SBM Offshore denies report of $1.7 billion Brazil settlement

Wed Apr 8, 2015 7:29am EDT

SBM Offshore denies report of $1.7 billion Brazil settlement


(Reuters) – SBM Offshore the Dutch oil and gas platform leasing company, denied a media report that it has reached a $1.7 billion settlement with Brazilian authorities over corruption allegations.

“Discussions with Brazilian authorities are at an early stage and no numbers have been agreed upon,” it said in statement on Wednesday.

SBM Offshore settled a bribery case with Dutch authorities in November for a record $240 million for improper payments to sales agents and government officials in Equatorial Guinea, Angola and Brazil made between 2007 and 2011.

SBM Offshore, which has been barred from bidding on new contracts in Brazil due to the bribery allegations, has declined to provide details about the negotiations.

SBM Offshore shares were trading down 6.8 percent in Amsterdam at 1125 GMT.

SBM Offshore is one of more than 20 companies believed by Brazilian police and prosecutors to have paid bribes in exchange for contracts with state-run Petrobras, Brazil’s largest oil company.

Dutch prosecutors said in November that SBM Offshore’s Brazilian sales agents, who received at least 139.1 million euros in commissions, made payments to Brazilian government officials via offshore entities.

SBM Offshore is the world’s largest leaser of floating oil production ships known as FPSOs, while Petrobras, uses more such vessels than any other company.

(Reporting by Anthony Deutsch; editing by Jason Neely)

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