Brazil Gives SBM Ultimatum in $250M Bribery Settlement

Reuters

BRASILIA, Oct 22 (Reuters) - Brazil has told Dutch SBM Offshore NV, the world's top oil production ship leaser, to agree soon to a $250 million bribery settlement if it wants to regain its biggest client in the world's largest oilship market, a government source told Reuters.

The ultimatum gives SBM several days to sign a leniency deal that includes financial reparation and other clauses such as cooperation with a corruption investigation. The settlement, which has been under negotiation for months, would lift a ban on the Amsterdam-based firm from bidding for new business with Petrobras, Brazil's state-run oil company.

Petrobras, whose officials were accused by Brazilian prosecutors of accepting bribes from SBM representatives in order to win contracts, will receive the proceeds of the deal, gaining badly needed cash to finance expansion and pay debt, the largest in the oil industry.

Petrobras officials were not immediately available for comment. SBM had no immediate comment on the matter.

The government source, who asked not to be named because he is involved in the negotiations, told Reuters on Wednesday that an agreement was very close but there remained a 50-50 chance of the talks folding over difficulties related to a few final clauses.

"We have negotiated endlessly and we gave them an ultimatum: Either we finish now or we break off talks and the company will be penalized," the source said.

The official did not detail the stumbling blocks but he said negotiations had been particularly complex because they involved several parties, including the Comptroller General's office, which is the main negotiator, as well as Rio de Janeiro state prosecutors and Petroleo Brasileiro SA, as the oil company is formally known.


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steve garam | Oct. 22, 2015
this is just an up front collection by the officials that missed out on the first round of bribes. they want their share and are using the courts to enforce the bribe demands. If you want to enforce the no bribe rule, throw the parties involved in jail. How can you claim to be working to clean up the corruption when you openly demand a bribe...errr...monetary penalty...in order to be allowed to bid on more business?


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