Petrofac shares rise after pleading guilty to seven corruption counts
By Joe Hoppe
The shares of Petrofac Ltd. rose on Friday after saying it struck a plea deal with the UK’s Serious Fraud Office in an investigation into the company’s failure to prevent corruption.
Shares at 1:31 p.m. GMT were up 13.5 pence, or 12%, to 122.0 pence.
The energy industry service provider said it would plead guilty to seven counts of failing to prevent former Petrofac employees from offering or making payments to agents involved in projects awarded in Iraq, the United Arab Emirates and Saudi Arabia between 2012 and 2015, in violation of the UK Bribery Act 2010. The offers or payments were made between 2011 and 2017, he said.
The Jersey, UK-based company said a conviction is expected on September 27 and a penalty will be passed at the sole discretion of the court.
Petrofac said the penalty may reflect the company’s ability to pay, as well as the office’s recognition that the company has different leadership, personnel, compliance and assurance processes.
On January 15, former global sales manager for Petrofac, David Lufkin, pleaded guilty to bribery and payments worth around $ 3.3 billion. Mr Lufkin also pleaded guilty to 11 other corruption charges in February 2019.
“Petrofac has lived in the shadows of the past, but today it is a profoundly different company, where stakeholders can be assured of our commitment to the highest standards of business ethics, where that we operate, ”said President René Medori.
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