Hyundai Heavy says Aramco buys 17% stake in S.Korean refiner unit for $1.2bn

State-owned Saudi Aramco has agreed to buy a 13 percent stake in South Korean oil refiner Hyundai Oilbank for $1.24bn. (File photo/AFP)
Updated 15 April 2019
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Hyundai Heavy says Aramco buys 17% stake in S.Korean refiner unit for $1.2bn

  • Saudi Aramco reached an agreement to acquire a $1.24 billion stake in South Korean refiner Hyundai Oilbank
  • It would provide Saudi Arabia's state-run oil company with a dedicated outlet for its crude to South Korea

SEOUL: The biggest shareholder in South Korean oil refiner Hyundai Oilbank said on Monday that state-owned Saudi Aramco had agreed to buy a 17 percent stake in its oil processing operations for 1.4 trillion won ($1.24 billion).
Hyundai Heavy Industries Holdings said in a regulatory filing that it had signed a sales agreement with Saudi Aramco that included an option for Aramco to buy an additional 2.9 percent stake in Hyundai Oilbank.
The agreement, reached with an Aramco subsidiary, Aramco Overseas Co. B.V (AOC), will support the mother company’s crude oil placement strategy by providing a dedicated outlet for Arabian crude oil to South Korea, Aramco said in a statement.
In late January, Hyundai Heavy said Aramco planned to invest up to $1.6 billion for as much as 19.9 percent of the South Korean refiner to expand its foothold in the country.
Aramco bought the stake in the unlisted refiner for 33,000 won per share, which is slightly lower than its initially planned price, reflecting market conditions, said an official at Hyundai Heavy who provided no further details.
The investment is meant to support Aramco’s broader downstream growth strategy and provide long-term crude oil options and offtakes as part of the company’s trading business, Abdulaziz Al-Judaimi, Aramco’s senior vice president of downstream, said in the statement.
Hyundai Heavy has said it plans to “reconsider” listing its refinery arm after completing the stake sale.
The Hyundai Heavy official said the company would take its time in deciding whether to go ahead with its refining arm’s public listing, without setting a timeframe.
Hyundai Oilbank, South Korea’s smallest refiner by capacity, has a total of 650,000 barrels per day of refining capacity in the southwestern city of Daesan and aims to expand its petrochemical business.


Paris Air Show: After Boeing showstopper, Airbus seeks order bounce

Updated 19 June 2019
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Paris Air Show: After Boeing showstopper, Airbus seeks order bounce

  • British Airways owner IAG signs letter of intent to buy 200 of its 737 MAX jets
  • Airbus is looking for up to 200 orders for the A321XLR, which is designed to open up new routes

PARIS: Airbus, reeling from the potential loss of a major customer for its best-selling A320neo as British Airways owner IAG placed a lifeline order for the grounded 737 MAX, prepared to hit back with more orders for its A321XLR on Wednesday.
The planemaker has been negotiating with US airlines investor Bill Franke whose Indigo Partners has also been known to place orders for multiple airlines within its portfolio and could reel it in for the Paris Air Show, industry sources said.
Airbus declined to comment.
After weathering intense scrutiny over safety and its public image, Boeing won a vote of confidence on Tuesday as IAG signed a letter of intent to buy 200 of its 737 MAX jets that have been grounded since March after two deadly crashes.
The surprise order lifted the energy of a previously subdued Paris Airshow, where the talk had been of the possible end of the aerospace cycle, given the issues at both Boeing and Airbus as well as geopolitical and trade tensions around the world.
Australia’s Qantas Airways said on Tuesday it would order 10 Airbus new A321XLR jets and convert a further 26 from existing orders already on the Airbus books.
Airbus is also in talks with leasing company GECAS and has been trying to secure an eye-catching order for the A321XLR from American Airlines, though the world’s largest carrier does not typically make announcements at air shows.
Airbus is looking for up to 200 orders for the A321XLR, which is designed to open up new routes.