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Caribbean-Latin America |
Venezuela Seeks Buyer for Citgo Petroleum |
2014-08-01 |
Petroleos de Venezuela SA is seeking a buyer for Citgo Petroleum Corp., its U.S. refining and marketing company, in a deal that may be worth as much as $15 billion. PDVSA, as the state-owned oil company is known, "is currently seeking to monetize its ownership interest in us," Citgo said in a July 29 bond prospectus document. "There can be no assurance as to whether a transaction will occur or as to the nature or timing of any potential transaction." Citgo owns three refineries capable of handling about 749,000 barrels a day in Louisiana, Texas and Illinois. The company sells gasoline through 5,600 branded stations. It could fetch $15 billion because its midstream storage terminals and docks are eligible for tax advantages, said Sam Margolin, a New York-based analyst for Cowen & Co. Potential buyers include Gulf Coast refiners looking to capitalize on the region's rising crude supply, and those operators seeking entry, Margolin said. Citgo had sales of $42.3 billion last year and earnings before interest, taxes, depreciation and amortization of $1.8 billion. A call and e-mail to Citgo's Houston office weren't immediately returned. Argus Media reported July 24 that the company had received three offers of $10 billion to $15 billion for Citgo. The government of President Nicolas Maduro probably is looking to sell offshore refineries to boost hydrocarbons exports to China, raise cash and reduce the risk of having assets seized as part of PDVSA lawsuits abroad, GlobalSource Partners' Ruth de Krivoy and Tamara Herrera said today in an e-mailed report to clients. |
Posted by:Pappy |
#11 Congress won't allow just any buyer Of course not. Only to the highest |
Posted by: Procopius2k 2014-08-01 18:58 |
#10 Never mind Citgo. How much for Venezuela itself? |
Posted by: SteveS 2014-08-01 16:33 |
#9 Congress won't allow just any buyer. |
Posted by: Shipman 2014-08-01 16:21 |
#8 And the Chinese won't pay up on any of the lawsuits, either. |
Posted by: gorb 2014-08-01 12:09 |
#7 Maybe Joe Kennedy will buy it... |
Posted by: tu3031 2014-08-01 11:32 |
#6 ..there were always (Taiwanese) Chinese who were big time merchants. It's the observation that its the ComChi's who are big mercantilists these days that's impressive. |
Posted by: Procopius2k 2014-08-01 11:10 |
#5 The Brave New Mercantilist World, where the Chinese are allowed to make money but we're not. |
Posted by: Thing From Snowy Mountain 2014-08-01 10:55 |
#4 Nationalization is part of the reason they're selling. They're facing some hellacious lawsuits. |
Posted by: Pappy 2014-08-01 10:18 |
#3 Nationalization protocols to be included with the sale docs? |
Posted by: Uncle Phester 2014-08-01 09:08 |
#2 The Chinese should pick that up in a minute. They have enough clout, and no care about international repercussions, that if the regime in Caracas tries to pull a fast one, it'll hurt big time. |
Posted by: Procopius2k 2014-08-01 08:16 |
#1 Eating the seed corn now, huh? The government of Venezuela is in it's next to final phase. Expect them to invade a neighbor for the follow up. |
Posted by: ed in texas 2014-08-01 07:11 |