Pennzoil-Quaker State intends to sell Shreveport Refinery

Pennzoil-Quaker State Company (Houston, TX) announced that it has entered into a letter of intent with Calumet Lubricants Company, LP for the sale of the Company's Shreveport, LA, refinery. The two parties have begun the negotiation of a definitive purchase and sale agreement, with closing expected by April 30, 2001. The Shreveport refinery has been for sale as part of the Company's decision to divest non-strategic assets and focus on its automotive consumer products businesses.

Non-strategic asset divestitures announced over the last year include the Company's Penreco partnership interest, Viscosity Oil, Specialty Environment Services, its Carson packaging plant, as well as its interest in the Bareco partnership and the Rouseville, PA, refinery, which were purchased by Calumet in April 2000.

"The sale of the Shreveport refinery represents the last significant milestone in our divestiture program," said James J. Postl, president and CEO of Pennzoil-Quaker State. "While we still need to execute the definitive agreement, based on our experience with Calumet we are optimistic that a transaction will be completed."

Pennzoil-Quaker State Company also announced plans to cease processing paraffinic crude oil at the refinery in approximately three months. This cessation will significantly reduce operations at the refinery, resulting in a downsizing of the current workforce. The Company will continue processing naphthenic crude for the production of lubricants. These actions are consistent with Calumet's planned naphthenic and paraffinic base oil operations for the Shreveport refinery.

The Company continues to have blending, packaging and distributing operations in the Shreveport, Louisiana area, and those facilities and personnel are not affected by the announcement.

For more information, Jay Roueche, Pennzoil-Quaker State Company, 713-546-4961