Venezuelan Vice‑President and Petroleum Minister Delcy Rodríguez has denounced a US court ruling that authorised what Caracas calls a "fraudulent" and "forced" sale of Citgo in the United States to satisfy billions of dollars in creditor claims.
"We energetically reject the decision adopted in the judicial process," Rodríguez said in a statement read on state television, reiterating the government's long-standing opposition to the transaction.
Last week, Delaware Judge Leonard Stark ordered the sale of Citgo's parent company to Amber Energy, an affiliate of Elliott Investment Management, for $5.9 billion. Elliott said the court order is "backed by a group of strategic US energy investors." The ruling follows a series of legal claims against Citgo and its parent that collectively exceed $20 billion.
Key legal and financial background
Citgo is a Houston-based subsidiary of Venezuela's state oil firm PDVSA (Petróleos de Venezuela, S.A.). Among the creditors is Canadian mining company Crystallex, which in a separate US court case was awarded $1.2 billion in 2019 over Caracas's 2008 nationalisation of the Las Cristinas mine.
The sale highlights Venezuela's broader economic and political troubles. Although the country holds the world's largest proven oil reserves—estimated at some 303 billion barrels as of 2023—oil exports plunged to around $4.05 billion in 2023, well below other major producers, in part because of long-running international sanctions.
Political reactions and regional context
President Nicolás Maduro has warned that recent US military activity in the Caribbean reflects pressure on Venezuela and framed the Citgo decision as part of a broader threat to the country's resources. He has appealed to fellow members of the Organization of the Petroleum Exporting Countries (OPEC) to support Caracas against what he described as "growing and illegal threats."
Observers caution that Venezuelan appeals to OPEC may receive limited support. Paolo von Schirach, president of the Global Policy Institute, said he doubted Caracas would gain significant backing within OPEC for its position.
Operational challenges
PDVSA continues to face severe operational problems, including ageing infrastructure, years of underinvestment and mismanagement, compounded by the effects of sanctions. Historically a major supplier to the US market, Venezuela shifted exports to countries such as China, India and Cuba after diplomatic tensions and sanctions escalated in recent years. A limited licence was granted to US firm Chevron during a period of eased restrictions, but sanctions were later tightened again.
What happens next: The legal and diplomatic fallout could include appeals and additional court proceedings. The sale sets the stage for complex negotiations among creditors, potential investors and Venezuelan authorities over control of Citgo's assets and the settlement of outstanding debts.
