Page 10 - MEOG Week 10 2023
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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
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