The Daily Journal.- Lawyers representing Venezuela have asked a U.S. court to suspend the sale process of Citgo Petroleum, arguing that the company’s valuation has increased significantly since the auction of its parent company, PDV Holding, was approved in late 2024 .
According to Reuters, attorney Alexandra Cumings stated in a letter to Delaware Judge Leonard Stark that the value of publicly traded refineries has risen notably in recent months.
The defense maintains that Citgo should now be valued at $15.1 billion, a figure far above the originally approved $5.9 billion bid.
For Venezuela’s legal team, executing the sale under the terms agreed in November 2024 with Amber Energy — an affiliate of Elliott Investment Management — would be harmful to the country’s interests.
“Such an outcome is clearly unfair: to CITGO, to the Venezuelan people, and to creditors who would be left unpaid,” Cumings stated in a document unsealed on Thursday.
The increase in valuation of oil assets is partly attributed to a 50% surge in global energy prices. Reuters reports that this rise is linked to ongoing geopolitical tensions that have disrupted global energy supply chains.
Conflicts of Interest and the National Debt Plan
Venezuela’s legal team also raised alleged conflicts of interest, arguing that some firms advising the court-appointed special master also worked for Elliott — claims the company has denied. It was also alleged that Amber Energy CEO Gregory Goff breached a confidentiality agreement by publishing an opinion piece in the Wall Street Journal advocating for a faster closing of the sale in order to launch an $11 billion investment plan.
Finally, the lawyers emphasized that Citgo is a central asset in Venezuela’s financial strategy.
Rather than being auctioned to satisfy a limited group of creditors, the refinery should play a “key role” in the country’s recently announced debt restructuring process under the administration of Delcy Rodríguez.
