Dubai: Saudi Aramco completed a deal on Tuesday to buy 17 per cent of South Korean oil refiner Hyundai Oilbank from Hyundai Heavy Industries Holdings for about $1.2 billion (Dh4.4 billion).

The completion of the deal, reached through its subsidiary Aramco Overseas Company, came after it received all the required regulatory consents and approvals, the company said in a statement,

The deal was signed by Aramco, officially known as Saudi Arabian Oil Company, in April with Hyundai Heavy Industries, with an option for the oil giant to buy a further 2.9 per cent stake in Hyundai Oilbank.

Hyundai Oilbank, South Korea’s smallest refiner by capacity, has a total of 650,000 barrels per day of refining capacity in the southwestern city of Daesan and aims to expand its petrochemical business.

The deal was first revealed in late January when Hyundai Heavy said Aramco planned to invest up to $1.6 billion for as much as 19.9 per cent of the South Korean refiner to expand its foothold in the country. The investment is meant to support Aramco’s broader downstream growth strategy and provide long-term crude oil options and offtakes as part of the company’s trading business.