Petro-Canada uncovers possible bribery offenses, probes several foreign payments

Gary Park

Petroleum News Calgary correspondent

Putting itself one jump ahead of regulators, Petro-Canada said it is probing several foreign payments that may violate the U.S. Foreign Corrupt Practices Act.

In a filing with the U.S. Securities and Exchange Commission, the Canadian integrated oil company said payments which “may have been improper” involved activities in a joint venture in which it holds a minority interest.

The money involved did not appear to be “quantitatively material,” Petro-Canada said, in notifying the SEC that it has hired independent legal help to conduct an internal review of the situation.

Beyond that, Petro-Canada offered no details, citing SEC restrictions on disclosures during an investigation.

The U.S. legislation forbids any U.S. citizen or corporation, or any foreign company whose shares trade in the United States, from bribing a foreign official for the purpose of getting, keeping or directing business to any person. Maximum fines for offenses range as high as $2 million for corporations, $100,000 for company officials, directors, shareholders, employees and agents and prison terms of up to five years.

New York banker James H. Giffen was indicted in March, accused of making $78 million in unlawful payments to senior Kazakhstan officials on behalf of U.S. oil companies.

Petro-Canada’s wide array of international interests includes operations in such volatile countries as Algeria, Libya, Tunisia, Kazakhstan and Syria.