Brazil Prosecutors Suspends Leniency Deal With SBM Offshore

   By Rogerio Jelmayer 
 

SAO PAULO--Brazil's prosecutors rejected a leniency-agreement offer made by Dutch oil-services provider SBM Offshore NV, in order to avoid prosecution in a corruption case linked with contracts involving state-run oil company Petroleo Brasileiro SA, or Petrobras.

In July, SBM Offshore agreed to pay $341.8 million in fines. Of that total, $328.2 million would have been paid to Petrobras and $13.6 million to the Brazilian government.

According to the federal prosecutor review board, the company failed to provide enough documents and data to support further investigation.

Brazilian prosecutors had accused SBM Offshore of allegedly paying bribes to Petrobras executives from 1996 to 2012.

"The nonapproval of the agreement by the MPF (federal prosecutors) makes it impossible for the Dutch company to reimburse $328.2 million to Petrobras, but does not necessarily imply the termination of the existing agreements between SBM and Petrobras," Petrobras said in a statement.

"SBM Offshore has been informed that the Fifth Chamber of the Brazilian Federal Prosecutor Service has not approved the leniency agreement signed by Brazilian authorities, Petrobras and SBM Offshore on July 15. The company is seeking clarification on the decision and will update the market accordingly," SBM said in a short statement.

Write to Rogerio Jelmayer at [e-mail]

(END) Dow Jones Newswires

September 02, 2016 07:21 ET (11:21 GMT)

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