By the OGJ Online Staff
HOUSTON, Aug. 28 -- CITGO Petroleum Corp., which owns 65% of the Cit-Con Oil Corp. lubricants and wax refinery at Lake Charles, La., plans to buy Conoco Inc.'s 35% share.
Terms were not disclosed. The refinery has a capacity of 9,600 b/d of base oil and 2,000 b/d of wax. It is the sixth largest paraffinic lubricants refinery in the US.
Adolph Lechtenberger, CITGO senior vice-president for refining and petrochemicals, said the deal "will enable us to focus on increasing operational efficiencies, and, longer term, possibly using Venezuelan crude oil feedstock for the refinery."
Richard Severance, Conoco president of downstream North America, noted that the Cit-Con partnership has lasted more than 45 years. He said the plant no longer fit Conoco's strategy for base oil manufacturing operations.
CITGO is owned by PDV America Inc., an indirect wholly owned subsidiary of Petróleos de Venezuela SA.