Key insights
- Venezuela's PDVSA ratified Asdrubal Chavez to head its US units, including Citgo. This development introduces uncertainty regarding Citgo's future ownership, especially considering the ongoing US Treasury-approved auction of PDV Holding. The need for US Treasury clearance adds a layer of complexity, potentially impacting energy market dynamics and investor sentiment towards companies involved in the auction.
CARACAS, March 17 (Reuters) - The board of directors of Venezuela’s state-run PDVSA this week ratified Asdrubal Chavez as head of the oil company’s U.S. subsidiaries PDV Holding, Citgo Holding and Citgo Petroleum, a document seen by Reuters showed, a decision that follows U.S. President Donald Trump’s support of interim President Delcy Rodriguez’s administration.
Chavez had been denied a U.S. visa to run Citgo before U.S. sanctions were imposed on the country in 2019. He and his team would now need clearance from the U.S. Treasury Department to take over the refining company, whose ownership could change if the Treasury approves the results of the U.S. court-organized auction of its parent, PDV Holding.
If was not immediately clear if Rodriguez is seeking a new U.S. authorization for Chavez and his team to run the subsidiaries.
Nelson Ferrer, Alejandro Escarra and Ricardo Gomez were also appointed directors of the subsidiaries.