SBM Offshore Signs Leniency Agreement With Brazil Authorities, Petrobras

By Adam Clark

SBM Offshore NV (SBMO.AE) said it has agreed to pay $189 million and forfeit future bonus payments to Petroleo Brasileiro S/A (PETR3.BR) under a leniency agreement signed with Brazilian authorities and the state oil company, known as Petrobras.

The Dutch oil-and-gas services company said late Thursday that the agreement will allow it to compete for new business with Petrobras. SBM said the amounts agreed upon are in line with the $299 million provision that it had already taken out. The leniency agreement relates to alleged corruption around sales practices prior to 2012.

In 2017, SBM signed a deferred prosecution agreement with U.S. authorities, agreeing to settle charges of bribing officials in five countries, including Brazil.

In addition to the immediate cash payment, SBM has agreed to a 95% reduction in future bonus payments related to existing contracts, worth $180 million over the period from 2016 to 2030. The net present value of such payments is $110 million, SBM said.

SBM said the leniency agreement doesn't cover an improbity lawsuit brought by the Brazilian public prosecutor's office relating to the same sales practices.

Write to Adam Clark at [e-mail]; @AdamDowJones

(END) Dow Jones Newswires

July 27, 2018 02:14 ET (06:14 GMT)

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