PDVSA to sell CITGO ops and buy Shell ops in Argentina

Venezuelan President Hugo Chavez said Tuesday in Buenos Aires that Venezuela´s oil company PDVSA wants to sell its refining operations in the U.S., while is in talks to buy the Argentine operations of Shell Group. Venezuela´s Energy and oil minister said tha Felix Rodriguez is the new CITGO´s CEO.

"Our strategy is to look for businesses in the North to sell, such refineries
( CITGO) ," While with Shell "We have a common interest," the latter wants to get out of Latin America while PDVSA wants to expand in the region, Chavez said AP quoted.

PDVSA's strategy of getting out of the US while expand elsewhere, Latin American, China, is consistent with the strain relationship of Chavez with the U.S. and enhance business relations with China and Iran among other countries to minimize Venezuela's dependence on the United States.

On the PDVSA assets in the Northern Hemisphere, he called such operations "very bad business for us." "We are subsidizing Mr. Bush," Chavez said, He likened the system to "economic colonialism." Chavez added, AP quoted.

Chavez is in Buenos Aires inaugurating two service stations run bwtween PDVSA and Argentina´s new oil cpmany Enarsa.

Chavez strategy in expanding in Argentina buying Shell´s 600 Argentine service stations, which Chavez confirmed the two sides are discussing, along with Shell´s refining, lubricants and transportation.

Rafael Ramirez Venezuela´s Energy and Oil Minister told Dow Jones Newswires that "we should know the results of the negotiations (with Shell) in a few months." Ramirez is traveling with Chavez.

Separately, Ramirez said the government has named Felix Rodriguez as the new CEO CITGO.

"He was named last week ... he starts this week," Ramirez said, Dow Jones quoted.

Venezuela is the world's fifth largest oil exporter, one of five top crude suppliers to the United States.