South Korea’s state-run national oil company has entered into an agreement with the Saudi Arabian oil giant, Aramco, to establish a shared crude oil reserve of 5.3 million barrels over a five-year period.
This partnership was announced during a press conference posted on the blog of South Korea’s National Oil Company, coinciding with South Korean President Moon Jae-in’s visit to Riyadh for talks with Saudi Crown Prince Mohammed bin Salman and other business events.
According to the South Korean oil company, by storing Aramco’s oil in its facilities, it will be able to enhance energy security. Immediate comments from Aramco were not available at the time of this report.
The office of the South Korean President revealed yesterday that the oil would be stored at a facility in the coastal city of Ulsan, in the southeastern region of Korea. South Korea has also secured the right to preferentially purchase the stored oil in emergency situations and will receive rental fees for the five-year period.
South Korea ranks as the fifth-largest buyer of crude oil globally, with Saudi Arabia being its primary supplier. This agreement further solidifies their energy cooperation and ensures a stable supply of crude oil for South Korea’s growing energy needs.
