PetroChina to Pay $14.5 Million Fine for U.S. Export Violations, DOJ Says
WASHINGTON – PetroChina International America, a part of PetroChina, has agreed to pay a fine and forfeiture totaling $14.5 million for breaking U.S. export laws, according to the Justice Department.
What Happened?
Authorities found that the company had reported incorrect information in an electronic database used by exporters to declare international exports from the U.S. The U.S. Attorney's Office for the Southern District of Texas shared this information in a press release on Tuesday.
The Violation Explained
PetroChina International America mislabeled more than $32 million worth of ultra-low-sulfur diesel fuel as mineral oil mix when exporting it to Mexico in 2019 and 2020.
What is Ultra-Low-Sulfur Diesel Fuel?
Ultra-low-sulfur diesel fuel is a type of diesel that contains very little sulfur. This is important because sulfur can cause pollution and harm the environment.
What is a Mineral Oil Mix?
Mineral oil mix is a completely different product and is generally cheaper to export. By labeling diesel as mineral oil, the company avoided certain fees and regulations, which is illegal.
Company's Response
The company has fully cooperated with the investigation and has made improvements to its compliance programs to ensure it doesn't happen again.
Key Takeaway
PetroChina has agreed to pay a fine of $14.5 million and has enhanced its compliance program to adhere to the export laws.
For more information, you can follow the updates from the Justice Department or the U.S. Attorney's Office for the Southern District of Texas.
