06/11  Closing Prices / revised 06/12/2024 07:53 GMT 06/11 OPEC Basket  $82.36   +$1.43 cents 06/11 Mexico Basket (MME) $72.63  +$0.43  cents  | 04/30 Venezuela Basket (Merey)   $74.91   +$3.93 cents | 06/11 NYMEX WTI Texas Intermediate July CLN24 $77.90  +$0.16 cents  | 06/11 ICE Brent August  BRNQ24    $81.92  +$0.29 cents  | 06/11 NYMEX Gasoline June RBN24  $2.40  +0.1%  |  06/11 NYMEX  Heating Oil July  RBN 24    $2.42  +0.3% | 06/11 Natural Gas July NGN24  $3.12   +7.7%  | 06/07 Active U.S. Rig Count (Oil & Gas)   594  -6  | 06/12 USD/MXN Mexican Peso   18.6503  (data live)  | 06/12 EUR/USD     1.0745 (data live)  | 06/12 US/Bs. (Bolivar)   $36.43850000 ( data BCV)

US court sets Oct. 23 start for Citgo share auction process – Reuters

The logo of PDVSA's U.S. unit Citgo Petroleum is seen at a gas station in Stowell, Texas, U.S., June 12, 2018.
The logo of PDVSA’s U.S. unit Citgo Petroleum is seen at a gas station in Stowell, Texas, U.S., June 12, 2018.(Jonathan Bachman/Reuters)

Marianna Parraga and Gary Mcwilliams, Reuters

HOUSTON
EnergiesNet.com 07 24 2023

A U.S. court set Oct. 23 as the start date for a long-expected auction of shares in Venezuela-owned refiner Citgo Petroleum’s parent to pay creditors with judgments against the South American nation.

The sale process lays out a schedule that could lead to formal approval of any sale of shares in PDV Holding, a U.S.-based unit of state company Petróleos de Venezuela (PDVSA.UL), a year from now.

U.S. Judge Leonard Stark in Delaware this week accepted a recommendation by a court official in charge of organizing the auction. Proceeds from any sale of PDV Holding shares would be used to pay off creditors previously cleared by the court. PDV Holding’s only asset is Citgo.

Any sale of Citgo without the participation of Venezuela would be “hurtful,” Pedro Tellechea, Venezuela’s oil minister, said on Friday. “It’s not a PDVSA asset. It’s an asset of all Venezuelans,” he said.

Horacio Medina, head of the ad-hoc board that since 2019 has overseen the refiner, was not immediately available for comment. A spokesperson for Citgo declined to comment.

Stark dismissed Venezuela’s attempt to stop the auction. Venezuela had argued that the auction’s conditions would not ensure the best value for the assets, and that the process should be delayed until other pending litigation is resolved.

“The Venezuela Parties’ objection is utterly unpersuasive, particularly in light of the lengthy history of this case,” he wrote. “There is simply no reason to further delay starting the sale process.”

The U.S. Treasury Department this month extended for three months through Oct. 19 a license protecting Citgo from holders of a 2020 bond defaulted by PDVSA. The license does not freeze the auction, but would require U.S. approvals for any winners in the process.

Following a long wave of expropriations under late Venezuelan President Hugo Chavez and the default of bonds issued by PDVSA, the creditors flocked to U.S. courts to enforce arbitration awards against the country.

The creditors include miner Crystallex International, oil producer ConocoPhillips (COP.N), Siemens Energy, and Red Tree Investments, which are trying to recoup some $2.7 billion over unpaid court and arbitration rulings.

Another group of six companies recently won at an appeals court their attempt to attach claims to the Delaware case. The companies are O-I Glass Inc (OI.N), Huntington Ingalls Industries (HII.N), ACL1 Investments, Rusoro Mining (RML.V), Gold Reserve (GRZ.V) and two Koch Industries units, which will try to cash $3.46 billion.

Reporting by Marianna Parraga and Gary McWilliams; Editing by Richard Chang and Grant McCool

reuters.com 07 21 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