02/ 23 Closing Prices / revised 02/23/2024 21:59  GMT 02/22   OPEC Basket  82.90 + 0.91  | 02/23    Mexico Basket (MME)   $72. 22 -2.05 | 01/13    Venezuela Basket (Merey)  $66.50  +1.30   | 02/23     NYMEX WTI Texas Intermediate April  CLJ24   $76.49 -2.12 | 02/23    ICE Brent April BRNJ24     $81.62 -2.05 | 02/23     NYMEX Gasoline March  RBH24   $2.28  -2.5% |  02/23    NYMEX  Heating Oil March  HOH24   $2.69   -2.3%   | 02/23    Natural Gas March NGH24    $1.60  -7.5% | 02/23    Active U.S. Rig Count (Oil & Gas)    626   +5  | 02/23    USD/MXN Mexican Peso  17.1166  (data live  | 02/23     EUR/USD    1.0821  (data live)  | 02/23    US/Bs. (Bolivar)   $36.06980000  ( data BCV)  

Citgo Wins $54 Million From Insurers Over Oil Seized by Venezuela’s Maduro – Bloomberg

A jury decided insurers must pay Citgo for its claims over the lost crude, which it purchased in 2019 from its nominal parent, Petroleos de Venezuela SA.(Reuters)

Chris Dolmetsch and Jef Feeley, Bloomberg News

EnergiesNet.com 12 20 2023

Citgo Petroleum Corp. was awarded an insurance payment of more than $54 million for almost 1 million barrels of crude seized by the Venezuelan government.

A jury in federal court in Manhattan decided late Monday that insurers must pay Citgo for its claims over the lost crude, which it purchased in 2019 from its nominal parent, Petroleos de Venezuela SA, or PDVSA, the national oil company controlled by President Nicolas Maduro. 

The case stems from the US government’s decision in 2019 to recognize Venezuelan opposition leader Juan Guaido as the country’s legitimate ruler after a contested election. Guaido was also given the reins of US-based refiner Citgo and its direct corporate parent, though they also remain units of PDVSA.

The oil was being transferred to a tanker when the US announced it was recognizing Guaido and imposed other restrictions on Venezuela and PDVSA. In response, Maduro ordered vessels halted in Venezuelan territorial waters. Armed forces loyal to Maduro eventually commandeered the ship and directed it to a terminal controlled by PDVSA, where the oil was discharged. 

Citgo filed a claim with the insurers, a group of Lloyd’s of London syndicates, seeking coverage under a provision of its policy that covers losses from seizures arising from insurrections. But the insurers denied the claim, saying the political turmoil did not amount to an insurrection and that the seizure, in any case, stemmed from Citgo’s failure to pay for the oil.

The court had already ruled that the upheaval surrounding the Venezuelan election constituted an insurrection, but told the jury to determine whether that caused the seizure. Jurors decided that it did.

Lloyd’s didn’t have an immediate comment on the verdict.

The case is Citgo Petroleum Corp. v. Ascot Underwriting Ltd., 21-cv-389, US District Court, Southern District of New York.

–With assistance from Nicolle Yapur.

bloomberg.com 12 19 2023

Share this news

Support EnergiesNet.com

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas, Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com

CopyRight©1999-2021, EnergiesNet.com™  / Elio Ohep – All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission fromPetroleumworld or the copyright owner of the material.

Scroll to Top