Two Halliburton subsidiaries pay $300,000 for Cuba export violations

Two Halliburton subsidiaries pay $300,000 for Cuba export violations
Staff Writers February 29, 2016

Two Halliburton subsidiaries agreed on Thursday to pay just over
$300,000 for allegedly exporting goods and services to an Angola oil
block that is partially owned by a Cuban energy firm.

The U.S. Treasury Department said Halliburton Atlantic has agreed to
pay $304,706 on behalf of itself and its affiliate, Halliburton Overseas
Limited, to settle potential civil liability for alleged violations of
the Cuban Assets Control Regulations.

The agency said the Halliburton subsidiaries appear to have violated the
ban when they exported goods and services to support oil and gas
exploration activities in the Cabinda Onshore South Block oil concession
where state-owned Cuba Petroleo holds a 5 percent stake.

"HAL and HOL knew or should have known they were dealing in property in
which Cupet — and therefore Cuba — had an interest," the Department of
Treasury said.

The alleged violations occurred from February 15, 2011, to on or about
April 6, 2011.

The Halliburton subsidiaries issued 19 invoices to the consortium
operator, Angola-based Pluspetrol Angola Corporation, related to the
goods and services, with Halliburton Overseas primarily performing the
services.

The total amount invoiced by Halliburton Atlantic for the goods and
services was $1,189,752, the Treasury Department said.

The Office of Foreign Assets Control (OFAC) determined that the alleged
violations were voluntarily self-disclosed and "constituted a
nonegregious case."

"Halliburton's sanctions compliance program was inadequate because it
did not include a procedure to screen all of the Consortium members,"
the agency said.

The firms were facing a maximum penalty of $1,235,00 but the OFAC found
that the firms have not received a similar penalty notice in over fire
years and Cuba Petroleo's stake in the block was small, "thus reducing
the extent of the economic benefit provided to a sanctioned country."

Source: Two Halliburton subsidiaries pay $300,000 for Cuba export
violations - Petro Global News -
http://petroglobalnews.com/2016/02/two-halliburton-subsidiaries-pay-300000-cuba-export-fine/