A surprise bidder has entered the high-stakes auction for PDV Holding—the U.S.-based parent of Citgo Petroleum—throwing a wrench into a $7.38 billion deal already recommended by a court-appointed officer.
The unsolicited offer, confirmed in a court filing Thursday by special master Robert Pincus, comes as the judge weighs whether to approve the existing winning bid from a consortium led by Gold Reserve Ltd. and Dalinar Energy. The rival offer’s backer, known only as “Bidder B,” remains unnamed, but has reportedly been engaged in the process since July, with renewed access to Citgo’s data room and ongoing negotiations with stakeholders.
Pincus, however, has not deemed the new proposal “superior” to Gold Reserve’s offer—at least not yet.
Last month, Pincus endorsed the $7.38 billion bid as the “best and highest,” significantly topping the court’s $3.7 billion floor price. If finalized, it would mark one of the most consequential creditor seizures of a refining asset in U.S. history. Citgo, with 770,000 barrels per day of refining capacity across Louisiana, Texas, and Illinois, is a strategic player in the U.S. fuel market.
The auction, overseen by a U.S. federal court, came after years of creditor claims against Venezuela’s state-owned PDVSA for expropriations and unpaid debts. Citgo, long shielded from seizure through legal firewalls and political wrangling, now hangs in the balance as creditors move closer to gaining control.
While Citgo management continues to resist the takeover, the emergence of a competing bidder may delay the court’s final decision—or drive the final price even higher.
The judge’s ruling could come later this month, potentially reshaping ownership of one of the last profitable Venezuelan-linked energy assets in the West.
By Julianne Geiger for Oilprice.com
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