Aramco affiliate S-OIL to build one of the world’s largest petrochemical crackers in South Korea

— Biggest ever Aramco investment in South Korea contributes to a stable
supply of feedstock
— First commercial deployment of Aramco’s TC2C(TM) thermal crude to
chemicals technology developed in collaboration with Lummus Technology
— S-OIL’s chemical yield based on volume anticipated to almost double to
25% upon project completion

Aramco is making its
biggest ever investment in South Korea to develop one of the world’s largest
refinery-integrated petrochemical steam crackers through its S-OIL affiliate, in
line with the company’s strategy to maximize the crude to chemicals value chain.

The $7 billion Shaheen project aims to convert crude oil into petrochemical
feedstock and would represent the first commercialization of Aramco and Lummus
Technology’s TC2C thermal crude to chemicals technology, which increases
chemical yield and reduces operating costs. It follows an earlier $4 billion
investment into the first phase of the petrochemical expansion completed in
2018.

Located at S-Oil’s existing site in Ulsan, the new plant is planned to have the
capacity to produce up to 3.2 million tons of petrochemicals annually and
include a facility to produce high-value polymers. The project is expected to
start in 2023 and be completed by 2026.

The steam cracker is expected to process by-products from crude processing,
including naphtha and off-gas, to produce ethylene — a building block
petrochemical used to make thousands of everyday items. The plant is also
expected to produce propylene, butadiene and other basic chemicals.

Aramco President & CEO, Amin H. Nasser, said: “The global petrochemical
landscape is rapidly evolving with demand growth anticipated to accelerate,
driven in part by rising consumption from Asia’s emerging economies. That is why
S-Oil’s Shaheen is well positioned to meet rising demand for the materials that
will be required across the region’s key industries. By further integrating
refining and chemical processes through the first commercialization of Aramco’s
thermal crude to chemicals technology, we aim to create a more efficient,
competitive and sustainable platform for growth, while paving the way for
further downstream expansion.”

Aramco Senior Vice President of Downstream, Mohammed Y. Al Qahtani, said:
“Shaheen aspires to be a gamechanger not only for S-OIL in South Korea, but also
for our global chemicals business, allowing us to process a greater range of
feedstocks in a more efficient and less energy-intensive way. The project
represents the first large-scale deployment of Aramco’s thermal crude to
chemicals technology and shows how, through better design, we can contribute to
the transition to more efficient and more sustainable production processes.”

The new steam cracker is planned to use mixed feedstocks, outperforming
naphtha-based crackers in terms of overall efficiency and performance. Upon
project completion, S-OIL chemical yield based on volume could almost double to
25%, which demonstrates the impact of this cutting-edge technology,
complementing Aramco’s strategy to expand its liquids to chemicals capacity to
up to 4 million barrels per day.

Aramco is the majority shareholder of S-OIL, holding more than 63% of the
company’s shares through its Aramco Overseas Company B.V. subsidiary.

Contact Information

International Media Relations: international.media@aramco.com

Investor Relations: investor.relations@aramco.com

Aramco [https://twitter.com/Aramco]

About Aramco

Aramco is a global integrated energy and chemicals company. We are driven by our
core belief that energy is opportunity. From producing approximately one in
every eight barrels of the world’s oil supply to developing new energy
technologies, our global team is dedicated to creating impact in all that we do.
We focus on making our resources more dependable, more sustainable and more
useful. This helps promote stability and long-term growth around the world.
www.aramco.com.

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Source: Aramco