USA: Shell and Saudi Refining to split Motiva joint venture
Saudi Aramco and Royal Dutch Shell have decided to part ways in their Motiva Enterprises joint venture – a 50/50 refining and marketing JV in active since 1998.
Yesterday, Shell and Saudi Refining (SRI), a Saudi Aramco subsidiary, announced the signature of a non-binding Letter of Intent to divide the Motiva assets.
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 has benefited greatly from the nearly two decades of support and resources provided by Shell and Saudi Aramco. While the parties work towards definitive agreements, Motiva will remain focused on our growth agenda,” said Dan Romasko, Motiva President and CEO.
Both Motiva shareholders are committed to supporting the venture during this period of transition and assuring excellent customer service and continued health, safety and environmental performance
