By the OGJ Online Staff
HOUSTON, Dec. 12 -- Shell Oil Co. and Saudi Refining Inc. will acquire TexacoChevron Corp.'s interests in Equilon Enterprises LLC and Motiva Enterprises LLC for $3.86 billion.
The US Federal Trade Commission had required Texaco to divest the holdings as a condition of its $35 billion merger with Chevron Corp.
Texaco Alliance Trust, which was holding the assets until the deal was made, said the purchase included $2.26 billion in cash (including $160 million in dividends) and the assumption of $1.6 billion in debt and other liabilities.
Under terms of the transactions, SRI will own 50% of Motiva while Shell will own the other 50% of Motiva and 100% of Equilon (OGJ Online, Oct. 9, 2001).
The transactions, which are subject to government approval, are expected to conclude in January 2002.
Motiva operates primarily in the eastern US and includes 4,800 Shell-branded gasoline stations and 8,200 Texaco-branded stations, four refineries, and a network of terminals. In July 1998, Shell's eastern and Gulf Coast refining and marketing businesses were combined with similar operations owned by Star Enterprise, a joint venture between Texaco and SRI, through the formation of Motiva.
Equilon operates primarily in the western US, and includes 4,500 Shell-branded gasoline stations and 4,500 Texaco-branded stations, four refineries, a lubricants business, and a pipeline and terminal network. Equilon was formed in January 1998, when Shell's western and midwestern refining, marketing, trading, transportation, and lubricants businesses were combined with similar operations of Texaco.
Saudi Refining Inc. is a subsidiary of Aramco Services Co., Houston. SRI sells 525,000 b/d of crude to Motiva, which has a refining capacity of 800,000 b/d.