SBM Offshore Signs Leniency Agreement With Brazil Authorities, Petrobras
July 27 2018 - 2:29AM
Dow Jones News
By Adam Clark
SBM Offshore NV (SBMO.AE) said it has agreed to pay $189 million
and forfeit future bonus payments to Petroleo Brasileiro S/A
(PETR3.BR) under a leniency agreement signed with Brazilian
authorities and the state oil company, known as Petrobras.
The Dutch oil-and-gas services company said late Thursday that
the agreement will allow it to compete for new business with
Petrobras. SBM said the amounts agreed upon are in line with the
$299 million provision that it had already taken out. The leniency
agreement relates to alleged corruption around sales practices
prior to 2012.
In 2017, SBM signed a deferred prosecution agreement with U.S.
authorities, agreeing to settle charges of bribing officials in
five countries, including Brazil.
In addition to the immediate cash payment, SBM has agreed to a
95% reduction in future bonus payments related to existing
contracts, worth $180 million over the period from 2016 to 2030.
The net present value of such payments is $110 million, SBM
said.
SBM said the leniency agreement doesn't cover an improbity
lawsuit brought by the Brazilian public prosecutor's office
relating to the same sales practices.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
July 27, 2018 02:14 ET (06:14 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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