Venezuela won't sell Citgo, says Maduro

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Thursday, September 25, 2014

Venezuelan state oil firm PDVSA will not sell its US oil refining and transportation arm Citgo, President Nicolás Maduro told press.

"Our plan for Citgo is to continually strengthen our investment," Maduro said.

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Rumors that PDVSA was seeking to sell Citgo began last month. PDVSA's recently replaced president and Venezuela's then oil minister Rafael Ramírez appeared to confirm these rumors, saying Venezuela would be willing to sell Citgo for a minimum of US$10bn.

In a market research report, Barclays analysts estimated Citgo's value at US$7bn-9bn.

Any potential buyers would have needed to consider legal complications presented by Venezuela and PDVSA's ongoing litigation with international firms over nationalized oil assets, Barclays added.

ConocoPhillips and ExxonMobil are currently seeking combined compensation of around US$42bn through separate cases filed with the International Centre for Settlement of Investment Disputes.

BNamericas will host its 11th Southern Cone Energy Summit in Lima, Peru, on November 12-13. Click here to download the agenda.