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RE: Valero to sell assets?

Home Forums Refining Community Refinery News Valero to sell assets? RE: Valero to sell assets?

#7168

Charles Randall
Participant

Anything is possible but…… Hovensa doesn’t fit the purchase cost profile for Valero refineries – it will definitely will not be below 40% of replacement cost since PdVSA is partner on this refinery. And unlike Aruba Hovensa is very complex refiney with recent revamp to its Coking unit. Also don’t think many US Refineries want to get tied tightly into Venezuela crude supplies given Chavez current ability to honor agreements/contracts.
 
I still think this is just a case of cashing out & trading up on assets as well as avoiding more future investment cost, sounds more like a green eye shade call than refinery strategy call.
Regards

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