FUELING
VENEZUELA'S
FUTURE


MESSAGE FROM THE BOARD OF DIRECTORS:

We take seriously our responsibility to CITGO's ultimate shareholder, the Venezuelan nation. That means safeguarding CITGO assets and operating the company safely, efficiently and profitably for Venezuela's future. It also means keeping you informed about how we are performing. This page, which we will update regularly, will provide important information on our operating results and – above all – deliver on our commitment of transparency and accountability to all our stakeholders.

CITGO'S
CENTRAL ROLE
IN REBUILDING
VENEZUELA

Venezuela's oil resources provide the best opportunity to rebuild the country's economy and its future. CITGO will play an essential role in making this happen. CITGO is uniquely positioned to refine the extra-heavy crude that PDVSA brings out of the ground and turn it into products like gasoline and lubricants that it can sell into the market. CITGO is also well positioned to buy Venezuelan crude and deliver gasoline and other petroleum products to a legitimate PDVSA in order to supply the Venezuelan market.

FREQUENTLY ASKED QUESTIONS

Who controls CITGO entities?

While the CITGO entities are owned directly and indirectly by PDVSA, Venezuela's national oil company, they are no longer connected in any way to the Maduro regime. The relationship with CITGO was protected for the Venezuelan people by the legitimate government of President Juan Guaido. A new Board of Directors elected in February of 2019 now reports to the PDVSA adhoc board, which was also elected by the legitimate Guaido government. The Maduro regime challenged the legality of the CITGO entities new boards, but that challenge was categorically rejected by the U.S. courts. The timely election of the new boards of directors one year ago saved the continued relationship with the CITGO entities for the Venezuelan people.

How is the current situation affecting CITGO's relationship with Venezuela?

Because the Maduro regime continues to control the operations of PDVSA, CITGO is currently unable to process PDVSA crude oil, and is prevented from playing any role in the Venezuelan oil sector. Once control of PDVSA and other national institutions are transferred away from the Maduro regime to the internationally recognized, constitutionally legitimate government of Juan Guaido, CITGO will be able to help with the reconstruction of the country (purchasing crude, supplying fuels, providing technical advice and providing dividends to its shareholder when it is legally and financially able to do so).

What is CITGO doing with its profits in the meantime?

Debt covenants resulting from the substantial debts incurred under the Maduro appointed boards prohibit the company from paying dividends to its ultimate Venezuelan shareholder until this debt has been sufficiently paid down. In the meantime, CITGO is using its profits to service that debt while investing in its overall refining capacity and implementing plans to enhance safety, reduce costs and improve profitability.

What has CITGO done to ensure sound corporate governance?

One of the core responsibilities of the Board is to ensure that CITGO operates at the highest levels of integrity and adapts best industry practices in all that we do. One of the first actions the new Board of Directors took when it was appointed in early 2019 was to hire external advisors to conduct a comprehensive review of our company's governance and internal control systems.

As a result of this work, the Board restructured several functions. The Board decided unanimously to eliminate both the role of Vice President of Shared Services and the company's shareholder procurement function. After conducting a review of its compliance systems, the Board upgraded compliance procedures and expanded the compliance function of the company to specifically include business ethics.

With a best in class corporate governance, and the strengthening of the audit and commercial committees, the new Board and the new leadership in place are making sure that compliance and ethics are an essential part of our operations.

How is the new CITGO Board reviewing the past actions that took place under the previous administration?

As soon as the new CITGO Guaido appointed Board took office, it ordered an exhaustive investigation to review the past practices by administrations appointed by the Maduro regime. These investigations are ongoing, with the company following corporate best practices on how these investigations should be conducted

The company is also fully committed to cooperating with appropriate legal authorities, most importantly, the U.S. Department of Justice (DOJ). The DOJ, which is conducting a multi-year investigation into corrupt practices at PDVSA, launched a probe into CITGO in May of last year. The DOJ’s probe encompasses 2013-2018, the time period of the past Maduro-appointed administrations. Given that the ongoing investigation by the DOJ coincides with the Board’s own investigations, CITGO is presenting the results of its investigations to the DOJ.  The DOJ has requested that the Board not disclose who or what it is investigating as reflected in the subpoena or other requests that the DOJ has issued to the Company. The Board is thus limited in what it can say publicly about its investigations while the DOJ investigations are continuing.

The Board’s work to date has had a number of positive benefits for the Company, including establishing a relationship of cooperation and transparency with the DOJ and enabling improvements to the Company’s compliance and control environment.  All of these benefits are critically important to CITGO in terms of both the current DOJ investigation and the Board’s mission to protect CITGO as an asset for its shareholder through strengthening its financial stability and enhancing its corporate governance.

What is the Board doing to ensure regulatory compliance?

The Board of Directors also ordered a complete review of the company's regulatory compliance system and code of ethics to ensure both reflect industry best practices. This review includes establishing rigorous additional procedures for employees to report concerns internally, known as whistleblower protections. The company is providing training on the Foreign Corrupt Practices Act to employees. Finally, the company is revising its code of ethics and providing mandatory training in business ethics based on industry best practices.

These compliance measures will be overseen by a newly appointed Chief Compliance & Ethics Officer. Reporting directly to the CEO and to the Board of Director's audit committee, the Chief Compliance & Ethics Officer will be responsible for leading the CITGO Compliance Committee and for periodically assessing the company's compliance and ethics program against industry best practices.

The Board also completed the selection of a General Auditor, external to CITGO, following a competitive process that resulted in the first-ever woman to serve in that role for CITGO. Her broad experience will ensure best practices are followed in that important function.




2020 FIRST QUARTER PERFORMANCE

The onset of the COVID-19 pandemic combined with crude oil demand destruction were drivers behind the Company’s first quarter results and impacted the industry as a whole.

91% CAPACITY

TOTAL USE OF REFINERY

Total refining performance was 764,000 bpd, of which crude oil runs accounted for 650,000 bpd, to obtain a 91% refining capacity utilization rate.

181,000 BDP

IN EXPORTS

Exports continue to have increasing importance. For first quarter 2020, refined products exports averaged 181,000 bpd.

AWARDS AND HONOURS

CITGO refineries were recently recognized for safety and environmental performance. The Lemont refinery received the AFPM Elite Gold Safety Award for outstanding performance in industrial safety and excellence in program innovation. and leadership throughout its history; and the Corpus Christi refinery obtained the 2019 ENERGY STAR designation from the Environmental Protection Agency (EPA). Additionally, the International Liquid Terminals Association (ILTA) awarded CITGO the 2020 Platinum Safety Award, its top industry honor for safety excellence in terminal operations.

AFPM Award
Energy Star
ILTA

2020 FIRST QUARTER PERFORMANCE RESULTS

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PERFORMACE REPORTS

PRESS RELEASES

For more information please visit the CITGO.com News Room.

SIMÓN BOLÍVAR FOUNDATION

SIMÓN BOLÍVAR FOUNDATION

Our charitable arm, the Simón Bolívar Foundation, supports initiatives, leverages existing resources, and partners with other nonprofit organizations to meet the immediate and long-term health needs of the most vulnerable individuals particularly in and from Venezuela with a special focus on the health and well-being of children and their mothers.

Learn More