KNOC signs 5.3 mln barrel oil storage deal with Saudi’s Aramco

By Nada Ali On Oct 23, 2023

Crude oil storage tanks at the Juaymah Tank Farm in Saudi Aramco's Ras Tanura oil refinery and oil terminal in Ras Tanura, Saudi Arabia — Image Credits to Simon Dawson | Bloomberg

South Korea’s state-run Korea National Oil Corp (KNOC) announced on Monday that it has signed a deal with Saudi Arabia’s oil giant Aramco to store 5.3 million barrels for five years, in line with efforts to secure a stable supply of energy sources.

KNOC will reserve the barrels in the southeastern industrial city of Ulsan, with South Korea having priority purchasing rights in case of a supply crisis, according to the terms of the agreement.

The signing agreement came as South Korean President Yoon Suk Yeol is visiting Riyadh for talks with Saudi Crown Prince Mohammed bin Salman and to attend other business events.

However, Saudi Arabia is the biggest crude supplier to South Korea, providing around 236 million barrels in the first eight months this year, including barrels from the Saudi-Kuwaiti Neutral Zone, latest KNOC data showed.