Motiva Completes Base Oil Expansion at Port Arthur Refinery

Now the largest single site Group II/II+ Base Oil manufacturer in the world

Houston, Texas - Motiva Enterprises LLC, a petroleum refining and marketing company owned by affiliates of Shell Oil Company and by Saudi Refining, Inc., has completed expanding the base oil plant at its Port Arthur, Texas refinery. The expansion added approximately 15,000 barrels per day (b/d) capacity of Group II and Group II + base oils, which are used in the manufacture of finished lubricants and as specialty process oils. The expansion raises the total base oil production capacity at the plant to about 40,300 b/d, making it the largest Group II/II+ base oil facility in the world.

"Motiva is pleased to invest in a world-class facility that will serve the growing needs of the lubricants industry," said William B. Welte, Motiva President and Chief Executive Officer. "Base oils and lubricants are part of a dynamic global market, and Port Arthur is well positioned to serve it."

Demand for Group II/II+ base oils is growing due to the increasingly stringent technical requirements needed to meet industry standards. For the expansion, Motiva constructed a third lube hydroprocessing unit that upgrades heavy gasoil into high quality Group II/II+ base oil, using a unit design patented by Motiva. The Motiva Port Arthur Refinery produces six grades of base oil within the Group II/II+ categories.

"Our base oil operations at Port Arthur have a history of delivering the high-quality lubricants the market demands," said Tom Purves, refinery manager. "We offer a combination of size, state-of-the-art technology and access to many modes of transportation that's hard to beat."

Motiva Base Oils General Manager Gerry Jackson said, "Our Group II/II+ high performance base stocks provide cost-effective solutions for customers who demand leading-edge quality. Motiva is well equipped to help our customers meet the evolving needs of the global marketplace."

A number of industry production disruptions dating back to last year's hurricanes have caused some base oil producers including Motiva to temporarily allocate product shipments. With the new unit ramping up to normal operating capacity, Motiva expects to reliably meet customer demand going forward.

The expansion project began in the third quarter of 2004. The cost of the construction was not disclosed.

For more information, visit www.motivalubes.com. For Domestic Sales, contact Eric Johnson at 713-241-1680. For International Sales, contact David Hieronymus 713-241-7132. For Technical Information, contact Greg Raley at 713-241-6086.

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Motiva Enterprises LLC owns and operates refineries capable of refining approximately 780,000 barrels per day, a distribution system including ownership interests in 42 product terminals, and a marketing network that supports more than 9,000 branded gasoline stations in the Eastern and Southern United States.

For more information contact:

Stan Mays 713-241-1582

Sue Parsley 409-989-7015

Darci Sinclair
Media Relations
Shell Oil Company
910 Louisiana, 4438B
Houston, TX 77002

Ph: +1 713-241-0299
Mobile: +1 713-202-0717
Shell Media Line: +1 713-241-4544
Fax: +1 713-241-6988
Email: darci.sinclair@shell.com
Internet: http://www.shell.com/us