LatAmOil: Citgo teeters amid Venezuela crisis and $20bn creditor claims

The future of Citgo, once a crown jewel in Venezuela's overseas oil empire, hangs in the balance as the company faces mounting losses and legal challenges. The US-based refiner, grappling with a $25mn loss in the second quarter of 2024 and the looming threat of asset auctions to settle national debts, finds itself in an increasingly precarious position.

This dire situation has drawn sharp criticism from veteran Venezuelan oil union leaders, who view Citgo's struggles as emblematic of broader institutional decay within the country's oil sector, El Nacional reported.

“Citgo has historically been a symbol of Venezuela’s oil potential abroad. However, what we are seeing now is the direct result of an incapable administration that has neither the vision nor the capacity to run a company of this magnitude. What is happening with Citgo is a reflection of what has happened to the country: a progressive disintegration of our institutions and our resources,” union leader Juan Martínez told the publication.