Saudi Arabian Oil Company (Saudi Aramco) said it has acquired a 17 per cent stake in South Korean private oil refining company Hyundai Oilbank for $1.2 billion through its key subsidiary Aramco Overseas Company (AOC).

The completion of the stake deal follows receipt of all necessary regulatory consents and approvals from Hyundai Heavy Industries Holdings, said the statement from Saudi Aramco.

Established in 1964, Hyundai Oilbank›s business portfolio and its five subsidiaries includes oil refining, base oil, petrochemicals and a network of gas stations.

The Daesan Complex, where Hyundai Oilbank’s major facilities are located, is a fully integrated refining plant with a processing capacity of 650,000 barrels per day.

On the strategic buy, Saudi Aramco said the investment in Hyundai Oilbank supports its downstream growth strategy of expanding global footprint in key markets in profitable integrated refining, chemicals and marketing businesses.

This enables Saudi Aramco to place crude oil and leverage its trading capabilities.