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‘Aramco,’ ‘Shell’ Firm up Motiva Deal - ASHARQ AL-AWSAT English
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‘Aramco,’ ‘Shell’ Firm up Motiva Deal

Shell Plans to Split Motiva Assets with Saudi Aramco in Q2. Reuters

Dammam- Saudi Arabian Oil Company, Saudi Aramco, and Royal Dutch Shell plc, Shell, announced the signing of binding definitive agreements between Saudi Refining, Inc., SRI, a wholly owned subsidiary of Saudi Aramco, and SOPC Holdings East LLC, a US downstream subsidiary of Shell, on the separation of assets, liabilities and businesses of Motiva Enterprises LLC (“Motiva”).

The discontinuation of the joint venture and redistribution of the assets allows each company to focus its downstream business, said a joint statement.

Abdulaziz al-Judaimi, Senior Vice President of Downstream, Saudi Aramco, said: “This transaction is well aligned with Aramco’s global downstream strategy.”

“Motiva is a strong competitor among US refiners, and we value this important link with the dynamic US energy sector. Our intent is to continue providing Motiva with strong financial support as it transitions into a stand-alone downstream affiliate.”

“We have a long history with the Motiva team, and we’re proud of the impressive strides they have made in recent years toward building on the company’s core strengths,” Judaimi said.

“A simplified, integrated business structure will emerge from this deal for us in the United States and that’s consistent with the stated goal of making Shell a world-class investment opportunity,” Shell’s Downstream Director John Abbott said in a statement.

“We have today created a set of assets that plays to our strengths. This portfolio upgrade will increase optionality and strengthen Shell’s downstream business,” Abbott added.

Motiva’s President and CEO Dan Romasko said: “We are nearing completion of our preparations to support stand-alone operations upon transaction close. As always, we remain focused on safe and profitable operations and serving our customers exceptionally well.”

Under the agreement, SRI will assume full ownership of the Motiva Enterprises LLC name and legal entity, including the refinery at Port Arthur, Texas and 24 distribution terminals.

Additionally, 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 eastern half of Texas and the majority of Florida.

Shell will assume sole ownership of the Norco refinery (where Shell operates a chemicals plant), the Convent refinery, 11 distribution terminals, and Shell-branded markets in Alabama, Mississippi, Tennessee, Louisiana, a portion of the Florida panhandle, and the North-eastern region of the US.

These assets will be fully integrated with Shell’s downstream business in North America.

Both Motiva owners are fully committed to supporting the venture during this period of transition and assuring excellent customer service and continued health, safety and environmental performance.

Owner financing support arrangements for Motiva will remain in place throughout the transition, and both parties are committed to maintaining Motiva’s balance sheet strength and liquidity.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

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