Citgo seeks order to keep Venezuelan crude

Citgo's opposition-appointed board today asked a US court to block Venezuela's national oil company PdV from claiming a cargo of the US refiner's crude stuck in that country's waters since January.

The US-recognized board of PdV's US refining subsidiary asked the Delaware Chancery Court for a declaration that the attempt to take control of more than 950,000 bl of heavy Venezuelan crude aboard the Gerd Knutsen was legally invalidand to hold the Venezuelan-based board in contempt. Both the US government and, according to the filing, the Gerd Knutsen's operator recognize the US-based board as in control of the cargo. The crude was not released.

Citgo could not be immediately reached for comment.

A Citgo director appointed by Venezuelan president Nicolas Maduro presented the vessel's captain with a letter last week instructing that the 943,000 bl of diluted crude oil and about 22,000 bl of Perdenales crude be released to PdV, according to the filing. The Delaware Chancery Court in early August recognized a board appointed by National Assembly leader Juan Guaido as in control of the refiner. The US and more than 50 other governments recognize Guaido as the country's interim president. A Venezuelan appeal of that ruling is ongoing.

The Gerd Knutsen has been unable to leave Venezuelan waters since January, when the US recognized Guaido and imposed sanctions targeting Venezuela's oil industry.

US federal courts have filled with plaintiffs seeking control of Citgo, one of Venezuela's most valuable overseas assets. A series of companies have targeted the 750,000 b/d refiner to satisfy more than $150bn in arbitration awards tied to the country's expropriation of foreign assets in the country.

By Elliott Blackburn