Aramco signs multiple deals at Saudi-Korean investment forum
The Saudi oil company announced the signing of an agreement and nine memorandums of understanding (MoU) with leading Korean entities, with the aim of advancing its downstream strategy and supporting the development of low-energy energy solutions. carbon emissions, while creating new financing options for the company
The signings took place during the Saudi-Korean Investment Forum in Riyadh, an event organized by the Saudi Ministry of Investment. (Image Stock: Adobe Stock)
The signings took place at Saudi-Korean Investment Forum in Riyadh, an event organized by Saudi Ministry of Investment also attended by President of the Republic of Korea, HE Moon Jae-in, Chairman and CEO of Aramco Amin H. Nasser and senior business executives from both countries.
Local manufacturing of industrial equipment
Aramco has signed an agreement with Doosan Heavy Industries & Construction Company in Korea and the Saudi Industrial Investment Company, Dussur. The 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 proposed joint venture has a production target of 60,000 t per year, primarily from sand casting and free forging processes, supplemented with machining capabilities.
Aramco says it also has the potential to supply original equipment manufacturers (OEMs) in the rig, drilling, marine and engine areas, with the potential to expand into the market. larger of the GCC.
Low carbon energy solutions
The agreements also include memorandums of understanding with Korean energy companies such as KEPCO, S-Oil, POSCO, Hyundai Oilbank, H2Korea and Lotte Chemical explore potential collaboration in the supply, transport, use and certification of hydrogen and ammonia. The companies also plan to investigate the feasibility of converting exported ammonia to hydrogen – a process known as ammonia cracking. This is the first step towards a possible large-scale hydrogen and ammonia production facility in Saudi Arabia, which would also include a Carbon Capture and Storage (CCS) ease.
Financing Solutions
The company also signed a ‘Term headings’ agreement with the Export-Import Bank of Korea (K-EXIM) to explore strategic financing solutions in support of the company’s trade and investment activities involving Korean companies.
Amin H. Nasser, Chairman and CEO of Aramco, said, “Our partnership with Korean companies spans decades and today we are excited to expand these ties in 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.
