Saudi Aramco, Shell finalize deal to separate Motiva assets

Saudi Aramco finalized the execution of definitive agreements with Royal Dutch Shell plc to separate and transfer the assets, liabilities and businesses of the Motiva Enterprises LLC joint venture, according to a Saudi Aramco statement issued here on Tuesday.
“Our longstanding investment in the US 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 US, 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 US,” said Amin H. Nasser, president and CEO of Saudi Aramco.
He said: “We fully support Motiva’s transition to a stand-alone integrated downstream provider of energy and with its strategic position, I am confident it will enable new opportunities for growth in the US energy sector.”
Under terms of the agreements, Motiva will have the right to exclusively sell Shell-branded gasoline and diesel in Georgia, North Carolina, South Carolina, Virginia, Maryland and Washington D.C., as well as the majority of Florida and the eastern half of Texas.
“The Saudi Aramco will provide Motiva with strong financial support and necessary liquidity needed to maintain an investment grade credit rating and capitalize on growth and expansion opportunities to help the company become a highly competitive major downstream player in the US,” the Saudi Aramco chief said.
Dan Romasko, Motiva president and CEO, said: “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.”
The transaction is subject to regulatory approval and is expected to close in the second quarter of 2017.
Saudi Aramco’s subsidiaries and affiliates have operated in the US for more than 60 years and are a contributor to the American energy sector.

Source: Arab News