Sembcorp Marine Refutes Petrobras Fraud Allegations

Sembcorp Marine Singapore-based global marine and offshore engineering company Sembcorp Marine Ltd said it would rigorously defend itself in Petrobras fraud case if it is called to court. The announcement was issued as a response to media reports saying that Sembcorp Marine Ltd and its subsidiary Jurong Shipyard Pte Ltd have been named as defendants along with other shipyards and entities in a complaint filed by US energy investment company EIG Management against Petrobras with respect to their investments in Sete Brasil Participacoes SA (Sete). Specifically, EIG alleged that the entities conspired to induce funds managed by EIG to invest in Sete Brasil. The filing with the US District Court of Columbia named Keppel, Sembcorp Marine, Jurong Shipyard and Odebrecht as defendants in an amendment to USD 221 million lawsuit filed in February. Sembcorp Marine Ltd and Jurong Shipyard Pte Ltd believe that the allegations against them are entirely without merit and baseless.  They have not been served with the proceedings but if served, will rigorously defend the suit, the company said. Sembcorp Marine Ltd and its group of companies have strong commitment to corporate governance and adhere to highest standards in all its operations. Sembcorp Marine’s subsidiaries had in 2012 entered into contracts with the subsidiaries of Sete for the construction of seven drillships. However, in April Sete Brasils shareholders approved a resolution for the company to file for a judicial recovery. As a result, Sembcorp Marine launched arbitration proceedings against various subsidiaries of Sete Brasil under the said contracts, for which it had made provisions of S$329 million in the last financial year.