Phillips 66(US:PSX) Fortune·2025-09-19 06:45Core Insights - Citgo Petroleum, an American oil and gas brand, has been owned by Venezuela since 1990, and its future is now in a legal auction process to pay off creditors due to asset expropriations under former Venezuelan ruler Hugo Chavez [1][5]. Group 1: Bidding Process and Participants - The bidders for Citgo do not include major oil companies like Exxon Mobil or Phillips 66, but rather activist investor Elliott Investment Management, Gold Reserve, and Blue Water Acquisition Corp [2][3]. - Elliott-backed Amber Energy is considered the leading candidate despite a cash offer of $5.9 billion, as it also includes over $2 billion for defaulted Venezuelan bonds [11][12]. - Gold Reserve has increased its bid to $7.9 billion and aims to manage Citgo rather than operate it, partnering with Koch Inc. for support [13][14]. - Blue Water Acquisition Corp. III has made a last-minute $10 billion bid, with a focus on making Citgo an American company again [16][18]. Group 2: Legal and Operational Context - The legal battle over Citgo has been prolonged, with a U.S. judge overseeing the bidding process, and the final sale may not be completed until 2026 due to expected appeals [10]. - Citgo operates an 800,000-barrel-a-day refining network with facilities in Louisiana, Texas, and Illinois, along with extensive marketing agreements [6]. - Creditors are seeking to recover nearly $20 billion in claims, but current bids do not meet this amount, leaving some creditors unfulfilled [5][7]. Group 3: Historical and Political Background - The ownership dispute intensified after a 2018 court ruling allowed creditors to pursue Citgo's assets, with ConocoPhillips holding a significant portion of the claims [9]. - Citgo severed operational ties with Venezuela in 2019, but the ownership question remains unresolved [10]. - The saga includes the imprisonment of Citgo executives in Venezuela, with some released in a prisoner exchange in 2022 [15].