SBM faces $253-million settlement in Brazil

Brazil

BRASILIA, October 22, 2015 – Dutch marine services company SBM Offshore has been given an ultimatum by the Brazilian government regarding the Petrobras bribery scandal. Brazil has told SBM to either pay a $253-million settlement or face losing state-owned Petrobras as a client, a government source told Reuters on Wednesday.

The company is accused of paying bribes to Petrobras officials in exchange for contracts between 1995 and 2003. The payments were allegedly made by SBM agents through offshore entities. If SBM agrees to the settlement, which includes co-operation throughout the corruption investigation, the company will be allowed to bid for new contracts with Petrobras.

Should SBM agree to the settlement, the payment will go to Petrobras to be used to pay down the company’s massive debt and fund expansion.

“Either we finish now or we break off talks and the company will be penalized,” Reuters’ source said.

In November 2014, SBM reached a $240-million settlement with Dutch prosecutors regarding bribery in Equatorial Guinea, Angola and Brazil between 2007 and 2011.

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