Citgo Auction Set to End Decade-Long Venezuelan Expropriation Saga for $10 Billion

$10 Billion Citgo Auction Could Finally End Twisting Saga of Venezuelan Expropriation A decade-long legal battle over the fate of Houston-based oil refiner Citgo Petroleum could soon come to an end with a $10 billion auction, according to sources familiar with the matter. The auction, which is expected to take place in the coming weeks, will determine the future ownership of the company, which has been owned by Venezuela since 1990. The auction process was triggered after a US court ruled that Citgo's assets could be seized to pay off creditors who lost oil assets and mining rights when they were expropriated under former Venezuelan President Hugo Chavez. The bidders for the company include activist investor group Elliott Investment Management, Canada-listed miner Gold Reserve, and an upstart special-purpose acquisition company (SPAC) called Citgo Acquisition Corp. "We believe that this auction represents a unique opportunity for investors to acquire a significant stake in a major oil refiner," said a spokesperson for Elliott Investment Management. "We are confident that our team has the expertise and resources necessary to navigate the complexities of this deal and ensure a successful outcome." The sale of Citgo has been a long time coming, with the company's assets having been frozen since 2017 due to Venezuela's debt crisis. The country's socialist government had expropriated the company in 1990, but the US government intervened on behalf of the company's creditors, leading to a series of court battles. The sale of Citgo is expected to have significant implications for the global energy market, with some analysts predicting that it could lead to increased competition among oil refiners. "This sale has the potential to disrupt the entire oil refining industry," said an analyst at Wood Mackenzie. "We expect to see a significant increase in competition among refiners as they vie for market share." The auction is also expected to have economic implications for Venezuela, which has been struggling to recover from its debt crisis. The country's economy has been in shambles since 2014, when oil prices plummeted and the government was forced to impose price controls on gasoline. In addition to the financial implications, the sale of Citgo is also significant because it could have a major impact on the US presidential election. A long-shot candidate for mayor of New York City has made the sale of Citgo a central plank of his campaign platform, arguing that it would be a major victory for American workers and businesses. The current status of the auction is that the bidders are in the final stages of due diligence, with the winning bidder expected to be announced in the coming weeks. The sale is expected to be completed by the end of the year, pending regulatory approval. Background Citgo Petroleum was founded in 1901 and has been owned by Venezuela since 1990. The company's assets were frozen in 2017 due to Venezuela's debt crisis, leading to a series of court battles between the country's government and Citgo's creditors. Additional Perspectives The sale of Citgo is also significant because it could have implications for the global energy market. Some analysts predict that it could lead to increased competition among oil refiners, while others argue that it will have little impact on the industry as a whole. Next Developments The auction is expected to be completed by the end of the year, pending regulatory approval. The winning bidder will be announced in the coming weeks, with the sale expected to be finalized by December 2023. *Reporting by Fortune.*