Latest market news

'Real PdV' to appoint new Citgo board: Attorney

  • Market: Crude oil, Oil products
  • 21/10/26

Venezuela's state-owned oil company PdV is working to appoint a new board of directors for US refiner Citgo and its parent company PdV Holdings, a lawyer for the company said today.

"The real PdV authorities are working to effectuate their appointment" of a new board of directors to PdV Holdings and Citgo, attorney Katherine Wellington said at a hearing of the US Court of Appeals for the Third Circuit in Philadelphia, Pennsylvania. "US recognition of President [Delcy] Rodriguez's government means that that the real PdV authorities now appear before this court."

The court is hearing challenges from Venezuela, PdV and other parties to the choice of Elliott Investment Management affiliate Amber Energy's $5.9bn bid as the winner in the pending auction. It covers Citgo's three US refineries, its lubricant plants and midstream and retail assets to satisfy debt defaults and expropriations owed by PdV Holdings. Amber's bid included a separate agreement to settle litigation claims with 75pc of a group of PdV bondholders for $2.13bn.

The situation in Venezuela has taken a sharp turn since a US federal judge in November affirmed Amber's bid as the winner.

The US ousted former president Nicolas Maduro on 3 January, subsequently lifted sanctions on Venezuela's oil exports and recognized interim president Delcy Rodriguez's government in March.

Although the US recognizes the Rodriguez-led government, Washington has yet to allow the Caracas-based PdV to reassert control over Citgo which has operated under a board appointed by the Venezuelan opposition and vetted by the US government since 2019, after the US rejected Venezuela's 2018 presidential election as illegitimate.

The US Treasury Department on 14 September updated a general license that in January set out conditions for PdV's oil sales and business transactions with the US and other companies. It added an explicit prohibition against changing the governing structure of Citgo and its parent companies PdV Holding and Citgo Holding.

The US administration earlier this month declined to give the appeals court a comment on the Citgo case after a third request from the court for the US to weigh in.

The US "has no views to express at this time concerning this litigation", the Department of Justice said in a 13 October filing.

The hearing on Wednesday examined various issues in the Citgo case including whether the lower court had authority to conduct the auction, the valuation of Citgo and alleged conflicts of interest of court-appointed special master Robert Pincus and his advisors. Pincus has refuted the conflict of interest allegations and the lower court rejected motions to remove him.

Wellington joined the Citgo case in August after previous lawyers for PdV withdrew from the case. They cited a directive from the general legal counsel for PdV Alejandra Torrealba to refrain from acting on behalf of PdV before US courts, according to documents filed to the US Court of Appeals for the Third Circuit.

The Citgo sale is also subject to regulatory approvals, including by the US Treasury Department's Office of Foreign Assets Control.

Citgo owns and operates three US refineries — the 471,000 b/d Lake Charles refinery in Louisiana, the 165,000 b/d Corpus Christi plant in Texas and the 188,000 b/d Lemont refinery in Illinois.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more