SBM Offshore said on Thursday that an interim judge in Brazil ordered Petrobras to begin withholding a percentage of the monthly payments due to SBM Offshore under certain charter contracts as collateral related to the misconduct lawsuit. The action was filed by the Federal Public Ministry in December 2017, based on the Brazilian Law of Improbity, in the Federal Court of Rio de Janeiro, against, among others, SBM Offshore. The federal prosecutor asked the court to impose a provisional measure as a way to secure the payment of damages potentially awarded.
The decision to withhold certain monthly payments references the fact that SBM Offshore is based abroad and the recovery of the company from any damages depends on international legal cooperation and (in) availability of assets in the future, said the FPSO expert. According to SBM Offshore, before making a decision on the amounts to be withheld, the judge is requesting more information from Petrobras and SBM Offshore.
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SBM Offshore “Strongly Disagrees”
“Petrobras is asked to indicate its interest in becoming a plaintiff in the misconduct action, as well as to provide evidence regarding the impact of the withholding of amounts. The Company is requested to provide financial information on the contracts that are part of this litigation. The federal government is also requested to indicate its interest in this litigation,” added SBM Offshore.
The Dutch supplier of floating production units added: “The Company strongly disagrees with the provisional decision, is seeking further clarifications, and is taking all appropriate measures to defend its interests. The company will inform the markets if and when new information becomes available.”
Additionally, SBM Offshore said that in recent months, the discussion among the Ministry of Transparency, Inspection, and Control (MTFC), the General Advocacy of the Republic (Advocacia Geral da União – AGU), Petrobras, and SBM Offshore, related to the leniency agreement, has progressed.
“The Company has contacted the parties in this discussion to assess the next steps in light of the development of the Law of Improbity. Under the current circumstances, the Company cannot guarantee that a satisfactory resolution will be reached,” said SBM Offshore.
According to 2017 figures, SBM Offshore was responsible for the operations of 14 units and the maintenance of 16 units in the global rental fleet, consisting of 13 FPSOs, 1 FSO, 1 MOPU, and 1 semi-submersible unit. In 2017, Brazil accounted for the majority of SBM Offshore’s fleet operations, with a total of seven offshore FPSOs in Brazil, with a production capacity of 870,000 bopd.

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