Khaberni - A report by "Forbes" highlighted a complex network of financial and political interests formed on Wall Street and the energy sector, showing how several supporters of American President Donald Trump could make billions of dollars from the American intervention in Venezuela, particularly through the acquisition of the oil company "Citgo".
"Forbes" attributes the role of the biggest beneficiary of the recent developments in Venezuela to Paul Singer, the billionaire Trump supporter and manager of the American hedge fund "Elliott Management". This is due to his approximately $6 billion bet on the oil refining company "Citgo Petroleum".
The company "Amber Energy", a startup based in Houston established in August 2024 specifically to bid for "Citgo", won an auction held in a U.S. federal court, for $5.9 billion, a sum many consider to be a bargain.
"Citgo" is an American refining company indirectly owned by Venezuela, and it represents one of its most important foreign assets. The company has become the center of a prolonged legal and financial struggle. It owns three refineries in the states of Louisiana, Texas, and Illinois, as well as a distribution network comprising about 4000 gas stations under its brand.
A broad network of beneficiaries
The potential beneficiaries of the "Citgo" deal are not limited to Singer alone, as "Forbes" points out that billionaires in the private equity sector are also poised to reap substantial profits. The magazine spoke to several people involved in the deal, revealing that other major players also support "Amber's" offer to manage "Citgo".
According to a person familiar with the details of the deal, "Elliott" funds about a third of the capital and leads a coalition that includes influential figures in Wall Street. This coalition includes "Oaktree Capital Management", specializing in alternative investments and based in Los Angeles, led by billionaires Howard Marks and Bruce Karsh, as disclosed by two knowledgeable sources to the American magazine.
The hedge fund "Silver Point Capital", which manages assets worth $43 billion and is based in Greenwich, Connecticut, was founded and is managed by "Ed Moley" and "Robert O'Shea", both former partners at "Goldman Sachs" and held leadership positions in the fixed income division.
The company "Apollo Global Management", managed by billionaire Mark Rowan, who is also a Trump supporter, leads the debt financing operation.
In addition to these names, executive directors in the energy sector and oil magnates who helped establish "Amber" also stand out. Jeff Stevens, the former founding partner of "Western Refining" with billionaire Paul Foster in 1997, holds the position of president of "Amber".
A controversial victory and legal battle
"Amber's" victory in the bid for "Citgo" was controversial, as Federal Judge Leonard Stark in Delaware ruled in its favor despite its offer being about two billion dollars lower than at least one competitor's bid. The judge issued a decision of 168 pages explaining the reasons for his ruling.
Notably, according to the report, Venezuela and the national oil company PDVSA will not receive any part of the $5.9 billion, as it will be entirely allocated to settle claims of about a dozen companies and investors who purchased bonds secured by these assets.
"Forbes" points out that although "Elliott" only pays $5.9 billion, the actual value of "Citgo" could be much higher. Analysts estimated its value at between $11 and $13 billion, while Venezuelan parties estimate it at about $18 billion based on its long-term potential.
The acting Venezuelan President Delcy Rodríguez announced that her country does not recognize the forced sale of "Citgo" and has filed an appeal, while PDVSA confirms that Venezuela should receive a portion of the profits.
