Cosmo, Hyundai to supply oil products to each other in emergencies
Japanese oil refiner and wholesaler Cosmo Oil Co. signed a memorandum with its South Korean peer Hyundai Oilbank Co. to supply oil products such as gasoline to each other in emergencies, including natural disasters.
Under the terms of the memorandum, the two companies will look to each other to refine crude oil in cases where their refineries have been damaged by such emergencies.
The deal also calls for the two to make oil tankers available to each other to transport refined products if the other party faces difficulties in transporting the products.
The memorandum will be automatically extended every year after the initial two-year period.
In 2008, Cosmo signed another memorandum with Hyundai Oilbank under which they have cooperated with selling oil products. They have also established a joint venture to manufacture petrochemical products at a South Korean plant.
(May 9, 2013)