Saudi Aramco said it has signed one deal and nine memoranda of understanding (MoUs) with South Korean companies spanning manufacturing and low carbon energy development as well as financing.

The state-owned oil company signed the deals at the Saudi-Korean Investment Forum in Riyadh on Tuesday.

“The agreements seek to deepen collaboration between Aramco and leading Korean companies to unlock new opportunities in the fields of advanced technology, manufacturing and finance, illustrating Aramco’s commitment to driving development through global partnerships,” said Amin Nasser, Aramco president and chief executive.

The oil company signed an agreement with South Korea’s Doosan Heavy Industries & Construction Company and the Saudi Arabian Industrial Investments Company, Dussur, to set up a casting and forging unit to manufacture valves, pumps, compressors, wellheads and gas and wind turbines to boost local content.

Aramco also signed preliminary agreements with Korean energy companies such as Kepco, S-Oil, Posco, Hyundai Oilbank, H2Korea and Lotte Chemical to explore potential collaboration in the supply, transportation, utilisation and certification of hydrogen and ammonia.

The companies will study the feasibility of converting exported ammonia into hydrogen, first steps towards setting up a potential large-scale production facility for hydrogen and ammonia in Saudi Arabia, which would also include a Carbon Capture and Storage (CCS) facility.

It also signed an agreement with the Export-Import Bank of Korea to explore strategic financing solutions to support Aramco's business and investment activities involving South Korean companies.

Elsewhere, Public Investment Fund (PIF), the kingdom’s sovereign wealth fund, signed a preliminary deal with Korean firms Posco and Samsung C&T to develop a green hydrogen production project in the kingdom.

In all, 13 agreements were signed at the forum, which was organized by Ministry of Investment of Saudi Arabia.

The various agreements include:

  • The Ministry of Investment’s agreement with Samsung C&T to help it develop and localise industries related to construction technologies, green products and building and financing infrastructure projects.
  • ROSHN and Samsung C&T agreed to establish a non-exclusive framework to jointly explore opportunities in housing development and pre-cast concrete blocks.
  • The Korean Intellectual Property Office and the Saudi Authority for Intellectual Property (SAIP) signed advanced partnership arrangements for bilateral cooperation, including the secondment of Korean experts to SAIP
  • The Ministry of National Guard signed a letter of intent agreement with EzCaretech to jointly provide and implement Dr. Answer – an artificial intelligence-based medical solutions tool – within targeted hospitals.
  • Kumho Tire and Al-Sahm Al-Usud for Tires signed a technical partnership agreement to establish a factory for tire production.

 (Reporting by Brinda Darasha; editing by Seban Scaria)

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