#United States #Blue Water #Wilmington, Delaware #CITGO Petroleum #Joseph Hernandez

Blue Water Seeks Court Approval for $10 Billion CITGO Acquisition

In a significant move that could reshape the energy landscape, Blue Water Venture Partners, LLC, led by CEO Joseph Hernandez, has requested court approval for a bold $10 billion bid to acquire CITGO Petroleum Corporation. The filing, submitted to the United States District Court for the District of Delaware, marks an ambitious step towards acquiring one of the most recognized names in the oil industry.

Details of the Bid

Filed on September 12, 2025, the motion pertains to the longstanding legal case of Crystallex International Corp. v. Bolivarian Republic of Venezuela (Case No. 17-mc-151). Blue Water's proposition stands as the highest bid thus far, surpassing offers from competitors like Amber Energy and Gold Reserve. The proposal is characterized by several innovative features, aimed at benefiting all involved parties:

1. Total Bid Value: The proposed amount of $10 billion not only exceeds previous offers but also signifies a strong commitment to the energy sector's recovery.
2. Creditor Flexibility: Judgment creditors will have the option to receive immediate cash at closing or take equity in a publicly-listed U.S. company on NASDAQ, pending regulatory review. This introduces a considerable level of flexibility for stakeholders.
3. Settlement Fund for Bondholders: Blue Water plans to establish a fund specifically for the settlement of PDVSA-2020 bondholder claims, facilitating a clean transfer of assets without the hindrance of ongoing litigation.
4. Reduced Closing Risk: The proposed structure involves public market equity, which enhances liquidity and increases recovery potential for creditors.

Vision for the Future

Joseph Hernandez expressed confidence in Blue Water's strategy, stating that their goal is to maximize value for creditors while providing a clear resolution to existing bondholder disputes. Furthermore, he highlighted the bid as a route to create a U.S.-controlled, publicly listed energy company positioned for long-term success. Hernandez urged the court to grant authorization for the Special Master to begin formal discussions regarding the bid, emphasizing the proposal’s alignment with enhancing American energy security.

Implications of Approval

If approved, this acquisition could have wide-ranging impacts on the U.S. energy sector, potentially revitalizing CITGO while offering a more stable environment for creditors and stakeholders. As CITGO embraces a new chapter under Blue Water's leadership, the implications for employment, investment, and innovation within the energy field could set a precedent for similar deals in the future.

As the situation develops, all eyes will be on the District Court as they deliberate on Blue Water's request. The decision could not only affect the future of CITGO but also influence the broader dynamics of energy acquisitions in the United States.

About Blue Water Acquisition Corp. III

Blue Water Acquisition Corp. III, listed on NASDAQ under the ticker BLUWU, specializes as a Special Purpose Acquisition Company (SPAC) dedicated to merging with high-potential companies across diverse sectors. With this acquisition effort, they aim to reshape the energy market more sustainably and efficiently.

Forward-Looking Statements

It is worth noting that this press release contains forward-looking statements that are subject to various risks and uncertainties. As the market conditions and regulatory approvals play out, actual outcomes may differ significantly from what is being projected.

In conclusion, while the path forward is fraught with challenges, Blue Water's proposal sheds light on the potential for renewal within the energy sector, and the future of CITGO hangs in a delicate balance as stakeholders await the court's decision.