Sbm Offshore Leniency Agreement

SBM Offshore said it was continuing to cooperate with CGU and AGU investigations into the conduct covered by the leniency agreement. Three years after the signing of the leniency agreement, SBM Offshore will report regularly to the CGU on its compliance program. In 2017, SBM signed an agreement with U.S. authorities and agreed to charge officials in five countries, including Brazil. July 26, 2018, sBM Offshore N.V. and SBM Holding Inc. S.A. has signed a leniency agreement with the Brazilian Ministry of Transparency and comptroller`s General Office (Ministério da Transparéncia e Controladoria-Geral da Unio – „CGU“), the General Counsel for the Republic (Advocacia Geral da Unio) and Petréle Brasiroile S.A. („Petrobras“).

The current agreement follows previous decisions by the company with the Dutch Public Prosecutor`s Office (OM), as reported in November 2014, and with the U.S. Department of Justice (DOJ), as reported in November 2017. The agreement is broadly comparable to the agreement reached in July 2016 with CGU, AGU and Petrobras, which included the Brazilian Federal Prosecutor`s Office (MPF), as reported on 16 July 2016. However, this agreement was ultimately not approved by the fifth chamber of the MPF, as indicated on 2 September 2016. The payment amounts agreed in the leniency contract are in accordance with the provision managed by the company, which is in accordance with the original agreement. It is assumed that the money will be divided into two comparisons that the company negotiates with three Brazilian authorities. One agreement is negotiated with the Brazilian Prosecutor`s Office (MPF), the other is a joint agreement between the Office of the Attorney General of Brazil (AGU) and the Ministry of Transparency (CGU). According to the information provided, the Dutch oil and gas services company SBM Offshore has entered into a leniency communication with the Brazilian authorities to clarify the allegations relating to the Petrobras corruption scandal. The agreement also provides for a 95% reduction in future performance bonuses related to FPSOs Cidade de Anchieta and Capixaba`s leasing and operating contracts, which corresponds to an agreed face value of approximately $180 million for the period 2016-2030. Petrobras said it received 425 million reais ($112.3 million) in leniency contracts and repatriation by Brazil`s federal prosecutor. SBM Offshore NV (SBMO. AE) has agreed to pay $189 million and pay future bonuses to Petroleo Brasileiro S/A PETR3 as part of a leniency agreement with Brazilian authorities and state oil company Petrobras.

„The leniency agreement with the CGU, AGU and Petrobras is an important step towards closing legacy charges in Brazil. This agreement supports the continuation of our long-standing relationship with Petrobras and will enable SBM Offshore to successfully pursue new business opportunities in Brazil. The company is again invited to participate in Petrobras` bids under the same conditions as the other bidders. In the leniency agreement, Petrobras believes that the conduct covered by the leniency agreement will not take any action that could jeopardize SBM Offshore`s ability to manage its operations in Brazil. SBM Offshore provides floating production solutions for the offshore energy industry throughout the product lifecycle. The company is the leader in floating rental production systems that have been delivered to date, with several units currently in service, and has unrivalled operational experience in this area. The company`s main activities are the planning, supply, installation, operation and lifespan of floating production solutions for the offshore energy industry.