Sembcorp Marine Dismisses EIG's Allegations on Sete Brasil Investment

Singapore's Sembcorp Marine Ltd. dismissed Wednesday allegations by EIG Management Co. that the latter was misled by the company and its subsidiary Jurong Shipyard Pte Ltd. to invest in Sete Brasil Participacoes SA.

The Singapore-based yard cited a recent media report in which Sembcorp Marine and Jurong Shipyard were named as defendants along with other shipyards and entities following a complaint filed by EIG against Brazil's national oil company Petroleo Brasileiro SA (Petrobras) regarding the investments in Sete Brasil. The investment management firm had said in the article that the entities conspired to induce funds managed by EIG to invest in Sete Brasil.

"Sembcorp Marine Ltd. and Jurong Shipyard Pte Ltd. believe that the allegations against them are entirely without merit and baseless. They have not been served with the proceedings but if served, will rigorosly defend the suit," the company said in a press release, adding that "Sembcorp Marine Ltd. and its group of companies have strong commitment to corporate governance and adhere to highest standards in all its operations."

Sembcorp Marine’s subsidiaries had in 2012 entered into contracts with the subsidiaries of Sete Brasil for the construction of seven drillships.