Saudi Arabian Oil Company (Saudi Aramco), through its wholly owned subsidiary, Saudi Refining Inc (SRI), and Royal Dutch Shell Plc have agreed to divide the assets of Motiva Enterprises Llc. The Motiva joint venture has operated as a 50:50 refining and marketing joint venture between the parties since 2002.
In the proposed division of assets, SRI will retain the Motiva name, assume sole ownership of the Port Arthur, Texas refinery, retain 26 distribution terminals, and have an exclusive license to use the Shell brand for gasoline and diesel sales in Texas, the majority of the Mississippi Valley, the Southeast and Mid-Atlantic markets. Shell will assume sole ownership of the Norco, Louisiana refinery (where Shell operates a chemicals plant), the Convent, Louisiana refinery, nine distribution terminals, and Shell branded markets in Florida, Louisiana and the Northeastern region.
“Motiva's performance has been transformed in the last two years. We propose to combine the assets we will retain from the joint venture with Shell's other downstream assets in North America. This is consistent with both the group and downstream strategy to provide simpler and more highly integrated businesses which deliver increased cash and returns,” said John Abbott, Shell Downstream Director.
