Saturday, 6 May 2017

America’s Largest Oil Refinery Now 100% Saudi Owned

Saudi Aramco now controls 100 percent of the Port Arthur, Texas, oil refinery – the largest such facility in the United States – according to an announcement on Monday.

The deal regarding the 600,000 barrels-per-day facility had first been announced in 2016. Previously, Aramco, which is wholly-owned by the Saudi Arabian government, owned 50 percent of the refinery in a joint venture with Royal Dutch Shell.

The two oil companies’ rocky relationship caused Shell’s departure. A statement on Monday from Aramco confirmed that the split up had reached “completion” according to CNN Money.

The deal also grants Aramco full ownership of 24 distribution terminals as well as the exclusive privilege of selling Shell gasoline and diesel fuel in Georgia, North Carolina, South Carolina, Virginia, Maryland, east Texas and most of Florida.

The new setup profits Riyadh, which is preparing for the initial public offering of Aramco in 2018. It’s been declared the largest IPO in history, with the state-run company expecting a valuation of $2 trillion.

The problem with excessive foreign ownership is the political baggage that it generates. Almost no world leaders will criticise the Saudis because of the moneyed interests/networks. They can run a medieval dictatorship, sponsor ISIS and invade Yemen and there is no reaction. It's about time each country acted in its own interests, keeping their assets largely under their own control and started speaking out about corruption. 

[Posted at the SpookyWeather blog, May 6th, 2017.]

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