Saudi Aramco has 100% ownership of the largest oil refinery in the U.S., as of Monday, reported CNN. The Gulf Coast refinery, located in Port Arthur, Texas, can process 600,000 b/d, making it the largest in North America.
Aramco previously owned 50% of Port Arthur through a joint venture with Royal Dutch Shell called Motiva Enterprises. In March 2016, the two reached a deal to separate their assets and on Monday, Shell released a statement confirming the separation of assets, liabilities, and business of Motiva Enterprises.
As part of the separation, Aramco is acquiring full ownership of 24 distribution terminals and the exclusive right to sell Shell-branded gasoline and diesel in Georgia, North Carolina, South Carolina, Virginia, Maryland, the eastern half of Texas and the majority of Florida. Shell gains control of two Motiva refineries in Louisiana and nine distribution terminals.
According to CNN, “Aramco's deal allows the oil giant to shore up one of its best customers -- the US -- ahead of next year's planned IPO. Now that it controls the largest American refinery, Aramco can send more Saudi crude into the U.S. for refining to sell to North American drivers.” The Aramco IPO could reach a $2 trillion evaluation.