Shell and Saudi Refining Inc. (SRI), the fully-owned subsidiary of Saudi Arabian oil company Saudi Aramco, have signed a non-binding Letter of Intent to split up the assets of their 50-50 refining and marketing joint venture Motiva, that was formed in 1998 to carry out operations in the United States since 2002.
In the proposed division of assets, SRI would retain the Motiva name, assume sole ownership of the 600,000 bbl/d Port Arthur refinery in Texas, retain 26 distribution terminals, and 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.
Shell would assume sole ownership of the 235,000 bbl/d Norco refinery in Louisiana (where Shell operates a chemicals plant), the 230,000 bbl/d Convent refinery in Louisiana, nine distribution terminals, and Shell branded markets in Florida, Louisiana and the Northeastern region.
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