South Korean refiner Hyundai Oilbank has agreed to sell a 90pc stake in its oil terminal affiliate and invest the proceeds in an expansion of its hydrogen and new energy businesses.
Oilbank is selling the stake in its Hyundai Oil Terminal arm to local financial firm J&Private Equity for 200bn won ($174mn). The terminal business, which rents oil product tanks in Ulsan and Pyeongtaek with around 2.4mn bl of capacity, made a profit of W10.9bn on sales of W45.2bn last year.
Oilbank said it will continue to store products in the terminals for export to China and Japan after the sale.
"We have decided to sell our stake to restructure the existing oil refining business and focus on eco-friendly future businesses," the company said.
Oilbank sees its refining operations accounting for 45pc of total sales by 2030, down from 85pc now. It has set a target for eco-friendly businesses, including blue hydrogen and environmental chemicals, to account for 70pc of operating profits by the end of this decade.
The company plans to produce and sell 100,000 t/yr of blue hydrogen by 2025.
Oilbank operates the 395,000 b/d Daesan refinery. It is majority owned by South Korean firm Hyundai Heavy Industries, with state-controlled Saudi Aramco holding a 17pc stake.
