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Citgo assets draw more claimants as sale begins

  • : Crude oil
  • 24/01/24

US refiner Citgo's parent company has gone on the auction block this week but the US federal court that ordered the sale is dealing with an onrush of claimants seeking to benefit from proceeds.

A total of 26 claimants have so far registered with the court, having filed claims amounting to more than $21bn. The US District Court for the District of Delaware today allowed one more claim, by US investment fund Altana, but judge Leonard Stark who presides over the case suggested that further claims would face a higher hurdle.

Only those that had filed their claims against Venezuela well in advance of the 12 January deadline set by the court would be allowed to join the queue of claimants pursuing a piece of Citgo sale proceeds, Stark said at a court hearing today. The court may allow limited exceptions if claimants prove they were prevented from meeting that deadline, Stark said.

First bids for Citgo parent PdV Holding (PdVH) were due on 22 January, and "the sale is not scheduled to occur until July," Stark said.

Citgo, with 805,000 b/d in capacity at three US refineries, has become a target of takeover by dozens of creditors looking to satisfy claims both against Venezuelan state-owned PdV — Citgo's ultimate owner — and the Venezuelan government. The court process started in 2017 to satisfy a $990mn claim by defunct Canadian mining firm Crystallex, now owned by New York hedge fund Tenor Capital. ConocoPhillips has registered three claims totalling almost $12bn. The next largest claim is by Russian-Canadian gold miner Rusoro, while energy company Koch's minerals arm is chasing a $457mn claim.

The legal wrangling over Citgo is unlikely to conclude even if the Delaware court successfully executes the sale. Separate US court proceedings involve holders of $3.4bn in PdV 2020 bonds guaranteed by 50.1pc in Citgo Holding — a PdVH-owned legal entity that directly owns Citgo. The US government has blocked the bondholders' ability to pursue the claim, most recently issuing a ban that is valid until mid-April.

Separately, there is an inconvenient question of who exactly is the ultimate owner of Citgo. The company since 2019 operated under direction of the board appointed by the Venezuelan opposition and vetted by the US government. The Venezuelan opposition at that time claimed to be its country's legitimate government, a status accepted by the US government until 2022. Parent company PdV has always remained under the control of Venezuelan president Nicolas Maduro's government.

Citgo is an "alter ego" — a legal equivalent — of PdV and the Venezuelan government for the purpose of satisfying outstanding claims in US courts, Stark said today, regardless of whether it is Maduro or the opposition who are in charge.

The auction will determine whether the sum of all claims against Citgo's parent exceeds the company's value. The court has a ranking of claims, placing Crystallex's claim and one of the three ConocoPhillips claims, valued at $1.5bn, at the top of the list.

US investment bank Wells Fargo has pegged the enterprise value of Citgo's assets at $6.5bn-$14bn.

The court-appointed "special master" presiding over the auction has concluded that the sale would generate the highest revenue if the company is sold as a whole. Few peers of Citgo have publicly expressed interest in a wholesale takeover but there may still be interest in specific parts of the seventh-largest US refiner.


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25/02/19

UK Gulfsands Petroleum eyes return to Syria's upstream

UK Gulfsands Petroleum eyes return to Syria's upstream

Dubai, 19 February (Argus) — London-listed Gulfsands Petroleum plans to return to Syria's upstream as soon as sanctions on the country are lifted and "circumstances allow," the company's managing director John Bell said. "Sanctions discussions are occurring not only in the EU, but also in the UK and US," Bell told Argus . "In summary, we view these developments as generally positive. Gulfsands has always intended to return to its operation in Syria when the circumstances allow." Gulfsands holds a 50pc operating stake in two oil fields in Syria's block 26, in the country's northeast near the border with Iraq, an area long controlled by the Kurdish-led Syrian Democratic Forces (SDF). Chinese state-owned Sinochem holds the remaining 50pc. Force majeure was declared in December 2011 with respect to the contract after the introduction of EU sanctions against Syria. The fields were producing 24,000 b/d at the time. Since then, control of the fields has been unclear at times. By 2017 Gulfsands said production was averaging around 15,000-20,000 b/d, although it added that was without its participation. Bell said the company can only return "if the current relevant energy sanctions in the EU, UK and US as revised and hence international companies are permitted to return to their operations, bringing with them vital investment, people, equipment and know-how." In January, the EU's high representative for foreign affairs Kaja Kallas said the bloc would begin easing sanctions against Syria within weeks , starting with economic and energy restrictions. More recently she said the EU would meet on 24 February to discuss the lifting of sanctions on Syria, and told Argus the prospect of this "is looking promising" albeit internal European politics could slow the process. Road to recovery Once a 600,000 b/d-plus producer, Syria's crude output has been on the decline over the past three decades. Just before the start of the civil war in 2011, production had was below 400,000 b/d, and by May 2012 it had fallen to 200,000 b/d, the Syrian government said. Today it is less than 100,000 b/d, with only around 16,000 b/d or so coming from fields in areas under the former Assad government's control. "At the moment, oil production in Syria is largely opaque, illicit, unsafe, destined for the black market and causing enormous environmental damage… [and] production volumes have decreased recently due to these unsustainable practices," Gulfsands' Bell said. Whether Syria can reverse this downward production trend "will depend on the approach taken by the new Syrian government," he said. If they properly leverage existing centralised government institutions and work with returning international energy companies, Bell said he could see crude output returning to not only pre-2011 levels, but even as high as 500,000 b/d "within several years." By Nader Itayim and Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Guyana unfazed by Trump’s ‘drill, baby, drill’ vow


25/02/18
25/02/18

Guyana unfazed by Trump’s ‘drill, baby, drill’ vow

Georgetown, 18 February (Argus) — Guyana, one of the fastest-growing crude producers in the world, sees little threat from US President Donald Trump's pledge to flood global markets with cheap supplies. Despite Trump's vow to scrap a slew of regulations he claims are holding back US oil producers, Guyana's vice president Bharrat Jagdeo does not expect there to be a "major supply response." "If the prices come down, as President Trump wants, then it would also make some of the existing operations in the US — particular with (hydraulic fracturing) fracking — it may make them not feasible," Jagdeo said on the first day of the Guyana Energy Conference and Supply Chain Expo in Georgetown, Guyana, on Tuesday. Guyana's low breakeven costs and the quality of its crude will help it to maintain a competitive advantage going forward, he said. The vice president shrugged off concerns over the oil market as concerns grow over waning demand from China, the top importer. He pointed out that ExxonMobil just started the approval process for its seventh and eighth projects in the giant Stabroek block offshore Guyana, where the discovery of oil in 2015 has transformed the economic fortunes of the tiny South American nation. "They (ExxonMobil) study the oil markets, they probably know the oil markets more than any government official," Jagdeo said. "Clearly they see in the future a demand for fossil fuel, and they believe that in Guyana we have a unique opportunity to supply that market." Demand for fossil fuels is likely to remain "relatively high" for the foreseeable future while renewable sources lag behind, he said. Guyana, located on South America's northern coast bordering Venezuela, Suriname, and Brazil, has become a fast-growing non-Opec supplier since oil was first pumped in 2019. Output has accelerated to 650,000 b/d from zero in the space of around five years. And gross output is seen growing further to 1.3mn b/d by the end of the decade as new projects come online. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Нефтетранспорт - НТС: правила на рынке меняются


25/02/18
25/02/18

Нефтетранспорт - НТС: правила на рынке меняются

Moscow, 18 February (Argus) — Ситуация в сегменте железнодорожной транспортировки нефтеналивных грузов остается сложной. О причинах, приведших к этому, взаимодействии с грузоотправителями и планах строительства нового парка рассказал Argus генеральный директор Нефтетранссервиса (НТС) Сергей Ермолаев. — Как вы охарактеризуете текущую ситуацию на рынке перевозок нефтяных грузов по железной дороге? — Наблюдаем падение грузооборота и тоннажа отправок. Меры РЖД, которые должны были вернуть отправителям веру в надежное обеспечение парком, а также дать гарантии вывоза груза, пока не привели к результату. — Какие факторы к этому привели? В чем основные сложности для НТС? — Сегодня всем непросто, и наше положение не отличается от других субъектов экономики. Ограничения экспорта топлива из России, полное закрытие границ Казахстана на заезд порожнего парка цистерн, атаки на перерабатывающую и транспортную инфраструктуру, тарифные инициативы перевозчика, рост ключевой ставки Центрального банка России (ЦБР) — все это делает невозможным долгосрочный прогноз. А без прогноза нет инвестиций. В такой ситуации рынок выбирает простые схемы купил-продал. Это давит на переработку, на наших клиентов и на нас, соответственно. — НТС является одним из основных перевозчиков нефтеналивных грузов с заводов Роснефти. Как оцениваете итоги работы по этим долгосрочным контрактам? Как, на ваш взгляд, будет строиться дальнейшее сотрудничество с нефтяной компанией после завершения договора в конце I квартала 2026 г.? — Роснефть — наш главный клиент. Несмотря на то, что ни один из основных параметров, лежавших в основе долгосрочных договорных отношений, не сохранился в изначальном виде, компания чутко и оперативно адаптируется к новым обстоятельствам. В настоящее время мы совместно с коллегами выверяем позиции перед будущим тендером. У всех появился новый опыт, который должен быть учтен в новом цикле. Работа непростая, времени осталось совсем немного, но мы надеемся успеть вовремя. Разумеется, речь о ценах пока не идет. Нашей задачей является описать взаимные обязательства так, чтобы они имели ясные критерии исполнения и могли бы быть оцифрованы ставкой в ходе тендера. — Рынок в этом году столкнется со значительным выбытием нефтебензиновых цистерн. Планирует ли НТС покупки новых вагонов? — Мы ждем снижения ставки ЦБР, а точнее сужения разрыва между инфляцией и стоимостью кредитов. Также мы ждем, что из-за уменьшения заказов на постройку нового парка вагоностроители пересмотрят свою рентабельность до разумных уровней. Вероятно, после этого мы сможем начать постройку парка. Не исключено и принудительное снижение срока службы вагонов. Это создаст дефицит, увеличит требования к доходности нового парка из-за неопределенности будущего срока окупаемости. Тогда тоже можно будет строить. Но мы надеемся, что этого не произойдет: в условиях ограниченных ресурсов вряд ли нужно утилизировать то, что еще может послужить. Да и нагружать экспортеров новыми затратами странно, когда Россия нуждается в экспортных доходах. — Планирует ли НТС в ближайшее время развивать перевозки другой номенклатуры грузов, помимо нефтеналивных? — Мы всегда в поиске. Но вход в новые рынки требует хорошей аналитики, а сейчас мы находимся в ситуации отмены всех известных нам правил и принципов. В результате вся предыдущая статистика оказывается слабо применима. Если какие-то идеи выдержат и эти условия, обязательно их реализуем. Нефтетранссервис (НТС) Является одним из лидеров на рынке железнодорожных перевозок нефти и нефтепродуктов, парк в управлении превышает 35 тыс. единиц. Помимо вагонов-цистерн и локомотивов, холдингу принадлежат производственные предприятия в Центральном, Приволжском, Южном и Дальневосточном федеральных округах. Более 19 лет НТС сотрудничает с ведущими компаниями топливно-энергетического комплекса России. Сергей Ермолаев В 1997 г. окончил Московскую государственную академию приборостроения и информатики, в 2009 г. — Академию народного хозяйства при правительстве Москвы. В разные периоды времени занимал руководящие должности в сфере организации железнодорожных перевозок сначала в Северной грузовой компании, а затем в НТС, где в течение 2013—2021 гг. возглавлял коммерческое управление перевозок наливных грузов, направления логистики и эксплуатации подвижного состава. В начале 2022 г. был приглашен в Национальную транспортную компанию на должность коммерческого директора. С июня 2024 г. — генеральный директор НТС. Вы можете присылать комментарии по адресу или запросить дополнительную информацию feedback@argusmedia.com Copyright © 2025. Группа Argus Media . Все права защищены.

Nigeria cuts oil theft, upbeat on output growth plan


25/02/18
25/02/18

Nigeria cuts oil theft, upbeat on output growth plan

Lagos, 18 February (Argus) — Nigeria's upstream regulator NUPRC said losses from oil theft have fallen to just 5,000 b/d, down from 15,000 b/d in August of last year. At its peak in 2018, theft was costing Nigeria as much as 150,000 b/d, according to the Nigeria Extractive Industries Transparency Initiative. Sustained security interventions by the government have been successful in tackling the problem, said NUPRC chief executive Gbenga Komolafe. "Oil theft has significantly reduced to 5,000 b/d, leading to a steady [liquids] production increase to 1.7mn b/d," he added. State-owned oil firm NNPC said security measures have led to around 1,861 illegal connections being removed from pipelines, while 677 points of vandalism were found and fixed over the past 12 months. About 4,124 illegal refineries and 1,897 boats laden with stolen crude were also destroyed within the same period, NNPC said. NUPRC said last year that a forensic study showed 40pc of losses previously attributed to theft in 2020–22 were caused by metering inaccuracies. In July last year, the regulator launched an audit of Nigeria's 187 upstream flow stations to determine where meters are outdated or broken and which designated measurement points lack the required equipment. The audit was to have been completed by November 2024 but an NUPRC source told Argus that it is only being completed now. Komolafe also said a programme that aims to add 1.07mn b/d to Nigeria's liquids output by December 2026 is on track. The ambitious initiative aims to leverage "collaboration among operators, service providers, financiers and host communities", Komolafe said. The programme forecasts an injection of $1.45bn of capital into Nigerian oil blocks under joint venture agreements, $1.11bn into blocks under production-sharing contracts and $650mn into blocks under sole risk contracts. This investment will respectively yield additional output of 470,800 b/d, 224,700 b/d and 374,500 b/d, according to NUPRC. Nigeria has struggled with mobilising upstream investment in the past and has consistenly fallen short of less ambitious production growth targets in recent years. But an NUPRC source told Argus that easy wins are possible under the latest output growth programme, including 42,800 b/d from restarting shut-in wells, 74,900 b/d from the ramp-up of fields recently brought online, 96,300 b/d from drilling new wells and 256,800 b/d from well re-entry. The chief executive of local operator Heirs Energies, Osayande Igiehon, said his company restarted 40 shut-in wells in oil block OML 17, which the company operates with a 45pc stake in a joint venture with NNPC, between the third quarter of last year and 11 February this year. Production has risen to 55,000 b/d, up from 35,000 b/d in January of last year, he said. Nigeria has "the infrastructure in place to deliver up to 2mn b/d, more than 2mn b/d, but a lot of it is shut in, is closed in or is poorly worked," Igiehon said. "Beyond 2mn b/d, we need to do a lot of greenfield investments onshore, in shallow water and in the deep water, investments that will take a longer gestation period," he said. NUPRC data show Nigeria's liquids production rose by 4pc on the month to 1.74mn b/d in January, of which 1.54mn b/d was crude, leaving the country 2.6pc above its Opec+ quota. Argus estimates put Nigeria's January crude production lower, at 1.51mn b/d . Nigeria's junior oil minister Heineken Lokpobiri said the government expects a significant portion of the country's targeted oil output growth will be condensate. The government is considering infrastructure interventions to reduce the co-mingling of crude and condensate, further separation of condensate streams from crude streams in transportation and storage, and to increase marketing of Nigerian output as condensate. By Adebiyi Olusolape Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU nears lifting sanctions on Syria


25/02/17
25/02/17

EU nears lifting sanctions on Syria

Munich, 17 February (Argus) — The EU will meet on 24 February to discuss lifting sanctions on Syria, EU high representative for foreign affairs Kaja Kallas said on Sunday. But internal European politics and concerns raised by Greece and Cyprus over Turkey's growing influence in the region could slow the process. Speaking to Argus on the sidelines of the Munich Security Conference, Kallas said the prospect of lifting sanctions on Syria "is looking promising". The EU Foreign Affairs Council is scheduled to meet on 24 February to discuss Syria and other issues affecting the Middle East. France on 14 February convened an international conference on Syria in Paris, bringing together representatives from G7 nations, the EU, the UN, the Arab League, and the Gulf Cooperation Council. The parties issued a final statement calling for support of Syria's political transition, but the US did not join that statement. US sources with knowledge of the matter told Argus that the issues raised in the statement are things Washington has not decided on, since US president Donald Trump's administration is still formulating its policy regarding Syria. Another source with knowledge of ongoing European talks on Syria said Greece and Cyprus are more reluctant to lift sanctions on Syria. Any EU action will have to be agreed upon by all of the bloc's members. Both countries are leery of ties between Turkey and the Syrian Islamist group Hayat Tahrir al-Sham (HTS), the dominant faction in the new Syrian government. Greece and Cyprus are worried about an oversized Turkish influence in the eastern Mediterranean following the collapse of the regime of Bashar al-Assad in December. Sanctions remain one of the biggest obstacles to Syria's recovery. Damascus has been struggling to secure crude and refined oil products through public tenders largely because of those sanctions. Shipowners remain cautious about sending vessels there over concerns tankers being sanctioned or stranded. Last month the US waived sanctions prohibiting energy trade with Syria, but the country is still under EU and UK sanctions, which may have narrowed the pool for bidding. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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