Riyadh – Mubasher: Shell Oil Co, the US unit of Royal Dutch Shell Plc, on Tuesday said it will likely divide the refineries and other assets of its Motiva Enterprises venture with co-owner Saudi Aramco in the second quarter of 2017, news agency Reuters reported.
In March 2016, Shell and the Saudi oil giant announced the plan to divide the nearly 20-year-old venture, which runs three refineries and other assets.
“As part of the deal, Aramco will make a $2.2 billion balancing payment to Shell,” Reuters said.
The split comes as part of KSA-based Aramco's strategy to grow and expand its global refining footprint; it may also be part of its initial public offering (IPO).
Aramco’s eagerly-awaited IPO will see the Saudi government offer up to 5% of the company which is considered the largest oil company in the world.
On another note and also on Tuesday, Aramco official Mohammed Al Qahtani told Reuters that he expects oil prices to stabilise and see some recovery by the end of 2017.
QNB Group recently published a report in which it expected oil prices to reach $60 per barrel in 2017 after the supply glut gradually declines.
Saudi Arabia, alongside members and non-members of the Organization of Petroleum Exporting Countries (OPEC), agreed to reduce oil production starting 2017.
A total of 11 countries from inside and outside OPEC agreed to trim output.
