HOUSTON, Aug. 18 /PRNewswire/ -- Responding to comments made yesterday by Aires Barreto, Vice President of Finance for Petroleos de Venezuela (PDVSA), Lyondell Chemical Company (NYSE: LYO) confirmed today that discussions concerning a buyout option of Lyondell's interest by PDVSA in LYONDELL-CITGO Refining LP (LCR) have ceased, and both parties are now concentrating on successfully refinancing the LCR debt and operating the venture to maximize its value.

LCR was formed in 1993 by Lyondell and CITGO Petroleum Corporation, a wholly-owned subsidiary of PDVSA. While Lyondell's growth in the chemical business over the past three years has resulted in LCR becoming a less strategic business for the Company, the refinery continues to be a significant source of cash flow.

In the third quarter of 2000, Lyondell anticipates that higher than average processing rates of extra heavy Venezuelan crude oil will produce strong financial results at LCR. The Company expects total crude processing rates to average approximately 260,000 barrels per day, including approximately 240,000 barrels of higher margin, extra heavy Venezuelan crude oil in the third quarter.

"As the majority owner, Lyondell continues to have a significant role in the management of LCR, and we believe that our ongoing discussions with PDVSA over maximizing LCR's value will have mutually beneficial results," said Dan F. Smith, Lyondell's President and Chief Executive Officer. "Meanwhile, Lyondell remains committed to reducing long-term debt by an additional $1 billion. The debt has been lowered by more than $2 billion since year-end 1999."

Lyondell Chemical Company, (www.lyondell.com) with headquarters in Houston, Texas, is the world's largest producer of propylene oxide (PO); the world's number two supplier of TDI (toluene diisocyanate); a leading producer of propylene glycol; a leading producer of other PO derivatives such as BDO (butanediol) and PGE (propylene glycol ether); and a producer of styrene monomer and MTBE as co-products of PO production.

Through its 58.75% interest in LYONDELL-CITGO Refining LP, Lyondell is one of the largest refiners in the United States, processing extra heavy Venezuelan crude oil to produce gasoline, low sulfur diesel and jet fuel.
SOURCE Lyondell Chemical Company
Web site: http: //www.lyondell.com
CONTACT: media, Marvin Brown, 713-309-2643, or Jackie Wilson, 713-652-4596, or investors, Sami Ahmad, 713-309-7141, all of Lyondell Chemical Company