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Motiva refutes assertion of sole-source supply for Port Arthur refinery

Jill Davis, Media, Issues and Crisis Manager for Shell Oil Company has confirmed the authenticity of this Motiva Statement – June 14, 2011

A Dow Jones Newswire article published Friday, June 10, 2011 (below), discussed the future source of crude oil supplies for Motiva Enterprise’s Port Arthur, Texas, facility.  The article referenced a source who indicated that Saudi Arabia will be the sole supplier of crude oil for the expanded facility.  In response to this assertion, Motiva reiterates that no sole-source supply arrangements have been made for the Port Arthur refinery.  The company will continue reviewing its various supply options for a cost-efficient source of crude.


HOUSTON -(Dow Jones)- Saudi Arabia will be the sole supplier of crude oil to Motiva Enterprises LLC’s refinery in Texas after the facility finishes expanding its capacity to 600,000 barrels a day next year, a person familiar with the matter said Friday.

The expansion of the Port Arthur, Texas, refinery, a joint venture between Royal Dutch Shell PLC (RDSA, RDSA.LN) and Saudi Arabia’s state-owned oil company Saudi Arabian Oil Co. (SOI.YY), is scheduled for completion in the first quarter of 2012. The boost in its intake of Saudi crude oil would coincide with Saudi Arabia’s pledge to boost its oil production despite opposition from fellow members of the Organization of Petroleum Exporting Countries.

Currently about half of the fuel at the 285,000 barrel-a-day facility is refined from Saudi crude oil, the source said.

Motiva will increase the number of oil shipments it accepts every month to 27 ships after the expansion, up from seven, the source said. Each ship brings in about 600,000 barrels of oil.

Motiva spokeswoman Marti Powers said in an interview that the company would be looking at “several supply options” for the Port Arthur refinery after its expansion. Powers said Motiva would look for the easiest and most cost-efficient source of crude oil.

In addition to the Port Arthur facility, Motiva also owns refineries in Norco and Convent, Louisiana.

-By Ben Lefebvre, Dow Jones Newswires; 713-547-9201; [email protected]

(END) Dow Jones Newswires

Jill Davis
Media, Issues and Crisis Manager
Shell Oil Company
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