South Korea's refiner S-Oil Corporation said Monday it has signed a 1.2 trillion won (US$1.1 billion) deal with Saudi Aramco's trading unit to supply light oil and naphtha by the end of this year.
S-Oil said it will supply 14 million barrels of light oil and 28 million barrels of light naphtha to Saudi Aramco Products Trading Company, which in turn will give 120,000 tons of paraxylene and 2 million barrels of heavy naphtha to the Korean refiner, Yonhap news agency reported.
Saudi Aramco, the world's largest crude exporter, increased its stake in S-Oil to 63.4 percent in a 2 trillion won stake deal last month.
"S-Oil could further tap into the global market by taking advantage of Saudi Aramco's sales channels," the firm said in a release. "The deal is expected to create synergy in the global market for both of the companies."