CITGO, a wholly owned subsidiary of PdVSA, controls 734,000 bbl/d of crude oil refining capacity in the U.S. The company operates three product refiners (Lake Charles, LA; Corpus Christi, TX; Lemont, IL), two asphalt refineries (Paulsboro, NJ; Savannah, GA), and owns a 41 percent stake in Lyondells Houston, TX refinery. CITGO also operates a network of 14,000 retail gasoline stations and numerous wholesale asphalt terminals. CITGO sources most of its crude oil under long-term contracts with PdVSA, though the Lemont facility receives most of its supply from Canada. PdVSA also owns shares in some U.S. crude oil refining capacity directly, including a 50 percent stake in the Chalmette facility in Louisiana and certain units at ConocoPhillips Sweeny, Texas refinery. In March 2004, CITGO announced that it plans to increase the crude processing capacity at the Lake Charles refinery to 450,000 bbl/d from the current 308,000 bbl/d, as part of the companys Tier II program. The expansion will include upgrades that will allow the refinery to process heavier crude streams from Venezuela.

Caribbean/South America

In October 1998, PdVSA acquired a 50 percent equity interest in the Hovensa refinery, located in St. Croix, U.S. Virgin Islands. Amerada Hess holds the other 50 percent interest in the refinery, which had a capacity of 495,000 bbl/d in 2005. In the Netherlands Antilles, PdVSA leases the 320,000-bbl/d Emmastad refinery on the island of Curacao. Most of the products produced by these refineries are exported to the U.S. PdVSA has looked toward South America to further increase its regional refining capacity. In February 2005, PdVSA signed an agreement with Petrobras to build a new, 150,000-250,000-bbl/d refinery in the northeastern Brazil at a cost of $2.5 billion. PdVSA has also pursued joint refinery investments in Colombia and Argentina.

Europe

PdVSA participates in two joint refining ventures in Europe, with the company controlling 300,500 bbl/d of refining capacity in the region. PdVSA holds a 50 percent stake in AB Nynas, a Swedish company that operates five refineries: Nynashamm (Sweden), Gothenburg (Sweden), Antwerp (Belgium), Eastham (England), and Dundee (Scotland); PdVSAs share of this capacity is 50,500 bbl/d. PdVSA also holds a 50 percent stake in Ruhr Oel, in partnership with BP. Ruhr Oel holds ownership stakes in five German refineries, Gelsenkirchen, Neustad, Karlsruhe, and Schwedt, with PdVSAs share of this capacity at 250,000 bbl/d. Since December 2003, PdVSA has sought a buyer for its stake in Ruhr Oel. Most recently, it has negotiated with Lukoil about purchasing the stake, though BP holds the right of first refusal.