Saudis Now Own America’s Largest Oil Refinery
The Saudis now own America’s largest oil refinery. Saudi Aramco, the kingdom’s state-owned oil giant, took 100% of the huge Port Arthur refinery in Texas. The refinery is considered the crown jewel of the US refinery system. It has a huge production capable of processing 600,000 barrels of oil per day.
Aramco Previously Owned 50% of Port Arthur
Aramco is not new to the Port Arthur refinery. It has owned 50% of the refinery which has been co-owned with Royal Dutch Shell. The two giant oil companies had a difficult relationship and reached a deal in March 2016. The deal resulted in the two companies separating their assets. Last Monday Shell put out a statement confirming the break-up had been completed.
Aramco will be taking over more than Aramco. The company will now have full ownership of 24 distribution terminals. Aramco will also have the exclusive right to sell Shell-branded gasoline and diesel in the states of Georgia, North Carolina, South Carolina, Virginia, Maryland, the eastern half of Texas and most of Florida.
The deal allows the giant oil company to complete a transaction with its best customers, the US. This comes ahead of next year’s planned IPO. Saudi Arabia is hoping the Aramco IPO will be valued at approximately $2 trillion.
Relations between the US and Saudi Arabia appear to have improved under President Trump.The deputy crown prince Mohammed bin Salman, in a very powerful position, met with Trump in Washington in March. The kingdom labeled the meeting as an “historic turning point” between the two countries.