HMM signs $137 million oil shipping contract with S-Oil

Home > Business > Industry

HMM signs $137 million oil shipping contract with S-Oil

Published: 01 Oct. 2024, 14:48 Updated: 01 Oct. 2024, 17:21

SARAH CHEA
chea.sarah@joongang.co.kr

HMM CEO Kim Kyung-bae, left, and S-Oil President Park Bong-soo take a photo after signing a crude oil shipping contract on Monday at the oil refiner's headquarters in Mapo District, western Seoul. [HMM]

HMM inked a five-year crude oil shipping contract with S-Oil worth some 180 billion won ($137 million).

Under the deal, HMM will transport crude oil from Middle Eastern countries like Saudi Arabia to Korea.

This is the first long-term contract signed in six years between the two companies. HMM and S-Oil have been cooperating in oil shipping for the past 20 years.

The contract starts from the first quarter of 2025, and can be extended up to two years.

HMM will use a 30-ton carrier for the shipment.

"HMM will seek stable profitability through constant long-term shipment contracts," HMM said in a statement.

The contract was signed Monday at the Korean oil refiner's headquarters in Mapo District, western Seoul, with HMM CEO Kim Kyung-bae and S-Oil President Park Bong-soo in attendance.

BY SARAH CHEA [chea.sarah@joongang.co.kr]