US court challenge to 'forced sale' of Venezuela oil company

Representatives of Venezuela's state oil company PDVSA said Tuesday they had appealed the US-forced sale of its prized Houston-based subsidiary Citgo to pay off creditors.

Citgo is in the crosshairs of creditors seeking the settlement of debts in excess of $20 billion that cash-strapped Caracas has been unable or unwilling to pay.




In late November, a Delaware court authorized Citgo's sale to settle a long-running legal dispute.

Citgo's board requested "the annulment of the court-ordered sale" due to "serious conflicts of interest" in the US foreclosure process that it said were "detrimental to the economic value of the asset."

The board estimates Citgo to be worth around $10 billion.

Citgo has been under the control of the Venezuelan opposition since 2019, when Washington recognized then opposition leader Juan Guaido as Venezuela's rightful leader.

The move aimed to force out authoritarian leader Nicolas Maduro but the 63-year-old socialist remained in power until his capture in a US bombing raid on Caracas on January 3 of this year.

Maduro's vice president Delcy Rodriguez, now the country's interim leader, had rejected Citgo being put up for auction last year, referring to it as a "forced sale."

But since Maduro's capture, she has stressed her willingness to cooperate with US demands for access to Venezuela's vast oil wealth.