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Valero says not interested in Lyondell-Citgo, Vitol refineries
By Beth Evans
Platts
New York
Petroleumworld.com 06 13 06
Valero Energy is "no longer pursuing" the purchase of the 268,000 b/d
Lyondell-Citgo Houston plant recently put up for sale, or with Vitol's 105,000
b/d Come by Chance refinery in Newfoundland, according to a presentation on
Valero's website.In a presentation titled "European Investor Presentation June 12-14,
2006," a section attributed to Valero CEO Bill Klesse mentions "capital
discipline" and says the company will "maintain capital budget projections
despite higher costs" and "will not overpay for acquisitions."Come by Chance's sale price is being talked at about $1 billion. The
more complex Lyondell-Citgo refinery, located a few miles from Valero's
Houston plant, is being valued at up to $5 billion by some.Valero in the past has been very acquisitive and Klesse has said the
Houston plant would be a good fit with Valero's assets. "It's an asset that
fits our criteria" for a purchase, Klesse told analysts during an earnings
conference call in late April. "It's over 100,000 b/d, it runs sour crude,
it's on the water. Our Houston refinery is less than three miles away, so we
know we'd have a lot of synergies."Valero has a 135,000 b/d refinery outside Houston. Valero could not
immediately be reached for comment on the apparent change of plan. Among those
waiting in the wings is Sunoco, whose CEO, John Drosdick, told Platts in a May
interview his company would be interested in both plants at the right price.--Beth Evans, beth_evans@platts.com
For similar news, take a trial to Platts Oilgram News at
http://oilgramnews.platts.com.
Platts 12 06 06
Copyright ©2006 Platts. All Rights Reserved.
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