NEW YORK (Reuters) - Shell RDSa.L and Saudi Aramco [SDABO.UL] 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.
The company was formed in 1998 and has operated as a 50:50 refining and marketing joint venture between the parties since 2002.
Under the terms of a non-binding letter of intent, distribution terminals, retail assets, branded and commercial customer agreements will be divided by geography to ensure each partner has “an integrated and robust business,” a statement said.
Below are how the companies have split up the assets:
* 230,000 barrel-per-day Convent refinery located in St. James Parish, Louisiana;
* 235,000 bpd Norco refinery located in St. Charles Parish, Louisiana, where Shell already operates a chemicals plant;
* Nine distribution terminals;
* Retain Shell-branded markets in Florida, Louisiana and the Northeastern region.
* 600,000 bpd Port Arthur refinery located in Port Arthur, Texas, the biggest refinery in the United States;
* The Motiva name;
* 26 distribution terminals;
* 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;
* Exclusive use of the Shell brand through a long-term license agreement in its area of operation.
The two companies also cooperate in the following ventures:
* Saudi Aramco Shell Refinery Co (SASREF) - a 50:50 joint venture refining enterprise at Jubail Industrial City in Saudi Arabia with a crude oil refining capacity of 305,000 bpd
* Shell and Saudi Aramco have a multi-year relationship in the Showa joint venture in Japan
* Shell recently reached an agreement to sell shares representing a 33.24 percent stake in Showa to Idemitsu Kosan. Shell will retain a 1.80 percent holding in the company after completion later this year.
Reporting by Josephine Mason; Editing by Leslie Adler
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