Company News

Chavez calls Venezuela-owned Citgo "bad business"

CARACAS, Oct 25 (Reuters) - U.S. refining and gas station company Citgo is an undervalued, bad business that its owner Venezuela is currently stuck with, President Hugo Chavez said on Monday.

“Citgo is bad business. We have not been able to get out of it, we are subject to U.S. law,” Chavez said on a late night TV appearance following a tour of Europe, Russia and the Middle East during which he announced the sale of some Venezuelan oil assets.

“That company has eight refineries, I don’t know how many tanks, it distributes fuel via 8,000 stations in the United States, yet it makes us no profit,” Chavez said with indignation.

He stopped short of saying he was seeking to sell Citgo, one of the United States’ better known gas station brands.

Venezuelan oil company PDVSA has long been trying to offload some of its refineries in Europe and elsewhere that it sees as unprofitable.

Russia's Rosneft ROSN.MM will buy the stake owned by Venezuelan state oil company PDVSA in the four Ruhr Oel refineries in Germany, PDVSA said last week. (Reporting by Enrique Andres Pretel; Writing by Frank Jack Daniel; Editing by Eric Beech)