Brazil Reaches Leniency Deal With SBM Offshore

By Rogerio Jelmayer

SAO PAULO--Brazil's authorities said they have reached a leniency agreement with Dutch oil-services provider SBM Offshore NV following a corruption investigation.

The company, which was accused by Brazilian prosecutors of allegedly paying bribes to executives of state-run oil company Petroleo Brasileiro SA from 1996 to 2012, will be immune to new lawsuits linked with the case, authorities said over the weekend.

Under the deal, SBM Offshore agreed to pay $341.8 million in fines. Of that total, $328.2 million will be paid to Petrobras and $13.6 million to the Brazilian government.

The agreement is the outcome of negotiations for a leniency agreement with Brazil's authorities that began in March 2015, Petrobras said in a statement.

"The Settlement Agreement provides for Petrobras and SBM Offshore to resume normal business relationships," SBM said in a statement.

Representatives for SBM Offshore weren't immediately available for further comment.

SBM had already reached an out-of-court settlement with Dutch authorities stemming from its dealings with Petrobras, agreeing in 2014 to pay $240 million to settle allegations that it bribed sales agents in Brazil and other countries to obtain contracts.

The latest agreement would enable SBM to do business again with Petrobras, allowing it to bid for future contracts and procurement processes, Petrobras said. "The company will have to pass through all the compliance filters and controls to which Petrobras suppliers are subject," it said.

Write to Rogerio Jelmayer at [e-mail]

(END) Dow Jones Newswires

July 18, 2016 08:09 ET (12:09 GMT)

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