Venezuela is attempting to halt the court-supervised sale of US refiner Citgo Petroleum, arguing that a sharp increase in the company’s valuation undermines the rationale for a deal that would hand control to an affiliate of hedge fund Elliott Investment Management, according to a report by Reuters.
Lawyers representing Venezuela told a Delaware court this week that Citgo’s value has risen significantly since the auction process concluded last year, when Amber Energy — a vehicle backed by Elliott — secured approval for a $5.9bn bid for Citgo parent PDV Holding.
According to court filings, Venezuela now believes Citgo could be worth as much as $15.1bn based on current refining market multiples and stronger sector conditions driven by higher oil prices. The country’s legal team argued that completing the sale at the previously agreed price would unfairly disadvantage both Venezuela and creditors left outside the transaction.
The long-running auction, overseen by a Delaware court, was designed to compensate creditors pursuing claims tied to Venezuela’s debt defaults and asset expropriations. However, the process remains in limbo pending approval from the US Treasury’s Office of Foreign Assets Control (OFAC), while an appeals court is also considering requests to suspend the transaction.
The dispute has intensified scrutiny of Elliott’s proposed takeover through Amber Energy, which has pledged to invest $11bn into Citgo should the acquisition receive final regulatory clearance.
Venezuela’s lawyers additionally raised concerns over alleged conflicts of interest involving advisers connected to the court-run auction and accused Amber executives of breaching confidentiality agreements after publicly outlining strategic plans for Citgo in a recent opinion piece. Elliott has denied the allegations.
The battle over Citgo has become a focal point in Venezuela’s broader effort to restructure roughly $150bn of external debt, with Caracas arguing the refinery should remain a strategic asset rather than being sold to satisfy a limited group of claimants.
