SBM Offshore achieves settlement with Dutch Public Prosecutor's OfficeCompany News // November 14, 2014
SBM Offshore has reached an out-of-court settlement ex Article 74 of the Dutch Criminal Code with the Dutch Public Prosecutor's Office (Openbaar Ministerie) over the inquiry into alleged improper payments.
Furthermore, the US Department of Justice has informed SBM Offshore that it is not prosecuting the company and has closed its inquiry into the matter.
The settlement with the Openbaar Ministerie and the United States Department of Justice's decision relate to payments to sales agents in Equatorial Guinea, Angola and Brazil in the period from 2007 through 2011.
Bruno Chabas, CEO of SBM Offshore commented: "SBM welcomes the conclusion of all discussions with the Dutch and US authorities. We have been open, transparent and accountable throughout this difficult process which has addressed issues from a past era. We can now focus on the future, secure in the knowledge that we have put in place an enhanced compliance culture which embeds our core values."
The out-of-court settlement consists of a payment by SBM Offshore to the Openbaar Ministerie of US$240 million. SBM Offshore will pay this amount out of its own funds and has already provided for it in the first half 2014 results.
Payment will be made in three instalments, the first of which (US$100 million) has been paid. The two further instalments of US$70 million each will be due respectively on 1 December 2015 and 1 December of 2016. The company will not claim any tax relief over the settlement amount.
While it is not yet certain how the various investigations in Brazil will affect SBM Offshore, the company said it will soon reinstate its dialogue with Petrobras about the future of their relationship.