Gold Reserve Ltd has asked the Delaware Court of Chancery to reject a bid by Rusoro Mining Ltd to dismiss a lawsuit tied to the high-stakes judicial sale of shares in Petróleos de Venezuela Holding Inc, the parent of Citgo Petroleum, the American refiner.

In a filing dated Monday, the Bermudian-based company said Rusoro’s motion offered no valid basis for dismissal and should be denied in full. The dispute centres on a consortium agreement governing how the two companies would co-ordinate and support a joint bid in the court-ordered sale of PDV Holding shares.

Gold Reserve alleges in its complaint, filed in November, that Rusoro knowingly and intentionally breached that agreement. The company is seeking a preliminary injunction that would bar Rusoro from participating in the sale, along with other relief.

The PDV Holding auction forms part of long-running United States litigation aimed at compensating creditors for assets expropriated by the Venezuelan state. The sale process has drawn global attention and multiple legal challenges, given Citgo’s status as Venezuela’s most valuable overseas asset.

Gold Reserve has previously mounted unsuccessful efforts in the US District Court in Delaware to challenge aspects of the sale process, including the role of court-appointed advisers. Despite those setbacks, the company has continued to pursue related claims through separate proceedings, including its case against Rusoro in the Court of Chancery.

The Venezuelan oil industry has been at the centre of attention due to last month’s removal of Nicolás Maduro by the US.

At the time, Gold Reserve Ltd welcomed the removal and announced its interest in returning to the country. Its leadership issued a statement praising Donald Trump and the American military in their efforts “to bring Nicolás Maduro to justice” and free one of the company’s lawyers it said was a political prisoner in Venezuela.

Last week, Delcy Rodríguez, Venezuela’s acting president, under pressure from the Trump Administration, signed a Bill to loosen state control and open the industry to private and foreign investment.