Shell-Saudi Aramco to split US joint venture

Motiva Enterprises - a US-based joint venture between Royal Dutch Shell and the state-owned Saudi Arabian Oil Company (Saudi Aramco) - was looking to be split between the two partners, it was announced on Thursday.

The two companies said they planned to divide the assets of the venture between themselves. Motiva was founded in 1998, and had been an equal venture between the partners for 14 years.

Port Arthur - the largest refinery in the US - would be taken under the wing of Saudi Aramco-affiliated Saudi Refining. A total of 26 distribution terminals would also go to the Saudi side, along with an exclusive licence to the Shell brand for fuel sales in the Southeast, the Mid-Atlantic, much of the Mississippi Valley, and Texas.

Shell would take the Norco and Convent refineries in Louisiana, nine distribution terminals, and retain its own brand for use in the Northeast, Florida and Louisiana.

"Motiva has benefited greatly from the nearly two decades of support and resources provided by Shell and Saudi Aramco," said Motiva president and chief executive Dan Romasko.

"While the parties work towards definitive agreements, Motiva will remain focused on our growth agenda, running operations in a safe, environmentally sound and efficient manner while continuing to reliably serve our customers."