Elliott Management’s proposed acquisition of Venezuela-owned US refinery Citgo has been thrown into uncertainty following President Donald Trump’s removal of Nicolás Maduro, raising fresh political and regulatory risks for the hedge fund’s $8bn investment, according to a report by the Financial Times.
The transaction, agreed last year after a US court ordered Citgo’s sale to compensate Venezuela’s creditors, still requires approval from the Treasury Department’s Office of Foreign Assets Control (OFAC) and remains subject to ongoing legal appeals. The report cites unnamed sources close to the process as saying that the abrupt political shift in Caracas has disrupted what had previously been viewed as a predictable path toward regulatory clearance.
Citgo – owned by Venezuela’s state oil company PDVSA – could now become a bargaining chip in negotiations between Washington and Venezuela’s new leadership under President Delcy Rodríguez, who has strongly opposed the sale. The refinery’s strategic importance has long made it a sensitive asset in US–Venezuela relations.
Elliott’s bid, submitted through its subsidiary Amber Energy, is widely viewed as a hallmark distressed-debt transaction, combining litigation strategy, sovereign restructuring expertise and energy sector know-how. Analysts estimate Citgo could be worth as much as $13bn, particularly if US sanctions on Venezuelan crude are eventually eased.
However, legal challenges continue. Venezuela, PDVSA and rival bidder Gold Reserve are appealing the sale, alleging procedural conflicts in the court-supervised auction process – claims that were rejected by a district court judge in November.
Market participants note that OFAC approval remains a political decision and could now be influenced by broader US objectives in stabilising Venezuela’s oil sector. While the Trump administration has not signalled any formal delay, officials have indicated that Citgo’s ownership structure may be revisited as part of wider policy considerations.
Despite the uncertainty, Elliott is seen as well positioned to navigate the process, having assembled a large financing consortium and drawn on its extensive experience in sovereign debt disputes. The firm famously pursued Argentina for years following its default, underscoring its willingness to engage in prolonged and complex legal battles.
