By Marianna Parraga

HOUSTON, (Reuters) – Citgo Petroleum, Venezuelan-owned, will name two executives to its new board of directors. These individuals are expected to assist the company in negotiations with its creditors and its parent boards.

Citgo’s directors are expected to work closely with supervisory boards, who will be setting the stage for talks with creditors seeking to disintegrate the company via an auction that is supported by a U.S. court. As they continue to pursue negotiations to save the company, Washington offered protection to Citgo’s parent boards.

Following a hiatus of four months, Citgo chief executive Carlos Jorda should be back on the board. According to people, Jack Lynch (the company’s highest legal and government affairs officer) will also be joining the board. Lynch was a two-year old BP (NYSE) executive.

Although they will not be directly involved in talks with creditors’ representatives, Citgo directors have the legal and operational know-how necessary to allow for any negotiation decisions, according to people.

Citgo is governed by the Venezuelan leader Juan Guaido’s boards since 2019. Citgo has had difficulty recruiting and keeping top officers and board members. After the U.S. sanctions on the Venezuelan state-run oil company, Citgo split from parent Petroleos.

Citgo spokesperson said that company board changes will be announced along with quarterly results. Citgo spokesperson did not provide details on who the executive would be.

PDVSA didn’t respond to our request for comment.

Citgo’s existing five member board of directors (largely made up of representatives of Venezuelan opposition parties) was replaced in June. Former PDVSA executive CEO Jorda was removed from two of the supervisory boards. He was replaced by politically connected sons.

In June’s shakeup, Citgo Holdings also saw Edgar Rincon, Citgo’s operational chief, resign from the board.

Multiple fronts are under attack on the company. Venezuela’s President Nicolas Maduro would like to take back control of Citgo as part of any reconciliation. Meanwhile, the U.S. investigates bribery claims against Citgo executives. It has lost Venezuelan crude oil access, which caused a decline in profits. After five quarters of consecutive losses, it earned $3million last quarter.

Jhosnel peraza, Venezuela’s deputy comptroller general, said this week that “part of Venezuelan resistance, together with other countries have stolen international assets.”

Citgo has restructured its management team over the past two years. Citgo has named a vice president for health, safety, and environment this month. In August, a former BP executive was appointed general counsel. In April, another former BP executive was appointed chief ethics and compliance officer. John Zuklic, a former BP executive was appointed finance chief in October 2020.

Citgo, along with the other directors, is likely to name a treasurer to replace Gina Coon.