Aramco signs 10 deals at Saudi-Korean Investment Forum
RIYADH: The Saudi Arabian Oil Company has signed an agreement and nine memorandums of understanding with leading Korean entities, which aim to advance its downstream strategy and support the development of low-carbon energy solutions, while creating new financing options for the company.
The signings took place during the Saudi-Korean Investment Forum in Riyadh, which was also attended by Republic of Korea President Moon Jae-in, Aramco Chairman and CEO Amin Nasser and senior executives from both country.
The agreements aim to unlock new opportunities in advanced technology, manufacturing and finance, exemplifying Aramco’s commitment to driving development through global partnerships, according to a statement.
Nasser said in the statement, “Our partnership with Korean companies spans decades and today we are pleased to expand these ties into technology, manufacturing and finance. In addition to focusing on cutting-edge development in various fields, they also support our common goal of finding climate solutions and reducing greenhouse gas emissions through the development of hydrogen and ammonia production at low carbon emissions, as well as carbon capture and storage. Together, these initiatives with Korean industry leaders will further strengthen our forward expansion and integration strategy.
Local manufacturing of industrial equipment
Aramco has signed an agreement with the Korean company Doosan Heavy Industries & Construction Co. and the Saudi industrial investment company, Dussur. This partnership aims to establish a casting and forging plant that could supply manufacturers in the Kingdom with industrial and process equipment such as valves, pumps, compressors, wellheads, flanges, heat exchangers and gas and wind turbines, with the aim of improving local content.
The planned joint venture has a production target of 60,000 tonnes per year, primarily from sand casting and free forging processes, supplemented by machining capabilities. It also has the potential to supply original equipment manufacturers in the rig, drilling, marine and engine fields, with the potential to expand into the broader GCC market.
Low carbon energy solutions
The agreements also include memorandums of understanding with Korean energy companies KEPCO, S-Oil, POSCO, Hyundai Oilbank, H2Korea and Lotte Chemical to explore potential collaboration in the supply, transportation, use and certification of the hydrogen and ammonia. The companies also plan to investigate the feasibility of converting exported ammonia to hydrogen – a process known as ammonia cracking.
This represents a first step towards a potential large-scale hydrogen and ammonia production facility in Saudi Arabia, which would also include a carbon capture and storage facility.
Aramco also signed an agreement with the Export-Import Bank of Korea, known as K-EXIM, to explore strategic financing solutions in support of the company’s trade and investment activities involving Korean companies. .
The following construction agreement has been signed:
Doosan and Dussur – agreement for a foundry and forging plant in the Kingdom.
The following technology MOUs have been signed:
Korea Electric Power Corporation, or KEPCO – an intention to study the ammonia supply chain.
S-Oil – an agreement to explore potential collaboration in the area of ammonia removal and logistics.
S-Oil – an agreement to explore opportunities for R&D collaboration on low-carbon energy solutions.
Two separate agreements with POSCO and Hyundai Oilbank to exchange information and explore potential collaboration in the field of blue ammonia and blue hydrogen.
H2KOREA – an agreement to exchange information on hydrogen certification and regulatory requirements.
S-Oil – an agreement to exchange information related to Aramco’s Thermal Crude to Chemicals technology and explore potential collaboration.
The following memorandums of understanding in the area of finance and investment have been signed:
Export-Import Bank of Korea, KEXIM – Condition Managers for Strategic Finance Solutions.
S-Oil – a collaborative agreement on venture capital investment and seed funding.