UNION PACIFIC &lt;UNP> IN PARTNERSHIP WITH PDVSA

  Union Pacific Corp said it will enter
  a 50-50 partnership with Petroles de Venezuela, PDVSA, to own
  and operate Union Pacific's 160,000 barrel-per-day Corpus
  Christi, Texas, oil refinery.
      The assests to be acquired by the partnership are valued at
  190 mln dlrs, Union Pacific said.
      Closing is expected to take place in early April and the
  venture is to be called Champlin Refining Co.
      The partnership will acquire the refining and distribution
  systems currently owned and operated by Champlin Petroleum, a
  wholly owned subsidiary of Union Pacific.
      The venture will acquire the related inventories and the
  Champlin trade name, the company said.
      PDVSA and Union Pacific will each contribute half the
  capital required by the venture and arrange a revolving credit
  facility with U.S. and foreign banks to finance inventories and
  receivables, Union Pacific said.
      Petroles de Venezuela also signed a 25-year agreement to
  supply at least 140,000 bpd of Venezulean crude oil and naphtha
  to the refinery at market related prices.
      Under various options the in the agreement PDVSA could
  supply another 50,000 bpd on similar terms, the company said.
      "This will provide a stable, long-term supply to the
  refinery at competitive costs, thereby assuring the economic
  viability of the plant," a statement issued by Union Pacific
  said.
     The statement said the agreement with PDVSA will enable the
  company to supply a steady flow of refined products to its
  customers.
     Union Pacific said employees of the refinery would be
  transfered to the new company and would retain the same
  benefits as in the past.
  

