Saudi Aramco finalized the execution of definitive agreements with Royal Dutch Shell plc to separate and transfer the assets, liabilities and businesses of the Motiva Enterprises LLC joint venture (JV), Al Bawaba reported, citing Saudi Aramco’s statement.
According to Market Watch, Saudi Arabia’s state-oil giant will pay Shell $2.2b to finalize the breakup of their two-decade refining partnership in the US.
The deal gives Saudi Arabia sole control over the largest refinery in the US, a 600,000b/d facility in Port Arthur, Texas. Besides the full ownership of the Motiva Enterprises LLC name and legal entity, Saudi Arabia also gets 24 distribution terminals, Aramco and Shell said in a joint statement.
Shell will assume sole ownership of the Norco and Convent refineries in Louisiana as well as 11 distribution terminals.
A key part of the deal was Motiva’s $3.2b net debt.
Motiva’s President and CEO, Dan Romasko, 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, which is subject to regulatory approval, is expected to be finalized in the second quarter of 2017.