Brazilian prosecutors and Petrobras agreed with SBM Offshore on corruption investigation

FPSO SBM OffshoreBrazilian prosecutors and Petrobras signed an agreement with Dutch subsea company SBM Offshore, where SBM will pay the fines and co-operate in the ongoing probe into the corruption investigation. Also Dutch offshore company will have reduction of 95% in future performance bonus payments related to FPSOs Cidade de Anchieta and Capixaba lease and operate contracts. In return, SBM Offshore will be exempt from the new lawsuits related to the case and will be allowed to bid again in the tenders of Petrobras contracts. The total value of the fines, which should be paid by SBM Offshore amount to 162.8 million USD, while the reduced value of the current contact will amount to 179 million USD.

From government side the major parties in the deal are Ministry of Transparency, Oversight and Control, the Public Prosecutor’s Office, the General Counsel for the Republic, together with Petrobras and SBM Offshore.

The cash payment by SBM Offshore will be directed to Petrobras (149.2 million USD), the Public Prosecutor’s Office (6.8 million USD), the Council of Control of Financial Activities (6.8 million USD). The payment will be made at three installments, as the first amount to 142.8 million USD and will be due at the date of the Settlement Agreement. The two further installments, 10 million USD each, will be due respectively one and two years following the effective date of the Settlement Agreement.

SBM Offshore is a listed holding company, headquartered in Amsterdam, Netherlands. The company provides floating production solutions to the offshore energy industry, over the full product life-cycle. SBM Offshore main activities are the design, supply, installation, operation and the life extension of Floating Production, Storage and Offloading (FPSO) vessels. SBM Offshore is one of the first overseas companies exposed in the “bribes-for-inflated-contracts” scheme that has engulfed Brazil’s state oil firm. It was accused of paying millions of dollars in bribes between 1996 and 2012 in return for Petrobras