06.01.2026 14:10
Weeks before the U.S. military move against Venezuela, it was learned that billionaire investor Paul Singer, known for his closeness to Trump, added the country's most critical asset in the U.S., Citgo, to his portfolio with a bid of $5.89 billion.
As the balances in U.S. politics shift, another notable move has come to the forefront behind the scenes. It has been claimed that billionaire investor Paul Singer, known for his donations to Donald Trump during the election period, won a long-standing legal battle over Citgo Petroleum Corp., seen as the most critical asset in the Venezuela crisis, just weeks before Venezuelan President Nicolás Maduro was allegedly captured.
DECISION THAT SHOOK THE MARKETS According to a report on MarketWatch, Amber Energy, a subsidiary of Elliott Management founded by Singer, became the new owner of Citgo in a mandatory auction held at the end of November. Although Amber Energy's bid of $5.89 billion was lower than the $7 billion bid from rival company Gold Reserves, it was approved by a federal judge as "more realistic." This decision sparked prolonged debate in the markets.
PUT UP FOR SALE AS A RESULT OF DEBTS Behind the sale process lies Venezuela's long-standing debt crisis. The nationalizations that accelerated during Hugo Chávez's era and the subsequent deepening economic troubles led the country to default in 2017. As creditors were unable to collect, U.S. courts intervened, and Citgo, the Venezuelan state oil company's most valuable asset in the U.S., was put up for sale as collateral for the debts.
The main reason for Citgo's prominence is its infrastructure. The company's three large refineries located in Texas, Louisiana, and Illinois are among the few facilities capable of processing Venezuela's heavy and high-sulfur oil. This situation positions Citgo strategically in the event of a potential political normalization. According to analysts, changes in the political balance in Venezuela could accelerate U.S. energy companies' investments in the region. It is suggested that a significant portion of the investments could be made in partnership with Chevron, and the current production, which is stated to be around 1 million barrels per day, could quickly rise to 1.5 million barrels. These forecasts are said to also reflect on the stock performance of refinery companies.
KNOWN FOR HIGH-YIELD INVESTMENTS Paul Singer, who is reported to manage a portfolio of approximately $76 billion, is known for his risky yet high-yield investments in Latin America. It is noted that Singer is recognized not only for his support of Republican politicians but also for his fierce legal battles with governments.