Representatives of Venezuela’s political opposition and the boards that supervise state-owned refiner Citgo Petroleum have met with U.S. officials and lawmakers in a new effort to pause a court-ordered auction of Citgo shares to pay creditors.
A second bidding round for shares in Citgo’s parent company PDV Holding is expected to close on Tuesday, the final step in a years-long process that is expected to result in a change of ownership of the seventh-largest U.S. refiner.
A total of 18 creditors, including ConocoPhillips, Koch Industries, and mining companies Crystallex, Rusoro, and Gold Reserve, aim to cash up to $21.3 billion in claims against Venezuela’s state oil company PDVSA.
However, the highest offer in the first bidding round did not reach $8 billion, prompting Citgo’s supervisory boards to protest and present an alternative payment option.
If successful, the talks could result in a change of U.S. policy guidance issued by the Biden administration, which last year gave a green light to the U.S. District Court in Delaware to move forward with the auction.
Neither Citgo nor its supervisory boards have immediately responded to requests for comment.