Saudi Aramco buys $1.25 bln stake in Korean refiner

State-owned Saudi Aramco has agreed to purchase a 17 percent stake in South Korea's Hyundai Oilbank, a subsidiary of Hyundai Heavy Industries Holdings, for $1.25 billion, it said in a statement on Monday.

The investment by the oil major’s subsidiary, Aramco Overseas Company B.V (AOC), will support its crude oil placement strategy by providing a dedicated outlet for Arabian crude oil to South Korea.

“Saudi Aramco continues to strengthen its position in the downstream sector. This acquisition demonstrates our investment in the highly complex refining sector in Asia, and continuous commitment to the region’s energy security and development,” said Abdulaziz Al-Judaimi, senior vice president of Downstream, Saudi Aramco.

Hyundai Oilbank is a private oil refining company established in 1964. The Daesan Complex, where Hyundai Oilbank’s major facilities are located, is a fully integrated refining plant with a processing capacity of 650,000 barrels per day.

The business portfolio of Hyundai Oilbank and its five subsidiaries includes oil refining, base oil, petrochemicals, and a network of gas stations. 

AOC provides support services to Saudi Aramco and, through its investments and joint ventures, forms an integral part of the global Aramco oil, gas, and chemicals enterprise, the statement said.