Ganymede
05-09-07, 01:52 PM
Chevron squeezed for oil sales
Company poised to pay millions over alleged kickbacks to Saddam Hussein
David R. Baker, Chronicle Staff Writer
Wednesday, May 9, 2007
Chevron Corp. is near an agreement to pay a $25 million -to-$30 million fine over alleged kickbacks in the company's purchases of Iraqi crude oil under Saddam Hussein, according to a published report Tuesday.
The New York Times reported that Chevron is negotiating a settlement with federal prosecutors investigating a scandal-ridden United Nations program that allowed Iraq to use oil exports to buy food despite international sanctions.
As part of the settlement, San Ramon's Chevron, the second-largest U.S. oil company, is preparing to state that it should have known its purchases included kickbacks to Hussein's government, the paper reported.
Chevron Chief Executive Officer David O'Reilly, speaking in Chicago, declined to comment on the report, according to Bloomberg.
Company spokesman Kent Robertson said he could not confirm the report but said, "Chevron has cooperated with all inquiries into the oil-for-food program."
There have been several investigations.
The program began in 1996 as a way to ease the Iraqi people's suffering under international sanctions imposed after the 1991 Gulf War. Iraq could sell oil abroad but use the proceeds only for food, medicine and humanitarian supplies.
The system was designed to maintain economic pressure on Hussein while placating United Nations members opposed to the sanctions.
But a series of government reports found that Hussein's regime found ways to squeeze money out of the program.
International oil companies such as Chevron couldn't buy directly from Iraq. Instead, they bought from traders who purchased the oil from Baghdad under United Nations supervision. Starting in 2000, the Iraqi regime used fees and surcharges built into the price to skim money from the sales.
www.sfgate.com
Company poised to pay millions over alleged kickbacks to Saddam Hussein
David R. Baker, Chronicle Staff Writer
Wednesday, May 9, 2007
Chevron Corp. is near an agreement to pay a $25 million -to-$30 million fine over alleged kickbacks in the company's purchases of Iraqi crude oil under Saddam Hussein, according to a published report Tuesday.
The New York Times reported that Chevron is negotiating a settlement with federal prosecutors investigating a scandal-ridden United Nations program that allowed Iraq to use oil exports to buy food despite international sanctions.
As part of the settlement, San Ramon's Chevron, the second-largest U.S. oil company, is preparing to state that it should have known its purchases included kickbacks to Hussein's government, the paper reported.
Chevron Chief Executive Officer David O'Reilly, speaking in Chicago, declined to comment on the report, according to Bloomberg.
Company spokesman Kent Robertson said he could not confirm the report but said, "Chevron has cooperated with all inquiries into the oil-for-food program."
There have been several investigations.
The program began in 1996 as a way to ease the Iraqi people's suffering under international sanctions imposed after the 1991 Gulf War. Iraq could sell oil abroad but use the proceeds only for food, medicine and humanitarian supplies.
The system was designed to maintain economic pressure on Hussein while placating United Nations members opposed to the sanctions.
But a series of government reports found that Hussein's regime found ways to squeeze money out of the program.
International oil companies such as Chevron couldn't buy directly from Iraq. Instead, they bought from traders who purchased the oil from Baghdad under United Nations supervision. Starting in 2000, the Iraqi regime used fees and surcharges built into the price to skim money from the sales.
www.sfgate.com