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Friday, 3 June 2011 - Mexico's Pemex sues U.S. firms over fuel smuggling |
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    Edition: U.S. Article Comments (0) Full Focus Editor's choice A selection of our top photos from the past 24 hours.   Full Article  Follow Reuters Facebook Twitter RSS YouTube Read Anthony insisted nanny took girl, even after admitting lies 3:16pm EDT Pyramid tossed, dinner plate is new U.S. meals plan 2:46pm EDT Moody's may cut BofA, Citi, Wells ratings 4:25pm EDT Romney kicks off presidential bid, blasts Obama 2:28pm EDT Google reveals Gmail hacking, says likely from China | 8:08am EDT Discussed 70 150 economists back U.S. Republicans in debt fight 52 Air France jet crashed nose-up after 4 minute ordeal 39 Debt-limit hike fails in House in symbolic vote Watched Tornado hits Springfield, Massachusetts 2:43am EDT Massive Australian waterspout caught on film Mon, May 30 2011 Scientists revive ancient spider in stunning 3D detail Tue, May 24 2011 Mexico's Pemex sues U.S. firms over fuel smuggling Tweet Share this Email Print Related News Oil rises on shut crude pipeline, weak dollar Tue, May 31 2011 U.S. sanctions Venezuelan oil giant for Iran trade Tue, May 24 2011 Gasoline slump drags oil prices to second big drop Wed, May 11 2011 Special report: Big Pharma's global guinea pigs Fri, May 6 2011 Analysis & Opinion The surge Iraq really needs: U.S. business Monterrey’s drug war madness cripples model city Related Topics World » Mexico » By Mica Rosenberg MEXICO CITY | Thu Jun 2, 2011 4:40pm EDT MEXICO CITY (Reuters) - Mexico's state-run oil company Pemex is suing 11 U.S. companies for buying up to $300 million of fuel stolen by drug gangs and smuggled across the U.S.-Mexico border, court documents showed. Pemex's exploration and production (PEP) unit filed the suit on Sunday in a U.S. district court in Texas, claiming some of the companies conspired with Mexican criminals to forge documents and smuggle the hijacked natural gas condensates. "The defendants have participated and profited -- knowingly or unwittingly -- in the trafficking of stolen condensate in the United States and have thereby encouraged and facilitated the Mexican organized crime groups that stole the condensate," the complaint said. Included on the list of alleged offenders are U.S. end-users of the liquid fuel, which can be easily refined into high-value oil products, including Plains All American Pipeline LP, SemGroup Corp's SemCrude subsidiary and Western Refining Inc. Pemex's Burgos natural gas field that spans the northern Mexican states of Tamaulipas, Nuevo Leon and Coahuila has been menaced by powerful drug gangs branching out into new illegal rackets in search of more revenues. "PEP has lost large amounts of its condensate, at times approaching 40 percent of the production of condensate from the Burgos Field. Since 2006, more than $300 million worth of condensate has been stolen," the lawsuit said. Mexican criminals, some working with corrupt Pemex staff, also steal gasoline, diesel and even jet fuel. This is the second time Pemex has taken U.S. companies to court, following on a suit last year brought against German chemical maker BASF AG and several oil trading companies for similar claims. "This new civil demand, similar to last year, seeks to recover damages ... now that investigations in both countries have come up with evidence against more defendants," Pemex said in a statement. The company set up a toll-free number to receive anonymous tips on illegal pipeline tapping that can cause dangerous explosions. Mexico is heavily dependent on revenues from its state-controlled oil industry, which accounts for around 40 percent of the government's annual revenues. More than 38,000 people have been killed since President Felipe Calderon launched an army- backed campaign against cartels in late 2006 and the spiraling violence is reaching its tentacles into parts of Mexico's legitimate economy. The claim details the mode of operation of fuel thieves, who have kidnapped, intimidated and killed oil workers in the area. The cartels held up at gunpoint Pemex transport tankers and then built tunnels, and even their own pipelines, to move the gas condensates, the filing states. The stolen goods were then transferred into tankers allowed to cross the U.S.-Mexico border, either with forged documents or by bribing border officials, according to court documents. "Since August 2006, no Pemex entity has sold PEP condensate. Thus, any Mexican condensate which entered the United States after August 2006 was stolen and brought in without title or right," the suit said. (Editing by Sofina Mirza-Reid) World Mexico Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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