Vetco, DOJ Reach $26M Settlement over Nigeria Payments

Vetco International Limited said Tuesday that it entered into a resolution with the United States Department of Justice (DOJ) related to an investigation that commenced with the Company voluntarily reporting improper payments made through a third party customs provider to officials in Nigeria. This settlement fulfills a closing condition for the previously announced sale of its Vetco Gray division to GE.

Three Vetco Gray entities, all subsidiaries of Vetco International pleaded guilty in the United States District Court for the Southern District of Texas in Houston to violations of the US conspiracy statute and the Foreign Corrupt Practices Act (FCPA) that began under prior ownership in 2002 and ended when discovered by current management in April, 2005. Vetco Aibel, another Vetco International subsidiary entered into a Deferred Prosecution Agreement with the DOJ as part of the settlement. As part of this agreement Vetco Aibel will continue to comply with all prior commitments made to the DOJ.

The Company has agreed to pay an aggregate fine totaling US$ 26 million. Vetco International Limited and its subsidiaries fully cooperated with the DOJ by conducting a lengthy and thorough investigation of the conduct at issue, and took significant remedial action in response to its findings. Under the terms of the settlement, Vetco International has agreed to continue the implementation of its compliance program, and will engage independent compliance monitors for both the Vetco Gray and Vetco Aibel businesses, for three years, to review and evaluate the Company's policies and procedures to ensure compliance with all anti-corruption laws.

Vetco International Limited is a supplier of products, systems and services to the upstream oil and gas industry through its subsidiaries, Vetco Gray and Vetco Aibel.