Page 10 - MEOG Week 10 2023

MEOG POLICY & SECURITY MEOG

Aramco signs $6bn deal to

support Korean firms in-Kingdom

SAUDI ARABIA SAUDI Aramco has agreed a $6bn framework deal is also part of South Korea’s attempts to cre-
deal with the Export-Import Bank of Korea that ate a “second Middle East boom”, as described by
could assist South Korean companies in securing Yoon Hee-Sung, which is a continuation of the
contracts in the Kingdom. The three-year agree- first Middle East boom, where many Koreans
ment was signed by Eximbank Chairman Yoon earned money by working on construction sites
Hee-Sung and Aramco CFO Ziad Al-Murshed in the area in the 1970s.
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
contracts in the Middle East,” an Eximbank on construction and manufacturing. It also
spokesperson said. The bank also confirmed that announced plans last year for a $7bn project in
$1bn out of the $6bn is earmarked for hydrogen South Korea to manufacture petrochemicals
and renewable energy projects. from crude at the 650,000 barrel per day (bpd)
The agreement was made amid the expecta- S-Oil refinery at Onsan in which Aramco holds
tion of profitable business opportunities in the 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. The chemicals from crude.™

Iran and Oman sign cross-sector MoU

IRAN/OMAN IRAN and Oman’s energy ministers met in Teh- existing capacity in the country.” He added.
ran this weekend and announced the signing The Iranian side noted that as negotiations
of a memorandum of understanding (MoU) became more serious, further details on the two
covering joint development across oil & gas and countries’ cooperation would be revealed. Iran’s
petrochemicals. First Vice President Mohammad Mokhber also
Following the meeting, Oman’s minister of said regarding the deal that: “Despite the impor-
energy and minerals Salim al-Aufi and Iranian tant and strategic approach of the officials of the
Minister of Petroleum Javad Owji said the deal two countries for the development of the bilat-
included product and petrochemical exports eral trade relations, there is still a long way to
as well as transfer of technical and engineering reach the desired point, and we must achieve the
know-how between the two countries. desired goals by removing the obstacles ahead.”
Owji added: “Signing this MoU between Owji had previously engaged in intensive
the national oil companies of the two countries meetings with Omani officials in Muscat in May
today was in continuation of the previous nego- last year, after which the parties agreed to form
tiations between the two sides.” a technical committee to develop the Hengam
“Today, they signed a memorandum of coop- oil field, which the two countries share in the
eration in the continuation of the negotiations in Persian Gulf.
the upstream and downstream sectors of the oil The minister said at the time that integrated
industry …With the finalisation of the negotia- development of the field would save its reservoir
tions between the two countries, we will see an from damage, ensuring production would stay
increase in the export of petrochemical products safe and that Iran and Oman would benefit from
and oil products to this country, considering the it equally.™

P10 www. NEWSBASE .com Week 10 08•March•2023