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TechnipFMC reserves $280 million for ‘global’ bribery resolution

London-based TechnipFMC plc said in an SEC filing Wednesday that it has set aside $280 million for a settlement of bribery-related offenses with authorities in the United States, Brazil, and France.

The oil and gas services company said the investigation relates to “potential violations of anticorruption laws relating to historical projects in Brazil, Equatorial Guinea, and Ghana, and Unaoil contracts.”

TechnipFMC didn’t say how the estimated penalties of $280 million might be allocated among the DOJ and SEC and enforcement agencies in Brazil and France.

The company was formed through the 2017 merger of UK-based FMC Technologies Inc. and French oil-services giant Technip SA.

In 2010, Technip SA paid $338 million to resolve FCPA offenses in Nigeria.

Technip was one of the partners in the KBR-led TSKJ joint venture.

Between 1995 and 2004, the joint venture used massive bribes to win contracts worth $6 billion to build massive LNG facilities on Nigeria’s Bonny Island.

On Wednesday, FCPA Tracker alerted users to TechnipFMC’s disclosure about the $280 million reserve.

The company’s February 20, 2019 Form 8-K said,

As previously disclosed, we are cooperating with the U.S., Brazilian, and French authorities in their investigations of potential violations of anticorruption laws relating to historical projects in Brazil, Equatorial Guinea, and Ghana, and Unaoil contracts. We have been informed that these authorities have been coordinating their investigations, which could result in a global resolution.

These matters have progressed to a point where a probable estimate of the aggregate settlement amount with all authorities is $280 million for which we have taken a provision in the fourth quarter and year ended December 31, 2018. These matters involve negotiations with law enforcement authorities in three separate jurisdictions, and there is no certainty that a global settlement will be reached or that settlement will not exceed the provision.

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Harry Cassin is the publisher and editor of the FCPA Blog.

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