Hyundai Heavy discusses joint project with Saudi minister

Updated 02 July 2016

Hyundai Heavy discusses joint project with Saudi minister

SEOUL: Hyundai Heavy Industries (HHI) is expected to enjoy another boost with its joint construction projects building turbine engine plants and shipyards in Saudi Arabia.
Korea Times reported that HHI Chairman Choi Gil-seon and President Kwon Oh-gap met Saudi Energy Minister Khalid Al-Falih in Seoul to discuss joint operations between HHI and Saudi Aramco.
Khalid Al-Falih is also chairman of Saudi Aramco.
Experts believe the meeting is expected to help the struggling shipyard’s efforts in normalizing its management if they deliver detailed outcomes over the projects.
Last November, HHI signed a general memorandum of understanding (MoU) with Saudi Aramco to jointly collaborate on business development opportunities in Saudi Arabia.
Under the agreement, HHI secured a bid preference over ships ordered by the Saudi government as well as the maintenance contract.
Chung Ki-sun, senior vice president of HHI Corporate Planning and also a grandson of Hyundai Group founder Chung Ju-yung, reportedly played a leading role behind the MoU deal with Saudi Aramco.
Saudi Aramco Chairman Khalid Al-Falih wa appointed as Saudi Energy Minister in May last year.
He also met Trade, Industry and Energy Minister Joo Hyung-hwan after the meeting with HHI officials.
Al-Falih earlier said Saudi Arabia wants to expand its investments in China’s energy industry as part of efforts to boost cooperation with a top customer.
Al-Falih’s comments were made in an e-mailed statement after discussions with China’s Vice Premier Zhang Gaoli and other officials in Beijing during a G20 ministerial meeting.
“Saudi Arabia is very keen to elevate their partnership in the energy sector to the highest level,” he was quoted as saying in the statement, published in Reuters.
He said he hoped Saudi investments could increase to cover all Chinese provinces and that there was room to grow bilateral trade in both energy and other hydrocarbons products such as petrochemicals.
Al-Falih also said he wanted to see new investment projects carried out by Saudi and Chinese sovereign wealth funds, and added that the two countries shared interest in crude oil storage, mining, renewable energy and industrial development.
Both Saudi Aramco and petrochemicals conglomerate Saudi Basic Industries Corp. (SABIC) have joint venture businesses in China and new projects under development.

In January, Aramco said it was also in advanced talks to invest in refineries in China. SABIC said in May it had agreed to build another petrochemical factory there.

Saudi minister Al-Falih says Aramco IPO likely in 2019

Updated 25 May 2018

Saudi minister Al-Falih says Aramco IPO likely in 2019

  • Energy Minister Khalid Al-Falih: “We are ready, the company (Saudi Aramco) essentially has ticked all the boxes. We’re simply waiting for a market readiness for the IPO.”
  • Khalid Al-Falih: “Most likely it will be in 2019 but we will not know until the announcement has been made. All I could say is stay tuned.”

RIYADH: Saudi Arabia is most likely to hold the initial public offering (IPO) of oil giant Aramco in 2019, Energy Minister Khalid Al-Falih said on Friday, confirming a delay from the initial plan to list the company this year.

“The timing I think will depend on the readiness of the market, rather than the readiness of the company or the readiness of Saudi Arabia,” Khalid Al-Falih, who’s also the company’s chairman, said at the St. Petersburg International Economic Forum in Russia on Friday.

“We are ready, the company essentially has ticked all the boxes,” he said. “We’re simply waiting for a market readiness for the IPO.”

For almost two years, Saudi officials said the IPO was “on track, on time” for the second half of 2018. But for the first time in March they suggested it could be delayed until 2019.

“Most likely it will be in 2019 but we will not know until the announcement has been made,” Al-Falih said. “All I could say is stay tuned.”

The Aramco IPO would be a once-in-a-generation event for financial markets. Saudi officials said they hope to raise a record $100 billion by selling a 5 percent stake, valuing the company at more than $2 trillion and dwarfing the $25 billion raised by Chinese retailer Alibaba Group Holding Ltd. in 2014.