In a U.S. court auction, Amber Energy, an affiliate of Elliott Investment Management, was announced the presumptive winner with a bid valuing Citgo Petroleum at up to $7.286 billion. Citgo, owned by Venezuela’s PDV Holding, has been embroiled in legal battles as part of efforts to settle claims totaling $21.3 billion against Venezuela and its state-owned oil company PDVSA. These claims stem from expropriations and debt defaults by the Venezuelan government.
The auction process, overseen by a Delaware district court, saw Amber Energy’s offer surpass rival bids, including those from CVR Energy and Gold Reserve. However, the court emphasized that the deal is contingent upon resolving competing claims from bondholders who also seek Citgo’s assets. Should these claims not be resolved, the bid could be nullified, adding further uncertainty to the sale.
Amber Energy’s 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 earnings last year. However, the bid remains subject to legal disputes, as Venezuela and other stakeholders challenge the process, branding it as an unlawful seizure of Venezuelan assets.
This ongoing legal wrangling casts doubt over the timeline and final resolution of the sale, with upcoming court rulings likely to shape the future of one of the largest oil refiners in the United States.
