Hyundai E&C signs $5 bil. petrochemical deal with Aramco

Minister of Land, Infrastructure and Transport Won Hee-ryong, back row center, poses with government officials and private business leaders of Korea and Saudi Arabia, after signing a contract between Hyundai Engineering & Construction and Aramco, June 24 (local time). Courtesy of Ministry of Land, Infrastructure and Transport

Korean builder to build mega plant in Middle Eastern country

By Lee Kyung-min

Hyundai Engineering & Construction signed a $5 billion (6.4 trillion won) deal with Saudi Arabia's state oil company Aramco to build a mega complex for petrochemical production in the Middle Eastern country, the land ministry said Sunday.

The deal, which will advance the Amiral project packages No. 1 and 4, is the largest contract won by a Korean builder with Saudi Arabia. Aramco is the owner of Amiral Petrochemical Plant.

The Ministry of Land, Infrastructure and Transport said Korean-Saudi cooperation will take a further mutually beneficial turn, as underpinned by Korea's expertise in construction and city planning helping the oil-rich country move away from fossil fuels.

It added the deal will enable Aramco's petrochemical plant construction project in Jubail, Saudi Arabia, to produce petrochemical products including ethylene.

The deal will push up the country's overseas construction orders in the first six months of this year to $13.7 billion, exceeding last year's $12 billion.

Minister of Land, Infrastructure and Transport Won Hee-ryong said the deal was a result of President Yoon Suk Yeol's commitment reiterated with Saudi Crown Prince Mohammed bin Salman last November.

“The leaders of the two countries agreed to develop bilateral relations into a future-oriented strategic partnership, thereby promoting large-scale economic cooperation in the energy and infrastructure sectors,” Won said at the signing ceremony.

Korea launched the “One Team Korea” initiative last year to fortify cooperation with Saudi Arabia and build momentum for the “Second Middle East boom.” The minister has since continued diplomatic efforts to maintain close relations with transport energy authorities of Saudi Arabia as well as private leaders, including the Aramco CEO.

Won visited Saudi Arabia, June 22 (local time), and met with Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud to strengthen energy cooperation.

The next day, Won visited the Marjan oil and gas field located in the Arabian Gulf, off the eastern coast of Saudi Arabia. The site is where construction projects overseen by Hyundai affiliates are in progress.

A total of $156.5 billion in overseas construction orders have been signed between Korea and Saudi Arabia as of March. This accounts for 17 percent of Korea's total overseas construction orders over the past five decades worth $925 billion, according to the ministry. It is twice the $83.1 billion from the United Arab Emirates.

Earlier this year, the Yoon Suk Yeol administration pledged policy assistance to win $50 billion in overseas construction orders every year until 2027.