• 3 minutes This Battery Uses Up CO2 to Create Energy
  • 5 minutes Shale Oil Fiasco
  • 9 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 12 minutes Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 5 hours Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 2 hours Demand for Diesel vs. Oil
  • 16 hours Which type of Hegemony will China follow
  • 8 hours Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)
  • 1 day Here is Why People Lose Money Trading Natural Gas
  • 2 days Governments that wasted massive windfalls
  • 9 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 23 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 1 day Let’s take a Historical walk around the Rig
  • 1 day US Shale: Technology
  • 2 days We're freezing! Isn't it great? The carbon tax must be working!
  • 2 days 2nd Annual Great Oil Price Prediction Challenge of 2019

Breaking News:

Oil Prices Rise On Surprise Crude Draw

U.S. LNG Booms As Natural Gas Prices Crash

U.S. LNG Booms As Natural Gas Prices Crash

Despite the recent collapse in…

How Low Will The Coronavirus Send Oil Prices?

How Low Will The Coronavirus Send Oil Prices?

In today’s oil market it…

Citgo Suspends Oil Refinery Unit In Texas

Citgo

Venezuelan PDVSA’s crown jewel, U.S.-based refiner Citgo, has idled a gasoline production unit at a small refinery in Corpus Christi, Texas, Reuters reports, citing sources in the know.

The sources said the closure had been motivated by economic reasons, since the unit was not making any profit, while Citgo itself said in a regulatory filing it had idled the unit for “non-operational reasons.”

Citgo, Reuters notes, has been running its refineries at lower than usual rates as a result of lack of spare parts, underinvestment, and low flows of light crude that refineries need to mix with Venezuelan heavy crude to produce fuels and other products.

Citgo has been in the spotlight recently as the only profitable unit of the troubled Venezuelan oil company, which a Canadian miner is seeking to take control of in lieu of financial compensation for the forced nationalization of its operations in Venezuela by the late Hugo Chavez’ government.

Crystallex, the miner, managed to ink a settlement agreement with Caracas late last year, but quickly afterwards accused it of breaching the agreement and tried to seize control of Citgo through courts, to sell the stock. The breach, according to a lawyer for the Canadian company, was in the form of PDVSA approaching the legal system to overturn a court ruling that gave Crystallex access to Citgo’s stock. The court awarded the miner compensation of US$1.4 billion.

Crystallex is also not the only one eyeing Citgo as a means of getting what it claims it is due for the nationalization of its assets. ConocoPhillips also won a case against Venezuela and earlier this year stepped up its efforts to receive its dues by seizing PDVSA assets in the Caribbean. The strategy worked and PDVSA coughed up US$345 million as the first part of a US$2-billion settlement.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage


Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play