Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership" or "Calumet") announced today that Calumet and Houston Refining LP, a wholly-owned subsidiary of LyondellBasell, have entered into multiyear agreements to form a long-term exclusive specialty products affiliation.
Calumet and LyondellBasell have reached an agreement under which Calumet will be the exclusive marketer of LyondellBasell's naphthenic base oil production out of its refinery in Houston, TX. Calumet will be adding approximately 3,000 barrels per day ("bpd") of naphthenic lubricating oil sales to the current naphthenic lubricating oil production at its Princeton, LA refinery, which has crude oil capacity of approximately 10,000 bpd.
The two parties have also reached an agreement for LyondellBasell to process approximately 800 bpd of white mineral oil at its Houston refinery for Calumet. This volume will supplement Calumet's existing white mineral oil production at its Karns City, PA and Dickinson, TX facilities.
These agreements also give Calumet the exclusive use of LyondellBasell's registered trademarks and tradenames including: Tufflo, Duoprime, Duotreat, Crystex, Ideal and Aquamarine.
The agreements are expected to become effective on November 1, 2009, subject to approval of LyondellBasell's motion for entry of an order by the U.S. Bankruptcy Court authorizing the rejection by LyondellBasell of the agreements currently in place with third parties covering these specialty products.
Calumet is a leading independent producer of high-quality, specialty hydrocarbon products in North America. Calumet processes crude oil and other feedstocks into customized lubricating oils, white oils, solvents, petrolatums, waxes and other specialty products used in consumer, industrial and automotive products.
Calumet also produces fuel products including gasoline, diesel and jet fuel. The Partnership is based in Indianapolis, Indiana and has five facilities located in northwest Louisiana, western Pennsylvania and southeastern Texas.
First Call Analyst:
FCMN Contact: eric.smith@calumetspecialty.com
SOURCE: Calumet Specialty Products Partners, L.P.
CONTACT: Jennifer Straumins, +1-317-328-5660
Web Site: http://www.calumetspecialty.com/