Venezuela says it would sell U.S. refiner Citgo for the right offer


Venezuelan state oil company PDVSA would sell North American unit Citgo if it receives a good offer, the country's oil minister says.

Citgo has three U.S. refineries with combined capacity of ~750K bbl/day, but two of the refineries are geared to run heavy crudes from Venezuela while U.S. refining companies are trying to maximize profits by buying cheap domestic light crudes; Citgo's refinery in Lemont, Ill., is the only one that does not process Venezuelan heavy crudes, and its location is not far from inexpensive Canadian crudes.

Separate from Citgo, PDVSA has a stake in the Chalmette refinery in Louisiana with Exxon (NYSE:XOM) and owns the Merey Sweeny unit of the Sweeny, Tex., refinery with Conoco (NYSE:COP) spinoff Phillips 66 (NYSE:PSX); selling either likely would lead to legal tangles because of arbitration claims filed by XOM and COP over 2007 nationalizations of their projects in Venezuela.

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Comments (18)
  • jumpnjoey77
    , contributor
    Comments (1205) | Send Message
     
    And they have a bridge they want to sell....
    5 Aug 2014, 07:16 PM Reply Like
  • Hawaiian Neal
    , contributor
    Comments (2) | Send Message
     
    I think the US should just "Nationalize" it! :)
    6 Aug 2014, 02:22 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11220) | Send Message
     
    Yeah...our ultra-socialist policies are driving intense inflation (60% per year), product shortages and we are very low on dollars.

     

    http://bit.ly/1pBr8C3

     

    So...we are looking to sell what we can to raise some dough.

     

    -Venezuela
    5 Aug 2014, 07:47 PM Reply Like
  • wefish
    , contributor
    Comments (17) | Send Message
     
    Sure then nationalize it, got milk.
    5 Aug 2014, 08:56 PM Reply Like
  • Hendershott
    , contributor
    Comments (1773) | Send Message
     
    Hugo tried to sell it years ago, called refining a bad business, and it was at the time. Maybe now's the time.
    5 Aug 2014, 09:31 PM Reply Like
  • Anne Bonney
    , contributor
    Comments (105) | Send Message
     
    Citgo anything is radioactive.
    5 Aug 2014, 10:03 PM Reply Like
  • roybuckley
    , contributor
    Comments (30) | Send Message
     
    Not a bad deal... the Citgo plants are not bad at all, folks there are happy... so what if they run heavy crude.. The Venezuelans gotta sell to someone.
    5 Aug 2014, 10:22 PM Reply Like
  • rcgalaska
    , contributor
    Comments (3) | Send Message
     
    Sell ? Nope we are going to nationalize it (aka steal). Sound familiar ?
    5 Aug 2014, 11:01 PM Reply Like
  • smurf
    , contributor
    Comments (6258) | Send Message
     
    rc...

     

    It would be hard for them to nationalize Citgo, seeing as how they already own it.
    6 Aug 2014, 04:48 AM Reply Like
  • Tom Servo
    , contributor
    Comment (1) | Send Message
     
    And that's the problem - they've already milked all of the money they can get out of it, and they're desperate for some sugar-daddy corporation to take it back over so they can go back to blackmailing them, since that's all they know.

     

    Citgo depends upon Venezuelan oil shipments, and without those agreements it's worthless - that's the extortion lever they hope to hold over the head of any purchaser.

     

    Right now, after nationalization, and after they've stripped every dollar and bolivar they can out of the company, they find that they're down to trying to steal from themselves, and are amazed that it isn't working. So they're looking for a new chump to step up.

     

    I wouldn't give $10.00 for the entire company right now.
    6 Aug 2014, 09:23 AM Reply Like
  • sethmcs
    , contributor
    Comments (3564) | Send Message
     
    It is actually stupid to think that refineries set up to refine heavy crude cannot refine light crude. They can and will even yield more gasoline per barrel with less refining. A bunch of additional processes can be skipped.
    5 Aug 2014, 11:33 PM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (4368) | Send Message
     
    I'd rather run out of gas than stop at a Citgo.

     

    Argentina, Hugo, et al can go down the tubes with it.
    6 Aug 2014, 12:43 AM Reply Like
  • keithrez
    , contributor
    Comments (217) | Send Message
     
    More Americans need to know that Citgo is owned by a country that doesn't like us. Why no one high up indicated this every time Hugo shot his mouth about the US is a shame, so it is up to us as a people to help cause Citgo's demise.
    6 Aug 2014, 01:36 AM Reply Like
  • xomstock
    , contributor
    Comments (458) | Send Message
     
    I think the courts should give one to cop and one to Exxon and split the northern unit between the two. Even if I was on fumes and was at Scott street and MLK in Houston at 3 am, I would not buy Citgo gas. Commie reaping what they sew.
    6 Aug 2014, 07:23 AM Reply Like
  • philli66
    , contributor
    Comments (66) | Send Message
     
    They should put it up for auction on eBay. A match made in heaven
    6 Aug 2014, 09:48 AM Reply Like
  • Rsteber
    , contributor
    Comment (1) | Send Message
     
    Glad to see others who refuse to buy from Citgo. Chavez ruined PDVSA and poisoned Citgo. Time to take back those USA assets and stop supporting the mind and spirit numbing policies that continue to be ruinous to the hapless people of Venezuela.
    6 Aug 2014, 10:23 AM Reply Like
  • Hawaiian Neal
    , contributor
    Comments (2) | Send Message
     
    The US should .......Nationalize it!
    6 Aug 2014, 02:21 PM Reply Like
  • starcorral
    , contributor
    Comments (1711) | Send Message
     
    Being a Tulsan and having had a close friend in upper mgmt. at Citgo allowed me to understand his perspective. He was offerred a position in Venezula (rather then Houston) when Citgo left Tulsa some years back. The company assured him he and his wife would be safe in this bizzare country by virtue of an armed escort whenever they travel. That's reassuring depending on the amount of armor built into your vehicle, your Kevlar ceramic underwear, and the hardness of your head.

     

    When Tulsa said goodbuy to this age old homegrown company, I believe we said goodbye for good. Chavez skimmed off the resources that allowed Citgo a competitive leadership position so that he could prolong his self important fantasy. American Airlines knows what happens firsthand when dealing with this former ally turned goofy banana republic. The only Citgo assets worth anything are the ones in which Venezuela can't proclaim "possession is 9/10 of the law.
    6 Aug 2014, 06:34 PM Reply Like
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