Shell seeks $2 bln from Aramco in Motiva JV breakup

Royal Dutch Shell is seeking up to $2 billion from Saudi Arabian Oil Co. (Saudi Aramco) as part of a breakup of the energy firms’ two-decade old Motiva Enterprises refining joint venture in the US, Reuters reported, citing unnamed sources familiar with the matter.

The payment would be compensation for Shell, as Aramco retains a larger share of the joint venture.

The breakup was announced in March and is expected to be finalized in October; however, this may potentially be delayed by disagreements over payments, sources added.

Under the terms of the agreement in March, Aramco will take control of Motiva's largest refinery in Texas, and also keep 26 distribution terminals.

Shell will become the sole owner of Motiva's Louisiana refineries in Convent and Norco, where it operates a chemicals plant and Shell-branded gasoline stations.

Shell is looking to develop its global chemicals business and eventually sell $30 billion of its assets by 2018 to finance its $54 billion acquisition of BG Group.

Meanwhile, Aramco has expanded its corporate headquarters in Houston and has reportedly hired several new traders in recent months.

Spokespeople from Shell and Aramco declined to comment on the matter, the news agency said.