Aramco Agrees To Pay Shell $2.2bn In Break-Up Of US Motiva Refining JV

Aramco will be sole owner of the largest US refinery after dividing up Motiva’s assets, while Shell will receive cash to compensate for an uneven split.

Saudi Aramco and Anglo-Dutch major Shell have signed binding definitive agreements for the separation of assets, liabilities and businesses comprising the US-based Motiva Enterprises refining and marketing JV. The two companies say they expect the transaction to close in the second quarter this year.

Houston-headquartered Motiva, a 50:50 JV, operates three refineries with a combined crude processing capacity of 1.065mn b/d.

Under the split Aramco will get 100% of the 600,000 b/d Port Arthur in Texas – the largest refinery in the US – whilst Shell will get the 230,000 b/d Convent and 235,000 b/d Norco plants in Louisiana. Motiva also operates 34 product storage terminals with a combined capacity of 16.5mn barrels and sells products through 8,200 Shell-branded service stations as well as unbranded wholesalers. (CONTINUED - 859 WORDS)

DATA INSIDE THIS ARTICLE

table Saudi Aramco Overseas Refineries
chart Aramco Refining Capacity By Country (Net, ‘000 B/D)*