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