Petrofac fined $105 million, former executive jailed for bribery

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(Businesshala) – British oil services company PetroFac was fined 77 million pounds ($105 million) on Monday and a former executive jailed after pleading guilty to bribery in Iraq, Saudi Arabia and the United Arab Emirates .

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The fine at Southwark Crown Court in London is less than the $240 million the company said it could face for failing to prevent bribery between 2011 and 2017.

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Its shares jumped up to 17% after announcing their highest level since June 2020.

Former global sales chief David Lufkin, who pleaded guilty to 14 counts of bribing agents worth more than $80 million to affect contracts worth nearly $7.5 billion, was sentenced to two years in prison, a company spokesman said. of which 18 months were suspended.

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Lufkin’s lawyers were not immediately available for comment.

“All the employees involved in the allegations have left the business. This concludes the Serious Fraud Office investigation into the company. In determining the fine, the Court and the Serious Fraud Office upheld Petrofac’s corporate reform,” the company said.

PetroFac intends to proceed with a refinance prior to sentencing, which may include raising debt or equity.

With a four-year investigation by Britain’s Serious Fraud Office (SFO) hanging over its previous contracts, PetroFac has struggled to secure major contracts in the Middle East and has seen its shares battered.

The case is the second corporate guilty plea received by the SFO in nearly five months.

Former Airbus subsidiary GPT Special Project Management pleaded guilty in April to corruption in military contracts for Saudi Arabia.

($1 = 0.7363 pounds)

Reporting by Shadia Nasralla Additional reporting by Yadrisa Shabong and Kirsten Ridley Editing by Anil D’Silva and Mark Potter

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