Page 13 - LatAmOil Week 47 2019

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NEWS IN BRIEF
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As co-managers of the port and logistics centre, Peterson will provide operational support for the strategic planning, facilities and management of Itaoca Offshore, while advising on the commer- cialisation and development of the operational layout.
Erwin Kooij, CEO of Peterson Offshore Group, said: “With Itaoca’s strategic location, we have identified an opportunity for greater efficiency for transporting equipment and con- sumables to offshore platforms in Brazil. We will seek to replicate the model we have developed with great success in the North Sea and interna- tionally. We are focusing on working as a port developer and developing a customer base.”
Construction for the project is expected to start in 2020.
Peterson Offshore Group, November 26 2019
SBM Offshore, Constellation complete transaction on minority ownership in FPSO companies
SBM Offshore and Constellation Oil Services Holding jointly confirm that they have success- fully completed the transaction regarding the sale to SBM Offshore of Constellation’s equity ownership in the lease and operating companies related to five Brazilian FPSOs. This follows the announcement by SBM Offshore dated Octo- ber 18, 2019, confirming SBM Offshore as the successful bidder in the public auction for the equity ownership. SBM Offshore was already the majority shareholder of the related entities and operator of these FPSOs before the transaction was completed.
Upon completion of the transaction SBM Offshore paid the total cash consideration of US$149mn.
The completion concludes a successful long- term partnership between the companies which
was established in 2004.
Constellation is a market leading provider of
offshore and onshore oil and gas contract drill- ing in Brazil through its subsidiary Serviços de Petróleo Constellation. With continuous oper- ations since 1981, Serviços de Petróleo Constel- lation has built an unmatched reputation for excellence in offshore and onshore drilling ser- vices, obtaining ISO 9001, ISO 14001, OHSAS 18001 and API Spec Q2 certifications for its quality management, environmental and safety records and systems.
SBM Offshore, November 22 2019
POLICY
Samsung Heavy Industries
agrees to pay $75mn in
global penalties to resolve
Brazilian bribery case
Samsung Heavy Industries Company Ltd (SHI), a South Korea-based engineering company that provides shipbuilding, offshore platform con- struction and other construction and engineer- ing services, has agreed to pay total penalties of more than $75mn to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) arising out of a scheme to pay millions of dollars in bribes to officials in Brazil.
SHI entered into a deferred prosecution agreement with the department in connection with a criminal information filed today in the Eastern District of Virginia charging the com- pany with conspiracy to violate the anti-bribery provisions of the FCPA. The case is assigned to Senior US District Judge T.S. Ellis III of the East- ern District of Virginia.
Pursuant to its agreement with the Depart- ment, Samsung Heavy Industries has committed to pay a total criminal penalty of $75.4816mn – 50% of which, or $37.7408mn, will be paid to the US government within 10 business days of the deferred prosecution agreement and the remaining 50% ($37.7408mn) of which will either be paid to Brazilian authorities pursuant to agreements between SHI and the Controlado- ria-Geral da União (CGU), Advogado-Geral da União (AGU) and Ministério Público Fed- eral (MPF), or will be paid to the US if at least $37.7408mn in payments are not made to the Brazilian authorities on or before November 25, 2020.
In related proceedings in Brazil, SHI entered into a memorandum of understanding with the CGU and AGU and a complementary agree- ment for the negotiation of a leniency agreement
with the MPF.
“Samsung Heavy Industries paid millions
of dollars to a Brazilian intermediary, knowing that some of that money would be used to bribe high-level executives at Petrobras and obtain a lucrative shipbuilding contract,” said Assis- tant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s resolution is yet one more example of the Department’s continued commitment to root out bribery and to work with our foreign counterparts to investigate schemes spanning multiple international jurisdictions.”
“Samsung Heavy Industries caused millions of dollars in corrupt bribe payments to be paid to foreign officials to win business, upsetting what should have been a level playing field for other companies that followed the rules,” said US Attorney G. Zachary Terwilliger of the Eastern District of Virginia. “Effective corporate policies and procedures are necessary to ensure that cor- porations do not engage in foreign bribery. We will continue to hold corporations accountable.”
“The FCPA encourages US companies to fairly compete in an open, global marketplace,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “Violations of the FCPA injure the integrity of our free economic system. Our agents work every day to uphold that economic integrity, and we urge anyone who suspects an FCPA violation to contact their local FBI Field Office.”
According to admissions by SHI, beginning in 2007 and continuing until 2013, the company conspired with others to violate the FCPA by cor- ruptly providing approximately $20mn in com- mission payments to a Brazilian intermediary, knowing that portions of the money would be paid as bribes to officials at Petrobras, the Brazil- ian state-owned oil and state-controlled energy company, in order to secure improper business advantages and to cause Petrobras to enter into a contract to charter a drill ship that SHI was selling to a Houston-based offshore oil drilling company, which facilitated SHI executing the sale of the drill ship.
Samsung Heavy Industries took actions in furtherance of the bribery conspiracy from its branch office located in the US.
As part of the deferred prosecution agree- ment, SHI has agreed to continue to co-operate with the Department in any ongoing investiga- tions and prosecutions relating to the conduct, including of individuals; to enhance its compli- ance programme, and to report to the depart- ment on the implementation of its enhanced compliance programme.
In reaching the resolution with the depart- ment, SHI received credit for its co-operation with the Department’s investigation and for tak- ing remedial measures.
US Department of Justice, November 22 2019
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