HOUSTON -- The transaction separating the assets, liabilities and businesses of Motiva Enterprises LLC between Royal Dutch Shell PLC and Saudi Refining Inc. was completed on May 1.
The companies formed the Motiva joint venture in 1998 but, by divvying the assets, each entity can now focus on its own downstream business.
Through its wholly owned Saudi Refining Inc. subsidiary, Saudi Aramco now has full ownership of the Motiva Enterprises name and legal entity, including the refinery at Port Arthur, Texas, and 24 distribution terminals. Motiva has 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.
“This transaction is well aligned with Aramco’s global downstream strategy. Motiva is a strong competitor among U.S. refiners, and we value this important link with the dynamic U.S. energy sector,” said Abdulaziz Al-Judaimi, senior vice president of downstream for Saudi Aramco, in early March.
Also as part of the deal, Shell has sole ownership of the Norco, La., refinery (where Shell operates a chemicals plant), the Convent, La., refinery, 11 distribution terminals, and Shell-branded markets in Alabama, Mississippi, Tennessee, Louisiana, a portion of the Florida Panhandle, and the Northeastern region of the United States. These assets are now fully integrated with Shell’s downstream business in North America.
“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,” John Abbott, Shell downstream director, said previously.
Royal Dutch Shell, based in The Hague, Netherlands, is a global group of energy and petrochemical companies with operations in more than 70 countries. In the United States, Houston-based Shell operates in all 50 states and employs more than 20,000 people.
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