Saudi Aramco agrees US$2.2bn Shell fee

Article by Staff Writer

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.

Article by Staff Writer

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