City Oil Field secures Saudi, UAE investment

From left, City Oil Field CEO Jeong Yeong-hun, ENO Partner CEO Park Se-hyun and Saudi PEDCO CEO Abdulmohsen Al-Zamil pose after signing an investment agreement at PEDCO’s headquarters in Riyadh, Saudi Arabia, Monday (local time). Courtesy of City Oil Field

City Oil Field said Thursday it has secured foreign corporate investment from PEDCO of Saudi Arabia and the United Arab Emirates, marking its official launch as a global eco-friendly energy enterprise.

The two sides signed the first round of investment contracts Monday (local time) at PEDCO’s headquarters in Riyadh, Saudi Arabia. The ceremony was attended by City Oil Field CEO Jeong Yeong-hun, PEDCO Saudi Arabia CEO Abdulmohsen Al-Zamil, PEDCO UAE CEO Edoardo Lucarelli and ENO Partner CEO Park Se-hyun.

City Oil Field said PEDCO has valued the company at about 100 billion won ($72.2 million). Under the agreement, the parties signed an initial investment deal worth $1 million, with additional funding to follow from both Saudi Arabia and the UAE.

Founded in 1991, PEDCO has worked with major Middle Eastern companies, including Saudi Aramco and the Abu Dhabi National Oil Company (ADNOC) on power, energy and special projects. The company holds exclusive rights to commercialize City Oil Field’s technology in Saudi Arabia, the UAE, Australia and New Zealand.

The investment makes City Oil Field a foreign-invested enterprise, allowing the company to benefit from tax exemptions, duty-free imports of equipment and other incentives designed to strengthen global partnerships. The company said the advantages will help reduce costs for expanding its circular plastic oil plant facilities and importing specialized equipment.

City Oil Field also becomes eligible for financing opportunities through international institutions, as well as cash grants, land-lease benefits in industrial complexes and government-backed research and development support. The company said the measures are expected to accelerate the growth of its circular plastic oil technology and the construction of new commercial plants.

Lucarelli of PEDCO UAE said his company decided to invest after visiting City Oil Field’s commercial-scale facility in Jeongeup, North Jeolla Province.

“We have followed City Oil Field’s technology with great interest for several years,” Lucarelli said. “After an on-site inspection, we concluded that its circular plastic oil technology is proven and essential for adoption in the Middle East. This is why we decided to invest, and we intend to continue making further investments in the company.”

The investment marks a major milestone for City Oil Field, which said it enhances its credibility in both global capital markets and Korea’s domestic energy industry.