SAUDI ARABIA - The European Market.In expanding its downstream presence overseas, Saudi Aramco Saudi Aramco, the state-owned national oil company of Saudi Arabia, is the largest oil corporation in the world and the world's largest in terms of proven crude oil reserves and production. has not made much headway head·way
1. Forward movement or the rate of forward movement, especially of a ship.
2. Progress toward a goal.
3. The clear vertical space beneath a ceiling or archway; clearance.
4. in Europe. Its first step there came on April 6, 1995, when it signed an agreement to buy a 50% stake in Motor Oil Hellas (MOH See modem on hold. ) of Greece and its marketing arm Avin Oil SA, under a $430m deal with the Vardinoyannis family.
The deal covered a 100,000 b/d refinery at Corinth, southern Greece; a network of about 700 service stations in Greece, with refined products to be marketed elsewhere in Europe as well; a crude oil supply arrangement for some 80,000 b/d, which represented a four-fold increase in an existing Saudi term contract; and a stake for Saudi Aramco in MOH's storage of around 3m barrels and its international sales of automotive, jet and bunker fuels. The final deal was signed on March 14, 1996, in London. The Saudi side of MOH's management was undertaken by Saudi Aramco's
Dutch unit called Aramco Overseas Co. (see background in Vol. 57, No. 19).
However, Motor Oil Hellas (MOH) only managed to sell 30% of the shares it offered. This forced the National Bank of Greece The National Bank of Greece (NBG; Greek: Εθνική Τράπεζα της Ελλάδος , HSBC HSBC Hongkong and Shanghai Banking Corporation
HSBC Humane Society of Broward County (Florida)
HSBC Humane Society of Bay County (Bay County, Michigan) and other banks managing the sale to buy the remaining 70% themselves; and they lost about $25.7m as a result. During the first day of trading in early August 1996, MOH stock fell sharply.
In September 1997, Saudi Aramco cancelled plans to buy 27.5% in Petroleos de Portugal (Petrogal).