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Royal Dutch Shell has asked Saudi Aramco for up to $2bn as part of the breakup of the Motiva Enterprises refining joint venture in the US.
The payment would be compensation for the Saudi company retaining a larger share of the joint venture, which as created more than two decades ago. Its split was announced in March and is due to be completed in October.
The plan calls for Aramco to take control of Motiva’s largest US refinery in Port Arthur, Texas, and retain 26 distribution terminals.
Shell will become the sole owner of Motiva’s Louisiana refineries in Convent and Norco, where it also operates a chemicals plant, as well as Shell-branded gasoline stations in Florida, Louisiana and the northeastern United States.
Shell is seeking $1bn to $2bn from Aramco to compensate for the Saudi company keeping a bigger stake in the JV, Reuters reported on 5 July. Aramco believes the fee should be significantly lower, it added.
Shell and Aramco continue to cooperate in two major joint ventures: the 50:50 Saudi Aramco Shell Refinery Co (SASREF) in Jubail, Saudi Arabia, and the Showa refining venture in Japan.