June 11, 2019 / 6:53 AM / 6 days ago

First job in sight for SBM in Brazil after corruption scandal

AMSTERDAM, June 11 (Reuters) - Dutch constructor SBM Offshore said on Tuesday it had signed a letter of intent with Brazil’s Petrobras to build and operate a new floating oil production, storage and offloading structure in the Mero field, off the coast of Rio de Janeiro.

SBM did not disclose terms. The structure is designed to produce 180,000 barrels of oil per day, and have a minimum storage capacity of 1.4 million barrels of crude oil, SBM said.

The contract is the first since SBM paid more than $200 million to settle charges it paid bribes before 2012 to secure contracts with Petrobras, which has been at the centre of Brazil’s largest corruption scandal amid investigations into a political kickback scheme involving contractors.

SBM had been blocked from the Brazilian market, one of its largest, until a final settlement last year.

“The signing of this Letter of Intent demonstrates again that SBM Offshore has started a new era of growth,” said CEO Bruno Chabas.

“Not only does this award represent the company’s re-entry in Brazil, one of the most important markets for the company with one of our key customers, it also re-confirms the competitiveness of our” products, he said. (Reporting by Toby Sterling; Editing by Mark Potter)

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