SBM Offshore denies withholding price sensitive information

Dutch FPSO supplier SBM Offshore might need to pay 2 million euros for not disclosing price sensitive information timely between 2012-2014, which SBM has denied.

This was related to SBM’s internal investigation over alleged improper payments by its agents to sales agents and foreign government officials in Equatorial Guinea, Angola, and Brazil in the period from 2007 through 2011.

“The Dutch Autoriteit Financiële Markten (AFM) has informed the Company that it is of the opinion that certain public disclosures made by the Company in relation to the Company’s internal investigation into alleged improper sales practices prior to 2012 were not made timely,” SBM Offshore said on Friday.

SBM Offshore said that AFM decision relates to the period from March 27, 2012, until the SBM Offshore announced the settlement with the Dutch Public Prosecutor’s Office on November 12, 2014.

To remind, one of the world’s largest providers of floating production storage and offloading units in 2014 reached an out-of-court settlement with the Dutch Public Prosecutor’s Office (Openbaar Ministerie) over the inquiry into alleged improper payments.

SBM Offshore to fight the decision

This settlement was related to improper payments to sales agents and foreign government officials in Equatorial Guinea, Angola and Brazil in the period from 2007 through 2011 as identified by the Openbaar Ministerie, with those payments constituting the indictable offenses of bribery in the public and the private sector as well as forgery.

According to Dutch authorities, from 2007 through 2011, SBM Offshore paid approximately $200 million in commissions to foreign sales agents for services. The largest part of these commissions, totaling US$ 180.6 million, relate to Equatorial Guinea, Angola, and Brazil.

SBM Offshore on Friday said that the Dutch Autoriteit Financiële Markten was of the opinion that in four instances the SBM Offshore violated provisions of the Dutch Financial Supervision Act on disclosing price sensitive information without delay.

SBM Offshore “The AFM has decided to impose a fine on the Company of EUR 2 million. The Company disagrees and is of the opinion that it has timely disclosed relevant information as and when facts were established throughout the period in question. It will, therefore, oppose the decision and initiate a procedure against the decision as provided by law and, if needed, appeal the decision in court.”

Offshore Energy Today Staff

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