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Top Citgo executives removed amid battle to control firm

February 21/2019

MOSCOW (MRC) - Citgo Petroleum Corp has removed at least three top executives close to Venezuelan President Nicolas Maduro, people familiar with the matter said, in a move to cement management control under a new board of directors, said Reuters.

The U.S. refining arm of Venezuelan state-run oil company PDVSA has been thrust in recent weeks into the center of a political battle between an opposition leader and self-declared president backed by many Western nations, including the United States, and Maduro, a socialist whose re-election last year they consider illegitimate.

Mondays departures appeared to shift control of Citgos day-to-day operations to officials expected to recognize a new board of directors appointed last week by the opposition-controlled congress, led by self-proclaimed president Juan Guaido.

Citgo Vice Presidents Frank Gygax, Nepmar Escalona and Simon Suarez, all of them Venezuelans promoted by Citgo Chief Executive Asdrubal Chavez from 2017 to 2018, were escorted out of Citgos Houston headquarters on Monday by human resources staff, the people said.

It was not immediately clear if the executives were fired, forced to resign or if they retired. Chavez, a cousin of late Venezuelan leader Hugo Chavez, has been running Citgo from the Bahamas since last year as the U.S. government denied his visa petition to work from Houston. Other Venezuelan members of the oil refiners board are also working with him from the Caribbean office.

Citgo is the eighth-largest U.S. refiner and runs plants in Illinois, Texas and Louisiana that provide about 4 percent of U.S. refining capacity. It also operates fuel pipelines and terminals and supplies fuel to a retail network of 5,500 gas station across 29 U.S. states.

The company has been hurt by U.S. sanctions imposed on Jan. 28 to curtail Maduros access to oil revenue. Citgo, the largest U.S. buyer of Venezuelan crude, can continue importing PDVSAs oil only if the sale proceeds go to banks accounts controlled by Guaido.

Citgos new board of directors is led by Venezuelan Luisa Palacios, four veteran oil executives and current Vice President of Strategy and Compliance Rick Esser. The new members have yet to take office in Houston. A fourth top Citgo official, General Auditor Eladio Perez, also was removed from his office on Monday, according to one of the people.

Citgos manager for corporate social responsibility and legislative affairs, Larry Elizondo, declined to comment on Monday, saying he was not authorized to speak publicly on the matter. A Citgo spokeswoman did not respond to requests for comment.

Escalona, Suarez and Perez could not be immediately reached for comment. An assistant for Gygax said she was unaware of the decision.

A Citgo unit on the Caribbean island of Aruba, said a project to refurbish and reopen a 209,000-barrel-per-day idled refinery rented by the company since 2016 was put on hold and remaining employees would be laid off by Feb. 27 because of sanctions.


mrcplast.com
Author:Anna Larionova
Tags:petroleum products, petrochemistry, Crude oil, Citgo petroleum corporation.
Category:General News
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