Saudi Aramco, Shell Break Up 18-Year U.S. Refining Marriage
- Split comes as Saudi Aramco eyes initial public offering
- Shell will get cash from Aramco following deal, spokesman says
Oil drums containing lubricant oil sit on a conveyor belt at a Royal Dutch Shell plant in Torzhok, Russia.
Photographer: Andrey Rudakov/BloombergRoyal Dutch Shell Plc and Saudi Arabian Oil Co. are ending an 18-year refining partnership as the Anglo-Dutch titan prepares to sell billions of dollars of assets and the Middle East nation’s state oil company weighs an initial public offering.
Shell will assume control of two Louisiana refineries operated by the Motiva Enterprises LLC joint venture, as well as nine fuel terminals and rights to Shell-branded markets in Florida, Louisiana and the U.S. Northeast, the companies said Wednesday in a statement. Aramco will retain the Motiva name and take ownership of the largest U.S. refinery in Port Arthur, Texas, along with 26 terminals and exclusive license to sell fuel under the Shell brand across Texas and much of the U.S. Midwest and Southeast.