Seatrium settles corruption probe in Brazil for $137m

Seatrium has reached in-principle settlement agreements with the Brazilian authorities concerning “Operation Car Wash”, a probe into allegations of bribes to secure contracts in the country’s offshore energy sector.

The Singapore offshore and marine yard group, formerly known as Sembcorp Marine, said the agreements include payment of about S$182.4 ($137m) in relation to the probe. In addition, it said it had also made a provision of S$82.4m for indemnity to Keppel Corporation about this matter.

“This latest development provides us with finality on this legal matter, which has been outstanding for some time, with the Brazilian authorities,” said Seatrium’s chief executive, Chris Ong.

In a separate stock exchange filing, Seatrium added that the settlement must be ratified by various Brazilian authorities and that the execution of the leniency agreements would guarantee its participation in future public tenders and execute contracts in Brazil.

Seatrium operates shipyards and other facilities in Singapore, Brazil, China, Indonesia, Japan, the Philippines, Norway, the UK and the US. In December, the group’s BrasFELS Shipyard in Bazil secured a contract from Japan’s Modec for fabrication work on topside modules for a floating production, storage and offloading (FPSO) vessel set for the Raia project, operated by Norway’s Equinor.