MEXICO CITY, September 15 (Hfrance.fr) - Mexican state oil company Petroleos Mexicanos (Pemex) has canceled threes contracts with Vitol, the last fallout from 'a corruption case in the United States involving the world's largest independent energy trader.
Three separate Pemex documents seen by Hfrance.fr and a source familiar with the matter provide the reason for the cancellation of Vitol's public recognition in December, in an agreement with the US Department of Justice, which he paid bribes for gain business with the Mexican state oil company, as well as with state companies in Brazil and Ecuador.
Pemex la decision has not been reported previously.
In letters to Vitol (VITOLV.UL), all dated less than two months, Pemex ( PEMX. UL) informed the energy trader of the cancellation of a con for butane gas, one for naphta and one for propane gas. The propane contract included four separate agreements.
The world's largest independent commodity traders are is under global scrutiny for alleged corruption after years of investigating bribes of public officials in several Latin American countries.
Fr March, Hfrance.fr reported that Mexico was seeking to renegotiate some of its contracts worth hundreds of millions of dollars with the Geneva-based company. Pemex CEO Octavio Romero Oropeza has said he will waive terms he sees as unfavorable. learn more
Vitol has confirmed that to date,discussions with Pemex had not produced any final results, but did not consider whether the contracts had been canceled.
In a statement to Hfrance.fr, the company said that following the corruption scandal, it had accepted responsibility for its actions and acknowledged the concerns of the state oil company.
"Vitol acknowledged Pemex's concerns, and for several months senior officials at Vitol and Pemex sought to negotiate a resolution acceptable to both sides. 'have not resulted in an agreement between the companies, Vitol remains open to further dialogue with Pemex officials and to the search for a mutually beneficial solution, "Vitol said.
The office of Pemex and President Andres Manuel Lopez Obrador did not respond to a request for comment for this story.
The source close to the negotiations said the canceled contracts were worth millions of dollars in total and were all valid until at least 2023. Hfrance.fr could not determine their exact value.
The source said Pemex officials ended contract negotiations after the Vitol officials refused the proposed changes to the conditions.
Hfrance.fr was unable to determine the terms in question or the size of the activity of Vitol in Mexico because the supply contracts are not public. Mexico is the fourth largest importer of refined petroleum.
Several requests for contracts that Mexico has with Vitol and other energy traders under the freedom of information law were refused.
In December, Houston-based Vitol Americas agreed to pay US and Brazilian authorities $ 164 million after admitting to bribing officials in Mexico, Brazil and Ecuador between 2015 and 2020 to get contracts with state oil companies there.
In July, Hfrance.fr also reported that Pemex 's PMI trading arm had temporarily banned new business with Trafigura (TRAFGF.UL), the world's second largest oil trader after Vitol, as investigations into the behavior of major energy traders in several countries deepen.
An internal PMI memo to staff dated July, which was seen by Hfrance.fr, gave no reason for the ban. Trafigura said Sunday that its "compliance policies and procedures were fully reviewed and judged by aindependent external attorney as meeting the highest standards of compliance required by law in all jurisdictions in which Trafigura operates. "
Some sources in the Mexican energy market have asked how Pemex could source its products refined with Vitol and Trafigura at least partially prohibited, although d ' others said the severity of the problem was not yet clear.
Ramses Pech, a Mexican energy expert, said Pemex could fall back on other energy traders like Valero or ExxonMobil.
"But that would depend on the volume and length of contracts ", a-t -he declares. "In addition, it would take companies that have the necessary infrastructure for production, logistics and distribution.e storage in the United States and Mexico. "
ExxonMobil declined to comment, Valero did not respond to a request for comment.
Last month, Mexico's tax chief told Hfrance.fr that the government was investigating Vitol for "irregularities ". "in documentation of its refined petroleum products entering Mexico, which could lead to criminal prosecution for tax evasion. learn more
Vitol has denied any wrongdoing. He said the allegations go back a few years and are related to taxes filed by another company he worked with. Reporting by Stefanie Eschenbacher Additional reporting by Ana Isabel Martinez at Mexico City, Julia Payne in London and Erwin Seba and Sabrina Valle in Houston Montage par Daniel Flynn and Alistair Bell
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