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Lyondell confirms refinery deal

HOUSTON, Aug. 17 (UPI) -- Lyondell Chemical Co. has confirmed it paid $2.1 billion to buy Citgo's 41.25 percent stake in the Houston-area Lyondell-Citgo Refining LP refinery.

Also, Lyondell has negotiated a new five-year, 230,000-barrel-per-day crude oil contract with a subsidiary of Petroleos de Venezuela SA, which owns Citgo, for the refinery, Lyondell said Wednesday.

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"The new contract is based on market prices, which in recent years have been lower than those under the previous crude supply agreement," Lyondell said in a statement.

The acquisition gives Lyondell sole ownership of the 268,000-barrel-per-day Houston refinery, which is strategically located on the U.S. Gulf Coast with access to interstate pipelines and the port of Houston.

The facility refines very heavy high-sulfur crude oil into assorted products.

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