SBM Offshore Settles Brazilian Case

SBM Offshore has reached a settlement agreement in the Brazilian corruption, agreeing to pay approximately $189 million to Brazilian authorities and Petrobras.

SBM Offshore was accused of paying bribes to government officials to secure contracts with Petrobras. 

As a result of the agreement, SBM Offshore and Petrobras will normalize business relations in respect of tenders and is now able to effectively compete for new business opportunities. The agreement provides for a cash payment by SBM Offshore to Petrobras within 90 days and a reduction of 95 percent in future performance bonus payments related to FPSOs Cidade de Anchieta and Capixaba lease and operate contracts, representing an agreed nominal value of approximately $180 million over the period 2016 to 2030.

This agreement follows previous resolutions reached between the company and the Dutch Public Prosecutor in November 2014 which saw the company pay the Netherlands $200 million in disgorged profits and a $40 million fine.

Two former company executives pleaded guilty to U.S. charges related to the matter in November. SBM Offshore and its wholly owned U.S. subsidiary, SBM Offshore USA Inc., agreed to resolve criminal charges and pay a criminal penalty of $238 million in connection with schemes involving the bribery of foreign officials in Brazil, Angola, Equatorial Guinea, Kazakhstan and Iraq.