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RE: Citgo sells stake in Houston refinery

Home Forums Refining Community Refinery News Citgo sells stake in Houston refinery RE: Citgo sells stake in Houston refinery

#7559

Anonymous

No – this is business.  Lyondel has a very cheap crude contract & it has teeth, Chavez does not like the fact that this PDVSA/Citgo joint venture partner gets crude below market price, but the real issue is that during the last strike in Venezuela, PDVSA had to buy crude at market prices and supply it to Lyondel-Citgo refinery. A sale triggers an opening of the crude supply agreement (not sure what happens when one partners buys the other one & it was logical that Lyondell be one buy 30% of Citgo interest).
 
But one thing for sure – it would mean that if Chaves decides to take an 80% ownership of the Upgraders from its american partners before the end of the year & its not more posturing for better deal……then it will be good for a strong contract not to be in place.
Charlie Randall

Refining Community