In a judicial auction in the United States, Amber Energy, a subsidiary of Elliott Investment Management, was announced as the presumptive winner with a bid that values Citgo Petroleum at up to $7.286 billion. Citgo, owned by Venezuela’s PDV Holding, has been involved in legal battles as part of efforts to resolve claims totaling $21.3 billion against Venezuela and its state oil company, PDVSA. These claims come from expropriations and debt defaults by the Venezuelan government.
The auction process, overseen by a Delaware district court, saw Amber Energy’s bid trump rival bids, including those from CVR Energy and Gold Reserve. However, the court emphasized that the agreement is conditioned on the resolution of competing claims by bondholders also seeking Citgo’s assets. If these claims are not resolved, the offer could be voided, adding further uncertainty to the sale.
Amber Energy CEO Gregory Goff expressed optimism, outlining a vision of operational excellence and long-term stability for Citgo, which has shown strong financial performance with $2 billion in profits last year. However, the offer remains subject to legal disputes, as Venezuela and other interested parties challenge the process, calling it an illegal seizure of Venezuelan assets.
These ongoing legal battles cast doubt on the timeline and final resolution of the sale, with pending court rulings likely to determine the future of one of the largest oil refineries in the United States.
