SBM Offshore Closes Brazil Legacy Case

0
45

Dutch FPSO operator SBM Offshore has confirmed a formal closure of its Brazil legacy case related to legacy bribery issues in Brazil.

A statement issued on Wednesday explained that the company has received notification that the Federal Court has formally closed the Improbity Lawsuit filed by the Brazilian Federal Prosecutors Office (Ministério Público Federal, MPF) in 2017.

This approval makes the Leniency Agreement between the MPF and SBM Offshore effective, which comprises a final settlement of BRL 200 million ($48.8M), which will be paid to Petrobras.

SMB Offshore reached a deal with the Brazilian prosecutor under which the prosecutor would refrain from initiating new legal proceedings against the company related to legacy bribery issues in Brazil in September 2018.

The agreement meant that the company had also reached a final settlement with the MPF over alleged improper sales practices before 2012, in addition to that with the Brazilian Authorities and Petrobras.

As with all such agreements signed by the MPF, the agreement was subject to approval by the Fifth Chamber of the MPF.

Under the agreement, the MPF committed to refrain from initiating new legal proceedings against the company under the Improbity Law, Anti-Corruption Law and Public-Procurement Law in relation to the legacy issues in Brazil.

The MPF and the company jointly requested the court to formally close the Improbity Lawsuit filed by the MPF in 2017, including the associated provisional measure to secure payment of potential damages.

The agreement provided – in addition to the amounts agreed in the leniency agreement – for the payment of an additional fine by SBM Offshore of BRL 200 million. The additional fine was to be paid to Petrobras in installments: an upfront payment of BRL 60 million, with seven BRL 20 million installments thereafter.

This additional agreement brought the total amount of the provision established by the company in respect of legacy issues in Brazil from $299 million to $347 million.

LEAVE A REPLY

Please enter your comment!
Please enter your name here