Orlen Faces Up to $424 Million Loss in Venezuelan Oil Deal Involving $230 Million USDT Prepayment

Polish state-owned energy company Orlen, through its subsidiary Orlen Trading Switzerland, signed a contract in November 2023 to purchase 6 million barrels of Venezuelan crude oil, paying $230 million in unsecured prepayment to Dubai-based trading company Hannon International for the exchange of USDT. Hannon International exchanged the funds through multiple intermediaries, with $135 million only converting to 8.5 million USDT, resulting in a $50 million shortfall. From January to March 2024, the private key controlling over 13.2 million USDT was handed over via a USB storage device to brokers associated with the Venezuelan National Oil Company. After the transaction, the related brokers went missing, and the Venezuelan National Oil Company failed to release the oil cargo, ultimately resulting in only one vessel loading approximately 500,000 barrels of fuel oil worth $28.8 million; Orlen canceled the contract in March 2024, expecting total losses to be between $378 million and $424 million. The Polish prosecutor's office has launched a criminal investigation into the management of Orlen Trading Switzerland, with three former senior executives being prosecuted, potentially facing up to 25 years in prison. Orlen has initiated international arbitration in Dubai to recover the $230 million prepayment.

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