UNION PACIFIC &lt;UNP> TO SELL PART OF REFINERY

  Union Pacific Corp said it will sign a
  pact in Caracas on March 17 with Petroleos De Venezuela, PDVSA,
  to sell the state owned company half of its Corpus Christi,
  Texas refinery owned by its Union Pacific's Champlin Petroleum
  Co subsidiary.
      The sale will also include the related marketing and
  distribution system for the refinery's products.
      A spokesman for the company said that a statement may be
  issued later today giving details of the transaction.
      There was no immediate comment from PDVSA officials in New
  York.
      The Corpus Christi refinery has a capacity of about 160,000
  barrels per day, the Union Pacific spokesman said, and is a
  largely upgraded facility but he would place no value on the
  transaction.
      The additional acquisition of refinery and distribution
  assets by PDVSA has been expected as Venezuela has been moving
  aggressively to enhance its role in the oil industry from
  producer to excpanding its presence in the downstream sector.
      Purchase of part of Champlin's operations also fits a
  profile which PDVSA officials have said previously they looked
  for in any acquisition.
      One PDVSA official said the company was looking for
  independent oil companies with good refinery and distribution
  network and a strong regional presence.
      The potential purchase of the interest in Champlin followed
  its earlier acquisition of a part interest in Southland Corp's
  &lt;SLC> Citgo Petroleum Corp subsidiary.
      In that agreement signed September 15, 1986, PDVSA paid
  Southland 290 mln dlrs for half of Citgo's stock.
      The potetnital acquisition of half Champlin's Corpus
  Christi plant will also give Venezuela an additional outlet for
  its crude oil production while giving the refiner an assured
  source of supply, trade sources said.
      In the earlier deal with Southland, PDVSA agredd to to
  supply Citgo with at least 130,000 bpd of crude oil and other
  feedstocks.
  

