By The New York Times (Americas) | Created at 2024-09-27 19:43:10 | Updated at 2024-09-30 05:25:29
2 days ago
Energy & Environment |Top Bidder for Citgo Is Elliott Management, Court Master Says
https://www.nytimes.com/2024/09/27/business/energy-environment/citgo-venezuela-elliott-management.html
The sale, which requires a judge’s approval, would help compensate foreign companies owed billions of dollars by the government of Venezuela, which owns Citgo.
Sept. 27, 2024, 3:38 p.m. ET
Elliott Investment Management was named on Friday as the leading contender to acquire Citgo Petroleum, the oil refining giant that has been the subject of a long legal battle over billions of dollars the government of Venezuela owes foreign businesses, including U.S. energy companies.
A special master appointed to oversee the sale of Citgo said in a federal court filing that he recommended the company be sold to an affiliate of Elliott, Amber Energy. A federal judge would have to approve the deal, which values Citgo at up to $7.3 billion, including debt.
Citgo’s main assets are three refineries in Illinois, Louisiana and Texas that together account for roughly 4 percent of the country’s fuel-making capacity. It also owns pipelines and other facilities.
The sale is unlikely to directly affect operations at more than 4,000 independently owned gas stations that use the Citgo brand as franchisees.
Citgo is a subsidiary of Venezuela’s national oil company, Petróleos de Venezuela, and one of that country’s most valuable foreign holdings.
The U.S. District Court judge overseeing the Citgo case, Leonard P. Stark, previously found that shares in Citgo’s U.S.-based parent company could be auctioned to satisfy claims against Venezuela, whose government seized billions of dollars’ worth of assets from foreign companies. Many of those companies won judgments against the government that they are seeking to collect on.
They include the defunct Canadian gold miner Crystallex and ConocoPhillips, one of the largest U.S. oil and gas producers. All told, foreign companies are seeking compensation for more than $21 billion in debts, according to court records.
The court filing comes two months after President Nicolás Maduro claimed victory in Venezuela’s presidential election amid widespread accusations of electoral fraud.
Judge Stark has scheduled a hearing on the sale of Citgo for November.
Rebecca F. Elliott covers energy with a focus on how the industry is changing in the push to curb climate-warming emissions. More about Rebecca F. Elliott
