View Full Version : U.S. Nixes China Offer To Buy Citgo Operations In U.S.

03-14-2005, 09:43 PM

Venezuela Seeking Other Buyers

Tuesday, March 08, 2005
Patrick J. O'Donoghue

Three foreign companies said to be prospecting to buy into CITGO

According to Miami 's El Nuevo Herald there are at least 3 international group hovering around Petroleos de Venezuela (PDVSA) US subsidiary, Citgo should the Venezuelan government decide to sell it off.

The broadsheet claims that Venezuelan President Hugo Chavez Frias Chavez has been holding secret talks with the prospectors angling for Citgo's refinery and chain of gasoline stations throughout the USA .

Allegedly, the President has received an offer of US$12 billion from an Arab oil conglomerate linked to the Organization of Petroleum Exporting Countries (OPEC).

It would appear that PDVSA has selected Brazilian oil executive, Gilberto Prado as its middleman and rumors abound that Petrobras could enter Citgo as a partner. Prado was responsible for negotiations that ended in an agreement between PDVSA and Petrobras to build a refinery in Pernambuco.

Strengthening the strategic union with Brazil is high on President Chavez Frias' political agenda.

Russia 's Lukoil is said to have offered $1 billion to develop oil fields in Venezuela and its president, Vagit Alekperov admits to talks with PDVSA to supply Russian oil to Citgo.

Another offer from the Chinese National Offshore Oil Company has been vetoed by the USA government on national security reasons, so whoever buys the company will have to get approval from the US Senate.

03-14-2005, 09:46 PM
i thought we were for free business enterprises.... why stop it? why does it have to be approved by our government???