World

 

Español

 

Guyana


Trinidad
& Tobago

 






Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

AMLO wants to cancel 'unfair' Braskem-Idesa ethane supply contract

Newsbeezer

Braskem-Idesa denied that the contract with Petróleos Mexicanos under the Etileno XXI project contained corruption and enabled him to purchase ethane from the Mexican oil company at a low cost. -News Beezer

Reporting by D. Graham, S. Eschenbacher, R. Cortes F. /Reuters

MEXICO CITY
Petroleumworld 08 18 2020

Mexican President Andres Manuel Lopez Obrador said on Monday an ethane supply contract signed under the administration of one of his predecessors with a consortium backed by Brazilian company Odebrecht was unfair and should be canceled.

The contract, between state oil company Petroleos Mexicanos (Pemex) and the consortium made up of Odebrecht-controlled Braskem and Mexico's Grupo Idesa, was agreed during the tenure of President Felipe Calderon, who governed from 2006-2012.

“That contract has to be canceled in my opinion because it's unfair,” Lopez Obrador said at a news conference. “It has to be reviewed.”

In a lengthy response to questions from Reuters, Braskem Idesa rejected any wrongdoing and said its own investigations showed it had not participated in any illegal activity or corruption in Mexico.

“We trust that any dialogue with the authorities will take place within the framework of the rule of law and legality, an essential condition for investor confidence,” it said.

A hydrocarbon that comes from natural gas or is a byproduct of petroleum refining, ethane is used to manufacture ethylene, which is used to make the common plastic polyethylene at the Braskem Idesa plant known as Etileno XXI near the Gulf coast port of Coatzacoalcos.

Under the terms of the contract, which the company said was won fairly and approved by Mexican authorities, Pemex [PEMX.UL] has had to supply ethane at below current market prices.

Braskem Idesa said the price formula had “no preference or advantage” and was typical of long-term raw material contracts and consistent with prices Pemex charged in the 16 years before. Braskem Idesa said it had invested $5.2 billion in the plant.

Lopez Obrador, who has sought to discredit the governments of Calderon and his successor Enrique Pena Nieto, said in February that authorities were analyzing canceling the contract.

Pemex did not respond to a request for comment.

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep /
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2020, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2020, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.