The battle for the future of CITGO Petroleum, a subsidiary of PDVSA and the seventh-largest refinery in the United States, has reached a critical phase. Federal Judge Leonard P. Stark has authorized judicial officer Robert Pincus to reopen the auction process for the shares of PDV Holding, CITGO’s parent company, in order to maximize revenue aimed at settling Venezuela’s unpaid debts.
The auction, which began in October 2023, aims to satisfy claims exceeding $20 billion, resulting from defaults and expropriations carried out by the Venezuelan government over the past decade. CITGO, with three strategic refineries, an extensive pipeline network, and over 4,000 service stations, is considered a key asset in the U.S. energy market, estimated to be worth between $11 and $13 billion.
Latest Bids in the Auction
The reopening of the bidding has sparked fierce competition among the bidders:
Amber Energy, affiliated with the Elliott fund, currently leads with a bid of $8.82 billion. This proposal has gained traction because it includes a preliminary agreement with holders of the controversial PDVSA 2020 bond, giving it an edge by resolving one of the main legal hurdles.
Vitol, one of the world’s largest energy traders, submitted a bid close to $8.45 billion. Although it is slightly lower than Amber’s, it marks a significant improvement over previous rounds and showcases the growing pressure in the process.
Black Lion Citgo Group made a strong move with a proposal of $8 billion in cash. Its appeal lies in the fact that it is a liquid offer, not relying on debt swaps or complex negotiations, which could speed up a potential closure.
Gold Reserve, through the consortium Dalinar Energy, had positioned itself advantageously in July with a bid of $7.4 billion, backed by companies such as Koch, Rusoro, and Siemens. However, the emergence of higher bids has pushed this group out of the initial spotlight.
Next Steps in the Process
Judge Stark has instructed that new proposals or enhancements to the submitted bids be presented by August 22, 2025. Subsequently, Robert Pincus will need to recommend a winner by August 31.
The final hearing, initially scheduled for August 18, has been postponed due to the arrival of bids from Amber and Vitol. The new date will be defined in coordination with the judicial officer and the parties involved.
Loss of Venezuela’s Most Important Foreign Asset
The sale of CITGO carries not just financial weight but geopolitical importance.
From Caracas, Nicolás Maduro’s regime has decried the process as a “theft of the century,” asserting that it will continue the legal battle to prevent the loss of one of Venezuela’s most valuable foreign assets.
In the United States, political voices have warned of the strategic importance of CITGO and have called for its control to remain in the hands of the Venezuelan opposition.
In the energy market, the outcome of this auction could reshape the refining landscape in the U.S., given CITGO’s role in fuel distribution.
This case will set a legal international precedent on how sovereign debts can be executed through asset auctions in foreign jurisdictions, which could influence future litigations involving countries with unpaid obligations.
A Historic Case
The bidding for CITGO has turned into a showdown between financial and energy giants, with Amber Energy’s bid of $8.82 billion setting the trend. The auction’s closure, expected by the end of August, will define not only the fate of the refinery but also the future of Venezuela’s creditors and the extent of the opposition’s power against chavismo in managing international assets.
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