09 February 2012 08:09 [Source: ICIS news]
SINGAPORE (ICIS)--S-Oil said on Thursday it has signed a 20-year crude oil supply contract with Saudi Aramco as the South Korean refiner and aromatics producer seeks to secure supplies amid “serious volatility” in the oil market.
The supply contract, which was signed on 8 February, will enable S-oil to secure a stable supply of the crude volume required to run its refinery operations for the next 20 years, the company said in a statement.
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“A crude supply contract from the world’s largest oil producing country at a time of serious volatility in the market [because of] an embargo against Iranian crude and threats to block the Straits of Hormuz will ensure stability in the company’s refinery operations,” an S-Oil company official added.
The crude supply contract is “highly unusual” in the market where a year-long supply contract is the norm, according to S-Oil.
S-Oil’s refining capacity is 669,000 bbl/day and Saudi Aramco’s total annual supply volume to S-Oil is around 230m barrels, the South Korean firm added.
Financial details of the supply contract were not disclosed.
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