Motiva asset division on the cards

21.03.16. Saudi Aramco and Shell have announced plans to break up Motiva Enterprises LLC and divided the assets between them.
Motiva was formed in 1998 and has operated as a 50/50 refining and marketing joint venture between the parties since 2002.
In a non-binding letter of agreement, the proposed division of assets would see Aramco, through its subsidiary Saudi Refining Inc (SRI), retain the Motiva name and assume sole ownership of the giant Port Arthur, Texas refinery.
Shell, through its US downstream affiliate, would take over two Louisiana refineries – Norco (where Shell operates a chemicals plant) and Convent.
In midstream, SRI would 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 would have nine distribution terminals, and Shell branded markets in Florida, Louisiana and Northeastern US.
In a statement, Abdulrahman F Al-Wuhaib, senior VP of downstream for Saudi Aramco, said: “The Motiva joint venture with Shell has served our downstream business objectives very well for many years. However, it is now time for the partners to pursue their independent downstream goals. The Port Arthur refinery will advance Saudi Aramco’s global downstream integration strategy through supply & trading, refining and fuels marketing, chemicals and base oils.”