Saudi Arabian oil group Saudi Aramco intends to acquire a 19.9% stake in South Korea's fourth largest oil refining company, Hyundai Oil, from Hyundai Heavy Industries Holdings, which owns a 91.13% stake in the company. The transaction is estimate at KRW1,800bn (US$1.6bn). Hyundai Oil has a refining capacity of 650 000 bbl/d, produces petrochemicals and has an oil terminal at Ulsan. The company aims to expand its petrochemical business and operates 2,400 gas stations and vehicle charging stations around South Korea.
In 2017 the oil refining and distribution sector of South Korea was dominated by SK Group, with a refining capacity of 1.1 mb/d, followed by GS-Caltex (GS Holdings -50% and Chevron - 50%) with 775 000 bbl/d and, S-Oil Corporation (669 000 bbl/d). Saudi Aramco already holds a 63.41% stake in S-Oil.
South Korea depends on imports to meet its entire oil demand and the country imported 151 Mt in 2017, mainly from Middle Eastern suppliers. In 2018 South Korea imported 44 Mt from Saudi Arabia, i.e. around 29% of its total oil imports. Thanks to the increase in its refining capacities, South Korea has been a net exporter of oil products since 1997. In 2017, net oil product exports stood at around 29 Mt.