MOSCOW (MRC) -- South Korea's S-Oil, the country's third-largest refiner, has signed a deal to sell a combined USD1 billion of diesel, naphtha and jet fuel this year to Saudi Aramco, its biggest shareholder, said Hydrocarbonprocessing.
In a filing to the Seoul stock exchange on Thursday, S-Oil said it would sell a total of 38 million barrels of refined products to Saudi Aramco Products Trading Company, Aramco's trading arm.
A year ago, S-Oil signed a deal to sell up to 24 million barrels of diesel and up to 20 million barrels of naphtha to the Saudi trading firm.
Under the deal for the whole of 2017, S-Oil agreed to supply 10-28 million barrels of diesel, 6-8 million barrels of naphtha and 1-2 million barrels of jet fuel. For the diesel product, S-Oil said it would supply ultra-light sulfur diesel and light sulfur diesel, while the naphtha would be light naphtha.
S-Oil buys almost all of its crude from Saudi Aramco, which has a 63 percent stake in the Korean firm.
Most recently, in November last year, S-Oil sold 11 million barrels of naphtha to Korea Petroleum Industries Co.
As MRC informed earlier, in the late December, Sadara Chemical, a USD20bn petrochemical joint venture between national oil giant Saudi Aramco and Dow Chemical, signed a 20-year agreement with Saudi Rufayah Chemicals Co (RCC).
S-Oil Corporation is a petroleum and refinery company, headquartered in Seoul, Korea. It was established in 1976 by old name SsangYong Refinery. It produces petroleum, petrochemical, and lubricant products, as well as polysilicon products through its investment in Hankook Silicon. The company is one of the most profitable energy companies in Korea.
Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world's most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
MRC