Siemens settles long-running dispute with Mexico's Pemex

MEXICO CITY (Reuters) - Germany’s Siemens AG (SIEGn.DE) said on Friday it settled a longstanding dispute with Mexican state oil company Pemex [PEMX.UL] over two public contracts linked to a South Korean company.

Pemex has been at loggerheads with Siemens and South Korea’s SK Engineering & Construction Co Ltd [SKEC.UL] - a unit of SK Holdings Co - over allegations of corruption and cost overruns relating to contracts for an oil refinery project in Mexico.

The dispute involved Conproca, a Mexican joint-venture between Siemens and SK created to bid for the Pemex oil refinery contract. The dispute has now been resolved after months of talks, Siemens said in a statement.

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Under the deal, Siemens said funds the German company received from Conproca would be placed into a trust to finance energy projects in Mexico, and include measures aimed at battling corruption and protecting the environment.

A Siemens spokesman said the accord was with Pemex alone and involved still open Conproca cases. He gave no details on how Conproca would be affected financially.

Mexico is seeking investment in its energy sector after ending the oil and gas monopoly that Pemex enjoyed for 75 years.

Finance Minister Luis Videgaray made an appeal on Thursday to the private sector to take a bigger role in upcoming energy and infrastructure projects in Mexico.

(Reporting by Mexico Newsroom. Editing by Andre Grenon)

This story has not been edited by Firstpost staff and is generated by auto-feed.