REFINING BUSINESS
Aramco to pay Shell $2.2bn in break-up
Saudi Aramco’s Saudi Refining unit will take full ownership of the Motiva Enterprises name and legal entity, including the largest refinery in the US at Port Arthur in Texas
London/Chicago/Dallas — Saudi Arabian Oil will pay Royal Dutch Shell $2.2bn including debt to finalise the break-up of a 19-year refining partnership known as Motiva Enterprises. Saudi Aramco’s Saudi Refining unit will take full ownership of the Motiva Enterprises name and legal entity, including the largest refinery in the US at Port Arthur in Texas, and 24 distribution terminals, according to a joint statement. Shell will take sole ownership of the Norco and Convent refineries in Louisiana and 11 distribution terminals. Aramco will make a $2.2bn balancing payment, split between debt and cash and subject to adjustments including working capital, Shell said in a separate statement. Aramco will assume almost all of Motiva’s $3.2bn of net debt, including $1.5bn of Shell’s share. A cash payment will cover the balance, Shell said. The arrangement will also take the Anglo-Dutch company closer to its target of selling $30bn of assets in the three years to 2018. "Motiva is a strong competi...
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