Petrobras facing $15B loss in case of SBM Offshore contracts termination

Petrobras, Brazil’s state-controlled oil company, said today that it may have a reduction of $15 billion in net income between 2014 and 2018 in case of termination of current contracts with SBM Offshore.

To remind, SBM Offshore, the world’s largest provider of floating production units has been accused of bribing Petrobras’ officials to secure contracts.

Petrobras conducted the study as a response to the letter sent by the Brazil’s Office of the Comptroller General (CGU) that requested clarification on possible financial impacts and delays in schedules in the event of interruption of contracts with SBM.

Petrobras has said it considered variations in the production of oil, natural gas availability, operating costs and investments in the calculation. Petrobras has also added that it has not identified any reasons to terminate the current contracts signed with SBM, nor has the Comptroller General recommended such an action.

In late March 2014, Petrobras said it found no facts or documents evidencing payment of bribes to Petrobras employees.

According to allegations, SBM Offshore paid more than a $100 million in bribes to secure FPSO contracts.

However, Petrobras in June 2014 said it would not be seeking bids from SBM Offshore, as long as the Dutch supplier of floating production units was under bribery investigation in Brazil.

Following discussions with Petrobras, SBM Offshore on June 12 said it would not take part as an international contractor in the current tenders for the Tartaruga Verde and Libra fields.

 

Offshore Energy Today Staff, July 07, 2014

 

 

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