Our
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CITGO is going out of business
While,
US Citgo Corp, Venezuela's oil company PDVSA wholly
owned subsidiary and gasoline distribution arm in the
U.S., declared last year that Citgo delivered almost
USD 800 million of dividend in 2005, to its parent,
the highest amount since PDVSA wholly own the refining
firm, and on Tuesday, PDVSA said in a press release
that its refining branch in the United States declared
a USD 280 million dividend payable to its parent, corresponding
to the second quarter, in top of some USD 120 million
reported in the first quarter, plus Alejandro Granado,
chairman of Citgo's board of directors is quote saying
"The payment of this dividend reflects the company's
strong performance and the continued alignment of Citgo
and PDVSA," "Citgo is positioned for another
excellent year, due to the focus on its core, strategic
business." Citgo announced late on Tuesday, it
was cutting 14 percent of its 13,000 station network
by March 31.as the company continues to concentrate
its operations on three wholly-owned U.S. motor fuels
refineries. In the mean time, Citgo has also announced
plans to sell two U.S. asphalt refineries and its interests
in the two largest U.S. refined products pipelines.
In other words, what Citgo is saying is "bye,
U.S., we are not longer competing in the U.S.
gasoline market, we are facing out."
The
writing is on the wall.
Petroleumworld
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Petroleumworld
07/13/06
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