LATIN AMERICA ADVISOR

Energy ADVISOR

A daily publication Of the dialogue

May 19, 2023

What Would a Citgo Sale Mean for the U.S. and Venezuela?

The U.S. government is set to approve the sale of Venezuela’s ownership stake in Citgo. Until now, it had been protecting the Venezuelan state-owned oil refiner from seizure by creditors. // File Photo: Venezuelan Government.

Q

A

Michael C. Lynch, president of Strategic Energy & Economic Research: “The Biden administration’s decision to stop blocking the sale of Citgo Refining so as to allow creditors of the Venezuelan government to be compensated marks another milestone in the devastation that the Chávez and Maduro regimes have inflicted on that country. Citgo’s acquisition by PDVSA in the 1980s at a bargain price was a feather in its cap and produced significant revenue and profits over the years. However, since the rise of Chávez, Venezuela’s resource nationalism has led the government to seize various assets, triggering arbitration and lawsuits, including the one targeting Citgo. Because the Venezuelan government regularly treats commercial and contractual obligations as political warfare, it has left itself open to the kinds of judgments that now appear likely to result in…”

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ABOUT THE Energy ADVISOR

A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Gene Kuleta
Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Carl David
Goette-Luciak
Reporter

Nili Blanck
Reporter

board of advisors

Nigel Blackaby
Global Head, International Arbitration Group,
Freshfields Bruckhaus Deringer

Jimena Blanco
Chief Analyst,
Verisk Maplecroft

María José Cortés
Head of ESG,
Atlas Renewable Energy

Jeffrey Davidow
Senior Counselor,
The Cohen Group

Analia Gonzalez
Leader, Arbitration & Litigation,
Laitn America, BakerHostetler

Jonathan C. Hamilton
Partner,
White & Case

Raul Herrera
Partner, Corporate &
Securities Practice,
Arnold & Porter

James R. Jones
Chairman,
Monarch Global Strategies

Jorge Kamine
Partner, Corporate &
Financial Services,
Willkie Farr & Gallagher

Craig A. Kelly
Senior Director,
Int’l Government Relations,
Exxon Mobil

Jeremy Martin
Director,
Energy Program,
Institute of the Americas

Larry Pascal
Chairman, Americas
Practice Group,
Haynes & Boone

R. Kirk Sherr
President,
Clearview Strategy Group

Daniela Stevens
Director,
Energy Transition and Climate Program,
Inter-American Dialogue

Doris Rodríguez
Partner,
Hunton Andrews Kurth

Alexandra Valderrama
Director,
International Government
Affairs, Chevron

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