S-Oil to supply $2.66 bil worth of oil products to Saudi Aramco in 2020

Seoul — S-Oil Corp, South Korea's third-biggest refiner, will supply Won 3.14 trillion ($2.66 billion) worth of refined oil products to Saudi Aramco's trading arm this year, a company official said Thursday.

As per the deal with Aramco Trading Singapore, S-Oil will provide a total of 36 to 44 million barrels of oil products over January 1 to December 31, 2020, the official said.

The products include 9 to 10 million barrels of gasoil, 10 to 11 million barrels of jet fuel, 6 to 8 million barrels of gasoline, 11 to 15 million barrels of naphtha and 40,000 barrels of MTBE, the official said.

S-Oil, which is 63.4% owned by Aramco Overseas Co., a subsidiary of Saudi Aramco, imports 90% of its crude oil needs from Saudi Arabia -- mostly Arabian Light and Arabian Medium.

For 2019, the refiner provided Won 2.61 trillion worth of refined oil products, including 10 to 17 million barrels of gasoil, 9 to 12 million barrels of jet fuel, and 4 to 5 million barrels of gasoline, to Saudi Aramco.

In November 2018, S-Oil started commercial production at a residue upgrading complex and olefin downstream complex in the Onsan complex on South Korea's southeast coast.

The new facility is producing 21,000 b/d of gasoline, 405,000 mt/year of polypropylene and 300,000 mt/year of propylene oxide.

S-Oil runs three CDUs -- No. 1 with 90,000 b/d, No. 2 with 240,000 b/d and No. 3 with 250,000 b/d, as well as condensate fractionation unit with a capacity of 89,000 b/d. This makes its total refining capacity 669,000 b/d.