Chicago Tribune

PDVSA seeks bids for Citgo in potential $10 billion deal
Chicago Tribune

Venezuela’s state-run oil company PDVSA is seeking preliminary offers for its U.S. unit Citgo Petroleum Corp [PDVSAC.UL] by the end of September, a deal that could fetch up to $10 billion, according to two people familiar with the matter.

Venezuela is selling Citgo in part due to a cash crunch stemming from repaying debts to Beijing with oil, rather than selling the crude to generate revenue, analysts say. The government denies a cashflow problem exists.

Within President Nicolas Maduro’s government, the potential sale is controversial and seen as a privatization that would contradict years of socialist policies, including a nationalization of the oil industry in 2006 and 2007.

PDVSA also has a 50 percent stake in the Chalmette refinery in Louisiana alongside Exxon Mobil Corp, which owns the remainder. The Venezuelan oil company has tapped Deutsche Bank separately to explore a sale of its stake in that refinery. Citgo’s assets, the core of which are three refineries with combined capacity of 749,000 barrels per day (bpd), could fetch between $8 billion and $10 billion, three of the people said.

La PDVSA est la compagnie gouvernementale au Venezuela qui est responsable de l’exploitation pétrolière. Quand un pays de cul parle de privatiser sa compagnie pétrolière pour payer ses dettes, je pense que c’est un signal indiquant que le Québec peut lui aussi songer à la privatisation d’Hydro-Québec pour faire de même.

Imaginer la honte si les socialistes vénézuéliens comprenaient, avant les Québécois, les bienfaits de la privatisation…