LatAmOil: Venezuela's imminent loss of Citgo – an existential crisis

Venezuela stands on the brink of losing one of its most prized assets, Citgo Petroleum Corp., following a protracted legal battle in the US grounded in the country's tumultuous economic and political history.

Citgo, the US’ seventh largest refiner and a cornerstone of Venezuela's oil industry acquired by the state in 1990, has become a focal point in a complex web of litigation and geopolitical manoeuvring. Valued at $13bn, the company's fate now hangs in the balance as US courts move forward with auctioning its shares to satisfy creditors' claims totalling $21.3bn.

The Houston-based refiner, legally owned by Venezuelan state-owned energy company PDVSA but controlled by a holding overseen by the country's opposition since 2019, operates an extensive refining network, 38 terminals and six pipelines, and supplies 4,200 independent retailers, boasting a refining capacity of 807,000 barrels per day (bpd).