Ancap negotiated crude with Ecuador without contract

An exejective from the Dutch company Trafigura, which participated in oil purchase intermediation business between Petroecuador and Ancap, acknowledged that "for a period" crude shipments "were made without a contract."

On Tuesday 3, the exejective, Nicolás Simian declared before the Specialized Court in Organized Crime that this type of transactions are common in the oil activity.

"There was an agreement in the industry, it is normal for oil and gas shipments to be executed without nominations and inspectors, and the execution of those operations according to the agreed conditions." Basically, I understand that there was an agreement for more than was signed, and it is quite normal for the oil purchase and sale operations to be executed and the contracts signed later, "the former Trafigura official testified.

In 2009, Ancap did a price call before hiring Trafigura to intervene in the crude oil business with Ecuador.

"By the contract of August 2010 I understand that there was no call for prices. It started as a solution to the 2009 contract that Ancap could not meet," the executive said.

The opposition understands that Ancap never had a legal framework for doing business with Trafigura.

The judicial investigation revolves around a contract whereby Ancap bought crude oil from the Ecuadorian state-owned oil company Petroecuador at preferential prices and instead sold it finished products (diesel). This business operated between 2010 and 2011 and operated with the intermediary of the Dutch Trafigura.

During the first eight months of exchange, Ancap operated without a contract with Trafigura. At this time, operations exceeded US $ 700 million. Trafigura was favored because it obtained the oil at a lower price to the market. Ancap barely gained 0.10%.

Losses.

In his statement to the specialized judge in Organized Crime, Beatriz Larrieu, and the prosecutor of that matter, Luis Pacheco, the ex-director of Trafigura said that the intermediation between Petroecuador and Ancap in 2009 began when the Uruguayan entity promised to acquire a large volume of gasoil for UTE. Then the entity decreased that demand. This meant a number of penalties for Ancap. For example, a daily delay of a ship in the port of Montevideo had to pay between US $ 20,000 and US $ 25,000, declared the exejective. At that time, Ecuador was a major importer of diesel. Ancap had this contract with other companies that it could not fulfill or receive. As a result, Ancap asked Trafigura if he could avoid all these expenses and whether it would be feasible for the intermediary to deliver that diesel to Ecuador.

"Ancap is informed that yes, that it was a viable option and Ancap responds that Ecuador instead of paying with currency would pay with crude, which is also communicated. As is a known practice of Ecuador, it was agreed (by Trafigura ) because it represented a business, "he explained.

Larrieu insisted on the period in which Petroecuador, Ancap and Trafigura negotiated without contract.

Larrieu: Was there a letter to document those shipments of oil and diesel?

Simian: Before the start of the shipments there was a letter from the Trafigura group to Ancap. I think of Trafigura a (the then president of Ancap, German) Riet. And it is added to the record in the test folder. There is also an endorsement in the shipping documentation where everything is certified.

From inquiries to Court Minister in minutes.

For the Colorado Redsman Juan Maspoli yesterday was not a routine day. At 13:00 hours he was quoted as being questioned in the Specialized Court in Organized Crime that investigates irregularities in the management of Ancap between 2010 and 2015. Máspoli was director of the entity from November 2013 until May 2015.

After 14:00 pm, Máspoli swore as new minister of the Electoral Court in Parliament.

In the Criminal Court, Maspoli said that during his passage through Ancap, he voted against all purchases financed to Venezuela because they were going to generate great problems. "It was an underfunded investment project," he said.

Máspoli said that he also opposed all matters related to the company GasSayago, property of Ancap and UTE. "I did not participate in his directory and I did not know how things were solved inside," he said. He recalled that in 2013 there was an historical loss of Ancap of US $ 169 million. At that time, he said, publicly warned that the company suffered "difficulties" and that its conduct "was inconvenient."