SAUDI ARAMCO has agreed to pay US$2.2bn to Shell as part of the two companies’ binding agreement to end their 50:50 Motiva refining and marketing joint venture.
The intention to end the 18-year collaboration was first announced in March 2016. Following the payment, Saudi Aramco will become the sole owner of Motiva, which includes the 600,000 bbl/d Port Arthur refinery, the largest in the US. Shell, meanwhile, will take ownership of the Convent and Norco refineries in Louisiana.
Shell will assume US$100m of Motiva’s net debt, which stood at US$3.2bn as of 31 December 2016. Saudi Aramco subsidiary Saudi Refining will take on the remainder of the debt with a cash payment for the balance.
The transaction is expected to be completed during Q2 2017, subject to regulatory approval.
Catch up on the latest news, views and jobs from The Chemical Engineer. Below are the four latest issues. View a wider selection of the archive from within the Magazine section of this site.