S-Oil signs 20-year Saudi deal

Posted by | February 15, 2012 | Uncategorized

S-Oil said it signed a 20-year contract to buy crude from Saudi Arabia as South Korea seeks to secure supplies and reduce dependence on Iran under pressure from the US to halt doing business with the Islamic Republic. 

President Lee Myung-bak is touring Gulf producers to tap alternative sources to feed Asia’s fourth-largest economy’s energy demand. The pressure to stop dealing with Iran increased after the US imposed fresh sanctions. 

Saudi Aramco owns the largest stake in S-Oil, with 35 per cent, and the South Korean refiner does not buy any oil from Iran. The long-term supply contract is “highly unusual” in a market where one-year supply deals are the norm.

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