Offshore drilling contractor Vantage Drilling Co. said in a securities filing that it has “reached an agreement in principle” with the Securities and Exchange Commission regarding a previously disclosed investigation into potential violations of the Foreign Corrupt Practices Act.

In August 2015, Vantage Drilling Co. (VDC) disclosed in a quarterly report that it “became aware of media reports” that Hamylton Padilha, one of its agents in Brazil used in the contracting of the Titanium Explorer drillship, “has entered into a plea arrangement with the Brazilian authorities in connection with the agent’s role in obtaining bribes on behalf of former Petrobras executives.” VDC said it confirmed that the agent provided evidence to the Brazilian authorities of an “alleged bribery scheme between the former Petrobras executives and a former director of Vantage.” The director, Hsin-Chi Su, was the sole owner of the company that owned Titanium Explorer at the time the agent allegedly paid the bribe.

In August 2017, Vantage Drilling said that it received a letter from the Department of Justice “acknowledging our full cooperation in the DOJ’s investigation and closing the investigation without any action against the company.”

On May 4, 2018, VDC said in its latest quarterly filing that it continues to cooperate in the SEC’s parallel investigation and has engaged in negotiations with the SEC’s Division of Enforcement to resolve the investigation. “We have reached an agreement in principle with the staff relating to terms of a proposed offer of settlement, which is being presented to the Commission for approval,” the filing stated.

Added VDC, “While there can be no assurance that the proposed offer of settlement will be accepted by the Commission, the company believes the proposed resolution will become final in the second quarter of 2018. In connection with the proposed offer of settlement, we have accrued a liability in the amount of $5 million.”

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