SBM Offshore hit by more costs from Petrobras scandal fallout

SBM Offshore hit by more costs from Petrobras scandal fallout

Netherlands-based SBM Offshore is feeling the financial pinch of the ongoing Brazilian probe of its role in the Petrobras corruption scandal, according to Reuters.

SBM, a global leader in floating production storage and offloading (FPSO) units, on Monday revealed it is setting aside an additional $238m for costs from a US inquiry that partly relates to the Petrobras bribery case and partly to other matters.

Although SBM paid Dutch authorities $240m in 2014 for Petrobras-related settlements and in 2016 set aside $280m more for Brazil issues, on Monday the company said some Brazil matters are still unresolved.

The problems stem from SBM’s participation in the infamous bribes-for-inflated-contracts scheme that has cost Petrobras billions of dollars and sullied its reputation worldwide, not to mention being the downfall of numerous executives and senior Brazilian politicians.

After being cleared to resume business in Brazil earlier this year, SBM on Monday said it has put on hold existing tenders there, pending the resolution of the outstanding Brazilian issues.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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