RIYADH: The 黑料社区n Oil Company signed聽one agreement and nine MoUs聽with leading Korean entities, which aim to advance its downstream strategy and support development of low-carbon energy solutions, while creating new financing options for the company.
The signings took place at the Saudi-Korean Investment Forum in Riyadh,聽which was also attended by the President of the Republic of Korea聽Moon Jae-in,聽Aramco President and聽CEO Amin Nasser, and senior corporate executives from both countries.
The agreements seek聽to unlock new opportunities in the fields of聽advanced technology, manufacturing and finance, illustrating Aramco鈥檚 commitment to driving development through global partnerships, according to a statement.
Nasser said in the statement:聽鈥淥ur 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. Together, these initiatives with Korea鈥檚 industry leaders will further enhance our downstream expansion and integration strategy.鈥
Local manufacturing of industrial equipment
Aramco signed an agreement with Korea鈥檚 Doosan Heavy Industries & Construction Co.聽and the 黑料社区n Industrial Investments Company, Dussur. This partnership aims to establish a casting and forging facility that could supply the Kingdom鈥檚 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 planned joint venture has a production target of 60,000 tons per year, primarily from sand-casting and open-die forging processes, complemented by machining capabilities. It also has potential to supply original equipment manufacturers聽in the rig, drilling, maritime and engine fields, with the possibility of expanding to the wider GCC market.
Low-carbon energy solutions
The agreements also include MoUs with Korean energy companies KEPCO, S-Oil, POSCO, Hyundai Oilbank, H2Korea and Lotte Chemical聽to explore potential collaboration in the supply, transportation, utilization and certification of聽hydrogen聽and ammonia.聽The companies also plan to study the feasibility of converting exported ammonia into hydrogen 鈥 a process known as ammonia back-cracking.
This represents a first step towards a potential large-scale production facility for hydrogen and ammonia in 黑料社区, which would also include a carbon capture and storage聽facility.
Finance solutions
Aramco also signed an聽agreement with the Export-Import Bank of Korea, known as K-EXIM,聽to explore strategic financing solutions in support of the Company鈥檚 business and investment activities involving Korean companies.
The following agreement in the field of construction was signed:
- Doosan and Dussur聽鈥 agreement for a casting and forging facility in the Kingdom.
- The following MoUs in the field of technology were signed:
- Korea Electric Power Corporation, or KEPCO聽鈥 an intention to study the ammonia supply chain.
- S-Oil聽鈥 an agreement to explore potential collaboration in the field of ammonia offtake and logistics.
- S-Oil聽鈥 an agreement to explore opportunities in聽R&D collaboration on low-carbon energy solutions.
- Two separate agreements with聽POSCO聽and聽Hyundai Oilbank聽to exchange information and explore potential collaboration in the field of blue ammonia and blue hydrogen.
- H2KOREA聽鈥 an agreement to exchange information on hydrogen certification and regulatory requirements.
- S-Oil聽鈥 an agreement to exchange information related to Aramco鈥檚 Thermal Crude to Chemicals technology and explore potential collaboration.
- The following MoUs in the field of finance and investments were signed:
- Export-Import Bank of Korea, KEXIM聽鈥 Heads of Terms for strategic financing solutions.
- S-Oil聽鈥 an agreement to聽collaborate on venture capital investment and start-up financing.
