SBM Offshore given ultimatum by Brazilian authorities?

SBM Offshore, a Dutch supplier of FPSOs, has reportedly been given an ultimatum to settle a bribery case claim in Brazil.

Reuters on Wednesday cited an unnamed government source who said that the Dutch supplier, accused of bribing its way to obtaining contracts with Petrobras, has been given a few days to pen a leniency agreement. If it doesn’t sign, SBM Offshore will face a penalty, the Reuters source said.

According to the news agency, and in line with what Brazilian media (O’Globo) reported in October, the settlement would mean that SBM Offshore would pay one billion Brazilian reals (roughly $250 million), and cooperate in corruption investigation.

Offshore Energy Today reached out to SBM Offshore for a comment. We will update the article with any response.

SBM Offshore had been banned from bidding for Petrobras projects due to an alleged bribery investigation, but Petrobras in October said it would resume inviting SBM Offshore to submit bids.

However, the contracts under the bidding procedure will only be awarded to SBM, subject to compliance with the Anti-Corruption Law and completion of the Leniency Agreement with the Brazilian investigators, Petrobras said last month.

SBM Offshore in November 2014 reached a $240 million out-of-court settlement with the Dutch Public Prosecutor’s Office (Openbaar Ministerie) over the inquiry into alleged improper payments.

Offshore Energy Today Staff