Petrofac fined for bribery, shares surge

British oil services company Petrofac has been fined US$104.6 million (GBP 77 million) by a London court in relation to offering or making payments to agents in relation to projects in some countries in the Middle East. Upon the ruling the company's shares surged by 17 percent in London trading, which is he highest since June 2020.

Petrofac said the Southwark Crown Court on 4 October 2021 imposed the penalty. The court ruling said that the company failed to prevent its employees from offering bribery in relation to projects awarded between 2012 and 2015. All employees who were part of the scheme has left the company, Petrofac said.

The company has pleaded guilty for failing to prevent bribery between 2011 and 2017, to what its chairman has called a "deeply regrettable period".

“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,” added Petrofac’s Chairman René Médori.

“The penalty consists 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,” the company said in a statement.

A spokesperson for the company said former executive David Lufkin was sentenced to two years, 18 months of which were suspended, reported Reuters.

Despite the ruling, the spokesperson told Reuters that the court took into account the extensive programme of corporate reform that the company went through in the past years.
 
Britain's Serious Fraud Office (SFO) has been investigating Petrofac’s activities for the past four years. This has complicated the company’s ability to secure contracts in the Middle East region; nonetheless, their shares have been affected.