Abu Dhabi-based International Petroleum Investment Company (IPIC) is expected to take a decision by mid April on a proposal to provide up to $900 million-worth of credit to South Korea's Hyundai Oil Refinery Company (HDO), also known as Hyundai Oilbank.
Industry sources say that HDO is under financial pressure due to growing domestic competition among refiners and the high prices of crude in global markets. IPIC holds 50 per cent of the shares in HDO.
'It [the credit] will not be a direct financial investment. IPIC will provide credit for crude oil imported from ADNOC[ Abu Dhabi National Oil Company]under term contracts, furnish letters of guarantee to banks who provide loans to HDO and related financial measures,' says one industry source.
In late 1999, the board of directors of IPIC and HDO approved the takeover of a 50 per cent stake in the Korean refiner by IPIC. The deal was valued at $510 million and included increasing HDO's offtake of crude oil from ADNOC (MEED 29:10:00).
HDO has an installed capacity to refine 665,000 barrels a day of crude oil, which is supplied to more than 2,000 petrol stations in South Korea.
You might also like...
Countries sign Iraq to Europe road agreement
26 April 2024
Jubail 4 and 6 bidders get more time
26 April 2024
Amiral cogen eyes financial close
26 April 2024
Lunate acquires 40% stake in Adnoc Oil Pipelines
26 April 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.