Saudi Arabian oil giant signs high value contract with Korean bank

Saudi Aramco, the state-owned oil company of Saudi Arabia and owner of the Valvoline lubricant brand, recently signed a new financial agreement with the Export-Import Bank of Korea.

Valued at $3 billion, the transaction is designed to support domestic businesses winning new orders in the Middle East and seeks to stabilise the energy supply chain.

The Korean financial institution announced that its President, Hwang Ki-Yeon, and Chief Financial Officer for Aramco, Ziad Al-Murshed, met at the bank’s Seoul headquarters and completed the document, referred to as a “Framework Agreement Individual Loan Financial Contract”.

The Framework (Master) Agreement is a pre-emptive financial system for cooperation established with Aramco, the bank’s most significant client based in the Middle East and a key supplier of domestic crude imports.

Through its support, the Korean bank expects to improve the competitiveness of domestic enterprises in securing orders within the Middle East region, while simultaneously strengthening the stability of the supply chain through critical resources like crude oil.

In a statement, the bank’s President called the recently inked contract an important milestone that took the cooperative relationship between Saudi Aramco and the Export-Import Bank of Korea to another level. He commented that the bank anticipated the expanded involvement of Korean companies in new largescale projects being promoted by the Saudi Arabian oil company.

This is not the first time that Saudi Aramco-led projects have received support from the bank. Two previous examples include the cogeneration plant project in the Jafurah gas field and the Saudi Amiral petrochemical facility.

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