Lyondell and CITGO Sign Morgan Stanley for Refinery Sale

HOUSTON, April 24 /PRNewswire-FirstCall/ -- Lyondell Chemical Company and CITGO Petroleum Corporation today announced that Morgan Stanley has been engaged as financial advisor in connection with the proposed sale of the Lyondell-CITGO Refining LP (LCR) partnership.

Lyondell and CITGO announced on April 6, 2006, the signing of a letter of intent to jointly explore the sale of the Houston refinery, which has a capacity to process 268,000 barrels per day of crude oil. The companies will work with Morgan Stanley to prepare an offering memorandum and establish a data room for interested bidders. Parties interested in exploring a purchase of the refinery are being directed to Morgan Stanley's Houston offices. Any sale would be subject to the approval of appropriate governing bodies.

Lyondell-CITGO Refining LP was formed in 1993 as a joint venture between Lyondell Chemical Company and CITGO Petroleum Corporation. LCR upgraded the refinery in 1997 to process very heavy, high sulfur crude oil. Lyondell holds a 58.75 percent interest in LCR and CITGO holds a 41.25 percent interest.

Lyondell Chemical Company, headquartered in Houston, Texas, is North America's third-largest independent, publicly traded chemical company. Lyondell is a major global manufacturer of basic chemicals and derivatives including ethylene, propylene, titanium dioxide, styrene, polyethylene, propylene oxide and acetyls. Lyondell employs approximately 10,000 people worldwide.

CITGO Petroleum Corporation, based in Houston, is a refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals, refined waxes, asphalt and other industrial products. The company is 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.