SBM Offshore

SBM Offshore N.V. (IHC Caland N.V. prior to July 2005) is a Dutch-based global group of companies selling systems and services to the offshore oil and gas industry. Its constituent companies started their offshore activities in the early 1950s and SBM subsequently became a pioneer in single point mooring (SPM) systems. The firm leases and operates Floating Production Storage and Offloading vessels, and is involved in the design and engineering, the construction, the installation, the operation and the life extension of floating production solutions for the offshore Oils and Gas industry. It is a main board listed company on the Euronext Amsterdam stock exchange and has been a member of the AEX index since 2003. It has been engulfed by a massive corruption scandal in Brazil, where it bribed officials in the state oil company Petrobras in order to secure contracts. SBM Offshore has avoided criminal prosecution in the Netherlands by paying a record settlement of $240 million to the Dutch Public prosecutor 'While in Brazil the Petrobras corruption affair — and SBM Offshore’s major role in it — is inexorably building to a climax, the temperature in Netherlands appears to have dropped after a record settlement was reached with the Dutch Public Prosecutor (OM) in November last year. The biggest corruption case in the Dutch history was bought off by SBM for a record $240 million in exchange for which no court case followed and no admission of guilt was entered. To the OM it was important the company had implemented major reforms to prevent re-offending. "We are now a white swan in a pitch-black sea," said a relieved and proud SBM director Sietse Hepkema in an interview with leading Dutch newspaper NRC Handelsblad last December. The man hired to clean up the company said he didn’t expect further fines in Brazil. "I really think we paid our dues, "he said. And "I refuse to be Brazil’s smelly kid in the classroom."' In order to be able to take part in Petrobras contracts in the future, SBM has also agreed to a R$1 billion settlement with the Brazilian government. Nevertheless, many of SBM's executives still face criminal charges in Brazil.

The company was the first to offer an integrated oil and gas production service through the investment in a Floating Production Storage and Offloading (FPSO) unit. The lease and operation of FPSOs has become a large component of the company's activity and SBM Offshore now owns and operates the world's largest fleet. Other activities include design and engineering, turnkey supply, and specialised services such as maintenance and offshore installation. The most recent addition to the product line is midscale LNG (liquefied natural gas) FPSOs for a capacity in the range of 1 and 2 MTPA (Million Tonne Per Annum) with Nitrogen expansion liquefaction technology, developed in collaboration with The Linde Group.