Marubeni Pays USD 54.6 Million to Settle Nigeria LNG Case

Marubeni Corporation announced that it has entered into a Deferred Prosecution Agreement with the U.S. Department of Justice (DOJ) regarding the Nigeria LNG Project.

Nigeria LNG Limited, a government-linked company of Nigeria, developed a project to build LNG plants in Nigeria (which includes Train 1 to Train 6).  In order to be awarded the construction contracts for the Project, Technip S.A. (a French corporation), Snamprogetti S.p.A. (an Italian corporation), M.W. Kellogg Ltd. (a U. S. corporation. a predecessor company of Kellogg, Brown & Root, Inc.) and JGC Corporation (a Japanese company) formed a consortium (TSKJ).  Between 1995 and 2004, TSKJ was awarded contracts by Nigeria LNG Limited.  Marubeni executed Service Agreements with TSKJ regarding the Project (excluding Train 6) and assisted TSKJ in obtaining the contracts.

The DOJ conducted an investigation into the four companies comprising TSKJ and other relevant parties on suspicion of violation of the U.S. Foreign Corrupt Practices Act in respect of the alleged payment of bribes to Nigerian government officials in relation to the TSKJ’s obtaining the contracts for the Project.  As part of the investigation, the DOJ conducted an investigation into Marubeni, leading to entry of the Agreement.  Under the Agreement, Marubeni will pay US$54.6 million (approximately 4.2 billion Japanese Yen) to the DOJ.

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LNG World News Staff, January 18, 2012; Image: Shell