Global rig provider Transocean is the latest to be named in the Petroleo Brasileiro SA (Petrobras) corruption scandal Lava Jato, after a Petrobras former executive testified to receiving payments from a Transocean representative.
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The Sedco Express. From Transocean. |
Transocean denied any wrongdoing following a statement made by Eduardo Costa Van Musa relating to the drilling contract for the Petrobras 10000 to the Brazilian authorities investigating corrupt practices relating to Petrobras.
According to Transocean, in his statement, Musa said he believed he received payments from someone claiming to be a commercial representative of Transocean even though Musa also asserted that no such payments were necessary as Transocean had been awarded the contract as it was the best technical and economic bidder in a competitive process.
"Transocean has not identified any wrongdoing by any employee or any of its agents in connection with the company's business. Transocean is investigating these recent allegations made by Musa and will also continue its efforts to ensure no violation of company policy or law has, or will, occur. Finally, if requested, Transocean will cooperate with governmental investigations. Transocean is committed to doing business lawfully and with the highest ethical standards," Transocean said in a statement. "In addition, Transocean has been following the ongoing investigations in Brazil and has taken what it and its outside counsel believe are appropriate responsive measures."
According to his testimony, Musa said that in late 2007 he was approached by one of former head of Petrobras’s international division Nestor Cervero’s assistants, who offered part of the commission if Transocean won a contract to operate the Petrobras 10000 drilling rig. Musa then met a man who presented himself as a Transocean agent named Carlos Moura to discuss the contract tender. Transocean, based in Vernier, Switzerland, submitted the most competitive bid for contract, and Musa started receiving payments in 2012 from the agent. Musa never spoke about the contract directly with Cervero, according to the testimony. None of the testimony indicates he had any contact with Transocean apart from the alleged agent named Carlos Moura, according to Bloomberg.
Transocean
Transocean reached two important Macondo-related settlement agreements that cover almost all outstanding claims against Transocean, arising from the April 2010 disaster in the Gulf of Mexico. As a result, the company experienced a positive 2Q 2015 report, with a US$408 million adjusted net income, a 2.5% increase from $398 million in 1Q 2015.
As of August, Transocean had a total of 25 cold stacked and 38 retired floaters. The company said it expects these numbers to increase with the over capacity of supply, and simply not enough demand in the near- to medium-term.
Also in August, Transocean inked about $35 million in contract extensions from US supermajor Shell and Reliance Industries.
Petrobras
Earlier this month, the Brazil state-run company reported several increases in production that led to record highs for Petrobras.
For oil and natural gas, in Brazil and abroad, production was 2.88 MMboe/d for the month of August, maring an increase of 4.5% year-over-year at 2.76 MMboe, and 0.8% higher than the company’s record of 2.86 MMboe reached in December 2014.
Lava Jato
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Brazil federal police. Image from Mayer Brown. |
As US-based global energy law firm Mayer Brown calls it: “the largest corruption investigation in the world,” Lava Jato has a global span of players in the corruption probe.
Most recently, Vantage Drilling was named in the scandal as the company confirmed it was aware that its agent used in contract negotiations with Petrobras, Hamylton Padilha, was cooperating with, and made statements to Brazilian authorities that were investigating the Lava Jato scandal.
“We have not been able to confirm these statements. Mr. Padilha has acted as an agent representing numerous international companies in connection with their drilling contracts in Brazil over a period of many years. Furthermore, if Mr. Padilha committed any illegal acts, he was not acting on our behalf or upon any instructions from the company. While we have not been contacted by any governmental authority investigating these matters, Vantage supports cooperation with the Brazilian authorities and remains committed to conducting our operations in accordance with the highest standards of business ethics,” Vantage said in a 30 July statement.
Although the corruption from Lava Jato is spreading like wildfire throughout the oil and gas industry, and has left Petrobras’ audited financial reports reflecting a $2.1 billion write down for corruption, and a $14.8 billion impairment, it is also creating several business opportunities by opening up Brazil’s doors to other companies and leaving the playing field wide open.
Read more:
Petrobras reveals historic production levels
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