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Citgo cut ties with PDVSA earlier this year after U.S. President
Donald Trump's administration sanctioned the state-run company
and recognized Juan Guaido, Venezuela's congress chief, as the
nation's legitimate leader. Citgo officials loyal to President
Nicolas Maduro were ousted and new boards for PDVSA and Citgo
were named by the Venezuelan congress in February.
An appointment could be announced as soon as this week, the
people said. Jorda, 69, was chairman of Citgo Petroleum between
1999 and 2002 and retired from the company in the early 2000s.
He is a director at Delek US Holding, an oil refiner based in
Tennessee, and an adviser at consultancy Gaffney, Cline &
Associates.
A Citgo spokeswoman referred questions on Jorda and the
potential appointment to a June statement acknowledging that the
board was searching for a "leader who can best navigate the
complex geopolitical and financial landscape."
Jorda, who one person said has not yet formally accepted the
offer, could not be reached for comment. PDVSA and a spokesman
for Guaido did not reply to requests for comment.
Venezuelan Oil Minister Manuel Quevedo said over the weekend
that the Trump administration is "stealing" Citgo, applying
"irrational measures" and pursuing an economic war against
Maduro.
The next CEO will take over a profitable business with nearly
$30 billion in revenue last year, according to company
disclosures. Citgo is the eighth largest U.S. refiner by
capacity and markets through a network of 5,300 retail outlets.
But it is a company under siege on several fronts: Maduro has
his own directors and considers the separation from PDVSA as
illegal; creditors want to grab Citgo in payment for Venezuela's
debts; and the U.S. Justice Department is probing its role in
alleged bribery-for-contracts schemes.
Luisa Palacios, a Venezuelan executive appointed by Guaido to
lead Citgo's board, would remain as chair and other directors
also would continue, one of the people said.
The decision comes as a U.S. court confirmed the Guaido
administration's authority to appoint the Citgo board, rejecting
a suit by Maduro-appointed officials seeking to retake control
of the company.
Washington last week issued an executive order freezing any
property of the Venezuelan government in U.S. territory and
opening a window for the enforcement of secondary sanctions on
the country, where PDVSA is struggling to allocate and receive
cash from exports.
The order, along with new licenses permitting some exceptions,
aims to protect Venezuela's overseas assets, especially Citgo,
from some creditors while giving power to Guaido's
representatives to negotiate with foreign holders of Venezuela's
debt.
Citgo operates refineries in Texas, Louisiana and Illinois that
can process up to 749,000 barrels of crude oil per day. Shares
in its U.S. parent, Citgo Holding, were used by Maduro as
collateral for debt due in 2020 and for a loan from Russian oil
company Rosneft <ROSN.MM>.
(Reporting by Marianna Parraga in Mexico City; Additional
reporting by Luc Cohen in Caracas; Writing by Gary McWilliams;
Editing by Leslie Adler)
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