A federal judge in the United States approved a significant step in the legal battle for CITGO Petroleum, Venezuela’s most valuable foreign asset, on Tuesday, November 25. Judge Leonard P. Stark of the Delaware District Court endorsed the recommendation to accept the $5.9 billion bid made by Amber Energy, a subsidiary of Elliott Investment Management, to acquire PDV Holding, the corporate parent of CITGO.
This decision marks the most significant advance in years within the complex judicial processes aimed at compensating creditors of Venezuela for debts exceeding $20 billion, including arbitration rulings and defaulted sovereign bonds.
A Structured Offer to Dominate the Auction
The Amber Energy proposal totals exactly $5.89 billion, but its competitive edge stemmed from an additional component: a separate payment of $2.1 billion intended to compensate holders of Venezuelan bonds backed by shares of Citgo, which are currently in default.
This element positioned it above other bids, particularly that of Dalinar Energy, a subsidiary of Gold Reserve, which did not include similar provisions for bondholders. The broader financial terms and the guarantee of a structured closing ultimately tipped the scales in favor of Elliott.
An Auction Redefining the Future of a Strategic Asset
The sale was ordered by the Delaware court as part of a process to settle debts accumulated by Venezuela due to expropriations, breaches of contract, and collapsed sovereign bond payments. Citgo, based in Houston, Texas, is the seventh largest oil refiner in the United States and operates critical infrastructure in the Gulf of Mexico.
Control over it has been disputed for years among:
- International creditors,
- The interim government recognized by the U.S. during certain periods,
- And more recently, the institutional apparatus aligned with Nicolás Maduro.
The judicial auction has become the central mechanism for ordering payments awarded by federal courts and international arbitration courts.
Months of Legal Maneuvering
The process culminating in Judge Stark’s decision accelerated during 2025:
August 2025: Elliott’s bid was recommended as the preliminary winner after successive rounds of bidding.
September: Stark formally backed Amber Energy’s position following the closure of agreements with competitors and the signing of a new share purchase contract.
A parallel ruling in New York, which validated defaulted Venezuelan bonds backed by collateral from Citgo, ended up strengthening the legal position of the creditors.
With this latest approval, the process now enters its final phase, albeit not without risks.
Implications and Next Steps
This decision may face appeals or diplomatic or legal attempts to block it by the regime of Nicolás Maduro, which has labeled the auction as “illegal” and contrary to Venezuelan sovereignty. However, U.S. courts have consistently maintained that the corporate structure of PDV Holding is subject to federal court orders due to previous rulings in arbitration cases.
If no significant obstacles arise, the transaction could close in the coming months, which would imply:
- Immediate liquidity for creditors,
- Operational control transfer of Citgo,
- Potential adjustments in the U.S. energy market,
- Repercussions on the already tense relations between Washington and Caracas.
The approval of Amber Energy’s bid thus marks one of the most significant milestones in the lengthy legal conflict over Citgo, a case intertwining sovereign debt, international arbitration, geopolitics, and the energy future of Venezuela in the United States.