Pedro Castillo: company allegedly benefited after meeting with president breaches Biodiesel delivery contract

The name Samir Abudayeh gained prominence at the same time as the links of Karelim López with Pedro's government Castle. The businessman in charge of Heaven Petroleum Operators would have benefited from a concession of Petroperú after a meeting with the president in his office in the Government Palace. Months later, a Panorama report revealed that his company has failed to comply with the daily distribution of Biodiesel to which it committed in the contract signed with the state-owned company headed by Hugo Chavez.

The managers of the Callao, Conchán and Mollendo plants in Petroperú reported that since 16 February they have not received the shipment of Biodiesel B100 that the Abudayeh company had committed to deliver. After eight days of total incommunicado detention, Heaven Petroleum sent a document explaining the reasons why it was unable to fulfill its obligations. Petroperú would then send a statement to the Ministry of Energy and Mines informing them of the situation.

Petroperú noted that the supplier was unable to comply with deliveries due to “a fortuitous event and force majeure caused by the lack of inputs for the production of Biodiesel.” The lack of soybean oil would have caused Abudayeh's company to be unable to continue its work; however, energy and mining lawyer Anthony Laub stressed that this is not an acceptable justification.

“Soy oil is a commodity, I can go to the market and buy it elsewhere. I can buy it in Brazil, which is the largest producer in the world, in the United States which is the second, in China, Argentina, Paraguay or any other country. If it rained, there was a drought or the field caught fire are not reasons for force majeure because it has alternatives in the international market,” said the specialist.

CURIOUS JUSTIFICATION

The Russian invasion of Ukraine, which has sparked an armed conflict, has been identified as one of the reasons why it was not possible to obtain the sunflower oil needed for the production of Biodiesel. However, the invasion happened on February 24, eight days after the first delay in deliveries was reported.

In the face of breaches of contracts, it is common for the company to be sanctioned, but in this case a ministerial resolution of the Ministry of Energy and Mines has ensured that Heaven Petroleum Operators is not harmed. “Without that resolution, the company would have to have penalized according to the contract. If the deadline is too long, that contract would have to be terminated. What came next was a lawsuit for damages and that is what Heaven is being exonerated from,” Laub said.

Petroperú has looked for other ways to get Biodiesel shipments, but despite having found potential suppliers, their prices are high due to the immediacy required of the product. According to the report issued, there is no tentative date so far for Heaven Petroleum Operator to resume the distribution of Biodiesel B100 to the plants it should supply daily.

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