Citgo Petroleum Corp. is evaluating the potential purchase of crude oil from Venezuela as part of a broader strategic review during its pending sale process. The move signals renewed interest in Venezuelan supply despite geopolitical and regulatory hurdles.
- Citgo is considering purchasing up to 120,000 barrels per day of Venezuelan crude via PDVSA.
- Refineries in Lake Charles and Corpus Christi process 530,000 barrels per day collectively.
- Venezuelan crude previously supplied 15%–20% of Citgo’s feedstock mix.
- Margins for processing heavy crude have risen 18% since late 2025.
- Sale of Citgo assets is expected to close by mid-2026.
- OFAC licensing would be required for any restart of Venezuelan crude imports.
Citgo Petroleum Corp. is assessing the feasibility of resuming crude oil purchases from Venezuela, according to internal documents reviewed by financial analysts. This development comes as the company continues negotiations to sell its core refining and marketing assets, with the transaction expected to be finalized by mid-2026. The discussions include potential supply agreements for up to 120,000 barrels per day of heavy crude from Venezuela’s state-owned oil company, PDVSA, under long-term contracts. The interest marks a reversal from recent years, when Citgo suspended purchases due to U.S. sanctions and legal risks tied to Venezuela’s political situation. However, the company’s current strategic posture prioritizes securing low-cost feedstock to maintain profitability at its major refineries in Lake Charles, Louisiana, and Corpus Christi, Texas. These facilities collectively process approximately 530,000 barrels per day, with Venezuelan crude historically contributing 15% to 20% of their input mix. Industry analysts note that Citgo’s re-engagement with Venezuela would depend on the final terms of the sale, including whether the buyer agrees to maintain existing supply contracts. If approved, the revival of crude imports could affect U.S. crude import patterns, particularly for heavy, sour grades that are less common from other OPEC+ members. The move may also influence pricing dynamics in the Gulf Coast refining sector, where margins for processing heavy crude have widened by 18% since late 2025. The decision will also draw scrutiny from U.S. regulators, who are reviewing the sale’s compliance with sanctions regimes. Any resumption of Venezuelan crude imports would require a license from the Office of Foreign Assets Control (OFAC), and the outcome could impact the timeline for the asset transaction.