VENEZUELA MOVES CLOSER TO CHAMPLIN PURCHASE
the council of ministers approved
petroleos de venezuela's planned purchase of a half interest in
the champlin petroleum refinery at corpus christi, texas,
government sources said.
    The cabinet authorized energy and mines minister arturo
hernandez grisanti to approve the purchase in the shareholders
assembly of the state oil company petroleos de venezuela
(pdvsa).
    Pdvsa last april 14 signed a letter of intent to buy a half
interest in champlin's corpus christi refinery for an
undisclosed sum.
    Under the terms of the provisional agreement, venezuela
would supply up to 160,000 barrels a day to the plant through a
new company which would be jointly owned by the pdvsa and
champlin, a subsidiary of the union pacific corp <unp>.
    The deal would also allow pdvsa a joint share in champlin's
refinery and distribution network.
    The purhcase is one of a series of overseas joint ventures
by which venezuela has managed to assure markets for some
400,000 barrels of its approximately 1.5 mln bpd exports.
    Hernandez grisanti told reporters after the cabinet meeting
that pdvsa will pay 93 mln dlrs for its half ownership in the
champlin refinery - 33 mln dlrs in cash and 60 mln dlrs crude
oil and products.
    Through the deal, he said, venezuela will be assured the
sale of at least 140,000 bpd of crude and products.
    Hernandez said pdsva has entered similar joint ventures
with veba oel of west germany, nynas petroelum in sweden, and
citgo in the united states.
 Reuter
