Saudi Arabia

Saudi Aramco's trading affiliate Aramco Trading Co. (ATC) has acquired the Motiva Trading business in the US and set up a new subsidiary to manage its activities in North and South America. The move is part of an international expansion of the Saudi oil giant's trading operations. Industry sources have recently told Energy Intelligence that this could also involve an initial public offering of ATC's shares — possibly by the end of the current quarter. Under the transaction announced Wednesday, ATC has acquired 100% of Motiva Trading, which will be integrated into a new wholly owned subsidiary: Aramco Trading Americas (ATA). The new ATA unit will become the sole supplier and offtaker for Motiva Enterprises, Saudi Aramco's wholly owned US refining and marketing affiliate. Motiva Enterprises owns North America's largest oil refinery, located in Port Arthur, Texas, with a capacity of 630,000 b/d. The deal comes at a time when global oil flows are shifting, providing new opportunities for traders. The recent changes in the market have led to increased European demand for certain Mideast crudes that are being pushed out of Asia by deeply discounted cargoes of Russia's Urals crude that have been snapped up by India, China and others.