Aramco Overseas Company B.V., a subsidiary of the Saudi Arabian Oil Company (Saudi Aramco), has agreed in principle to acquire Seoul-based Hanjin Group’s entire stake in S-OIL Corporation comprising approximately 32 million shares representing 28.4% of the issued and outstanding common shares of S-OIL, for a total amount of Korean won 1,982,982,332,000 (approximately US $1.95 billion). This share purchase will increase AOC’s ownership interest in S-OIL from 34.99% to 63.4%. The transaction is contingent on the execution of formal transaction agreements and regulatory approvals.

In commenting on the transaction, AOC’s Managing Director Fahad Abdul Kareem emphasized AOC’s unwavering commitment to maintaining the sound financial performance of S-OIL and to enhancing the value of the business and its competitive market position.

“This transaction underscores Saudi Aramco’s confidence in the Korean economy and its strategy to enhance its presence in the growing Asian markets and AOC’s commitment to S-OIL growth.” said Khalid A. Al-Falih, Saudi Aramco President and Chief Executive Officer, while expressing his gratitude to Hanjin Group “for a mutually rewarding partnership with Aramco Overseas Company in S-Oil over the past 7 years,” and communicating Saudi Aramco’s wishes for the Group’s future success.

Hanjin said last December it is interested in selling its ownership interest in S-OIL as part of its efforts to ease financial troubles at parent company Korean Air Lines Co.

Aramco Overseas Company B.V. provides support services to Saudi Aramco and through its investments and joint ventures forms an integral part of the global Saudi Aramco oil, gas and chemicals enterprise. It has been a major shareholder of S-OIL since 1991.

Saudi Aramco is a fully integrated, global energy and chemicals enterprise and the world’s top exporter of crude oil and natural gas liquids.

S-Oil’s refinery, southeast of Seoul, in Ulsan, South Korea, one of the world’s largest refineries, includes a base oil plant with capacity to make 41,000 bpd of API Group II and III base stocks.