Page 10 - MEOG Week 11 2022

MEOG PROJECTS & COMPANIES MEOG

ADNOC lifts ban on

Petrofac participation

UAE STATE-OWNED Abu Dhabi Oil Co. (ADNOC) standards of ethical business practice”.
this week readmitted UK-based Petrofac to its In January 2021, the SFO said that Petro-
commercial directory, lifting a year-long ban on fac’s former global head of sales, David Lufkin
participation in the Emirati firm’s tenders, boost- had plead guilty to three counts of bribery. The
ing the contractor’s share price. offenses pertain to offers and bribes paid dur-
A brief press release by Petrofac said that it ing 2012-2018 to influence the result of $3.3bn
had been notified by ADNOC of the suspension worth of tenders in Petrofac’s favour.
being lifted a year and a day after it was imposed. The former Petrofac employee plead guilty
“Pursuant to this reinstatement, Petrofac is to offering and making corrupt payments to
allowed to participate in all ADNOC’s upcom- influence the outcome of an EPC tender in 2013,
ing new tenders with immediate effect,” it said. a subsequent contract in 2014 relating to the
This saw the company’s share price increase by UZ750 development phase of the Upper Zakum
around 12%. field project, and a front-end engineering design
Petrofac was suspended from competing for (FEED) contract that was awarded to Petrofac
new ADNOC contracts “until further notice” as for the Bab Integrated Facilities Project also in
the oilfield services specialist came under further 2014.
scrutiny relating to an historic bribery case. The SFO said: “Total payments of approx-
At the time, the British firm said that its ban imately $30mn were made, or were due to be
followed the UK Serious Fraud Office’s (SFO) made, by Petrofac to those agents in connection
“announcement of additional pleas in January by with these contracts.”
a former Petrofac employee under the Bribery Two contracts awarded to Petrofac in 2020
Act 2010 in relation to historic contract awards worth a total of $1.65bn – for offshore platforms
in the UAE in 2013 and 2014”. and gas processing facilities at the Dalma Gas
It added that it would continue to execute project – were cancelled in April, with no reason
two engineering, procurement and construc- given.
tion (EPC) projects for ADNOC that were under The company said that its reinstatement
construction. “acknowledges Petrofac cooperation with
Meanwhile, ADNOC has said “that it recog- ADNOC’s internal reviews and Petrofac’s com-
nises the long-standing nature of its relationship mitment to comply with the ADNOC Group
with Petrofac and has confirmed that its decision Supplier Code of Ethics.”
will be reviewed on a periodic basis”. The statement added: “It also takes into
The company noted that no charges were account Petrofac’s efforts to strengthen govern-
“brought against any Petrofac Group company ance and implement new policies and proce-
or any current officer or employee”, adding dures to ensure compliance with applicable laws
that it is “committed to operating at the highest and regulations.”™

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