Affiliates of Lyondell Petrochemical Co., Houston, and Citgo Petroleum Corp., an indirect subsidiary of Petroleos de Venezuela SA, formed Lyondell-Citgo Refining Co. Ltd. as part of a plan disclosed last year to upgrade Lyondell's 263,000 b/cd Houston refinery (OGJ, July 20, 1992, p. 41).
Citgo is to fund a substantial--but undisclosed--portion of a 4-5 year project to increase the refinery's heavy crude oil processing capacity to 200,000 b/d of 17 gravity Venezuelan BCF-17 oil from 130,000 b/d of 22 gravity feedstock. In return, Citgo is to receive a minority interest in the venture, with an option to increase its holding to 50% following completion of the upgrade.
The deal assures the Lyondell-Citgo venture a dedicated supply of Venezuelan crude and Citgo a secure supply of refined products, both at market related prices.
Lyondell began processing Venezuelan crude in third quarter 1992, throughput of which this year could grow to as much as 130,000 b/d.
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