Aramco, S-Oil sign long-term supply deal

By OGJ editors

Saudi Aramco has signed a rare long-term crude oil supply deal with S-Oil of South Korea in an apparent attempt to defray fears in the Asian country about supply losses from Iran.

Last month, the European Union’s imposed sanctions (OGJ Online, Jan. 26, 2012).

The deal assures S-Oil, in which an Aramco unit is the largest shareholder with a 35% interest, of the crude it needs for its 669,000 b/d refinery at Onsan. Aramco has been filling most of the refinery’s crude needs under contracts renewed annually.

The package of sanctions imposed by the EU in response to Iran’s nuclear development, coupled with a toughening of sanctions in place in the US, embargoes purchase of Iranian crude by EU members and complicates financing by other countries.

South Korea recently has imported about 240,000 b/d of Iranian crude, about 10% of its supply.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...