DOE Should Review Vitol SPR Contract

WASHINGTON, March 3 (UPI) — American lawmakers have raised questions about a U.S. oil purchase from Swiss energy company Vitol over the firm’s Iran ties and Iraq sanction violations.

The U.S. Department of Energy announced Jan. 16 it had awarded a contract to buy oil from Vitol for the Strategic Petroleum Reserve.

U.S. Rep. Brad Sherman, D-Calif., issued a bipartisan letter to the department requesting a review of the contract because of Vitol’s connection to the Iraqi Oil-for-Food scandal.

The United Nations established the Oil-for-Food program in 1995 to allow Iraq to sell oil in exchange for food and other aid without violating sanctions. Vitol pleaded guilty in 2007 to grand larceny in connection with paying Iraqi officials $13 million in kickbacks from the program.

The congressional letter also notes Vitol is a major partner to Iran, acting as a key supplier of refined petroleum products.

“While this is not grounds for denying a contracting opportunity under current law, it further demonstrates that this firm may not be the best business partner for the United States government,” the letter read.

Mark Dubowitz, executive director of the conservative Foundation for Defense of Democracies, praised the request, saying the contract runs counter to Washington’s stance on Iran in regard to sanctions over its controversial nuclear program.

“At a minimum, the U.S. government should not be rewarding those companies selling gasoline to Iran with federal contracts, loan guarantees and other financial inducements,” Dubowitz said.

Vitol is one of three top crude oil traders in the world.