The U.S. Treasury Department announced the extension of the license that protects Citgo Petroleum, the Venezuelan subsidiary based in Houston, from the claims of its creditors. The new deadline is set for March 20, 2026, which provides an additional window before the forced sale of the company can be executed.
The judicial process is still in abeyance
A Delaware court last year ordered the auction of shares of PDV Holding, Citgo’s parent company, in order to satisfy claims by companies such as ConocoPhillips and investment funds such as Elliott Investment Management, which are claiming multimillion-dollar compensations for expropriations and unfulfilled contracts.
Although an auction has already taken place and Elliott is expected to become the new controller of the company, the transaction cannot be completed without the final authorization of OFAC, which has not yet issued its official position.
What to expect in the coming months?
The final decision on the fate of Citgo remains dependent on U.S. foreign policy and OFAC actions. If the license is not renewed beyond March, creditors could finally take control of the company, which would mark a drastic change in the energy and legal map of Latin America.
In the meantime, Citgo will continue to operate under legal protection, amid a geopolitical chessboard where financial, energy and diplomatic decisions are more intertwined than ever.
Source: Reuters