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 | Investigations Dataset

Stanford Foreign Corrupt Practices Act Clearinghouse a Collaboration with Sullivan & Cromwell LLP

Investigations Dataset

 
Investigation into McDermott International's Activities with Keppel Corporation in Brazil re: Petrobras · McDermott International, Inc.

Information & Summary

Investigation into McDermott International's Activities with Keppel Corporation in Brazil re: Petrobras

Related FCPA Matter:   McDermott International and Keppel Corporation's Involvement with Petrobras Information

Information & Summary

Investigation Name:    Investigation into McDermott International's Activities with Keppel Corporation in Brazil re: Petrobras

Trend:    Petrobras

Type of investigation:    Internal, DOJ

Other Agencies Investigating/Assisting with DOJ Investigation:    Unknown

Whistleblower:    Unknown

Summary

McDermott International was a U.S.-based and Panama-incorporated multinational engineering and construction services company with significant interests in the oil and gas industry. The company co-owned a number of entities with Singaporean company Keppel Corporation and its subsidiaries that is collectively refered to as "FloaTEC."

Upon learning of allegations that a Keppel agent had made improper payments to a former Petrobras employee in order to secure project awards for a number of Keppel-affiliated projects, including a FloaTEC project, McDermott initiated an internal investigation. Though the Keppel agent later entered into a plea agreement with Brazilian authorities admitting to having made improper payments, McDermott's internal investigation found no evidence that it or any FloaTec employees or agents engaged in any misconduct. In light of the allegations, McDermott voluntarily contacted the DOJ and informed them of the results of their investigation. The DOJ subsequently requested additional information, to which the company responded.

According to McDermott's 10-K filed on February 21, 2018, the DOJ had not been in contact with the company since January 2017. The company's internal investigation found no evidence of improper payments.

The last filing made by McDermott that mentioned the investigation was an 8-K filed on July 31, 2018. It is presumed that the DOJ investigation concluded.

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