U.S. lawmakers scorn Vitol SPR contract

WASHINGTON, April 7 (UPI) -- U.S. lawmakers and advocacy groups voiced concerns over a contract awarded to Swiss-Dutch firm Vitol to fill U.S. petroleum reserves due to its ties to Iran.

The U.S. Senate voted last week on a non-binding measure that puts the opposition to using federal funds for companies involved in the Iranian energy sector on the record. Vitol is an active supplier of refined petroleum to Iran, the Platts news service reports.

The U.S. Department of Energy announced in January it had awarded a contract to buy oil from Vitol for the Strategic Petroleum Reserve.

Mark Dubowitz, executive director of the Foundation for Defense of Democracies, said in a statement that the non-binding Senate measure could affect the Vitol contract.

"The question now is whether this unequivocal statement by the Senate will affect the U.S. Department of Energy's decision," he said. "The Obama administration can rectify this mistake by following the Senate's wishes."

U.S. Rep. Brad Sherman, D-Calif., issued a bipartisan letter to the Energy Department in the wake of the January deal requesting a review of the contract because of Vitol's connection to the Iraqi Oil-for-Food scandal.

The United Nations established the Oil-for-Food program in 1995 to allow Iraq to sell oil in exchange for food and other aid without violating sanctions. Vitol pleaded guilty in 2007 to grand larceny in connection with paying Iraqi officials $13 million in kickbacks from the program.