Brazil Signs Leniency Deal With Petroleo Brasileiro And SBM Offshore

(RTTNews) - SBM Offshore N.V. (SBFFY.PK) announced that it has signed leniency deal on Friday with Brazil's federal prosecutors and Petroleo Brasileiro SA (PBR) that closes out the inquiries of the MPF, the MTFC and Petrobras into the payment of undue advantages to employees of Petrobras.

Under terms of Settlement Agreement, SBM Offshore is granted, by the MTFC, the MPF, the AGU and Petrobras, full discharge and exemption from legal actions for all matters related to or arising from any acts relating to its then main Brazilian agent and his companies over the period 1996 - 2012 and all related investigations conducted by Petrobras, the MPF and the MTFC.

SBM will be immune to new lawsuits concerning the case, the federal prosecutors' office for Parana state, which is conducting the probe.

Under the agreement, SBM will pay a $162.8 million fine in cash, of which Petrobras, as the oil company is known, will receive $149.2 million, $6.8 million to the MPF and $6.8 million to the Council of Control of Financial Activities.

SBM's current contracts with Petrobras will be reduced by 95%, representing a nominal value of approximately $179 million over the period 2016 to 2030. SBM will be allowed to bid for new Petrobras contracts.