Venezuela won’t accept less than $10 billion for its oil refining and marketing assets in the U.S., said the head of Petroleos de Venezuela SA.
Venezuela is receiving offers for Houston-based Citgo Petroleum Corp., Rafael Ramirez, the president of the state oil producer known as PDVSA, told reporters, without elaborating further.
“We are not a refining company, we’re an oil producing company,” he said during the commemoration of 100 years of national oil production in Zulia state. “As soon as we have an offer in line with our interests, we will announce it.”
Citgo said PDVSA has put it up for sale in a July 29 bond prospectus. The company owns three refineries capable of handling about 749,000 barrels a day in Louisiana, Texas and Illinois. The company sells gasoline through more than 6,000 stations.
Venezuela President Nicolas Maduro is seeking to sell foreign refineries to boost oil exports to China, raise cash and reduce the risk of having assets seized if it loses international lawsuits brought by former oil partners, GlobalSource Partners’ Ruth de Krivoy and Tamara Herrera said July 31 in an e-mailed report to clients.
Citgo had sales of $42.3 billion last year and earnings before interest, taxes, depreciation and amortization of $1.8 billion, according to the bond prospectus.
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