The SFO is investigating the activities of Petrofac Ltd, its subsidiaries, and their officers, employees and agents for suspected bribery, corruption and money laundering.
On Friday 24 September 2021, following requisition by the Serious Fraud Office (SFO), Petrofac Limited attended Westminster Magistrates’ Court where the company was charged with seven separate offences of failing to prevent bribery between 2011 and 2017.
Having been heard at Westminster Magistrates’ Court, the case was sent to the Crown Court, in line with the legal procedure for SFO cases into serious and complex financial crime.
The next hearing will take place on Monday 27 September 2021 at Southwark Crown Court, where pleas from the Defendant will be entered. Petrofac Limited has reported its intention to plead guilty, following a plea agreement it has entered into with the Serious Fraud Office.
On 6 February 2019, David Lufkin, 51, a British national, and previously Global Head of Sales for Petrofac International Limited, pleaded guilty at Westminster Magistrates’ Court to eleven counts of bribery, contrary to sections 1(1) and 1(2) of the Bribery Act 2010. These offences relate to the making of corrupt offers to influence the award of contracts to Petrofac worth in excess of USD $730 million in Iraq and in excess of USD $3.5 billion in Saudi Arabia.
David Lufkin’s charges included the following:
- Badra, Iraq
Payments of approximately USD $2.2 million were ultimately made by Petrofac to two agents in respect of a USD $329.7 million Engineering, Procurement and Construction (“EPC”) contract on the Badra oilfield in Iraq (the “Badra Phase One EPC contract”) awarded to Petrofac in February 2012.
Corrupt offers of payments were also made to an agent to influence the award of contract variations to the Badra Phase One EPC contract, and for the extension of the Badra Operations and Maintenance (“O&M”) contract. Petrofac was unsuccessful in obtaining these contracts and no payments were made to the agent.
- Fao Terminal, Iraq
Payments of approximately USD $4 million were ultimately made by Petrofac to an agent in respect of an O&M contract on the Fao Terminal project in Iraq (the “Fao Terminal O&M contract”). The Fao Terminal O&M contract, awarded to Petrofac in August 2012, together with yearly extensions awarded in 2013, 2014 and 2015, was worth approximately USD $400 million to Petrofac.
- Saudi Arabia
Payments of approximately USD $45 million were made by Petrofac to its agent in respect of the following contracts awarded to Petrofac in Saudi Arabia, between July 2012 and November 2015:
- Payments of approximately USD $5.8 million were ultimately made by Petrofac to its agent in respect of EPC contracts for the Petro Rabigh Phase II Petrochemical Expansion Project awarded in July 2012 and worth approximately USD $463 million;
- Payments of approximately USD $21.4 million were ultimately made by Petrofac to its agent in respect of EPC contracts for Jazan Refinery and Terminal Project awarded in December 2012 and worth approximately USD $1.7 billion; and
- Payments of approximately USD $19.5 million were ultimately made by Petrofac to its agent in respect of the EPC contract for a sulphur recovery plant as part of the Fadhili Gas Plant Project awarded in November 2015 and worth approximately USD $1.56 billion.
Corrupt offers of payments were also made to its agent for the award of other contracts at the time. Petrofac was unsuccessful in obtaining these contracts and no payments were made to its agent.
On 14 January 2021, David Lufkin pleaded guilty at Westminster Magistrates’ Court to three further counts of bribery. The offences relate to corrupt offers and payments made between 2012 and 2018 to influence the award of contracts to Petrofac in the United Arab Emirates worth approximately $3.3 billion.
Specifically, Mr Lufkin has pleaded guilty to his role in offering and making corrupt payments to agents to influence the award of an engineering, procurement and construction (EPC) contract to Petrofac in 2013 (and a variation to that contract awarded in 2014) on the Upper Zakum UZ750 Field Development Project, and a front-end engineering design (FEED) contract awarded to Petrofac in 2014 on the Bab Integrated Facilities Project, each located in Abu Dhabi. Total payments of approximately $30 million were made, or were due to be made, by Petrofac to those agents in connection with these contracts.
Tudalen wedi ei chyhoeddi ar 12 Mai 2017 | Tudalen wedi ei haddasu ar 24 Medi 2021