Saudi Aramco acquires modern oil shares

Source: China National Chemical News January 31, 2019

Xinhua News Agency Saudi Aramco recently announced that it will spend US$1.6 billion to acquire a 19.9% ​​stake in Hyundai Petroleum's refining division from Hyundai Heavy Industries. This move will make Saudi Aramco a stronger influence on the South Korean oil refining and oil market. Earlier, Saudi Aramco had a majority stake in S-Oil, another South Korean oil refining and oil company.

Hyundai Heavy Industries stated that the company signed a stock trading agreement with Saudi Aramco at a price of 36,000 won (about US$32.24) per share. The transaction is worth US$1.6 billion, and its stake in Hyundai Petroleum will be reduced to 71%.

Hyundai Petroleum is the third largest oil refining company in South Korea, accounting for 21.5% of the Korean retail market. Another Saudi Aramco-controlled company, S-Oil, accounts for 20%, and Saudi Aramco has a 60% share in this company. SK Energy and Jiade Taxi are the two largest oil refining companies in South Korea.

Over the years, Hyundai Heavy Industries has maintained close cooperation with Saudi Aramco. Currently, the two companies are building the largest shipyard in Saudi Arabia and plan to establish an engine joint venture by the end of this year. Hyundai Heavy Industries stated that the group hopes to use Saudi Aramco's power to expand new businesses, such as petrochemicals, lubricants and oil field development.