Saudi Aramco, Shell said to end Motiva JV in May

Saudi Arabian Oil Co. (Saudi Aramco) has agreed with Royal Dutch Shell Plc to end their US-based Motiva Enterprises refining joint venture (JV) and divide assets on May 1, Reuters reported, citing unnamed sources.

A Shell spokesperson told the agency last month that the target date to divide the venture's refineries was April 1, but the split could occur anytime in the second quarter.

The JV operates three refineries, including the largest in the US, on the Gulf Coast.

Under the agreement, Aramco will retain the Motiva name and the 603,000-barrel-per-day (bpd) Port Arthur Texas refinery.

The Saudi oil giant will also take over 26 distribution terminals and have exclusive license to use the Shell brand for gasoline and diesel sales in Texas.

Meanwhile, Shell will become the sole owner of Motiva's Louisiana refineries in Convent and Norco, where it operates a chemicals plant. The firm will also assume ownership of Shell-branded gasoline stations in Florida, Louisiana and the Northeastern region.

Shell and Aramco initially announced the break-up agreement in March 2016, with both firms expecting to finalize the deal by October the same year.

However, the process was delayed as Shell demanded $2 billion in compensation from Saudi Aramco, as the latter retains a larger share of the JV.