Keppel to Cooperate With Brazilian Authorities Over Petrobras Contracts

Keppel Corp. Ltd. refers to an earlier announcement Feb. 9 in relation to allegations made by Pedro Jose Barusco in Brazil that illegal payments were made by an agent in connection with contracts entered into by certain Keppel entities with Petroleo Brasileiro S.A. (Petrobras) and/or Sete Brasil.

On Oct. 22, the Comissao Parlamentar de Inquerito (CPI) ( i.e., the Parliamentary Commission of Inquiry) voted in favor of various recommendations by its rapporteur. These recommendations included the indictment of agents, lobbyists and intermediaries of certain companies and political parties and former officers of Petrobras and Sete Brasil. In addition, the CPI recommended the deepening of investigations into 10 companies involved in transactions with Petrobras and Sete Brasil, which included Keppel FELS Brasil. Keppel intends to extend its full cooperation to the authorities if approached.

Keppel reiterates its zero-tolerance stance against any form of illegal activity, including bribery and corruption, involving its employees or associates, and will take all necessary steps to eradicate such conduct if discovered.

We are unable to comment further in view of the ongoing investigations in Brazil.