CITGO PETROLEUM CORPORATION ANNOUNCES TENDER OFFERS AND
         CONSENT SOLICITATIONS FOR ITS 7 7/8% SENIOR NOTES DUE 2006 AND
            6% SENIOR NOTES DUE 2011 AND PLANS TO REDEEM OTHER NOTES

          HOUSTON, TEXAS, OCTOBER 13, 2005 -- CITGO Petroleum Corporation
("CITGO") today announced that it has commenced cash tender offers for any and
all of its outstanding 7 7/8% Senior Notes due 2006 (CUSIP No. 17302X AA 4) (the
"7 7/8% Notes") and 6% Senior Notes due 2011 (CUSIP No. 17302X AF 3) (the "6%
Notes" and, together with the 7 7/8% Notes, the "Notes"). There are currently
outstanding approximately $150.0 million and $250.0 million in aggregate
principal amount of the 7 7/8% Notes and the 6% Notes, respectively. The tender
offers will expire at midnight, New York City time, on Wednesday, November 9,
2005, unless extended or terminated by CITGO (the "Expiration Date").

          In conjunction with the tender offers, CITGO is soliciting consents of
the holders of the Notes to eliminate substantially all restrictive covenants,
certain events of default and certain other related provisions in the indentures
governing the Notes. The proposed amendments to each indenture (the "Proposed
Amendments") can be adopted with the consent of no less than a majority in
aggregate outstanding principal amount of the Notes issued pursuant to such
indenture. Holders cannot tender their Notes without delivering a consent and
cannot deliver a consent without tendering their Notes. The consent
solicitations will each expire at 5:00 p.m., New York City time, on Wednesday,
October 26, 2005, unless extended (the "Consent Date").

          The tender offers and consent solicitations are being made pursuant to
an Offer to Purchase and Consent Solicitation Statement, dated October 13, 2005
(the "Offer to Purchase") and related Consent and Letter of Transmittal ("Letter
of Transmittal"). As described in more detail in the Offer to Purchase, the
total purchase price for each $1,000 principal amount of Notes validly tendered
and accepted for purchase by CITGO will be calculated two business days prior to
the Expiration Date based upon: (i) for the 7 7/8% Notes, a fixed spread of 50
basis points over the yield on the 2.0% U.S. Treasury Note due May 15, 2006, and
(ii) for the 6% Notes, a fixed spread of 50 basis points over the yield on the
3.125% U.S. Treasury Note due October 15, 2008. The foregoing purchase prices
for the 7 7/8% Notes and the 6% Notes include a consent payment equal to $25.00
per $1,000 principal amount of Notes tendered. Holders must validly tender their
Notes on or before the Consent Date in order to be eligible to receive the
applicable total purchase price, which includes the consent payment. Holders who
validly tender their Notes after the Consent Date and before the Expiration Date
will only be eligible to receive an amount equal to the applicable total
purchase price minus the consent payment. Additionally, holders whose Notes are
purchased pursuant to the tender offers will receive any accrued but unpaid
interest up to but not including the payment date for their Notes.

          Consummation of the tender offers and consent solicitations, and
payment of the tender offer consideration and consent payment, are subject to
the satisfaction or waiver of various conditions, as described in the Offer to
Purchase, including the delivery of the requisite consents to the Proposed
Amendments and the closing of a new senior secured credit agreement with a
syndicate of lenders led by BNP Paribas and JPMorgan Chase Bank, N.A. (the "New
Credit Agreement"). The tender offer and consent solicitation for each series of
Notes is not conditioned upon the consummation of the tender offer and
solicitation for the other series of Notes. CITGO has reserved the right to
amend, extend or terminate the tender offers and consent solicitations at any
time.


          It is CITGO's present intention to redeem some or all 6% Notes that
remain outstanding following the consummation of the tender offer for such
Notes, if any, such redemption to be in accordance with the terms of the
indenture governing the 6% Notes.

         J.P. Morgan Securities Inc. is the Dealer Manager and Solicitation
Agent for the tender offers and consent solicitations and may be contacted at
(212) 834-3424 (call collect) or (866) 834-4666 (toll free). Requests for
documents may be directed to Global Bondholder Services Corporation, the
Information Agent, at (212) 430-3774 (call collect) or (866) 470-3700 (toll
free).

          This announcement is not an offer to purchase or the solicitation of
an offer to sell the Notes. The tender offers for the Notes and related consent
solicitations are only being made pursuant to the Offer to Purchase and the
related Letter of Transmittal.

PLANNED REDEMPTION OF OTHER NOTES

          In addition to the tender offers and consent solicitations described
above, CITGO also announced plans to call for redemption its other senior notes
and its notes issued under a master shelf agreement (collectively, the
"Redemption Notes") in an aggregate principal amount outstanding of
approximately $194.0 million.

          Each series of Redemption Notes would be redeemed in accordance with
the terms of the relevant indenture or agreement governing such notes at prices
based on the principal amount redeemed, plus accrued and unpaid interest to the
redemption date, and plus the applicable premium or make-whole amount, as the
case may be. CITGO will notify holders by delivering redemption notices in
accordance with the relevant provisions of the indenture or agreement governing
each series of Redemption Notes.

          CITGO expects to fund the tender offers, consent solicitations and
planned redemption of other notes with available cash and borrowings under the
New Credit Agreement.

          This announcement is not an offer to purchase or the solicitation of
an offer to sell the Redemption Notes.

ABOUT CITGO

          CITGO Petroleum Corporation is a leading refining and marketing
company based in Houston, with approximately 4,000 employees and annual revenues
of approximately $32 billion. CITGO's ultimate parent is Petroleos de Venezuela,
S.A. (PDVSA), the national oil company of the Bolivarian Republic of Venezuela
and its largest supplier of crude oil. CITGO operates fuels refineries in Lake
Charles, La.; Corpus Christi, Texas; and Lemont, Ill.; and asphalt refineries in
Paulsboro, N.J. and Savannah, Ga. CITGO has long-term crude oil supply
agreements with PDVSA for a portion of the crude oil requirements at these
facilities. CITGO is also a 41.25 percent participant in LYONDELL-CITGO Refining
LP, a joint venture fuels refinery located in Houston. CITGO's interests in
these refineries result in a total crude oil capacity of approximately 970,000
barrels per day.

          Serving nearly 13,100 branded, independently owned and operated retail
locations, CITGO is also one of the largest branded gasoline suppliers within
the United States.


FORWARD LOOKING STATEMENTS

          Certain matters discussed in this press release may be deemed to
include "forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. Words such as "plans", "will", "intends", "expected",
"would", "expects" and similar expressions generally identify a forward-looking
statement. Various factors could cause actual results to differ materially from
those expressed in forward-looking statements, including general economic
conditions, developments in international and domestic petroleum markets,
liquidity fluctuations, refinery turnarounds and operations as well as other
risks, uncertainties and assumptions that are described in more detail in
CITGO's filings with the U.S. Securities and Exchange Commission. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
apply only as of the date of this press release. CITGO disclaims any duty to
update any forward-looking statements.