Saudi Arabia's Aramco acquires US' largest oil refinery for $2.2bn

New Delhi, Delhi, IndiaUpdated: May 03, 2017, 01:09 PM IST

Saudi's Aramco, the state-owned company, earlier co-owned the Port Arthur facility with?Royal Dutch Shell (RDSA) called Motiva Enterprises. In photo: The logo of the oil behemoth. Photograph:(Reuters)

Saudi Arabia now owns the largest oil refinery in the United States, according to CNN Money.

Texas-based Port Arthur is considered to be the crown jewel of the US refinery system.

Saudi Aramco, the state-owned company, earlier co-owned the Port Arthur facility with Royal Dutch Shell (RDSA) called Motiva Enterprises.

But the joint venture ran into trouble due to a fractious relationship between the two owners. They decided to separate their assets in 2016.

Aramco's plan to take over the sprawling facility was first announced at the end of last year.

Aramco paid $2.2bn to Shell in the breakup deal, according to a Bloomberg report.

Shell released a statement on Monday that the takeover was complete.

Port Arthur can process 600,000 barrels of oil per day.

CNN further reported: "Aramco is acquiring full ownership of 24 distribution terminals. Aramco also gets the exclusive right to sell Shell-branded gasoline and diesel in Georgia, North Carolina, South Carolina, Virginia, Maryland, the eastern half of Texas and the majority of Florida."

Aramco buying out Port Arthur coincides with the Trump administration's aim to halt oil imports from Saudi Arabia and a push to be self-sufficient in its energy needs.

During last year's election campaign, Trump said he wanted America to be independent of "our foes and the oil cartels".

US currently imports 1.3 million barrels of crude oil from Saudi Arabia, according to Energy Information Administration.

Aramco also believes that the IPO would be valued at $2 trillion, which would make it the highest IPO valuation in history.

The state-owned oil behemoth is hoping for the IPO's success, which has been bolstered by the Saudi government's decision to halve the company's corporate tax rates.