Allegations of Wrongdoing Against BASF in PEMEX Lawsuit are False

FLORHAM PARK, N.J., June 8 /PRNewswire/ -- BASF is aware that PEMEX filed a lawsuit yesterday in U.S. District Court in Houston, Texas, that names the Company. The lawsuit also names several other entities and individuals -- none of whom are affiliated in any way with BASF -- who recently pled guilty to charges of theft and smuggling of condensate in connection with an ongoing federal investigation.  

The following statement is from David Stryker, Senior Vice President and General Counsel, BASF Corporation:

"PEMEX's allegations with respect to BASF are demonstrably false and without merit. BASF did not knowingly purchase or knowingly receive stolen condensate from any of the parties in this case and the Complaint does not in fact allege that BASF did so.

BASF cooperated fully with the federal government's investigation in this matter and has never been accused of any wrongdoing.  While BASF acknowledged receiving what proved to be stolen condensate from Trammo Petroleum, it did not knowingly do so, and when BASF learned about the government's investigation, it promptly placed all of the disputed funds into escrow.

BASF also stopped purchasing condensate from Trammo and other sources or locations on or near the Mexican border immediately upon learning about Trammo's conduct.  It is both false and irresponsible for the plaintiff to allege that BASF continues to buy product stolen from PEMEX and imply that BASF supports ongoing criminal activity.

BASF is proud of its ethical business practices and commitment to being a responsible corporate citizen in all that it does.  It will defend the case vigorously and expects PEMEX's baseless allegations to be dismissed in their entirety."

BASF - The Chemical Company.

BASF Corporation, headquartered in Florham Park, New Jersey, is the North American affiliate of BASF SE, Ludwigshafen, Germany. BASF has approximately 16,000 employees in North America, and had sales of $13 billion in 2009. For more information about BASF's North American operations, or to sign up to receive news releases by e-mail, visit www.basf.us.

BASF is the world's leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics and performance products to agricultural products, fine chemicals and oil and gas. As a reliable partner, BASF creates chemistry to help its customers in virtually all industries to be more successful. With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges, such as climate protection, energy efficiency, nutrition and mobility. BASF posted sales of more than 50 billion euro in 2009 and had approximately 105,000 employees as of the end of the year. Further information on BASF is available on the Internet at www.basf.com.

SOURCE BASF Corporation