Noble Corporation ("Noble") is a leading offshore drilling contractor for the oil and gas industry. In 1996, Noble moved from the NASDAQ to the NYSE and began trading under the symbol NE. Noble performs, through its subsidiaries, contract drilling services with a fleet of 69 offshore drilling units worldwide.
Under Nigerian law, customs duties generally were required to be paid for goods imported into Nigeria, such as rigs and vessels imported into Nigerian waters. In order to avoid these fees, companies could import rigs and other items on a temporary basis pursuant to which no customs duties would be assessed. Items imported under the temporary import process (TIP) could not remain in Nigeria longer than the period allowed for by the TIP and/or TIP extensions. Upon the expiration of the TIP (and related TIP extensions), the owner could either choose to permanently import the rig (known as "nationalizing") or export the rig and re-import it and obtain a new initial TIP. Throughout Noble's operations in Nigeria, Noble's Nigerian subsidiary ("Noble-Nigeria") chose to temporarily import rigs into Nigeria. Noble-Nigeria employed a Nigerian customs agent to apply for and secure its TIPs and TIP extensions.
Between January 2003 and May 2007, Noble-Nigeria paid the customs agent at least $79,026 in "special handling charges". Executives at Noble and Noble-Nigeria knew that some or all of the payments would be given to officials at the Nigeria Customs Service (NCS) in order to avoid the time, cost, and risks associated with exporting rigs and re-importing them into Nigerian waters after the period allowed for by the TIP had expired. The agent invoiced Noble-Nigera for the cost of the bribes, and Noble-Nigeria then reimbursed the agent. As a result of these payments, Noble wrongfully obtained profits and avoided costs of at least $4,294,933.
On November 4, 2010, without admitting or denying the SEC's allegations, Noble consented to the entry of a final judgment permanently enjoining it from violating the anti-bribery, books and records, and internal controls provisions of the FCPA. Noble was ordered to disgorge $4,294,933, and pay prejudgment interest of $1,282,065.
In a separate but related proceeding with the DOJ, Noble agreed to pay a $2,590,000 monetary penalty as part of a non-prosecution agreement. Due to Noble’s early voluntary disclosure, thorough self-investigation of the underlying conduct, full cooperation with the department and extensive remedial measures undertaken by the company, the department agreed not to prosecute Noble or its subsidiaries for the bribe payments.
