Venezuela PDVSA wants more from Citgo oil contracts
Posted: Tuesday, March 26, 2002
CARACAS, Venezuela, March 26 (Reuters) - Venezuelan state oil firm Petroleos de Venezuela (PDVSA) is seeking to renegotiate crude supply contracts with its U.S. refining arm Citgo Petroleum Corp. as part of government efforts to increase oil revenues.
"We are trying to change the structure of the supply agreements to maximize returns from the crude sales," a spokesman for the Ministry of Energy and Mines told Reuters Tuesday.
Under the new supply terms, Citgo would pay market prices for heavy sour oil purchased from PDVSA, rather than the discounted prices the subsidiary currently enjoys.
The new contracts would make it easier for the government to access oil money and increase profits to Venezuela, the world's No. 4 oil exporter, from the U.S. downstream operation, the spokesman added.
Citgo officials said the company had not been contacted by PDVSA to renegotiate supply deals. MORE