Petrofac suspended from competing for new ADNOC contracts
UK oilfield services provider Petrofac has been suspended by UAE’s oil and gas giant ADNOC from competing for new contract awards until further notice.
In a statement on Monday, Petrofac explained that this follows the Serious Fraud Office’s announcement of additional pleas in January by a former employee under the Bribery Act 2010 in relation to historic contract awards in the UAE in 2013 and 2014.
To remind, a former executive at Petrofac in January 2021 pleaded guilty to bribery offences related to contract awards in UAE worth about $3.3 billion.
David Lufkin, a British national and the former Global Head of Sales at Petrofac, pleaded guilty at Westminster Magistrates’ Court to three counts of bribery.
Specifically, Lufkin pleaded guilty to his role in offering and making corrupt payments to agents to influence the award of an engineering, procurement and construction (EPC) contract to Petrofac in 2013 as well as a variation to that contract awarded in 2014.
Furthermore, Lufkin pleaded guilty to his role in corrupt payments on the Upper Zakum UZ750 Field Development Project and a front-end engineering design (FEED) contract awarded to Petrofac in 2014 on the Bab Integrated Facilities Project, each located in Abu Dhabi.
In the Monday statement, the company said it will continue to execute two EPC projects for ADNOC currently under construction.
According to the oilfield services company, ADNOC has stated that it recognises the long-standing nature of its relationship with Petrofac and has confirmed that its decision will be reviewed on a periodic basis.
The oilfield services provider emphasised it is committed to operating at the highest standards of ethical business practice and added that no charges have been brought against any Petrofac Group company or any current officer or employee.