16-10-2000: In response to the announcement by Chevron and Texaco of a possible merger between them, Shell Oil Company (“Shell”) and Saudi Refining Inc. (“SRI”) confirm that they have entered into discussions with Texaco concerning the possible restructuring of the ownership of the Alliance companies, Equilon Enterprises LLC and Motiva Enterprises LLC.
Shell and SRI are committed to the refining and marketing business in the United States. The companies are seeking a mutually satisfactory conclusion to their discussions, but point out that a number of significant issues remain to be agreed among the parties.
The aim of any restructuring is to provide a platform to strengthen the competitive position and performance of Equilon and Motiva in the interests of shareholders, customers, employees and other interested parties.
Equilon and Motiva are companies created by the combination in 1998 of the U.S. refining and marketing businesses of Shell, Texaco and Star Enterprises (a joint venture between Texaco and SRI).
Shell and Texaco own 56 percent and 44 percent respectively of the ownership interests in Equilon. Shell, Texaco and SRI own approximately one third of the ownership interests of Motiva.