San Francisco: Pemex has brought down the curtain on a 14-year-old financial dispute with German conglomerate Siemens and some other firms by agreeing a settlement amount.
Although the agreement was reached two months ago neither side would confirm the sum. But on Tuesday multiple media outlets reported an inside source from the Mexican side of the talks saying it is $295m.
Pemex had been feuding with Siemens and South Korean firm SK Engineering & Construction Co Ltd – a unit of SK Holdings Co – over allegations of graft and cost overruns relating to a project to expand the Cadereyta oil refinery project in Nueva Leon in northern Mexico. Siemens and SK Engineering had formed a Mexican joint venture called Conproca for purposes of bidding on the expansion of the Hector R Lara Sosa refinery, as the Cadereyta refinery is called.
The companies said that the settlement money will be used to fund anti-corruption, environmental and social development projects in Mexico.