OIL

Woodside denies bribe allegations

WOODSIDE Petroleum says it will cooperate fully with the Australian Federal Police, who are investigating allegations the company acted illegally in agreeing to pay a $US100 million ($A130 million) profit bonus to the Mauritanian Government.

Woodside denies bribe allegations

The payment relates to a dispute earlier this year between Woodside and the Mauritanian Government over amendments to four production-sharing contracts. Following a change of administration last year, the new government argued the amendments reduced Mauritania’s income from the partnership by up to $200 million per year, and that they posed serious threats to the country’s marine biodiversity.

Australian Greens Senator Christine Milne, who yesterday confirmed that she had asked the AFP to investigate Woodside’s activities in Mauritania, linked the $100 million negotiated settlement of the dispute to the release of the country’s former energy minister, who was imprisoned last December on allegations of taking bribes from several countries, including Australia.

Woodside told the ASX today it “does not believe there is any basis for the referral [to the AFP], but will cooperate fully in their evaluation”.

Managing director Don Voelte has told the Australian newspaper that the $100 million bonus had not yet been paid, and would only be given to the Mauritanian Government once details of the new PSCs were finalised.

He said the bonus payment was announced by the Mauritanian Government and publicly confirmed by Woodside in an effort to be 100% transparent.

Woodside is the operator of the $700 million Chinguetti project, which began producing Mauritania’s first oil in February.

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