Indian Oil Corporation (IOC), India’s largest oil refiner, has launched an investigation into claims that a US-based specialty chemicals company bribed its officials to win lucrative contracts over a decade ago.
The US company in question, Albemarle Corporation, is a global leader in selling catalysts—chemical agents crucial for oil refinery operations. According to a report by India’s Press Trust of India (PTI), Albemarle allegedly paid bribes to secure contracts with IOC between 2009 and 2011.
The allegations surfaced in a detailed order by the US Securities and Exchange Commission (SEC) on September 28, 2023. The report accuses Albemarle of paying $1.14 million to an intermediary company in India. This shady deal reportedly led to profits of over $11 million for Albemarle in just two years. The bribes allegedly helped Albemarle obtain confidential information and secure orders from IOC, as well as from a private Indian company between 2009 and 2017.
Albemarle’s Troubles and Fines
Albemarle’s issues with bribery aren’t new. The company came under US authorities’ radar in 2017, and after years of investigation, it agreed to a massive settlement in September 2023, paying over $198 million in fines. While the SEC’s findings don’t directly accuse IOC, the state-run oil giant has decided to dig deeper to understand what really happened.
In a statement, IOC emphasized its commitment to integrity, saying it upholds “high standards of governance, transparency, and regulatory compliance.” The company also made it clear that no allegations have been directly made against it in the SEC order.
IOC: The Backbone of India’s Fuel Supply
IOC operates 10 out of India’s 22 oil refineries, producing critical fuels like petrol and diesel. With a refining capacity of 80.8 million metric tons per year, it controls a massive 40% of India’s fuel market.
This bribery scandal comes at a time when other Indian giants are also facing scrutiny. Just last month, US authorities accused the Adani Group, one of India’s largest conglomerates, of paying $250 million in bribes to secure solar energy contracts. While Adani has denied these claims, the allegations have cast a shadow over India’s business landscape.
What’s Next?
For now, IOC’s internal review will focus on the alleged misconduct and determine if its officials were involved. The stakes are high—not just for IOC but for India’s reputation on the global business stage. As details emerge, all eyes will be on how IOC and Albemarle navigate this storm.
