Shell Oil Co, the U.S. arm of Royal Dutch Shell Plc, on Thursday reaffirmed the target date to split up the Motiva Enterprises [MOTIV.UL] refining joint venture with co-owner Saudi Aramco [IPO-ARMO.SE] would be May 1.
Shell and Saudi Aramco in March 2016 announced the plan to divide up the nearly 20-year-old venture, which runs three refineries and other assets. The date of the split has been pushed back twice since the announcement.
As part of the deal, Saudi Aramco will make a $2.2 billion balancing payment to Shell. Of that total, Aramco will only have to pay about $700 million in cash to Shell, with the remainder satisfied by Aramco assuming most of Shell’s half of the $3.2 billion debt held by Motiva.