![Citgo gas station](/sites/default/files/styles/hart_news_article_image_640/public/image/2023/07/citgo-station-source-shutterstock.jpg?itok=sbd4N4Wv)
A Citgo gas station in Charlotte, North Carolina. (Source: Shutterstock)
The U.S. has again extended protection to refiner Citgo Petroleum from creditors for another three months. The company is Venezuela’s prized international asset.
The U.S. Office of Foreign Assets Control (OFAC) extended general license 5L, which prohibits transactions related to state-owned Petróleos de Venezuela’s (PDVSA) 2020 bonds, until Oct. 20, 2023, the agency said July 19 in a press release.
RELATED
Important Citgo Stock Certificates Recovered by PDV Holding
The bonds, issued by PDVSA without the approval of the opposition-controlled National Assembly, have a lien on 50.1% of Citgo's shares. Since PDVSA has defaulted on payments, bond holders continue to wait to get paid or compensated via a Citgo asset divestment.
Amid Venezuela’s ongoing political uncertainties, Washington’s push for “free and fair” presidential elections in 2024 and an eventual regime change, the U.S. government continues to shield Citgo from a liquidation proceeding as well as from the regime of Venezuela’s President Nicolas Maduro in hopes of turning over control of the refiner to a U.S.-friendly government in Caracas.
Companies such as U.S.-based producer ConocoPhillips and Canadia-based miner Crystallex International Corp. are also in queue to collect payments long owed to them by Venezuela’s government due to wrongful asset expropriations.
RELATED
Barred Machado Eyes Venezuela Energy Sector Privatization, Debt Restructuring
Houston-based Citgo is PDVSA’s U.S. refining subsidiary and owns and operates three refineries with a refining capacity of 807,000 bbl/d in Lake Charles, Louisiana, Corpus Christi, Texas, and Lemont, Illinois.
Recommended Reading
Equinor Acquires Stake in Standard Lithium Smackover Projects
2024-05-08 - Equinor’s transaction, completed effective May 7, includes interests in Standard Lithium’s flagship South West Arkansas Project and East Texas properties.
Crescent Point Divests Non-core Saskatchewan Assets to Saturn Oil & Gas
2024-05-07 - Crescent Point Energy is divesting non-core assets to boost its portfolio for long-term sustainability and repay debt.
Permian Resources Adds More Delaware Basin Acreage
2024-05-07 - Permian Resources also reported its integration of Earthstone Energy’s assets is ahead of schedule and raised expected annual synergies from the deal.
Evolution Petroleum Sees Production Uplift from SCOOP/STACK Deals
2024-05-07 - Evolution Petroleum said the company added 300 gross undeveloped locations and more than a dozen DUCs.
Riley Exploration Permian Closes Delaware Basin Bolt-on
2024-05-08 - Riley Exploration Permian said it added 13,900 acres and up to 25 net locations in Eddy County, New Mexico.