Saudi Aramco, Shell have agreed on asset split of Motiva joint venture.
Saudi Arabian Oil Company (Saudi Aramco) and Royal Dutch Shell have finalized an agreement to separate and transfer the assets, liabilities and businesses of their Motiva joint venture.
Under the terms of the agreements, the assets retained by Saudi Aramco’s wholly owned Saudi Refining subsidiary include:
- The Motiva Enterprises name and legal entity, which will be used in continuing its operations as a Texas-based refiner, distributor and marketer of gasoline, diesel and other petroleum products.
- The 600,000 barrel per day refinery at Port Arthur, Texas. This complex also includes a 40,000 barrel per day base oil manufacturing plant.
- A network of 24 distribution terminals with a total storage capacity of 11.1 million barrels. These facilities support product delivery to approximately 5,300 Shell-branded service stations and unbranded wholesalers, as well as product storage for third-party customers.
- Motiva will have the right to exclusively sell Shell-branded gasoline and diesel in Georgia, North Carolina, South Carolina, Virginia, Maryland and Washington D.C., as well as the majority of Florida and the eastern half of Texas.
“Our longstanding investment in the United States is continuing to evolve and strengthen. We view this transaction as a positive outcome of the strong and historic business of Saudi Aramco in the U.S., and see next steps to support Motiva in its ongoing role as a major refiner and a top provider of refined products and derivatives in the U.S.,” said Amin H. Nasser, President and CEO, Saudi Aramco.
Nasser added, “We fully support Motiva’s transition to a stand-alone integrated downstream provider of energy and with its strategic position, I am confident it will enable new opportunities for growth in the U.S. energy sector. Saudi Aramco will provide Motiva with the strong financial support and necessary liquidity needed to maintain an investment grade credit rating and capitalize on growth and expansion opportunities to help the company become a highly competitive major downstream player in the U.S.”
Dan Romasko, Motiva President and CEO, said: “In preparation for transaction close, we are working diligently on two fronts – delivering on our 2017 business plan and preparing the company for a successful transition to stand-alone operation.”
The transaction is subject to regulatory approval and is expected to close in the second quarter of 2017.