Shell, Saudi Refining complete $3.86 billion acquisition of Texaco JVs

By the OGJ Online Staff

HOUSTON, Feb. 13 -- Shell Oil Co. and Saudi Refining Inc. have completed the $3.86 billion acquisition of Texaco Inc.'s interests in Equilon Enterprises LLC and Motiva Enterprises LLC.

The US Federal Trade Commission had required Texaco to divest the refining and marketing joint ventures as a condition of its $35 billion merger with Chevron Corp.

The combined purchase price consisted of $2.26 billion in cash and the assumption of $1.6 billion in debt and other liabilities of the ventures.

The two ventures own eight refineries, 30,000 miles of pipelines, and a trading enterprise and market in about 23,000 branded service stations in the US.

Shell and SRI now each own 50% of Motiva and Shell owns 100% of Equilon (OGJ Online, Dec. 12, 2001).

Previously, Texaco Alliance Trust, which held the assets separately so that the merger could be completed Oct. 9, 2001, owned 44% of Equilon (with Shell holding 56%) and 35% of Motiva (with Shell holding 30% and SRI the remaining 35%).