Venezuela representatives, US officials meet over Citgo auction

Rusoro Mining

04/06/2024 23:49

HOUSTON, June 4 (Reuters) - Members of Venezuela's
political opposition and the boards that supervise state-owned
refiner Citgo Petroleum have met U.S. officials and lawmakers in
recent days in a new effort to pause a court-ordered auction of
shares to pay creditors, people close to the talks said. 
    A second bidding round for shares in Citgo's parent company
PDV Holding is expected to close on Tuesday, the final step in a
years-long process expected to result in a change of ownership
of the seventh-largest U.S. refiner.
     
     WHY IT'S IMPORTANT
     A total of 18 creditors including ConocoPhillips  COP.N , 
Koch Industries and miners Crystallex, Rusoro  RML.V  and Gold
Reserve  GRZ.V , aim to cash up to $21.3 billion in claims. 
    But the highest offer in the first bidding round did not
reach $8 billion, prompting Citgo's supervisory boards to
protest and present an alternative payment option. 
    If successful, the talks could result in a change of U.S.
policy guidance issued by the Biden administration, which last
year gave a green light to the U.S. District Court in Delaware
to move forward with the auction.
    Citgo and its supervisory boards did not immediately respond
to requests for comment.
    
    WHAT'S NEXT
    The Venezuela representatives want a pause in the court
process at least until results are known from the Venezuelan
presidential election in July.
    
    BY THE NUMBERS
    Citgo has plants in Louisiana, Illinois and Texas that can
jointly process 807,000 barrels per day of oil. In the last two
years, the company has generated $4.8 billion in combined net
earnings. 

 (Reporting by Marianna Parraga; Editing by Jamie Freed)
 ((marianna.parraga@thomsonreuters.com; +1 713 371 7559; Reuters
Messaging: @mariannaparraga))