Dutch oil and gas company SBM Offshore disclosed in an earnings report yesterday that it could end up shelling out as much as $240 million to resolve an ongoing Department of Justice investigation concerning potential bribery payments made to government officials in Angola and Equatorial Guinea.

In April 2012, SBM Offshore launched an internal investigation, which uncovered evidence that some of its agents may have made bribery payments to government officials in Angola and Equatorial Guinea. The company said it voluntarily reported its internal investigation to the Dutch Openbaar Ministerie and the Justice Department.

Following the conclusion of a two-year internal investigation in April 2014, SBM Offshore revealed that it had paid approximately $200 million in commissions to agents from 2007 through 2011, the majority of which were made to three countries: Equatorial Guinea ($18.8 million); Angola ($22.7 million); and Brazil ($139.1 million). Additionally, SBM Offshore said evidence revealed that payments may have been made directly or indirectly to government officials in Angola and Equatorial Guinea.

With respect to Brazil, despite some red flags, the investigation “did not find any credible evidence” that the company or its agent made improper payments to government officials, including to employees of state-owned companies. “Rather, the agent provided substantial and legitimate services in a market that is by far the largest for the company,” SBM Offshore stated.

In its latest earnings report, SBM Offshore said it is “discussing a potential settlement of the issues arising from the investigation.” Consequently, it recorded a non-recurring charge of $240 million in the first half of 2014, “reflecting the information currently available to the company.”

“Until the matter is concluded, SBM Offshore cannot provide further details regarding a possible resolution of the issues arising from the investigation, and no assurance can be given that a settlement will actually be reached,” the company stated.

For the time being, it will keep the market informed on any new developments.

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