SBM Offshore Settles Bribery Case in Brazil
SBM Offshore, world’s largest supplier of floating production storage and offloading units to the oil and gas industry, has reached a settlement with Brazilian authorities, closing corruption probe over improper payments to Petrobras’ executives.
The settlement agreement with the Brazilian authorities and Petrobras was signed on Friday, July 15.
Under the agreement, SBM Offshore will pay $162.8 million in total, of which $149.2 million will go to Petrobras, $6.8 million to the Public Prosecutor’s Office and $6.8 million to the Council of Control of Financial Activities for the implementation of units for massive electronic process of information and other instruments to be used in the prevention and combat against corruption.
This amount will be paid in three installments. The first installment of $142.8 million will be payable as of the effective date of the Settlement Agreement. The two further installments of $10 million each will be due respectively one and two years following the effective date of the Settlement Agreement, SBM Offshore said.
Also, under the settlement, a reduction has been agreed of 95% in future performance bonus payments related to FPSOs Cidade de Anchieta and Capixaba lease and operate contracts, representing a nominal value of approximately $179 million over the period 2016 to 2030, or a present value for SBM Offshore of approximately $112 million.
Additionally, SBM Offshore remains under the obligation to cooperate with the procedures that may be conducted by the authorities against third parties.
Following this agreement, SBM Offshore will be able to participate in tenders for Petrobras projects.
In a statement on Saturday, SBM Offshore said the company accepts the economic sanctions, adding it is pleased that the company is now able “to fully resume a normal business relationship with a key client, Petrobras.”
Bruno Chabas, SBM Offshore CEO said: “This settlement represents a key step forward for SBM Offshore and allows us to fully dedicate our energy to our business, which is crucial in today’s continued challenging market conditions.
“Going forward, I am confident in our ability to build upon our leading position in the offshore floating solutions market as the partner of choice. This is due not only to our recognized technical expertise and outstanding operational track record, but also our focus on sustainability and integrity, with strict adherence to our robust compliance standards.”
