Elliott Investment Management’s attempt to acquire Venezuela’s Citgo Petroleum Corp has been delayed amid concerns from the Trump administration over the deal’s valuation and associated political risks, according to a report by Bloomberg.
The $5.9bn offer, submitted by Amber Energy – a consortium linked to Elliott – won a Delaware court auction in November and would extinguish roughly $8.8bn in creditor claims. However, senior US officials view the price as significantly undervaluing the Houston-based refiner, particularly after oil prices surged following the Middle East conflict.
Approval of the transaction requires clearance from the US Treasury Department’s Office of Foreign Assets Control (OFAC) due to ongoing sanctions on Venezuela. The State Department is advising Treasury on the potential implications, according to sources familiar with the matter. A US government official said the legal process is being followed and the OFAC review is proceeding as quickly as possible.
The sale has drawn objections from both the Venezuelan government under acting President Delcy Rodríguez and elements of the political opposition, who see the refiner as a strategic national asset. Elliott’s CEO, Gregory J Goff, warned in a court filing that delays could impose environmental liabilities and other costs on the buyer.
Key creditors that would benefit from the sale include Crystallex International Corp, now controlled by Tenor Capital Management, and ConocoPhillips, both of which suffered losses due to Venezuela’s expropriation of their local operations. A subset of bondholders of Venezuela’s state-owned Petróleos de Venezuela SA would also see partial repayment.
Analysts note that a US delay could give the Rodríguez administration more time to negotiate a broader debt restructuring, potentially facilitating Venezuela’s return to international capital markets. Legal experts suggest the administration may be seeking ways to secure a higher sale price or align the transaction with its broader policy objectives, including boosting Venezuelan oil production.
Citgo operates three US refineries, along with pipelines, terminals, and fuel distribution networks, making it a critical asset in Venezuela’s energy portfolio
