Petrolina rejects Iraq oil import share

Petrolina Holdings Pcl, which may be levied with a USD 2 mln bill out of a total USD 7 mln charge related to crude oil imports from Iraq in 1990 that were never paid has rejected the claim.

Petroleum companies in Cyprus will have to pay an amount totalling USD 7 mln plus interest for crude oil imports from Iraq in 1990 that the Cyprus Refinery imported for which no payment was made as the international community embargoed Iraq at the time and all payments towards the country were frozen. An international company successfully sued and has obtained court approval to proceed with the collection of the amount due, which the Cyprus government says should be paid by the companies.

The share of Petrolina is estimated to reach USD 2 mln (excluding accrued interest). However, the company does not accept the validity of the claim. According to PHL’s management Petrolina (Holdings) Pcl is not legally liable to make payments towards the settlement of the amount.