Page 11 - AsianOil Week 10 2023

AsianOil POLICY AsianOil

Aramco signs $6bn deal to support

Korean firms in-Kingdom

KOREA SAUDI Aramco has agreed a $6bn framework The deal is also part of South Korea's attempts
deal with the Export-Import Bank of Korea that to create a “second Middle East boom”, as
The funds will help could assist South Korean companies in securing described by Yoon Hee-Sung, which is a continu-
South Korean firms contracts in the Kingdom. ation of the first Middle East boom, where many
secure contracts in the The three-year agreement was signed by Koreans earned money by working on construc-
kingdom. Eximbank Chairman Yoon Hee-Sung and Ara- tion sites in the area in the 1970s.
mco CFO Ziad Al-Murshed in Seoul. Aramco established a strong connection
The deal stipulates that Eximbank can lend up with South Korea by implementing projects in
to $6bn to Saudi Aramco, which can be used to the country and signing agreements with Korean
compensate South Korean companies involved companies.
in projects with the global energy firm. In January, Aramco signed a memorandum
“The deal could significantly enhance the of understanding (MoU) for collaboration with
chances of South Korean companies winning South Korea's Hoban Group to work together on
contracts in the Middle East,” an Eximbank construction and manufacturing.
spokesperson said. The bank also confirmed that It also announced plans last year for a $7bn
$1bn out of the $6bn is earmarked for hydrogen project in South Korea to manufacture petro-
and renewable energy projects. chemicals from crude at the 650,000 barrel per
The agreement was made amid the expecta- day (bpd) S-Oil refinery at Onsan in which Ara-
tion of profitable business opportunities in the mco holds a stake of just over 63%.
Kingdom and the Middle East, following the The project, named Shaheen, is Aramco's
November visit to Seoul by Saudi Crown Prince most significant investment in South Korea and
Mohammed bin Salman (MbS). will be the first commercial application of Ara-
South Korean firms are competing to win mco and Lummus technology, a leading propri-
construction contracts in Saudi Arabia's $500bn etor of proprietary petrochemicals, to produce
NEOM project to establish sustainable cities. chemicals from crude. ™

Week 10 09•March•2023 www. NEWSBASE .com P11