Mexichem has declared force majeure on one internal contract in the wake of a blast at a petrochemical plant that killed at least 24 people
A view of an area damaged by an explosion at Mexican national oil company Pemex's Pajaritos petrochemical complex in Coatzacoalcos, Veracruz state, Mexico, April 21, 2016. REUTERS/Angel Hernandez, photo: Reuters/Angel Hernandez
22 of April 2016 13:53:58
MEXICO CITY — Mexichem has declared force majeure on one internal contract in the wake of a blast at a petrochemical plant that killed at least 24 people, the company's Chief Executive Officer Antonio Carrillo said in an interview on Friday.A force majeure is a common clause in contracts that essentially frees both parties of liability when an extreme or unavoidable accident occurs.Carrillo had previously said the company declared force majeure on "a few contracts," but then later clarified it was one internal contract between Mexichem and its joint venture with Pemex, Petroquímica Mexicana de Vinilo (PMV).He added that Mexichem would have a better idea of the impact of the blast on the company in the coming weeks.