Reliance Industries Ltd on Wednesday clarified that it had purchased Iraqi crude oil at the then prevailing international oil prices and that all purchases of Iraqi crude were for use at its Jamnagar refinery only.
The company, in a media statement, said that RIL had not traded any quantities of Iraqi crude in international market and that all payments were made through normal banking channels to the account of the relevant trading parties. No other payments or surcharge of any kind was involved, it said.
Following is the entire text of the company's clarification:
"Our attention has been drawn to reports appearing in a section of the media today (Wednesday) relating to a complaint having been filed with the Enforcement Directorate, New Delhi, against us relating to the purchase of Iraqi crude.
"Whilst the complaint states that it is based on the report of Volcker Committee, several 'facts' stated in the complaint are distorted and several other 'facts' are completely false.
"At the outset, the company wishes to clarify that the Volcker Committee Report itself, in no uncertain terms, states that in respect of allocations by State Oil Marketing Organization (SOMO) of Iraq to us, no payment of any surcharge was paid or committed to anybody.
"Reliance Industries Ltd has been buying various grades of crude oil for its Jamnagar refinery since 1999. One of the crude purchased and processed by RIL between 2000 and 2003 included Basrah light crude oil. Basrah light crude oil is Iraqi crude which was at the time sold by State Oil Marketing Organisation (SOMO) of the Government of Iraq under United Nations Oil-For-Food Arrangement.
"Only UN-registered parties were able to buy Iraqi crude oil from Iraq. Reliance Petroleum Limited (since then merged with RIL) had registered itself with UN for buying Iraqi crude oil. The Oil Overseers, Under Security Council Resolution 986 (1995) of United Nations had confirmed registration of Reliance Petroleum Limited as national oil purchaser vides its message to Permanent Mission of India to the UN on November 18, 1999.
"Between April 2000 and May 2002 RIL bought 30.6 million barrels of Basrah light crude from various trading companies on a negotiated, market competitive price based on declared official selling prices approved by UN.
"All these trading companies got their allocation either directly from SOMO or bought the crude from a party having such direct allocation, under proper UN authorisation. UN authorisation documents with complete audit were submitted in each case to custom authorities prior to clearing the cargo as required by the prevailing regulations.
"All payments made by Reliance were through normal banking channels to the account of the relevant trading parties and no other payments of any kind were involved. In each case a representation was made to Reliance that the allocation was in accordance with UN Oil for Food Resolution 986 and did not involve payment of any surcharge.
"In 2002, RIL also got direct allocation from SOMO. Under this allocation RIL bought 2.8 million barrels of Basrah light crude oil directly from SOMO, all payments for which were made to a designated UN escrow account through letters of credit and no surcharges were paid, a fact, clearly reflected in Volcker Committee report itself.
"Apart from the quantities of 33.4 million barrels of crude oil mentioned above, RIL has not directly or indirectly purchased any crude of Iraqi origin during the period in question.
"RIL reiterates that all purchases of Iraqi crude were for use in Jamnagar refinery only and RIL has not traded any quantities of Iraqi crude in international market.
"The complaint based on conjectures and surmises appears to be an attempt to drag RIL's name into controversies with which it is not concerned in any way with an intention to falsely malign the company for reasons best known to the complainant."
Meanwhile, for the first time since the Volcker Committee findings on Iraq oil pay-offs were made public, Finance Minister P Chidambaram on Wednesday said the government has asked a few Indian companies that figured in the report to 'share' records and information.
"We have asked a few companies to share with us some records and informations. Beyond that, I don't want to say anything," the finance minister told the annual Economic Editors Conference in New Delhi.
"It is premature to disclose anything about the investigation," he said, when asked whether the tax department was looking into the books of 125 Indian companies named by Volcker for evasion.
Additional inputs: PTI
