Pemex resumes trade with Vitol almost three years after corruption scandal

The Mexican Pemex has returned to doing business with Vitol, three sources with direct knowledge of the matter told Reuters, almost three years after the oil The state government banned dealings with the world’s largest independent energy trader over a corruption scandal.

The ban was made after Vitol publicly acknowledged in December 2020, in an agreement with the United States Department of Justice, that it had paid bribes to obtain business with Pemex, as well as with state-owned companies in Brazil and Ecuador.

In recent days, two ships carrying cargoes of Vitol arrived at two Mexican ports, two sources familiar with the deals told Reuters, speaking on condition of anonymity because the information was commercially and politically sensitive.

A third high-level trade source confirmed that Vitol had resumed business with Mexico. Neither the agreements nor the fact that Mexico resumed trade with Vitol have been previously reported.

Vitol declined to comment, while Pemex and the Mexican government did not respond to requests for comment. The Arvin ship, flying the Liberian flag, left Houston on September 7, partially loaded, bound for the Mexican port of Pajaritos, according to LSEG data. She arrived at that port two days later and finished unloading on September 15.

For its part, the Danish-flagged Torm Thames finished unloading on September 13 in the Mexican port of Tuxpan and moved empty to nearby Tampico, where it is anchored, according to LSEG data.

Port records showed that Arvin was transporting regular gasoline and MTBE, an additive to unleaded gasoline that increases octane and oxygen levels and reduces pollution. Torm Thames carried premium petrol and MTBE.

Reuters could not determine the terms of the deal between Mexico, one of the world’s largest importers of refined oil products, and Vitol.

Mexican President Andrés Manuel López Obrador and Pemex CEO Octavio Romero had said publicly that the country would resume negotiations with Vitol if adequate compensation was paid and the company provided the names of those involved in the corruption scandal. .

Pemex later revealed the names of two former officials, but it was unclear what compensation, if any, was paid. The state company said last year that Vitol had offered a compensation amount, but it is unknown if it was finally done.

In the wake of the corruption scandal that rocked Latin America, Reuters reported that Mexico was seeking to renegotiate some of its contracts worth hundreds of millions of dollars with the Geneva-based company.

Pemex’s Romero had said the company would get rid of terms it deemed unfavorable. Ultimately, Pemex officials canceled contract negotiations after Vitol executives rejected the oil company’s proposed changes to the terms.

It was unclear when negotiations restarted. Meanwhile, legal proceedings continue in the United States.

In late August, Javier Aguilar, a former manager of a subsidiary of the Vitol group of companies, appeared in federal court in Houston, according to records. These showed that he appeared in court on August 21, pleaded not guilty and was released on US$100,000 bail.

He is alleged to have conspired to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and violate the FCPA, the Travel Act, and money laundering statutes in connection with a scheme involving to Mexican government officials.

Aguilar was first indicted on September 20, 2020, by a federal grand jury in Brooklyn for conspiring to bribe Ecuadorian officials on behalf of Vitol, his employer. He pleaded not guilty.

He is scheduled to be tried in the Ecuador case in January. A second indictment in Brooklyn on December 2, 2022 added charges related to a separate scheme to bribe Mexican officials on behalf of Vitol, but those charges were dismissed on May 31 due to lack of proper jurisdiction.

Similar charges stemming from the alleged bribery scheme in Mexico were filed in Houston on August 3.

Source: Reuters