HomeEconomyOilTexas oil tankers ask Biden to stop Citgo auction process

Texas oil tankers ask Biden to stop Citgo auction process

They ask that an executive order be issued to return its ownership to Venezuela and allow its defense before the North American courts.

The Latin American Association of Petroleum Businessmen (Alep) sent a letter to the President of the United States, Joe Biden, in which they request the North American president to stop the Citgo Petroleum auction process promoted by Donald Trump.

In the letter, the Texan oil workers recalled that in 2019, Donald Trump's government made a decision of which today's businessmen suffer the consequences: the takeover of Citgo by an administration mechanisms “totally illegal,” the note highlights. “It was once a political decision by the current Republican candidate that has endangered American oil operations.”

It should be noted that the Second Court of Appeals of the United States annulled on July 4 a ruling that favored the collection actions of bondholders of the Citgo refiner, owned by Venezuela.

In its ruling, the court discarded the decision of Judge Katherine Polk Failla that in 2020 ruled in favor of the bondholders of Petróleos de Venezuela (PDVSA) and authorized the seizure of its subsidiary Citgo, according to the EFE Agency. 

This court considered that Judge Polk Failla did not consider Venezuelan law when she issued her ruling to allow the seizure and collection of bonds issued by the Venezuelan Government

“The oil produced in Venezuela is fully compatible with the facilities currently in judicial dispute by an official Tailor-made "that attributes to itself the conditions of its holders on behalf of a government that never existed in the name of the Bolivarian Republic of Venezuela," the letter reads.

In the opinion of the Latin American Association of Petroleum Businessmen, this recent decision of the Supreme Court in relation to the Venezuelan Oil Bonds, puts order to this “inadjusted judicial process” to the detriment of this important Texan company.

The Texan oil workers, represented in Alep by Alejandro Terán Martínez, tell Biden that “the time has come to correct this error that clearly harms the American people, and the strategic oil reserve that has been seriously affected by it.”

They also welcomed the restarted dialogue between the Venezuelan and North American governments in favor of the repeal of sanctions against the Venezuelan people and insisted on the need to issue an executive order “that returns ownership to the true owners of the CITGO company, "that they be allowed to exercise their defense before the American courts, and as a consequence the supply of Venezuelan crude oil to the North American fuel market is guaranteed, thus strengthening the strategic oil reserve of our country and giving balance to the world energy system."

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