HOUSTON, Oct 21 (Reuters) - Lawyers representing U.S.

refiner Citgo Petroleum and its owner Venezuela asked the court

on Tuesday to reject a bid from an affiliate of Elliott

Investment Management due to its "low price," which was below a

rival offer submitted to court, and said the sale process was

"defective."

A Delaware court is trying to complete the auction of

Venezuela-owned PDV Holding, Citgo Petroleum's parent, to

compensate up to 15 creditors for debt defaults and asset

expropriations in the South American country.

A $5.9 billion bid from Elliott's affiliate Amber Energy was

recommended in August by an officer overseeing the court-ordered

auction, a switch from his previous recommendation of a $7.4

billion offer from a subsidiary of Gold Reserve ( GDRZF ). Amber's

bid includes a separate pact to pay $2.1 billion to holders of a

defaulted Venezuelan bond.

Delaware Judge Leonard Stark is expected to determine the final

winner after a court hearing this week to discuss the bids and

motions filed by Venezuela and Gold Reserve ( GDRZF ) to disqualify the

judge, the court officer evaluating the bids and two advising

firms over alleged conflict of interest.

Amber's bid "is so low ... that it shocks the conscience of

this court and can't be confirmed," Nathan Eimer, counsel for

Citgo and PDV Holding, said during the hearing.

Since the U.S. imposed sanctions on Venezuela and the

administration of President Nicolas Maduro in 2019, Citgo

severed ties with its ultimate parent, Caracas-headquartered oil

company PDVSA, and is now controlled by boards appointed by an

opposition-led congress.

Both Maduro's government and the political opposition led by

Maria Corina Machado reject the court-organized auction. The

U.S. Treasury Department, which has shielded Citgo from

creditors in recent years, must approve the auction's winner.