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PEMEX points out it has no ongoing negotiations with the company Vitol

  • ​PEMEX reiterates that a proposal for compensation for the damages caused is not enough – it is imperative to identify and punish the individuals involved in corrupt activities
  • Following the admission of acts of corruption before the U.S. Justice Department, ethane supply and affiliate contracts with the company Vitol were rescinded.

Regarding the orders issued by Mexican President Andrés Manuel López Obrador this morning during his daily press conference, Petróleos Mexicanos (PEMEX) reports that, from July 26th 2021, a notification was sent to the company Vitol, stating that because of their refusal to provide the names of those individuals involved in acts of corruption that were included in the Deferred Prosecution Agreement entered into with the U.S. Justice Department on December 3rd 2020, the decision was made not to enter into any kind of business negotiation with this trade group.

Added to the above, from December 2020 PEMEX notified Vitol of the rescission of the ethane supply contract entered into in June 2018, which is the most important contract entered into during the period currently under investigation, because it was signed by a Vitol official who was imprisoned in the United States. Additionally, Mex Gas (a subsidiary of PEMEX) terminated all agreements with this company.

Orders were also issued to preserve and not destroy any papers and information in connection with Vitol, in addition to banning the company from entering into any new contracts or renew existing ones with PEMEX. Internal Audit was asked to review the contracting process and the execution of ongoing agreements with Vitol, and due diligence was instructed regarding any interaction with this company.

From December 3rd, 2020, the United States Justice Department published a communiqué that stated Vitol had agreed to pay a 135-million-dollar settlement to end an investigation on corrupt practices in the United States. In this release, the company admitted to bribing officials in Ecuador and Mexico, but it did not mention any names, transactions, or details. Therefore, on December 3rd, 2020, the company’s CEO reported this fact to PEMEX.

In response, PEMEX CEO Octavio Romero Oropeza demanded a list of names of the officials who received the bribes. However, Vitol claimed not to have that information. Therefore, on December 15th, 2020, Petróleos Mexicanos filed a complaint at the Attorney General's Office and the Civil Service Secretariat.

Later, Vitol requested to enter a settlement deal, offering a payment of 22 million dollars and to carry out work in the Pajaritos Ethane Terminal. PEMEX, however, stood firm, stating a proposal for compensation for damages caused is not enough, but that it is imperative to identify and punish the individuals involved, as they abused their office and obtained illegal benefits or profits, damaging the principles of honesty and legality governing the current administration.

On June 29th, 2021, PEMEX claimed 100% of the letter of credit provided as guarantee by Vitol in connection with the performance of the ethane supply contract terminated in 2020. The 9.2 million dollars corresponding to the amount of the guarantee were paid out to PEMEX on July 8th, 2021.

In February 2021, Petróleos Mexicanos expanded the complaint already under investigation, and from March 2021 to May 2022, evidence has been provided and the Public Prosecutor's Office has been asked to conduct proceedings to integrate relevant information to the ongoing investigation file.

Lastly, relating to the former CEO of Pemex Etileno who was mentioned during today’s morning press conference, the company reports it is a former PEMEX official who no longer works with the company because of the change of administration on December 1st, 2018.

Las menciones de Pemex pueden referirse a Petróleos Mexicanos o a cualquiera de sus Empresas Productivas Subsidiarias.
Last Modified 06/06/2022 11:51 Pemex #PEMEX