Exxon, 19 other creditors seek to join Citgo share auction (updated)

Rusoro Mining

15/08/2023 24:21

(Recasts 1st paragraph, adds context on creditors in paragraphs
2-5)
    By Marianna Parraga and Gary McWilliams
       HOUSTON, Aug 14 (Reuters) - 
    Oil major Exxon Mobil  XOM.N  and 19 other creditors owed
money by Venezuela on Monday registered their claims in a U.S.
federal court that will soon kick off an auction of shares in
PDV Holding, one of the parents of Houston-based refiner Citgo
Petroleum  PDVSAC.UL .
  
        Creditors owed billions of dollars from expropriations
and defaults by Venezuela have flocked to U.S. courts in recent
years to enforce court rulings and arbitration awards against
the South American country and its state oil company, PDVSA
 PDVSA.UL , which owns Citgo through several companies.
  
    U.S. Judge Leonard Stark last month said miner Crystallex
International, which first brought the case in the
Delaware-based court, will have priority to proceeds from the
proposed auction. U.S. oil producer ConocoPhillips  COP.N  will
have a position "near the front of the line" of creditors, he
said.
        A court official appointed for the case gave all
creditors until Monday to file a summary of claims, including
rulings in their favor and a recount of money owed plus
interest.
  
        At least 20 companies with claims totaling some $10
billion filed summaries hoping to participate in the year-long
auction starting in October. The refiner has been valued at $10
billion to $13 billion.
  
        The head of the board supervising Citgo and PDVSA did
not immediately respond to requests for comment. Citgo declined
to comment.
  
        Among the creditors is Exxon, which had not previously
participated in the case brought by Crystallex. Following a July
decision by the World Bank's International Centre for Settlement
of Investment Disputes (ICSID), Exxon said it was granted $984.5
million in compensation plus $1.02 million in costs and fees.
        An Exxon spokesperson declined to comment on the
proposed auction or details of the ICSID award, but said that,
on balance, ICSID ruled in its favor.
    Exxon's oil projects Cerro Negro and La Ceiba were
expropriated in 2007 by Venezuela's late President Hugo Chavez,
which led to lengthy international arbitration cases.
    The list of claims by value in the auction, which could
result in the breakup of the seventh largest U.S. refiner, is
led by Conoco, a group of defaulted bondholders, Rusoro Mining,
Exxon and holders of promissory notes issued by PDVSA.

 (Reporting by Marianna Parraga; Editing by David Gregorio and
Richard Chang)
 ((marianna.parraga@thomsonreuters.com; +1 713 371 7559; Reuters
Messaging: @mariannaparraga))