Saudi Aramco has announced that it has acquired a 17 per cent stake in Hyundai Oilbank, a South Korean private oil refining company for $1.2 billion. The acquisition was made through Saudi Aramco’s key subsidiary, Aramco Overseas Company (AOC).

According to a statement from Saudi Aramco, the completion of the stake deal follows receipt of all the necessary regulatory consents and approvals from Hyundai Heavy Industries Holdings.

The Daesan Complex, where Hyundai Oilbank’s major facilities are located, is a fully integrated refining plant with a processing capacity of 650,000 barrels per day. Hyundai Oilbank established in 1964, has five subsidiaries including oil refining, base oil, petrochemicals and a network of gas stations.

Saudi Aramco stated that its investment in Hyundai Oilbank supports its downstream growth strategy of expanding global footprint in key markets in profitable integrated refining, chemicals, and marketing businesses.

This enables Saudi Aramco to place crude oil and leverage its trading capabilities, it stated.