Archives

Home   >   Archives   

Saudi Aramco signs 12 agreements worth billions of dollars

Rig Lynx
  • By Rig Lynx
  • Jun 27, 2019
  • Category : Archives
  • Views : 638

Saudi Aramco and its affiliates signed 12 agreements with major South Korean companies to reinforce relationships with South Korea, expand international operations, and support the region’s energy security with the expansion of Arabian crude oil supply to Asian markets.

Commenting on the agreements, Saudi Aramco President and CEO, Amin H. Nasser, said: “Only a few decades ago, Korean companies played a vital role in Saudi Aramco’s upstream offshore growth development. Since then, they have moved into other sectors matching Saudi Aramco’s diversification strategy. Today’s agreements mark a new era of cooperation with our Korean partners who will play an increasingly important role in our strategy to capitalize on new initiatives that include long-term energy supply, maritime and infrastructure development, and breakthrough research and development in the automotive, crude to chemicals, and non-metallic sectors.”

The agreements are part of Saudi Aramco’s long-term downstream growth and diversification strategy, which were signed with the following South Korean companies:

Hyundai Heavy Industries (HHI)

  • An agreement between Saudi Aramco, Hyundai Heavy Industries (HHI), and The Saudi Arabian Industrial Investments Company (Dussur). The agreement will establish a joint venture (JV) for a world class engine manufacturing and aftersales facility in Saudi Arabia. Under the partnership, Saudi Aramco will own 55% of the JV, while HHI and Dussur will own 30% and 15% respectively. 
  • An MoU between Saudi Aramco and HHI that extends the existing collaboration to develop ship building, engine manufacturing, refining, and petrochemicals. 
  • An agreement between Saudi Aramco and HHI to increase HHI’s equity share in the International Maritime Industries (IMI) from 10% to 20%. 
  • An MoU between HHI, Bahri, and IMI (Joint Venture between Saudi Aramco, HHI, Lamprell, Bahri), covering ship building, and transportation as potential areas of cooperation. 
  • An MoU between HHI and IMI to explore business opportunities in the shipbuilding business.

Hyundai Oilbank

  • A crude oil sales agreement between Saudi Aramco and Hyundai Oilbank for Saudi Aramco to supply Arabian crude oil to Hyundai Oilbank. 
  • Aramco Trading Company signed a crude oil agreement to supply non-Arabian crude oil to Hyundai Oilbank. 

The Hyundai Motor Group

  • An MoU between Saudi Aramco and Hyundai Motor Company will create a strategic collaboration to accelerate the expansion of the hydrogen ecosystem in the Saudi Arabian and South Korean markets, and to explore the use of advanced non-metallic materials in various fields including the automotive industry.

Korea National Oil Corporation 

  • An MoU between Saudi Aramco and Korea National Oil Corporation that will allow Saudi Aramco to explore the potential of crude oil storage in South Korea to complement its marketing and supply activities.

Hyosung

  • An MoU with Hyosung Group to build a carbon fiber manufacturing facility in Saudi Arabia. This MoU will also provide a collaboration platform for the two companies on research and development, and deployment of carbon fiber technology.

GS Holdings

  • An MoU between Saudi Aramco and GS Holdings is aimed at identifying specific investment opportunities in the Kingdom of Saudi Arabia.

Daelim Industrial

  • Saudi Aramco and Daelim Industrial are collaborating on petrochemical projects and signed a new MoU to foster collaboration on value-added chemical products in the Kingdom.

Source and Photo: Saudi Aramco

Check out our other current stories!

Join the largest oil and gas community on iOS and Android!

Download the app here!

Rig Lynx was launched December 2017, our oil and gas news was viewed over 373,000 times in 2018 and our social networking application generated over 268,000 clicks in 2018. Our current foothold has rivaled the largest in the industry and we are just getting started.

Comments (0)

Leave Comment


Check out our other stories

Rig Lynx
Mar 09, 2023

  Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023.   Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.”   Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.”   Updated Guidance   As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023.   First Quarter 2023   Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023   Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

Rig Lynx
Mar 09, 2023

  Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico.   The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

Rig Lynx
Mar 09, 2023

  Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin.   The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL).   Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee.   “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling.   Source: Dolphin   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here