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Extractive Industries/Mining/Oil & Gas
Vernier, Switzerland
Nationality of Foreign Officials: Brazil
Summary of Allegations:
The company is investigating allegations concerning the award of a drilling contract to Transocean by Petrobras. Former Petrobras executive Eduardo Costa Vaz Musa, in his plea bargain testimony in the Petrobras investigation, alleged that Transocean offered Musa payments in 2007 if Transocean won a drillship contract. Musa allegedly began receiving payments in 2012 after Transocean won a contract to operate Petrobras' 10,000 drilling rig.
Approximate Alleged Payments to Foreign Officials: Unspecified
Business Advantage Allegedly Obtained: contract with Petrobras
Nationality of Foreign Officials: Nigeria
Summary of Allegations:
From at least 2002 through 2007, Transocean Inc. allegedly made at least USD 90,000 in improper payments through its customs brokers to Nigerian customs officials to circumvent Nigerian customs regulations in order to extend the temporary importation status of its drilling rigs, to obtain false paperwork associated with its drilling rigs and to obtain inward clearance authorizations for its rigs and a bond registration. Transocean Inc. also allegedly made improper payments to Nigerian government officials through Panalpina World Transport Holding Ltd.'s Pancourier express courier service in order to expedite the import of various goods, equipment and materials into Nigeria; in most instances, customs duties for these items allegedly were not paid by either Panalpina or Transocean Inc. In addition, Transocean allegedly made improper payments through Panalpina to Nigerian government officials to expedite the delivery of medicine and other materials into the country. Transocean Inc.'s alleged total gains from the conduct were approximately USD 5,981,693.
Approximate Alleged Payments to Foreign Officials: At least USD 90,000
Business Advantage Allegedly Obtained: Circumvention of Nigerian customs regulations, which resulted in gains of approximately USD 5,981,693
Agencies: Brazil: Comptroller General (CGU)
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:
BRAZIL (Petrobras) allegations
Allegations concerning a contract awarded to Transocean by Petrobras became public through an investigation by Brazilian authorities into corruption at Petrobras.
Agencies: Nigeria: Economic and Financial Crimes Commission
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:
Nigeria allegations
On January 13, 2011, it was reported that Nigeria's Economic and Financial Crimes Commission (EFCC) had detained twelve oil-industry employees, including two Transocean employees, in connection with the agency's investigation into the bribery scheme.
Agencies: United States: Department of Justice, United States: Securities and Exchange Commission
Results: Civil Injunction, Civil Penalty, Criminal Fine, Deferred Prosecution Agreement, Disgorgement
Year Resolved: 2010
Compliance Monitor:
Ongoing: No
Details:
Nigeria allegations
On November 4, 2010, Transocean Inc. and the U.S. Department of Justice ("DOJ") entered into a deferred prosecution agreement that requires, among other things, Transocean Inc. to pay a USD 13.44 million criminal penalty. The same day, the DOJ charged Transocean Inc., a Caymans Island subsidiary of Transocean Ltd., with conspiring to violate the FCPA's anti-bribery and books and records provisions; violating the anti-bribery provision; and aiding and abetting the violation of the books and records provisions. The U.S. Securities and Exchange Commission ("SEC") charged Transocean Inc. with violations of the U.S. Foreign Corrupt Practices Act's ("FCPA") anti-bribery, books and records, and internal controls provisions in connection with the above-mentioned payments, as well as various other improper or questionable payments.
On the same day, without admitting or denying the SEC's allegations, Transocean Inc. consented to the entry of a court order permanently enjoining it from future violations of the FCPA's anti-bribery, books and records and internal controls provisions. The company was ordered to pay USD 5,981,693 in disgorgement, plus prejudgment interest of USD 1,283,387.
Also on the same day, without admitting or denying the SEC's allegations, GlobalSantaFe consented to the entry of a court order permanently enjoining it from future violations of the FCPA's anti-bribery, books and records and internal controls provisions. The company was ordered to pay disgorgement of USD 2,694,405, prejudgment interest of USD 1,063,760, and a civil penalty of USD 2.1 million.
Agencies: United States: Department of Justice, United States: Securities and Exchange Commission
Results:
Year Resolved: 2018
Compliance Monitor:
Ongoing: No
Details:
BRAZIL (Petrobras) allegations
On its Form 10-Q filed with the SEC on 4 November 2015, Transocean disclosed that the company is investigating allegations made by a former Petrobras employee relating to the award of a drilling services contracted to the company. The company further disclosed that they have not identified any wrongdoing by any of its employees or agents in connection to their business in Brazil. Transocean will continue to investigate the allegations and will cooperate with the authorities, if contacted.
On 05 March 2018, the company received a letter from the SEC stating the investigation had been concluded and the SEC did not intend to recommend any enforcement action against the company.
On 04 April 2018, the company received a letter from the DOJ stating that the DOJ had closed its inquiry into the matter.
Discovery Method: Voluntary Disclosure
Details:
GlobalSantaFe voluntarily disclosed its internal investigation to the DOJ and SEC and, at their request, expanded its investigation to include the activities of its customs brokers in certain other African countries.
Country: Nigeria
DOJ/SEC investigations can spring from the agencies' investigations of business partners or competitors of the affected entities.