DoJ Fine Technip $296mn FCPA

On June 26, DoJ announced settlement of foreign bribery case.

  • TechnipFMC and subsidiary Technip USA agreed to pay over $296mn in FCPA fine.
  • Company is a global provider of oil and gas services, and product of 2017 merger
    between two predecessor companies, Technip S.A. and FMC Technologies (FMC).
  • Charged 2 separate bribery schemes: Technip Brazil bribes, and FMC Iraq bribes.
  • Follows 2010 $240mn FCPA penalty paid by Technip, re Nigeria bribery

Brazil Scheme

  • From about 2003-13, Technip conspired with Keppel Offshore & Marine (KOM) of Singapore, and their prior consultant, to give him $69mn commission payments.
  • Consultant passed along part of $69mn, as bribes to Brazil government officials.
  • Brazilian officials were employees with Brazil state-owned oil company, Petrobras.
  • Bribes paid to secure improper advantage and business with Petrobas for Technip.
  • Made more than $6mn in corrupt payment to the workers’ party officials in Brazil.
  • Consultant pleaded guilty to conspiracy to violate the FCPA, awaiting sentencing.

$214mn Penalty to Brazil

  • In related case, company settled with Brazil authorities for $214mn for bribery.
  • US will credit amount TechnipFCM pays to Brazil authorities, agreed to $214mn.

Iraq Scheme

  • From 2008-2013, FMC paid bribe to at least seven government officials in Iraq.
  • Officials from Iraq ministry of oil, South Oil Company, and Missan Oil Company.
  • Payments made via Monaco-based intermediary company to win over business.

Deferred Prosecution

  • TechnicFMC entered deferred prosecution agreement requiring rigorous internal
    controls, and to cooperate with DoJ investigation, to avoid criminal prosecution.

Remedial Action

  • TechnipFMC given credit for extensive remedial measures, cooperating with DoJ.
  • Disciplinary action on former and current employees in relation to its misconduct.
  • Change Brazil operations, so no longer engages in practices leading misconduct.
  • Required employees and third parties, to undergo additional compliance training.
  • Made specific enhancement to company internal control and compliance program.

Related Enforcement Action

  • In 2017, KOM and US subsidiary agreed pay $422mn to authorities in US, Brazil,
    Singapore on a related scheme, a senior legal officer pleading guilty.