The long-standing international claims against Venezuela’s oil assets are facing renewed scrutiny following recent developments involving the United States. For years, a complex web of creditors, ranging from multinational corporations to individual bondholders, has sought recompense for expropriated assets and unpaid debts, often eyeing the state-owned oil company, Petróleos de Venezuela S.A. (PDVSA), and its foreign subsidiaries as their primary recourse. This intricate legal and financial landscape, already fraught with geopolitical tensions, has taken a significant turn with Washington’s latest actions, potentially reshaping the future of these high-stakes disputes.
At the heart of the matter lies Citgo Petroleum Corporation, PDVSA’s lucrative US-based refining and marketing arm, which has been the subject of intense litigation and attachment efforts by numerous plaintiffs. Courts in the United States have, in various instances, recognized the validity of claims against Venezuela and, by extension, against Citgo, paving the way for potential seizures or sales of its assets to satisfy judgments. This process, however, has been consistently complicated by the shifting political dynamics within Venezuela and the broader international community’s response to the country’s economic and humanitarian crises.
A pivotal moment arrived with the US Treasury Department’s Office of Foreign Assets Control (OFAC) issuing licenses that, while allowing certain operations, effectively shielded Citgo from immediate creditor action, at least temporarily. These licenses were initially granted to protect the assets controlled by the Venezuelan opposition, recognized by the US as the legitimate government, from being dismantled by creditors. The rationale was to preserve these assets for a future democratic
