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Saudi Aramco inks deals with Korean companies

South Korean President Moon Jae-in went to Riyadh for a Saudi-Korean investment forum.

Saudi Arabia’s state-owned oil company signed agreements and memorandums with several South Korean entities today. 

Aramco, along with the Saudi Arabian Industrial Investments Co., entered into an agreement with South Korea’s Doosan Heavy Industries & Construction Co. The deal will establish a facility to produce industrial equipment for Saudi manufacturers, including pumps, drilling equipment, wind turbines and more. The joint venture has a planned production target of 60,000 tons per year, the official Saudi Press Agency reported. 

Aramco also signed memorandums of understandings with several South Korean energy companies, namely KEPCO, S-Oil, POSCO, Hyundai Oilbank, H2Korea and Lotte Chemical. The memorandum relates to exploring cooperation in the supply, transportation, use and certification of hydrogen and ammonia. 

The agreements were signed at the the Saudi-Korean Investment Forum, which took place in Riyadh. South Korean President President Moon Jae-in attended, where he met with Saudi Crown Prince Mohammed Bin Salman along with other Saudi officials, per the agency. 

Saudi Arabia and South Korea have good relations. Saudi Arabia is South Korea’s largest trading partner in the Middle East. The Gulf kingdom provided South Korea with more than 30% of its crude oil imports in 2021, according to The Korea Herald. 

Today’s forum followed the Saudi and South Korean foreign ministers meeting last September in New York, where they pledged to strengthen industry-related cooperation. The specifically discussed Korea’s Green New Deal environmental project and Saudi’s Vision 2030, which aims to reduce dependence on oil.