MercoPress. South Atlantic News Agency
Cash-short Venezuela considering the sale of its US downstream subsidiary
Citgo includes thousands of gasoline stations plus several refineries and storage facilities Venezuela's state-run oil company Petroleos de Venezuela SA (PDVSA) is considering offers to sell its U.S. downstream subsidiary Citgo, industry research group Argus Media reported on its website last Friday.
The government has received three separate offers to buy Citgo submitted through Goldman Sachs, JP Morgan and Deutsche Bank, Argus said citing energy ministry officials.
”The offers are in the range of 10bn to 15bn dollars for the Citgo assets, including three U.S. refineries with a combined nameplate crude processing capacity of 757,000 barrel per day (bpd), 48 products storage facilities, three wholly owned Citgo pipelines and stakes in six other U.S. pipelines.”
PDV America, Inc., an indirect, wholly owned subsidiary of PDVSA, owns the 427,800 bpd Lake Charles refinery in Louisiana, the 163,000 bpd Corpus Christi refinery in Texas, and the 172,045 bpd Lemont refinery in Illinois.
Citgo has long been a key cash-paying client of PDVSA, whose debt payments to China are made in crude and do not generate regular cash-flow.
However Venezuela's shortage of dollars to fund imports, more specifically food and other essentials, could be forcing the country to decide to sell its assets in the US.
Top Comments
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Read all commentsSelling profitable assets is another step to bankruptcy and default.
Jul 28th, 2014 - 09:32 am 0How can a country that exports that much oil be so short of money?
1. Because they give their money away to other Marxist countries to garner support.
Jul 28th, 2014 - 12:01 pm 0Silly fools
I hope they sell so I can start going to Citgo stations. I won't go even if my tank is empty to a Citgo now I don't want 1 of my U$ going to that horrible place.
U$15B won't last long in Venezuela, they owe the airlines u$6B in back payments alone!
“Selling the family silver”
Jul 28th, 2014 - 05:38 pm 0Stunning move right out of TMBOA 'Stupid id us' playbook.
Way to go MADuro.
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