Press Release: Paria Fuel Trading Company Limited

May 19, 2020 | Media Release

On March 28th 2020, ES Euro Shipping S.A. “Euro Shipping”, a company registered and based in Geneva
Switzerland approached Paria Fuel Trading Company Limited “PARIA” to purchase gasoline with an initial
destination to St. Eustatius, and which was subsequently changed to Aruba. Euro Shipping was advised
by Management of the available products and the required due diligence process. In furtherance of the
due diligence process the following information was provided to Management:

  1. KYC – company name and address, main officers, banking references, commercial references 
  2. Company registry
  3. Register of Directors, Register of Shareholders and Passport of Director
  4. Financial Statements
  5. Credit Report – Graydon

By April 12th 2020, Vessel “Aldan” was approved to collect the fuel. 

On or around April 14th 2020, Paria was advised by one of the Independent Contractors retained to provide services to the vessel while in Trinidad, that the nomination to provide said service was requested by a company with Venezuelan ties. As a consequence of this information, Paria contacted Euro Shipping and specifically advised that Paria cannot transact business with any Venezuelan Companies, and that its product cannot be shipped to Venezuela. Euro Shipping advised on April 15th 2020, that the fuel was not destined to Venezuela.

On April 15th 2020, payment was transferred from Deutsche Bank to Paria’s Bank account at the Royal Bank of Canada. 

On April 21st 2020, loading was completed and the vessel left Trinidad and Tobago.

On April 23rd 2020, Paria contacted Euro Shipping having regard to information in the public domain, surrounding the final destination of the fuel being Venezuela, and was advised by Euro Shipping that the destination of the fuel was Aruba.  A redacted sales contract with the local buyer in Aruba was provided, which included a sanctions clause. 

Paria thereafter issued an amended contract with the destination as Aruba, along with an appropriate clause advising of the sanctions having regard to what was, as aforementioned, now in the public domain.

By e-mail of the same date Euro Shipping agreed to the terms of the contract including the sanctions clause and by an even further email of that date, Euro Shipping confirmed that the fuel had not been sold directly or indirectly to Venezuela’s oil sector, including but not limited to PDVSA or its affiliates.

IT IS IMPORTANT TO NOTE AS FOLLOWS:

  1. Paria is not aware, nor has it been advised, of any prohibition of any kind against conducting business with Euro Shipping S.A. and/or its principals.
  2. Transactions like this are common and do not require Board approval. By Company Delegation – Group A – spot and contracts under one (1) year, ALL can be approved by the General Manager, as was the case in this instance.
  3. St Eustatius is a common destination for Paria Products and Petrotrin products in the recent past.
  4. Aruba was previously a common destination for Petrotrin products and the last shipment to that destination was in October 2017; and
  5. Paria’s market is Domestic, Regional and Extra Regional.

The Board and Management of Paria are confident that Paria’s role in this transaction is entirely in accordance with industry best practices .