No approval for Petrobras, SBM Offshore bribery settlement

Brazilian anti-corruption body has refused to give authorization for the leniency agreement signed by Petrobras, SBM Offshore, and the Brazilian authorities in July.

To remind, the two companies and the government signed the settlement agreement resolving issues stemming from a bribery case where SBM Offshore had been accused of bribing its way to Petrobras’ FPSO contracts.

The leniency agreement signed entailed that the Dutch company would pay compensation of US$341.8 million (approximately R$1.12 billion), as follows: $328.2 million to Petrobras and $13.6 million to the Brazilian government. The agreement was the outcome of a negotiation process that began in March 2015.

However, the settlement needed approval by the Fifth Chamber for Coordination and Review and Anti-Corruption of the Federal Prosecutor Service.

According to a statement by SBM Offshore on Friday, the Fifth Chamber of the Brazilian Federal Prosecutor Service has not approved the leniency agreement signed by Brazilian authorities, Petrobras and SBM Offshore.

“The Company is seeking clarification on the decision and will update the market accordingly,” SBM Offshore, the world’s largest provider of floating production systems, said.

In a separate statement, Petrobras confirmed that without the ratification of agreement makes it impossible for the Dutch company to reimburse $328.2 million to Petrobras, “but does not necessarily imply the termination of the existing agreements between SBM and Petrobras.”

Petrobras also said that the information regarding an eventual loss totaling $12.66 billion represents an estimate in the event of termination of all existing agreements between Petrobras and SBM in the period between 2016 and 2020, without any replacement alternative.

“Facts deemed relevant on the subject will be timely announced to the market,” Petrobras said.

Offshore Energy Today Staff

 

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