agreement to form a joint venture with NORINCO Group and Panjin Sincen to develop an integrated refining and petrochemical complex in China too.
Earlier this year, Aramco also announced that it will develop a $70 billion refinery complex in the Indian state of Maharashtra.
While Aramco and Abu Dhabi National Oil Company (Adnoc) will own 50 percent of the refinery complex, the other 50 percent will be owned by Indian oil companies such as Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation.