Top Bidder for Citgo Is Elliott-Backed Group, Court Master Says

A firm backed by Elliott Investment Managementwas named on Friday as the leading contender to acquire Citgo Petroleum, the oil refining giant that has been the subject of a long legal battle over billions of dollars the government of Venezuela owes foreign businesses, including U.S. energy companies.

A special master appointed to oversee the sale of Citgo said in a federal court filingthat he recommended the company be sold to an affiliate of Elliott, Amber Energy. A federal judge would have to approve the deal, which values Citgo at up to $7.3 billion, including debt.

Citgo’s main assets are three refineries in Illinois, Louisiana and Texas that together account for roughly 4 percent of the country’s fuel-making capacity. It also owns pipelines and other facilities.

The sale is unlikely to directly affect operations at more than 4,000 independently owned gas stations that use the Citgo brand as franchisees.

Amber Energy said Friday that it intended to keep the Citgo brand while strengthening the company’s operations.

“Building upon Citgo’s legacy, and with a focus on the future, we will prioritize operational excellence to lay a foundation for stability, strength and long-term success,” Gregory Goff, Amber Energy’s chief executive, said in a statement. Mr. Goff, a longtime refining executive, is also a director at Exxon Mobil.

Elliott, an activist investor, is one of the largest shareholders of the fuel-making giant Marathon Petroleum and holds a stake in the refiner Phillips 66.

An Elliott spokesman declined to comment.

Citgo is a subsidiary of Venezuela’s national oil company, Petróleos de Venezuela, and one of that country’s most valuable foreign holdings. Citgo did not immediately respond to a request for comment.

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