Saudi Aramco, South Korea S-Oil sign long-term supply deal

Saudi Aramco has signed a rare long-term crude oil supply deal with S-Oil of South Korea in an apparent attempt to defray fears in the Asian country about supply losses from Iran.

Last month, the European Union’s imposed sanctions (OGJ Online, Jan. 26, 2012).

The deal assures S-Oil, in which an Aramco unit is the largest shareholder with a 35% interest, of the crude it needs for its 669,000 b/d refinery at Onsan. Aramco has been filling most of the refinery’s crude needs under contracts renewed annually.

The package of sanctions imposed by the EU in response to Iran’s nuclear development, coupled with a toughening of sanctions in place in the US, embargoes purchase of Iranian crude by EU members and complicates financing by other countries.

South Korea recently has imported about 240,000 b/d of Iranian crude, about 10% of its supply.

Oil Gas Journal

2 Comments on "Saudi Aramco, South Korea S-Oil sign long-term supply deal"

BillT on Fri, 10th Feb 2012 3:04 pm 



I suspect that S.Korea will still import Iranian oil. Lets see if the Saudis have it to sell. However, I am sure China will absorb any that SK does not buy.

DC on Fri, 10th Feb 2012 3:54 pm 



The US can keep trying to bully the world and dicate who buys what from whom. But oil is a key commodity, and I really dont think Iran will have too much trouble finding buyers. I mean, what is the US going to do if people keep buyinf Irans Oil..sink some tankers? Blow up a pipeline or two? What would really be ideal is for the US to keep up its hysterical shrieking about non-existant A-bombs and hopefully that sends the price of oil through the roof. See how joe-6 pack squeals like a little girl when his financed chevy truck costs 175 dollars to fill.