S-Oil signs 1.2 trillion won deal with Saudi Aramco unit

By Park Si-soo

S-Oil Corp announced Monday that it signed a 1.2 trillion won ($1.1 billion) deal with Saudi Aramco's trading arm to supply diesel and naphtha by the end of this year.

The deal calls for the Seoul-based refiner to supply 14 million barrels of light oil and 14 million barrels of light naphtha to Saudi Aramco Products Trading.

In return, S-Oil will receive 120,000 tons of paraxylene and 2 million barrels of heavy naphtha from the trading company.

“S-Oil could further tap into the global market by taking advantage of Saudi Aramco’s sales channels,” the refiner stated in a press release. “The deal is expected to create synergy in the global market for both of the companies.”

Saudi Aramco, the world's largest crude exporter, increased its stake in S-Oil to 63.4 percent in a 2 trillion won stake deal last month.