Citgo is profitable and the dividend payments roughly confirm it worth somewhere about $10 billlion:
Copyright 2006 BNamericas.com
July 12, 2006
IN BRIEF: Citgo to pay US$280mn in dividends
US refining and fuels company Citgo will pay US$280mn in dividends to its parent company, Venezuela's state oil firm PDVSA, bringing total dividend payments this year to US$400mn, the latter said in a statement.
"This dividend payment reflects the company's solid results and the continued ties between Citgo and PDVSA," Citgo chairman Alejandro Granado said. "Citgo is positioned for another year of excellent results due to its focus on its core business and strategy."
Canada has replaced some of the missing Venezuela oil, but not much. Apparently even Citgo
is seeking Canadian oil.Houston, we have a problem.
COPYRIGHT 2006 Energy Intelligence Group
June 19, 2006
Volume 56; Issue 117
Canadian crudes displace Latin blends in shift in US spot market.
Following the reversal of two crude oil pipelines to the US Midcontinent region, Canadian heavy crudes are moving to displace sour crudes from Latin America in the US Gulf Coast spot market.
The volume of Canadian crude reaching the Gulf Coast is still small at 60,000 barrels per day, but it represents a significant development in the US spot crude market, especially since Latin American crude is becoming more difficult to obtain on the spot market (OD Mar. 6, p6).
Some Gulf Coast refiners are simply looking to diversify their supply sources, but there are also concerns about the new wave of nationalism sweeping across Latin America's political spectrum, with Hugo Chavez entrenched in Venezuela, Evo Morales in Bolivia, and Alfredo Palacio in Ecuador, where US Occidental was kicked out last month (OD May 17, p1).
Lyondell-Citgo's refinery at Houston, one of the largest in the US and designed to process heavy, high sulfur crude oil, is now also reportedly taking some Canadian crude. The facility covers nearly 700 acres along the Houston Ship Channel and has a capacity of 268,000 b/d. The refinery, which was recently put up for sale, is owned by a joint venture of Lyondell Chemical and Citgo Petroleum, the US refining unit of Venezuelan state oil firm Petroleos de Venezuela (PDV).