Energy major Shell has finalized the sale of its stake in Motiva Enterprises, owner of the largest U.S. refinery, to Saudi Arabian oil company, Saudi Aramco.
The deal includes the transfer of assets and liabilities for a 600,000-barrel-per-day refinery at Port Arthur, Texas, a 40,000-barrel-per-day base oil manufacturing plant at the same site and a network of 24 distribution terminals with a total storage capacity of 11.1 million barrels.
“Our longstanding investment in the United States is continuing to evolve and strengthen. We view this transaction as a positive outcome of the strong and historic business of Saudi Aramco in the U.S., and see next steps to support Motiva in its ongoing role as a major refiner and a top provider of refined products and derivatives in the U.S.,” said Amin H. Nasser, president and CEO, Saudi Aramco.
The sale is valued at US$2.2 billion, which will help Shell achieve strategic growth targets for its portfolio. The firm recently announced a deal with Argentina’s state-run oil company YPF SA that will involve investment of US$2.3 billion in the Vaca Muerta shale.
“In preparation for transaction close, we are working diligently on two fronts – delivering on our 2017 business plan and preparing the company for a successful transition to stand-alone operation,” said Dan Romasko, CEO of Motiva.
Photo: Motiva refinery at Port Arthur, Texas. Credit: Motiva