Time Estimate for PDV Midwest's Lemont Refinery
Nov 3, 2001
""We have brought in outside experts to help us determine the extent of damage and what the likely time frame might be before the crude unit is operable, but we still have considerably more work to do,"" said Adolph Lechtenberger, CITGO Senior Vice President, Refining and Petrochemicals. ""As of today,"" Lechtenberger said, ""for supply planning purposes, we are assuming that the crude unit will return to service in 20 to 24 weeks. To ensure the safety of our employees, we are proceeding cautiously with the assessment.
""We are also studying how we can operate the refinery units downstream from the crude unit by bringing in feedstocks for those units from outside of the refinery. If we are able to deliver sufficient feedstocks and blending components, we may be able to begin producing gasoline and diesel fuel at the refinery prior to bringing the crude unit back on line. The extent of the production loss will be determined by our ability to bring the rest of the refinery back on line. Further detailed assessments will be required to refine the time period and the estimated cost to repair the crude unit.
""In the meantime, we are exploring every possibility to determine how we can best meet our contractual commitments for petroleum products. We have been talking with refiners in the U. S. as well as refiners in Canada to find supplies of refined product. In addition, we are exploring all avenues of transportation including pipelines, ships and barges,"" Lechtenberger said.
""We are committed to our CITGO-branded marketers and we are determined to meet their product needs,"" said W. A. DeVore, Senior Vice President, Supply, Marketing & Lubricants. He continued, ""We are concerned about the short-term gasoline and diesel supply in the Midwest. We have contacted the U. S. Department of Energy and the Environmental Protection Agency to determine what help they can provide to ease the gasoline supply situation in the Chicago and Milwaukee markets. We are awaiting a response from those agencies.""
CITGO Petroleum Corporation, based in Tulsa, Okla., is a refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals, refined waxes, asphalt and other industrial products. The Lemont refinery is owned by PDV Midwest Refining, LLC and is operated by CITGO. Both are owned by PDV America, Inc., an indirect wholly owned subsidiary of Petroleos de Venezuela, S.A., the national oil company of the Bolivarian Republic of Venezuela.
Statements made in this release regarding the expected costs and losses and the expected out of service period constitute forward-looking statements. Such statements are subject to risks and uncertainties that may cause actual results to differ from the estimates set forth in those statements. Factors that may cause such results to differ include the assessment of the extent of loss, the needed repairs, and the cost and availability of repair or replacement services and equipment. Neither CITGO nor PDV America assumes any obligation to update such forward-looking statement to reflect changes in such factors.
CITGO Petroleum Corporation, based in Tulsa, Oklahoma, is a refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals, refined waxes, asphalt and other industrial products. It is owned by PDV America, Inc., an indirect wholly owned susidiary of Petroleos de Venezuela, S.A., the national oil company of the Republic of Venezuela."