Saudi Arabian Oil: Aramco signs 10 deals at Saudi-Korean investment forum

• Agreements aim to accelerate downstream strategy and development of low-carbon energy solutions

• Initial plans include a 60,000 ton per year casting and forging facility in Saudi Arabia

The Saudi Arabian Oil Company (“Aramco” or “the Company”) today announced the signing of an agreement and nine memorandums of understanding (MoUs) with leading Korean entities, which aim to advance its downstream strategy and to support the development of low-carbon energy solutions, while creating new financing options for the Company.

The agreements were announced on the sidelines of a meeting between HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister and Defense Minister, and the President of the Republic of Korea, HE Moon Jae-in .

The signings took place during the Saudi-Korean Investment Forum in Riyadh, an event organized by the Saudi Ministry of Investment, which was also attended by the President of the Republic of Korea, the President 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 Korea’s Doosan Heavy Industries & Construction Company and Saudi Arabia’s industrial investment firm, 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 (OEMs) 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 (CCS) facility.

Financing Solutions
The Company has also signed a Heads of Terms 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, President and CEO of Aramco, said“Our partnership with Korean companies spans decades and today we are excited to expand those ties into technology, manufacturing and finance. In addition to focusing on developing leaders in various fields, they also support our common goal of finding climate solutions and reducing greenhouse gas emissions through the development of low-carbon hydrogen and ammonia production, as well as carbon capture and storage.Together, these initiatives with Korean industry leaders will further strengthen our strategy of expansion and downstream integration.

The agreements aim to deepen collaboration between Aramco and leading Korean companies to unlock new opportunities in advanced technology, manufacturing and finance, exemplifying Aramco’s commitment to driving development through through global partnerships.

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 Company (KEPCO) – an intention to study the ammonia supply chain.
• Ground – an agreement to explore potential collaborations in the field of ammonia sampling and logistics.
• Ground – an agreement to explore opportunities for R&D collaboration on low-carbon energy solutions.

• Two separate agreements with POSCO and Hyundai oil bank to exchange information and explore potential collaboration in the field of blue ammonia and blue hydrogen.

• H2KOREA – an information exchange agreement on hydrogen certification and regulatory requirements.
• Ground – 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:

• Korea Export-Import Bank (KEXIM) – Terms managers for strategic financing solutions.
• Ground – a collaboration agreement on venture capital investment and start-up financing.