Following the announcement of Friday 1st October 2021, Petrofac Limited (the “Company” or “Petrofac”) announces that Southwark Crown Court imposed a total penalty of GBP 77 million (approximately US$104.6 million at current exchange rates) in relation to seven historic offences of failing to prevent former Petrofac Group employees from offering or making payments to agents in relation to projects awarded between 2012 and 2015, contrary to Section 7 of the UK Bribery Act 2010. All employees involved in the charges have left the business. This concludes the Serious Fraud Office’s investigation into the Company.
In determining the penalty, the Court and the Serious Fraud Office acknowledged Petrofac’s corporate reform through its transformation of the Company’s leadership, personnel, compliance and assurance processes.
The penalty is comprised of the following elements: a confiscation order of GBP 22.8 million payable by 3 January 2022; a fine of GBP 47.2 million payable on 14 February 2022; and the Serious Fraud Office’s costs of GBP 7 million payable on 14 February 2022.
Chairman René Médori said:
“This draws a line under a regrettable period of our history. We have taken responsibility, reformed and learned from these past mistakes, as acknowledged by the SFO and the Court. Most importantly, the extensive work that we have done since the SFO investigation began means that the Petrofac of today has a comprehensive compliance and governance regime that meets or exceeds international best practice. The past behaviour uncovered by the SFO would not be possible today, and we look to the future a better and more focused company, well positioned to capitalise on the opportunities we see before us.”
Group Chief Executive Sami Iskander said:
“We are now in a position to put this behind us. This part of our history does not represent the Petrofac of today – a company that as its new CEO I am proud to lead, and which operates upon the core principle of ethical business conduct, supported by a comprehensive governance regime. We have refined our best-in-class delivery capabilities, restructured the business around technical excellence, re-focused on our customers, hired new talent, and further sharpened our cost-competitiveness.
“We emerge from this cloud as the world needs more energy – both traditional energies that can be produced in the most efficient manner, and renewable energies on which a lower carbon world can be built. Petrofac is well positioned to support both, with the capabilities, experience, and expertise to deliver for our expanding customer needs. Our markets in both traditional and new energies are growing and we have a clear path to rebuild our business with a differentiated customer proposition that sets us apart.”