We recently wondered why Joe Kennedy and his Citizens Energy had not yet launched the annual campaign to promote donations of Citgo-supplied heating oil to the needy. Citgo is Venezuela’s government-0wned oil company, and Citizens Energy’s TV spots help spread the anti-American campaign of Venezuela’s leftist caudillo, Hugo Chavez.
AP reports, “Seeking cash, Chavez looks to sell Citgo“:
Getting rid of the company and its refineries in the U.S. would give Chavez billions of dollars for domestic spending as he approaches his 2012 re-election bid and seeks to remedy problems including an acute shortage of affordable housing. A sale would also fit with the leftist leader’s interest in distancing Venezuela from the U.S. while building stronger ties with allies such as Russia, China and Iran.
“Citgo is a bad business, and we haven’t been able to get out of it,” Chavez said in a televised speech late last month. He ordered his oil minister, Rafael Ramirez, to look at options for selling off the state oil company’s assets in the United States.
Citgo has delivered oil to Venezuela’s No. 1 client for two decades, but judging by Chavez’s complaints about Citgo not turning a profit, he seems more than ready to sell it, if a buyer can be found.
Citgo took a $201 million loss last year, and issued $3.5 billion in bonds this year as its profits plummeted, AP adds.
Experts cited in the report assess the company as a bad investment, tough to sell. Still, there are many good people who work for the Houston-based operations, and we wish them well.
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