The recent history of CITGO, a subsidiary of PDVSA in the United States, has been characterized by legal maneuvers, political pressure, and a complex judicial process that threatens to erase one of Venezuela’s last significant assets abroad.
In an interview with Sin Filtros, Horacio Medina shares his insights into the key elements necessary to understand what has been done to save CITGO, why it was put up for auction, and how effective the legal and diplomatic strategies have been in preventing its loss.
What has been done to save CITGO?
Since 2019, protective measures have been attempted through OFAC licenses, agreements with creditors, and legal maneuvers to buy time. However, the lack of a unified defense and the political instability in Venezuela have weakened the strategy.
The actions to sell it and the winning bids
In 2024, the Delaware court approved the auction of PDV Holding, CITGO’s parent company. Among the bids, those from Dalinar Energy and Vitol stood out as the most competitive in the process.
The fate of the money generated by CITGO
Court documents and financial reports indicate that CITGO’s revenues have been used to cover operations and debts, but it is also being investigated whether some of those funds were misdirected or mismanaged by the Interim government that took control in 2019. This topic will be discussed in the interview.
The debt and failures in defense
CITGO faces claims from multiple international creditors, including Crystallex, ConocoPhillips, and other bondholders. Legal defense, according to experts, has failed to present compelling arguments and to seize procedural opportunities to protect the asset.
An internationally impactful case
More than a commercial litigation, the CITGO case is a chessboard where geopolitical interests, diplomatic pressures, and accusations of corruption intersect. The outcome could redefine the landscape of Venezuelan assets abroad.