[韓-사우디 경제협력]
Korea, priority purchase rights for crude oil reserves in case of emergency
“Expectation for leadership in Saudi oil market”
Exchange of opinions regarding Muhammad and the Middle East war
“We will cooperate in providing humanitarian support, etc.”
“As uncertainty in the international crude oil market increases, we hope that Saudi Arabia, a key energy market country and crude oil exporter, will demonstrate leadership to stabilize the market.”
President Yoon Seok-yeol said this at a summit meeting with Saudi Crown Prince and Prime Minister Mohammed bin Salman held at Yamama Palace in Saudi Arabia on the 22nd (local time). President Yoon repeatedly emphasized the need for energy security cooperation, saying, “Korea is Saudi Arabia’s optimal partner in the post-oil era.”
This is interpreted as a reflection of President Yoon’s strong will to strengthen energy security in Korea, which is more than 90% dependent on energy imports. The focus was on energy security in a situation of increasing external uncertainty, such as increased volatility in international oil prices due to the intensification of the Middle East war between Israel and Hamas following the war in Ukraine. It is also said that it contains the meaning that the two countries will work together to envision the future of a ‘decarbonized economy’.
The President’s Office announced on the 22nd that following the Korea-Saudi summit, a contract to jointly stockpile 5.3 million barrels of crude oil was signed between Korea National Oil Corporation and Saudi Arabia’s state-run oil company Aramco. Accordingly, Aramco will store and sell 5.3 million barrels of crude oil at the Ulsan storage base by 2028. Korea has the right to preferentially purchase Aramco’s stored crude oil in case of an oil supply emergency and is also guaranteed rental income during the five-year lease period. Previously, during his state visit to the United Arab Emirates (UAE) in January, President Yoon signed an international joint reserve project agreement to secure priority purchasing rights for 4 million barrels of oil from the UAE. Choi Sang-mok, Senior Secretary to the President for Economic Affairs, gave significance to this as “a discussion between the leaders that took place at a time when the safety of energy supply is becoming important.”
The two leaders also emphasized Saudi Arabia’s carbon neutrality cooperation and the need for the two countries to strengthen cooperation in responding to climate change. In an interview with local media Al Riyadh, President Yoon also said, “Saudi Arabia is demonstrating leadership in responding to climate change through the Saudi Green Initiative and the Middle East Green Initiative,” and added, “Korea is investing in high-efficiency plants such as nuclear power plants and hydrogen to accelerate the implementation of carbon neutrality.” He emphasized, “There is great room for cooperation between the two countries as we seek to develop carbon capture, utilization and storage technology (CCUS) while making extensive use of carbon-free energy (CFE).” He also said, “As Saudi Arabia has strengths in hydrogen production based on renewable energy and natural gas, we hope to work together to realize the hydrogen economy.”
Prior to the meeting, President Yoon said that Hyundai Engineering & Construction won the contract for the ‘Amiral Project’ to build a petrochemical plant in June, saying, “It is a great achievement commemorating the 50th anniversary of entering Saudi construction.” We also requested Crown Prince Muhammad’s interest in allowing our companies to participate in mega projects such as Neom, Qiddiya, and Red Sea. President Yoon also said in a local media interview, “The Saudi Ministry of Interior building in downtown Riyadh was built by a Korean company (Hyundai Engineering & Construction),” adding, “I expect that Korean companies will be good partners in Saudi Arabia’s future construction of new cities such as Neom.” “I think,” he said. Crown Prince Mohammed responded to President Yoon, saying, “I look forward to communicating and cooperating more frequently with President Yoon to develop practical cooperation on ‘Vision 2030,’ Saudi Arabia’s national development strategy.”
While President Yoon and Crown Prince Mohammed also exchanged opinions on the situation in the Middle East, where instability is increasing due to the armed conflict between Israel and Hamas, President Yoon promised to provide necessary cooperation, including humanitarian support. Previously, President Yoon said in an interview, “With international security instability deepening due to North Korea’s nuclear and missile provocations, armed conflict between Israel and Hamas, and the war in Ukraine, this Korea-Saudi summit will discuss how the two countries can work together for world peace and sustainable development. “It will be an opportunity to exchange opinions on whether to contribute,” he said, which can be interpreted as an extension of his remarks.
In an interview, President Yoon also said, “It is very concerning that North Korea and Russia held a summit meeting and discussed military cooperation.” He also emphasized, “As Saudi Arabia has maintained a firm stance of support for nuclear non-proliferation on the international stage, Korea seeks to actively cooperate with Saudi Arabia in blocking North Korea’s nuclear and missile provocations and their development.” He requested Saudi Arabia to actively cooperate with the international community’s sanctions and pressure for North Korea’s denuclearization.
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Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.