Venezuela PDVSA to end ExxonMobil ventures, sell Nynas AB stake

16 March 2012 17:15  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Petroleos de Venezuela (PDVSA), the state-owned oil company and refiner, plans to end all ventures with ExxonMobil. after an arbitration case at the World Bank is resolved, Venezuelan Oil Minister Rafael Ramirez said in an interview published on Friday in a local newspaper.

A decision on the disputed assets, which were nationalised by Venezuela in 2007, could come at the end of this year or early 2013, Ramirez said, according to the interview published in the Caracas-based newspaper El Mundo.

ExxonMobil and PDVSA each have a 50% stake in the Chalmette refinery in Louisiana.

The state oil company wants to convert a heavy crude upgrader at the Petromonagas facility in Venezuela into a full refinery that can process crude currently sent to Chalmette, said Ramirez.

Petromonagas is a heavy oil upgrader and includes wells, pipelines and an upgrader to convert tar-like crude into lighter synthetic crude.

Also, PDVSA has started a process to divest its 50% stake in the Nynas AB venture with Neste Oil that operates refineries in Sweden, Belgium and the UK, Ramirez told the paper.

The refineries include Sweden's Nynaeshamn and Gothenburg facilities, which mostly use Venezuelan crude to make bitumen and naphthenic specialty products. In addition to the Swedish refineries, Nynas AB also operates refineries in Dundee and Eastham in the UK.

"They do not value our Venezuelan crude fairly," Ramirez said, referring to the supply contracts for the facilities.

Ramirez did not give more details in the interview, and did not return call for further comment on Friday.

By: Leela Landress
+1 713 525 2653

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