ADNOC Suspends Petrofac Competing for New Awards
Petrofac Ltd has announced that it has been notified by ADNOC Group that the company has been suspended from competing for new awards until further notice.
The development follows the UK Senior Fraud Office’s (SFO) announcement of additional pleas in January by a former Petrofac employee under the Bribery Act 2010 in relation to historic contract awards in the UAE in 2013 and 2014, Petrofac noted.
The company said it will continue to execute two engineering, procurement, and construction projects for ADNOC which are currently under construction. Petrofac said ADNOC has stated that it recognizes the long-standing nature of its relationship with Petrofac and has confirmed that its decision will be reviewed on a periodic basis.
“Petrofac is committed to operating at the highest standards of ethical business practice,” Petrofac said in a company statement.
“No charges have been brought against any Petrofac Group company or any current officer or employee,” Petrofac added in the statement.
The SFO announced in January that David Lufkin, a British national and the former Global Head of Sales at Petrofac, had pleaded guilty at Westminster Magistrates’ Court to three counts of bribery. The SFO said the offences relate to corrupt offers and payments made between 2012 and 2018 to influence the award of contracts to Petrofac in the United Arab Emirates worth approximately $3.3 billion.
The charges are in addition to eleven charges of bribery already brought by the SFO, to which Lufkin pleaded guilty in February 2019. The SFO first announced its investigation into Petrofac on May 12, 2017. In a Petrofac statement on May 25, 2017, Petrofac revealed that a committee of the board had been established to be solely responsible for the company's engagement with the SFO and to oversee the company’s response to their investigation.
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