Shell and Saudi Aramco on Wednesday announced plans to break up Motiva Enterprises LLC and divide up the assets, almost two decades after the U.S. oil refining and marketing joint venture was formed.
Under the terms of a non-binding letter of intent, Saudi Aramco will retain the Motiva name, assume sole ownership of the Port Arthur, Texas refinery, the biggest in the United States, and retain 26 distribution terminals, according to a statement.
It will also have an exclusive license to use the Shell brand for gasoline and diesel sales in Texas, the majority of the Mississippi Valley, the Southeast and Mid-Atlantic markets, it said.
Shell will assume sole ownership of the Norco, Louisiana refinery, where it also operates a chemicals plant, the Convent, Louisiana refinery, nine distribution terminals, as well as Shell branded markets in Florida, Louisiana and the Northeastern region.
Reporting by Josephine Mason