UPDATE 1-Valero CEO sees 4 refineries sold by end '08

(Adds refinery capacities, details about sales, projects, byline)

By Erwin Seba

SAN ANTONIO, May 1 (Reuters) - Valero Energy Corp (VLO.N: Quote, Profile, Research, Stock Buzz) Chief Executive Bill Klesse said on Thursday he expects the company's refineries in Aruba, Memphis, Tennessee; Krotz Springs, Louisiana; and Ardmore, Oklahoma, to be sold by the end of 2008.

A decision on a possible sale of the company's 195,000 barrel per day (bpd) Paulsboro, New Jersey, refinery will be made before the fourth quarter of this year, Klesse told reporters following Valero's annual meeting in San Antonio.

A sale of the Paulsboro refinery would likely be completed in 2009, he said.

Klesse said Valero continues to expect the 275,000 bpd Aruba refinery to be sold in the second quarter.

Sources have told Reuters that Brazil's state oil company Petrobras has an agreement to buy the Aruba refinery for about $2.8 billion.

Valero is talking with bidders for the 195,000 bpd Memphis and 85,000 bpd Krotz Springs refineries, Klesse said.

Sources have told Reuters Leucadia National Corp (LUK.N: Quote, Profile, Research, Stock Buzz) and Tesoro Corp (TSO.N: Quote, Profile, Research, Stock Buzz) are among the bidders for the two refineries in a package deal. Valero has declined to identify possible bidders on the refineries.