Saudi Aramco, Shell finalize deal to separate Motiva assets

Logo of Saudi Aramco is seen at the 20th Middle East Oil & Gas Show and Conference (MOES 2017) in Manama, Bahrain, on Tuesday. (REUTERS)
Updated 08 March 2017
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Saudi Aramco, Shell finalize deal to separate Motiva assets

JEDDAH: Saudi Aramco finalized the execution of definitive agreements with Royal Dutch Shell plc to separate and transfer the assets, liabilities and businesses of the Motiva Enterprises LLC joint venture, according to a Saudi Aramco statement issued here on Tuesday.
“Our longstanding investment in the US is continuing to evolve and strengthen. We view this transaction as a positive outcome of the strong and historic business of Saudi Aramco in the US, and see next steps to support Motiva in its ongoing role as a major refiner and a top provider of refined products and derivatives in the US,” said Amin H. Nasser, president and CEO of Saudi Aramco.
He said: “We fully support Motiva’s transition to a stand-alone integrated downstream provider of energy and with its strategic position, I am confident it will enable new opportunities for growth in the US energy sector.”
Under terms of the agreements, Motiva will have the right to exclusively sell Shell-branded gasoline and diesel in Georgia, North Carolina, South Carolina, Virginia, Maryland and Washington D.C., as well as the majority of Florida and the eastern half of Texas.
“The Saudi Aramco will provide Motiva with strong financial support and necessary liquidity needed to maintain an investment grade credit rating and capitalize on growth and expansion opportunities to help the company become a highly competitive major downstream player in the US,” the Saudi Aramco chief said.
Dan Romasko, Motiva president and CEO, said: “In preparation for transaction close, we are working diligently on two fronts — delivering on our 2017 business plan and preparing the company for a successful transition to stand-alone operation.”
The transaction is subject to regulatory approval and is expected to close in the second quarter of 2017.
Saudi Aramco’s subsidiaries and affiliates have operated in the US for more than 60 years and are a contributor to the American energy sector.


Uber goes to court to keep London operations

Updated 23 min 46 sec ago
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Uber goes to court to keep London operations

LONDON: Uber is beginning its court case to remain on the streets of London, arguing that the ride-hailing app has made significant changes since a regulator refused to renew the company’s operating license last year.
Lawyers for the company are opening their case Monday at Westminster Magistrates Court in an effort to overturn Transport for London’s ruling last September that Uber was not a “fit and proper” company after repeated lapses in corporate responsibility.
The regulator raised a number of concerns about Uber, including driver vetting, the way it reports serious criminal offenses and the use of technology that allegedly helps the company evade law enforcement officials.
Uber has been allowed to continue operating pending appeal.