Product Innovation, Company Strength Touted as CITGO Lubricants Marketers Meet in D.C.

WASHINGTON, Oct. 28, 2004 -- "CITGO has had a 'lubes specific' business unit for more than 50 years, unlike others who consider lubes a 'byproduct' of their fuels refining operation," said CITGO Petroleum Corporation president and CEO Luis Marin in at a meeting of the company's top lubricants marketers October 12-13 at the Marriott Wardman Park Hotel in Washington, D.C.

Marin's comments highlighted two days of information-sharing and events focusing on independent marketers of CITGO's fast-growing line of engine oils, greases, transmission-hydraulic fluids, industrial oils, waxes and other specialized lubricants. CITGO has long been committed to the marketer class of trade, selling the majority of its lubricants and 100 percent of its retail fuels through independently-owned entrepreneurial businesses.

"Boosted by the strength of our parent company in Venezuela, CITGO Lubricants is now a major player in the global marketplace, and we are committed to make the necessary investments in equipment, technology and product support to solidify that position," Marin said.

Lubricant marketers attending the event heard Jerry Thompson, CITGO's chief operating officer, describe the results of an Intensive Business Review conducted by CITGO earlier this year. The review identified key steps required to accelerate the market growth of the company's lubes business, as well as organizational, investment, base oil supply and marketing strategies currently being implemented as a result of the study.

The Washington meeting also featured a fast-paced presentation by Paul Rudolph, CITGO's general manager of Lubricants Marketing. Rudolph's presentation provided a glimpse of expanded lubricant product advertising that will increase brand awareness and visibility through such high-profile outlets as:

  -- Telecasts of NFL football
  -- Televised football and basketball coverage of the Big 10 and other
     major conferences; and
  -- National sponsorships of ESPN's "Race to the Triple Crown" and CITGO
     BASSMASTER Tournament Trail

Rudolph noted Lubricants will play a key role in CITGO's evolving marketing initiative to leverage the company's Latin American ownership with Hispanic consumers throughout the United States -- a population which has grown 61 percent since 1990 and now wields an estimated $675 billion annual purchasing power. CITGO Lubricants will also execute brand development projects including local event sponsorships across the country and a direct mail coupon campaign in regions targeted for marketing growth.

Rudolph underscored the double-digit growth rate of CITGO Lubricants in recent years, as well as development of innovative new "niche" products -- including synthetic industrial lubricants -- designed to provide CITGO marketers with a full-line of high-quality products.

"We're here for the long haul, we're committed to the marketer class of trade, and our success depends on your success," Rudolph told the group.

CITGO, based in Houston, Texas, is a refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals, refined waxes, asphalt and other industrial products. The company is owned by PDV America, Inc., an indirect wholly owned subsidiary of Petroleos de Venezuela, S.A., the national oil company of the Bolivarian Republic of Venezuela.

For more information, see CITGO's website at http://www.citgo.com/ .