Two top executives from Saudi Aramco and Acwa Power will now represent Saudi Arabia’s state-owned investment vehicle, Public Investment Fund’s (PIF) interests on the board of Posco Engineering & Construction.

Aramco’s executive director Ahmed al-Subaey and Acwa Power chairman Mohammad Abunayyan are the new board members recommended by the Saudi fund, the second-largest shareholder in the company, the Korea Herald cited a company statement as saying.

The appointments are part of the $1.1bn deal which gave PIF a 38 per cent stake in Posco E&C, the construction arm of Posco. The transaction completed in June this year allows PIF two seats on the board of one of the largest South Korean contractors.

The deal was part of Posco’s efforts to secure international vendors for infrastructure projects. Saudi Aramco, the state-owned oil producer and Acwa Power, one of the top power producers, are among the biggest clients for oil and gas and the power and energy related projects in the Middle East and North African region.

The new board is likely to step up plans to establish a joint venture focused on a series of infrastructure projects including a railway, hotel and other construction projects undertaken by the Saudi Arabian government, the South Korean publication cited industry watchers as saying.

Aramco’s Al-Subaey, who served refiner S-Oil as chief executive between 2008 and 2012, will take an advisory role for top management of POSCO E&C as the firm’s vice president and a standing board member, while maintaining his status at Saudi Aramco, according to the South Korean newspaper.

“The company expects Al-Subey, who proved his leadership skills at a major South Korean refinery and raised the understanding of Korea and Korean culture, will be able to play a bridging role between Posco E&C and PIF,” the paper quoted a company official as saying.