Printer Friendly

CITGO ANNOUNCES SIGNING OF A MASTER TRANSACTION AGREEMENT WITH LYONDELL PETROCHEMICAL COMPANY

 TULSA, Okla., May 6 /PRNewswire/ -- CITGO Petroleum Corp., an indirect, wholly owned subsidiary of Petroleos de Venezuela, S.A. (PDVSA), today announced the signing of a Master Transaction Agreement with Lyondell Petrochemical Co. of Houston, Texas, with respect to their LYONDELL-CITGO Refining Co., Ltd., venture. Under the terms of the agreement, CITGO will provide funding to significantly expand the heavy crude oil processing capabilities of Lyondell's 265,000 barrel-per-day (BPD) refinery near Houston. After completion, CITGO will have a substantial interest in the venture and plans to further increase its interest to 50 percent thereafter. Lyondell would retain the remaining interest in the venture.
 CITGO President and Chief Executive Officer Ronald E. Hall said, "This new venture is another step in our long-range plans to make CITGO one of the nation's most efficient suppliers of quality products. Linking up with Lyondell will strengthen our refining and marketing system by giving CITGO guaranteed access to refined products from another quality-managed, sophisticated Gulf Coast refinery. We look forward to working with Lyondell to build a world-class heavy crude refining facility," he said.
 The transaction provides for:
 -- Expansion of the heavy crude oil processing capability of the Houston refinery from 130,000 BPD of 22 degrees API gravity crude oil to 200,000 BPD of 17 degrees API gravity Venezuelan BCF-17 crude oil.
 -- A dedicated supply of Venezuelan crude oil at market-related prices through a long-term supply agreement with LAGOVEN, S.A., another affiliate of PDVSA. Lyondell began processing Venezuelan crude oil in the third quarter of 1992 and is expected to process up to 130,000 BPD of Venezuela crude oil during 1993.
 -- The sale of substantially all of the light refined products produced at the refinery to CITGO at market-related prices.
 The transaction is expected to close in June of 1993 subject to execution of additional agreements.
 CITGO, with $9 billion in revenues, is a refiner, marketer and transporter of transportation fuels, lubricants, petrochemicals, refined waxes, asphalt and other industrial products. The company markets gasoline through 12,225 branded retail outlets primarily east of the Rocky Mountains. CITGO owns and operates four refineries in the United States, including a 320,000 BPD refinery in Lake Charles, La.; a 160,000 BPD refinery in Corpus Christi, Texas; a 84,000 BPD asphalt refinery in Paulsboro, N.J.; and a recently acquired 28,000 BPD asphalt refinery in Savannah, Ga.
 -0- 5/6/93
 /CONTACT: Kent Young of CITGO, 918-495-5111/


CO: CITGO Petroleum Corp.; Lyondell Petrochemical Co.; LYONDELL-CITGO
 Refining Co., Ltd.; Petroleos de Venezuela, S.A. ST: Texas, Oklahoma IN: OIL SU: JVN


TM -- SF008 -- 5411 05/06/93 12:00 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 6, 1993
Words:439
Previous Article:LAC MINERALS LTD. - 1995 REVISED GOLD HEDGE POSITION
Next Article:CCAIR REPORTS TRAFFIC INCREASE FOR APRIL (d)
Topics:


Related Articles
DESTEC AND LYONDELL PETROCHEMICAL FORM POWER PLANT PARTNERSHIP
LETTER OF INTENT SIGNED, SCOPE DEFINED FOR JOINT OLEFINS PROJECT
LYONDELL-CITGO Refining Upgrade Completed; New Units Now in Service
Lyondell and Millennium Complete Equistar Joint Venture
LYONDELL-CITGO Refining Co. Restructures to Improve Cost Position
Equistar Chemicals Increases Synergy Opportunities With Completion of Transaction With Occidental
Lyondell Names Charles L. Hall Vice President and Controller.
LYONDELL-CITGO Refining LP Completes Refinancing.
Lyondell-Citgo Houston Refinery Offered for Sale.
Lyondell and CITGO Sign Morgan Stanley for Refinery Sale.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters