Independent refiner Marathon Petroleum said it is "not interested" in the ongoing auction of Citgo's US refining assets, and prefers to instead invest in the company's own 13 refineries.
"We're not interested in the auction process," chief executive Michael Hennigan said on an earnings call today.
Mergers and acquisitions in the refining sector is a more challenging way to create value compared to upgrading existing operations, said vice president David Heppner. "You shouldn't anticipate us participating in the current auction process for the Citgo assets," Heppner said in response to an analyst question during the call.
A US federal court began the auction process for Citgo's parent PdV Holding (PdVH) on 23 October. The first round of bidding is scheduled to take place on 22 January 2024, with bidding expected to conclude on 20 May. If the sale process goes as planned, Citgo could have new owners as early as July 2024.
Citgo, with 805,000 b/d in capacity at three US refineries, has become a target of takeover by dozens of creditors looking to satisfy claims both against Venezuelan state-owned PdV — Citgo's ultimate owner — and the Venezuelan government.
