SAUDI ARABIA - Motiva Enterprises.Saudi Aramco's main market share investment is in the US, Riyadh's principal ally, where Star Enterprise's merger with Shell, done in the first half of 1998, created the biggest downstream venture in the south and east of the American market. The venture, Motiva Enterprises Motiva Enterprises, LLC, is a 50-50 joint venture between Shell Oil Company (the American wholly owned subsidiary of Royal Dutch Shell) and Saudi Refining (a wholly owned subsidiary of Aramco Services Company, which itself is a wholly owned subsidiary of Saudi Aramco). based in Houston, has a refining capacity of 823,000 b/d and over 14,500 retail stations, together with storage and terminal facilities. Motiva's assets were bigger. As required by the Federal Trade Commission (FTC FTC
See Federal Trade Commission (FTC). ), the company had to sell of a refinery, numerous retail stations and some oil pipeline and treminal facilities before the merger was approved.
Motiva is owned 35% by Shell, 32.5% by Texaco and 32.5% Saudi Refining Saudi Refining, Inc., (SRI) with headquarters in Houston, purchases and sells crude oil and maintains a significant inventory of crude oil outside the United States. SRI has an interest in a limited liability company known as Motiva Enterprises, LLC. , a US unit of Saudi Aramco. Saudi Aramco's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Abdullah Jum'ah became Motiva's chairman in mid-1998 and Wilson Berry, formerly president of Texaco's refining and marketing, was made the company's CEO.
A merger between Shell and Texaco created the biggest downstream venture in the centre and west of the US called Equilon Enterprises and owned 56% by Shell. Shell's president and CEO became head of Equilon, which also had to sell off refineries and other assets other assets
Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. before this merger was approved by the FTC. Now Equilon's refining capacity is less than 800,000 b/d.
Units of Motiva and Equilon, Equiva Trading and Equiva Services, are now providing the two main entities with vital operational support. They and Motiva have strengthened Saudi Aramco's position as the biggest crude oil exporter to the US, with supplies in the first half of 1999 having averaged almost 1.44m b/d (see OMT (Object Modeling Technique) An object-oriented analysis and design method developed by James Rumbaugh. See Rational Rose.
OMT - Object Modelling Technique No. 20). In April 1999 Texaco's CEO Peter Bijur said he expected Motiva to save $800m in annual earnings from 2000, thanks to the merger. The merger has led to a strategic alliance between Shell and Saudi Aramco for downstream investments in India and other markets (see below). Within Saudi Arabia, Shell is SABIC's partner in the kingdom's biggest petrochemical venture and Saudi Aramco's partner in the biggest export refinery.
Saudi Aramco and Texaco have been 50-50 partners in Star Enterprise since that was formed in 1988 and became the sixth largest gasoline retailer in the US. Star operated in 26 states in the south and east, and in the district of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . Star was Saudi Aramco's first major foreign joint venture. The partnership began in June 1988 when Saudi Aramco made a cash purchase from Texaco of a half share in three refineries with a total capacity of 605,000 b/d at Convent, Louisiana (230,000 b/d), Delaware City (140,000 b/d), and Port Arthur, Texas Port Arthur is a city in Jefferson County within the Beaumont-Port Arthur metropolitan area and is situated in southeast Texas. As of the 2000 U.S. Census, the city had a total population of 57,755. (235,000 b/d). Star then got around 10,000 branded distribution outlets and 1,500 service stations. The assets of Star were in early 1998 valued at more than $4.2 bn, compared to $2.5 bn when the partnership deal was signed in late 1988.