The Saudi Arabian Oil Company (Saudi Aramco) announced Monday it reached an agreement for its subsidiary Aramco Overseas Company B.V. (AOC) to purchase a 17 percent stake in Hyundai Oilbank, a subsidiary of Hyundai Heavy Industries Holdings.
The investment is valued at $1.25 billion, Saudi Aramco said in a statement. The agreement also included an option for Saudi Aramco to acquire an additional 2.9 percent stake, Reuters reported.
The agreement supports Saudi Aramco’s crude oil placement strategy by providing a dedicated Arabian crude oil outlet to South Korea, the company said.
“Saudi Aramco continues to strengthen its position in the downstream sector,” Abdulaziz Al-Judaimi, senior vice president, said in a statement. “This acquisition demonstrates our investment in the highly complex refining sector in Asia and continuous commitment to the region’s energy security and development.”
Saudi Aramco announced a 2018 profit of $111.1 billion, which made it the most profitable company in the world, The New York Times reported.