UK oil services company Petrofac has been fined GBP 77 million (US$104.6 million) by a London court in relation to seven historic bribery offences.
Petrofac said the Southwark Crown Court on 4 October 2021 imposed the penalty given the company had failed to prevent former Petrofac employees from offering or making payments to agents in relation to projects awarded between 2012 and 2015.
This was contrary to Section 7 of the UK Bribery Act 2010.
The employees that were involved in the charges have left the business, and Petrofac said the penalty concluded the Serious Fraud Office's investigation into the company.
The penalty is comprised of a confiscation order of GBP 22.8 million payable by 3 January 2022; a fine of GBP 47.2 million payable on 14 February 2022; and the Serious Fraud Office's costs of GBP 7 million payable on 14 February 2022.
Petrofac had said previously a potential penalty could be up to US$240 million prior to the application of any adjustment to the level of fine.
Chairman Rene Medori said: "This draws a line under a regrettable period of our history. We have taken responsibility, reformed and learned from these past mistakes, as acknowledged by the SFO and the Court. Most importantly, the extensive work that we have done since the SFO investigation began means that the Petrofac of today has a comprehensive compliance and governance regime that meets or exceeds international best practice. The past behaviour uncovered by the SFO would not be possible today, and we look to the future a better and more focused company, well positioned to capitalise on the opportunities we see before us."
Group chief executive Sami Iskander said: "We are now in a position to put this behind us. This part of our history does not represent the Petrofac of today - a company that as its new CEO I am proud to lead, and which operates upon the core principle of ethical business conduct, supported by a comprehensive governance regime."
- Former Petrofac official pleads guilty to bribery offences in $3.3 billion UAE oil deals
- Petrofac axes 20% of staff over 'unprecedented' market conditions
- Petrofac kept from competing for new contracts in Iraq
- Ex-Petrofac executive pleads guilty to bribery
- More executives to be grilled in Petrofac probe