AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)
Markets

Pemex's trading arm suspends business with Vitol amid US bribery probe

  • Mexican President Andres Manuel Lopez Obrador said on Thursday his government would look into the bribery allegations.
Published December 11, 2020

MEXICO CITY: The commercial arm of Mexican state oil company Petroleos Mexicanos (Pemex) has temporarily suspended business with the world's largest independent oil trader Vitol, which is the subject of a US bribery investigation, according to a letter seen by Reuters.

As part of a wider probe, the US Justice Department said last week that the US subsidiary of Vitol paid bribes to Pemex employees in exchange for lucrative contracts.

The department said Vitol's US unit had agreed to pay $164 million to resolve US government probes into alleged bribes the firm paid in Mexico and other Latin American countries.

In the letter seen by Reuters and dated Dec. 9, Pemex arm PMI Comercio Internacional said it had "taken the decision to suspend temporarily commercial relations" with Vitol's companies.

Pemex and Vitol did not respond to requests for comment.

It was not immediately clear whether all trade between Mexico and Vitol was banned or only fuel provided by Vitol to PMI.

Many oil trading houses buy Mexican crude from Pemex in spot deals and some of them also provide natural gas or liquefied natural gas (LNG) to Mexico's state power company CFE.

CFE said it has no fuel purchase commitments with Vitol, but that its fuel trading subsidiaries, CFE International and CFEnergía, would refrain from any future transactions until the matter is investigated.

Mexican President Andres Manuel Lopez Obrador said on Thursday his government would look into the bribery allegations.

"It's under investigation and if true, those responsible will be punished. We're not covering up for anyone," he said.

The bribes allegedly took place during the administration of Lopez Obrador and under Mexico's previous president, Enrique Pena Nieto, according to Mexican newspaper Reforma.

Swiss company Vitol, run out of London, trades about 8 million barrels per day of oil.

Comments

Comments are closed.