DME and Korea Exchange have signed an agreement to work together on crude oil contracts trading in the Republic of Korea.
DME is the world’s third crude oil benchmark and the sole benchmark for Oman and Dubai and Korea Exchange (KRX) is the sole securities exchange operator in the Republic of Korea.
Dubai-based DME is known for its experience in developing financial infrastructure around a physical oil base, while its DME Oman future oil contracts boasts the largest physical delivery of any energy contract globally.
DME will cooperate with KRX on developing energy trading around the National Oil Hub Project in Ulsan, South Korea.
The Asian republic has the ambitious target for Ulsan to become the energy hub for Northeast Asia by developing large scale oil storage and port facilities and add them to its existing petrochemical infrastructure and ports.
As part of the deal KRX and DME can make joint marketing arrangements and cross-listing agreements. They can also exchange staff and do joint research.
Kyoungsoo Choi, chairman and CEO of KRX, said: “I am delighted to sign this cooperation agreement which marks a milestone in our relationship with DME.
“KRX is increasingly active in the commodity space and we are excited to work with our new partner to develop energy contracts in the run up to the commissioning of the National Oil Hub in Ulsan.”
Christopher Fix, CEO of DME, said: “DME is keen to support the development of energy trading benchmarks within Asia as we believe this will be a natural complement to the DME Oman crude oil contract, which is an export benchmark for the Middle East.
“DME looks forward to exploring those synergies with our new partners at KRX and we are also delighted at the opportunity to get involved in the Ulsan oil hub project, which has tremendous potential.”
