Citgo cuts hundreds of Louisiana contractors – sources

HOUSTON, Jan 17 (Reuters) – Citgo Petroleum Corp cut more than 500 contract maintenance workers in late December at its Louisiana refinery as part of a program to increase returns to corporate parent Venezuelan state oil company PDVSA, according to sources familiar with the company’s refinery operations.

Between 500 and 700 contractors were let go at the 430,000-barrel-per-day (bpd) Lake Charles plant, which the U.S. government lists as the nation’s third largest, the sources said. A Citgo spokesman declined to discuss operations at the Lake Charles refinery.


PDVSA is a key revenue generator financing Venezuelan President Hugo Chavez’s social development programs, but has drawn criticism for ignoring operational problems that have reduced oil and refined product output in Venezuela.

Fitch ratings last year cut Citgo’s debt rating after it took out a $1 billion loan to help PDVSA pay off debt from one of the four multibillion-dollar oil projects that Chavez took over in May.

“Citgo wants to send 100 percent of what it makes to Venezuela,” said a source. “They’re only spending what’s needed to meet legal and regulatory obligations.”

Reuters