business news

Petrofac faces a fine of £77M for its failure to prevent bribery

Petrofac faces a fine of £77M for its failure to prevent bribery
Petrofac faces a fine of £77M for its failure to prevent bribery

Petrofac, a British oilfield services firm, has reportedly been ordered to pay £77 million in fines for seven different charges of failing to prevent corrupt practices between 2011 and 2017.

Following an inquiry by the Serious Fraud Office (SFO), the oilfield services company pled guilty last week to failing to prevent its leading executives from paying bribes totaling £32 million.

The funds aided Petrofac in securing contracts worth more than £2.6 billion in Saudi Arabia, the United Arab Emirates, and Iraq.

A £47 million fine and £22 million confiscation order was imposed by a London judge, and the firm has been ordered to cough up over £7 million in legal fees as well.

Lisa Osofsky, Director of SFO, stated that Petrofac Limited, after pleading guilty, has admitted that top officials within the Petrofac Group behaved intentionally and without a sense of morality in the chase of greed. The inability of the firm to prohibit this behavior disrupted competitive market circumstances and tarnished the O&G industry.

The court’s verdict should serve as a cautionary tale; the SFO will utilize all of its powers to find and punish corporations and people whose illegal behavior jeopardizes the integrity and reputation of the United Kingdom. Osofsky added.

Petrofac’s stock increased by up to 16% as a result of the outcome. They were trading at 182p at the conclusion of play, up 4.6%.

Petrofac chairman, René Médori, remarked that this marks the end of a terrible chapter in the company's history. As recognized by the SFO and the Court, the firm has accepted responsibility, changed, and learned from the mistakes made in the past.

Most significantly, the firm's substantial effort since the SFO investigation started implies that Petrofac today has a robust compliance and governance system that meets or surpasses international best practices. Médori added.

Médori also stated that the SFO-uncovered prior behavior would not be feasible today, and the firm looks to the future as a stronger and more focused organization, well placed to capitalize on the possibilities it sees ahead.

Source credit: https://www.energyvoice.com/oilandgas/353943/petrofac-fined-70-million-by-uk-court-for-bribery-offences/

About the author

Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.