What is happening with CITGO?
First: What is CITGO?
CITGO Petroleum Corporation, or simply CITGO, is a U.S. oil refining, transportation, and marketing company that is a subsidiary of PDVSA, Venezuela’s state-owned oil company.
Today it owns three refineries in the United States and a network of more than 5,000 service stations throughout the country, representing a refining capacity of approximately 800,000 barrels of oil daily.
CITGO is a strategic asset from both an economic and political perspective for Venezuela.
The history of CITGO
What began as an oil company, more than a century ago, has become a major player in the US crude oil market and a topic of interest to Venezuelans.
1910
Cities Service Company, a public utility company founded in Bartlesville, Oklahoma, focused on producing and distributing natural gas and oil.
1920
Cities Service Company conducts its operations around the United States and the world, including crude oil exploration and production, refining and marketing of petroleum products.
1982
Cities Service Company changes its name to CITGO Petroleum Corporation, establishing its primary focus on the oil sector.
1986
CITGO is acquired by PDVSA, Venezuela’s state-owned oil company, becoming its subsidiary in the US and consolidating its position as one of the main refineries and oil marketers in the country.
1990
Despite its relative success in the US. market and contribution to PDVSA’s revenues, and thus to the Venezuelan economy, CITGO was hit by the political crisis in Venezuela.
2019
During the political dispute between the government of Nicolás Maduro and the opposition led by Juan Guaidó, the Venezuelan National Assembly (elected in 2015 and controlled by the opposition), appoints an Ad Hoc Administrative Board for PDVSA seeking to protect Venezuelan assets abroad, against possible seizures and confiscations by creditors and litigants.
Today
PDVSA’s Ad Hoc Administrative Board continues to play a crucial role in protecting CITGO’s assets and finding solutions to ensure its long-term viability in a volatile geopolitical and economic environment.
1910
Cities Service Company, a public utility company founded in Bartlesville, Oklahoma, focused on producing and distributing natural gas and oil.
1920
Cities Service Company conducts its operations around the United States and the world, including crude oil exploration and production, refining and marketing of petroleum products.
1982
Cities Service Company changes its name to CITGO Petroleum Corporation, establishing its primary focus on the oil sector.
1986
CITGO is acquired by PDVSA, Venezuela’s state-owned oil company, becoming its subsidiary in the US and consolidating its position as one of the main refineries and oil marketers in the country.
1990
Despite its relative success in the US. market and contribution to PDVSA’s revenues, and thus to the Venezuelan economy, CITGO was hit by the political crisis in Venezuela.
2019
During the political dispute between the government of Nicolás Maduro and the opposition led by Juan Guaidó, the Venezuelan National Assembly (elected in 2015 and controlled by the opposition), appoints an Ad Hoc Administrative Board for PDVSA seeking to protect Venezuelan assets abroad, against possible seizures and confiscations by creditors and litigants.
Today
PDVSA’s Ad Hoc Administrative Board continues to play a crucial role in protecting CITGO’s assets and finding solutions to ensure its long-term viability in a volatile geopolitical and economic environment.
CITGO’s history is a testament to its evolution as a major player in US oil industry but also reflects the challenges and risks associated with its connection to Venezuelan politics.
Now, what has PDVSA Ad Hoc done with CITGO
The link between PDVSA’s Ad Hoc Administrative Board and CITGO is significant not only for the Venezuelan economy but also as a point of influence on the international political chessboard. Hence, it is important to balance the need to protect Venezuelan assets with the urgency of finding political and economic solutions to the country’s crisis.
Despite the challenges, CITGO has managed to maintain a relatively stable operation, reporting considerable revenues and profits in recent years. This is due in part to its integrated business model and its ability to process heavy crude, mainly from Venezuela, although this has been limited by sanctions.
Amid ongoing legal wrangling and continued economic pressures on the company (due to the international sanctions imposed on Venezuela), PDVSA’s Ad Hoc Administrative Board works hard to maintain control over the company.
Among its efforts to ensure that assets are preserved for the benefit of the Venezuelan people, are the diversification of sources of income and operations optimization. These can be grouped into five major management areas:
1. Lifting of sanctions in exchange for democratic advances in Venezuela.
Know the action plan →
2. Diversify crude oil supply sources to mitigate the impact of sanctions and ensure the continued operation of refineries.
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3. Strengthen the legal strategy to protect CITGO from creditor claims and keep it under the control of the PDVSA’s Ad Hoc Administrative Board
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4. Maintain CITGO’s transparency and corporate governance to help strengthen its image and facilitate negotiations with U.S. authorities and the public of interest.
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5. Invest in sustainable technology and practices that improve operational and environmental efficiency and position CITGO as a leader in environmental responsibility in the industry.
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Simón Bolívar Foundation: our catalyst for transforming lives.
Thanks to generous donations from CITGO, this nonprofit organization has been dedicated since 2006 to supporting charitable initiatives to improve access to basic medical care for vulnerable communities. The organization has a special focus on children and mothers in Latin American countries, especially Venezuela and the United States.
To learn more about this social work, visit www.simonbolivarfoundation.org
+7
million donated by CITGO
9
countries
+280
million people benefited
114
hospitals supported
+1
million meals delivered
360
thousand medicines and vitamins supplied
+15
thousand personal protection items distributed
