Petrofac fined GBP77mln for Middle East bribery scandal

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Petrofac Limited (LSE:PFC) shares shot higher as the oil installation specialist seemingly got off lightly after pleading guilty to bribery allegations


A judge at Southwark Crown Court today imposed a total penalty of GBP77mln (in relation to seven historic offences of failing to prevent former Petrofac Group employees from offering or making illegal payments in a number of Middle East countries.


All employees involved in the charges have left the business said the company, which added the SFO inquiry is now concluded


Petrofac said that in setting the fine the judge has taken into account its actions to rectify the faults through changes in leadership, personnel and its compliance and assurance processes.


Petrofac to plead guilty on seven counts in Middle East bribery case


On Friday, the company said the penalty might be in the order of US$240mln or around GBP100mln more than the amount levied with the SFO said to want a fine of GBP154mln.


The penalty consisted of a confiscation order of GBP22.8mln; a fine of GBP47.2mln and the Serious Fraud Office’s costs of GBP7mln.


Chairman Rene Medori 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.


“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.”


Shares rose 7.4% to 186.8p.

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