Odfjell Terminals Korea Secures Multi-Year Contract with S-Oil for Ulsan Terminal Expansion

Odfjell Terminals Korea (OTK), a subsidiary of Norwegian shipping company Odfjell, has entered into a multi-year contract with South Korean oil refining and petrochemical company S-Oil for storage at its expanding Ulsan terminal.

OTK recently announced the signing of a ten-year agreement with S-Oil for the utilization of three 23,990 cubic-meter tanks as part of the Ulsan terminal expansion project known as E5. This contract solidifies the partnership between the two companies following a memorandum of understanding signed earlier this year.

The storage tanks will be dedicated to S-Oil’s Shaheen project, a significant crude-to-chemical facility valued at $7 billion, located adjacent to OTK’s Ulsan terminal. The E5 expansion will facilitate seamless connectivity to the Shaheen project through a pipeline, enabling efficient exports to global markets by sea.

Adrian Lenning, Managing Director of Odfjell Terminals, expressed optimism about the long-term agreement, highlighting the collaborative opportunities between OTK and S-OIL in the Ulsan region driven by the expanding production capacity and trade flows associated with the Shaheen project.

The commencement of the E5 expansion is scheduled for the first half of 2025, with the new storage tanks expected to be operational by the second half of 2026. This strategic development aligns with the increasing storage demand in Northeast Asia, positioning OTK as a key player in the region.

The expansion project will introduce a new tank pit featuring ten 87,940 cubic-meter carbon steel storage tanks, contributing to a 28% increase in OTK’s total storage capacity to over 400,000 cubic meters upon completion.

Meanwhile, Odfjell Drilling, another division of Odfjell, has been actively involved in oil and gas exploration globally, with recent successes such as Equinor’s discovery off the coast of Norway using the Deepsea Atlantic rig and TotalEnergies’ exploration well offshore Namibia utilizing the Deepsea Mira rig managed by Odfjell Drilling’s subsidiary, Northern Ocean (NOL).