Lyondell-Citgo Houston Refinery Offered for Sale
April 06 2006 - 11:30AM
PR Newswire (US)
HOUSTON, April 6 /PRNewswire-FirstCall/ -- Lyondell Chemical
Company (NYSE:LYO) and CITGO Petroleum Corporation today announced
the signing of a letter of intent to jointly explore the sale of
the Lyondell-Citgo Refining LP (LCR) partnership which operates a
refinery in Houston, Texas, with a crude oil processing capacity of
268,000 barrels per day. The companies also announced the
settlement of all disputes between Lyondell, CITGO and Petroleos de
Venezuela, S.A., including the litigation concerning the refinery
crude supply agreement. The cash settlement amount was not
disclosed. The demand for refined products in the United States and
the lack of available refining capacity has further enhanced the
value of full-conversion refineries such as LCR. The Houston
refinery has the ability to transform very heavy high-sulfur crude
oil into clean fuels including reformulated gasoline and low-sulfur
diesel, as well as other high-value products such as jet fuel and
aromatics. The refinery is strategically located on the U.S. Gulf
Coast with access to interstate pipelines and the Port of Houston.
The companies will move diligently and expeditiously to prepare an
offering memorandum and establish a data room for interested
bidders. Any sale would be subject to the approval of appropriate
governing bodies. Lyondell-Citgo Refining LP was formed in 1993 as
a joint venture between Lyondell Chemical Company and CITGO
Petroleum Corporation, an indirect wholly owned subsidiary of
Petroleos de Venezuela, S.A., the national oil company of the
Bolivarian Republic of Venezuela. In 1997, LCR completed an upgrade
of the refinery to process large volumes of very heavy, high sulfur
crude oil from Venezuela. Lyondell holds a 58.75 percent interest
in LCR and CITGO holds a 41.25 percent interest. Lyondell Chemical
Company, headquartered in Houston, Texas, is North America's
third-largest independent, publicly traded chemical company.
Lyondell is a major global manufacturer of basic chemicals and
derivatives including ethylene, propylene, titanium dioxide,
styrene, polyethylene, propylene oxide and acetyls. Lyondell
employs approximately 10,000 people worldwide. CITGO Petroleum
Corporation, based in Houston, is a refiner, transporter and
marketer of transportation fuels, lubricants, petrochemicals,
refined waxes, asphalt and other industrial products. The company
is owned by PDV America, Inc., an indirect wholly owned subsidiary
of Petroleos de Venezuela, S.A., the national oil company of the
Bolivarian Republic of Venezuela. DATASOURCE: Lyondell Chemical
Company; CITGO Petroleum Corporation CONTACT: media, David A.
Harpole, +1-713-652-4125, or investors, Douglas J. Pike,
+1-713-309-4590, both of Lyondell Chemical Company; or media, David
McCollum of CITGO Petroleum Corporation, +1-832-486-4260 Web site:
http://www.lyondell.com/
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