Aramco calls for Korea to join 5-year projects

By Kang Seung-woo

The chief executive of Saudi Aramco, Saudi Arabia’s state-run oil company, Tuesday called for Korean companies to join its five-year domestic and global projects worth $125 billion (135 trillion won).

“Saudi Aramco’s capital program holds tremendous potential for Korean companies which can meet our standards and deliver on our expectations,” Saudi Aramco CEO Khalid Al-Falih told local business leaders in a meeting organized by the Korea Chamber of Commerce and Industry (KCCI).

He and the company’s other senior executives are in Seoul to attend a company board meeting this week.

“I would like to see Korean companies adopt a forward-looking strategy in which they invest in the ability to manufacture and maintain materials and equipment in Saudi Arabia, rather than simply supporting us and the Middle East region from over the horizon here in Korea,” he said.

According to him, Aramco will increase its daily refining capacity from its current four million barrels to more than 6 million barrels per day.

“That growth will be accomplished through two new refineries already in progress in the Kingdom (of Saudi Arabia), with four more grassroots refineries currently being considered, including one at Jaizan in Saudi Arabia and joint-venture refinery projects being looked at in China, Vietnam and Indonesia,” the CEO said.

In addition, he showed interest in renewable energy such as natural gas and petrochemical sectors, saying “Saudi Aramco isn’t just about petroleum production. We are also one of the world’s largest producers of natural gas, a major player in refining, and we are quickly ramping up our petrochemical activities.”

The Saudi Arabian company is the largest shareholder of S-Oil, a Korean oil refiner, with 35 percent.