Saudi Aramco snaps up South Korean oil products

Submitted by Paddy Harris on Mon, 2015-02-09 13:24

09th February 2015

Saudi Aramco has bought around USD 1.9bn (KRW 1.2tn) worth of oil products off South Korean refiner S-Oil

Saudi Aramco Products Trading will in turn supply S-Oil with 120,000 tonnes of paraxylene and 2 million barrels of heavy naphtha

The massive supply deals comes a month after Saudi Aramco increased its own share in S-Oil to 63.41 per cent (up from 34.99 per cent).

S-Oil will supply up to 14 million barrels of diesel (including low and ultra-low suplhur diesel) and up to 14 million barrels of light naptha to Saudi Aramco Products Trading Co. between 1 February and 31 December 2015 in a new contract announced by S-Oil in a stock exchange statement.

"This contract is seen to hike S-Oil's domestic and overseas competitiveness as it will secure stable overseas sales markets and receive required raw materials via a subsidiary of the major shareholder Aramco," S-Oil said in a separate statement.

Saudi Aramco Products Trading will in turn supply S-Oil with 120,000 tonnes of paraxylene and 2 million barrels of heavy naphtha.