• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 59 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 20 hours How Far Have We Really Gotten With Alternative Energy
  • 2 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 2 days Bankruptcy in the Industry
  • 3 days The United States produced more crude oil than any nation, at any time.

PDVSA Values Citgo At Between $32 And $40 Billion

Venezuela’s state oil major PDVSA has valued its U.S.-based downstream subsidiary Citgo at between $32 and $40 billion, Reuters has reported, citing a court hearing.

The hearing precedes a planned share sale for Citgo in a bid to settle its massive debt load, estimated at some $23 billion.

Some 21 creditors have notified the Delaware court they have claims to that tune against PDVSA and its U.S. unit, the report noted.

First in line, when the court-ordered share sale takes place, which is scheduled for October, would be Canadian Crystallex.

The miner was the first company to make a claim against PDVSA after Venezuela nationalized a gold mine it operated in the country. An arbitration court awarded Crystallex $1.4 billion in damages several years ago and the company agreed to the sum.

Since then, PDVSA has made some payments to the Canadian miner and now it is due around $1 billion, media reported earlier.

ConocoPhillips will also be near the front of the line to recoup costs associated with Venezuela’s expropriation of two of its crude oil projects.

 The United States has for years protected Citgo from being broken up and sold off, and Venezuela was holding out hope that its license that protects the refinery would be renewed past its July 19 expiry. The license was indeed renewed until October 19. While the auction will still take place, the U.S. will need to approve any winners.

Citgo is the seventh-largest refiner in the United States with a total capacity topping 800,000 barrels daily. It has plants in Texas, Louisiana, and Illinois, along with pipelines and a gasoline distribution network that supplies 4,200 outlets in the United States.

The company severed ties with Venezuela’s declared President, Nicolas Maduro, after the United States levied sanctions against Venezuela and the Maduro regime.

ADVERTISEMENT

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News