SHI to Pay $75m in Fine: US Justice Dept
South Korean shipbuilder Samsung Heavy Industries Co. (SHI) has agreed to pay $75 million in penalties to avoid prosecution in the United States over its scheme to pay millions of dollars in bribes to Brazilian officials to win a contract.“Samsung Heavy Industries paid millions of dollars to a Brazilian intermediary, knowing that some of that money would be used to bribe high-level executives at Petrobras and obtain a lucrative shipbuilding contract,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
CMPort Acquires Container Terminal in Brazil
China Merchants Port Holdings Company Limited (CMPort) said that the Company's transaction regarding the acquisition of Paranaguá Container Terminal (TCP) in Brazil is completed. The acquisition is the biggest merger and acquisition so far in Brazilian and Latin American port sector. It is not only the first investment of CMPort in Latin America, but also the first M&A in mature port assets overseas with controlling stake. Since then, TCP has officially become a subsidiary of CMPort…
China Ramps up Role in Brazilian Transport Infrastructure
Chinese companies signed commitments on Friday to finance and build railways and ports that will help Brazil export iron ore and soybeans, the two main commodities it sells to China, during a state visit by Brazilian President Michel Temer. China Communication Construction Co Ltd agreed to finance the expansion of the Amazon basin port of Itaqui in the state of Maranhão, Brazilian Transport Minister Maurício Quintella told reporters in Beijing. He gave no further details. Separately…
Brazil Fines Samarco 142 mln Reais for Damages
Brazil's Environment Ministry fined mining company Samarco 142 million reais ($41.6 million) for damages to three protected areas resulting from a tailings dam burst in November, the ministry said on Friday. The ministry said in a statement the three areas on the coast of Espirito Santo state were contaminated by metals such as lead, coper and cadmium. The metals spilled from the dam and were carried all the way from Minas Gerais through the Doce River to the ocean. Experts from the Environmental Ministry found several species had been wiped out in the contaminated areas, the statement said.
Brazil Prosecutors Charge 12 in SBM Offshore Graft Scheme
Brazilian prosecutors on Thursday charged 12 people with a bribery scheme involving Dutch firm SBM Offshore NV, the world's top leaser of oil production ships, and state oil firm Petroleo Brasileiro SA . Police said they had four arrest orders as part of the scheme, dubbed "Operation Black Blood," though two of them involved suspects already in jail in the southern city of Curitiba, the epicenter of a broader investigation into price fixing and bribery on Petrobras contracts with engineering firms.
Brazil Gives SBM Ultimatum in $250M Bribery Settlement
Brazil has told Dutch SBM Offshore NV, the world's top oil production ship leaser, to agree soon to a $250 million bribery settlement if it wants to regain its biggest client in the world's largest oilship market, a government source told Reuters. The ultimatum gives SBM several days to sign a leniency deal that includes financial reparation and other clauses such as cooperation with a corruption investigation. The settlement, which has been under negotiation for months, would lift a ban on the Amsterdam-based firm from bidding for new business with Petrobras, Brazil's state-run oil company.
Vale CEO Ferreira to Lead Petrobras Board
Brazil's government has selected Murilo Ferreira, the chief executive officer of miner Vale SA, to head the board of state-run Petroleo Brasileiro SA, according to a filing from the oil company on Friday. The board will vote on the nomination at a shareholder's meeting on April 29, the filing said. The Brazilian government is Petroleo Brasileiro's controlling shareholder. On Thursday Petrobras, as the state-run firm is better known, named Luciano Coutinho, the head of Brazil's state development bank BNDES as its chairman until the next shareholder meeting.
Brazil's QGEP, Petrobras return Exploration Block End Farm-in
Brazilian natural gas and oil producer QGEP Participacoes SA said on Friday it abandoned an offshore exploration block it owns with Brazil's sate-run oil company Petrobras after deciding continued exploration was not economically viable. The returned block, known as CAL-M-312, is in the Camamu-Almada basin off Brazil's coast south of Salvador in Bahia state. QGEP owned 20 percent of the block and Petroleo Brasileiro SA, as Petrobras is formally known, owned 60 percent. The rest was owned by OP Energia Ltda. Returned blocks go back to the Brazilian government. QGEP, the country's No.
Petrobras Offers Leniency Terms to Contractors
Brazil's Petrobras has asked contractors implicated in a kickback scheme with the state-run oil company to admit guilt and pay damages in return for lifting a ban on bidding for future contracts, Estado de S.Paulo reported on Saturday. The move is the latest example of how Petroleo Brasileiro, as the firm is formally known, and the Brazilian government are trying to stop the corruption scandal from paralyzing major projects in the country and weighing on the economy. The terms were laid out in an email sent on Dec.
Modules for Petrobras' FPSO delivered
The "Consórcio Tomé Ferrostaal" (CTF) named consortium of Rheinmetall International Engineering, a joint venture of Ferrostaal and Rheinmetall, and the Brazilian company Tomé Engenharia have handed over two modules for the first of a series of six vessels to an international consortium led by Petrobras. "CTF" was awarded in 2012 the modules order to equip six FPSO (Floating, Production, Storage and Offloading) vessels. At the end of October, the Barge S. Tomé loaded with the Modules…
Port Modernization Critical to Export Futures
Readiness for Panama Canal Expansion is Just One Variable Driving Global Play. Inland Waterways, Ports Must Tackle Time and Money Issues to Play in the Post-Panamax Era. It’s risky business. It always comes down to time and money, doesn’t it? And when it comes to the readiness of U.S. ports and inland waterways to handle the opening of the expanded Panama Canal, service post-Panamax ships and deliver exports to burgeoning middle classes in southeast Asia and China, it’s the same old song and dance: Will they have the money to get done what needs to be done…
From Norway to Brazil (and Back)
Norway’s involvement with this South American energy powerhouse predates the current oil boom. Today’s commerce model flows in both directions in ever increasing frequency and volumes. Make no mistake about it: Brazil is important to Norway. So important that the Norwegian government’s strategy for developing additional business here includes broad reaching initiatives such as Innovation Norway (IN), providing advisory and networking services for Norwegian companies in Rio de Janeiro…
Brazil Maritime Sector: Latest News
The following news round up on the Brazilian marine and offshore market is provided by SSA (Voice of UK Marine Industry). Transpetro will issue a new tender for the procurement of three bunker vessels under Promef II (2nd phase of the Fleet Modernization and Renewal Programme) up to June 30. The Brazilian government confirmed the delivery of the first vessel to 2019 and the remaining two vessels in 2020. These vessels were originally contracted to Superpesa to be delivered in 2013, but because of the delay in the delivery dates, Transpetro cancelled the orders in December 2012.
Vale: Banking on Big in Brazil
A full range of risk awaits Vale’s new transport strategy. Are they on the right course? Vale do Rio Doce, the second largest mining company in the world, is facing various challenges in 2012. These include low iron ore prices in the international market, logistics and casualties involving its iron ore transport trains and ships. If that wasn’t enough, the company now finds itself going through a judicial battle with the Brazilian Internal Revenue office (Receita Federal), primarily revolving around taxes imposed on profits that Vale earned through international transactions.
BRAZIL: U.S. Find New Opportunities
While the U.S. economy may be in the doldrums, smart U.S. companies are looking increasingly to exports to help their bottom lines. A major market for U.S. exports is Brazil. This article examines new market opportunities in the oil and gas, shipbuilding and port infrastructure in Brazil, and identifies certain financing sources available to U.S. companies seeking to participate in these markets. Brazil’s growth in recent years has been amazing. Over the past 5 years, real GDP growth in Brazil has averaged 4.3% annually (as compared to 1.3% annually in the U.S.), reaching 7.5% in 2010.
BW Offshore: The Most Advanced FPSOs in Brazil
The abundance of deepwater O&G prospects, combined with the lack of oil transportation infrastructure in Brazil, has increasingly favored FPSOs as a production solution. Petrobras presently has more than 25 FPSOs in operation and this number is expected to double during the next decade. BW Offshore is a leader in FPSOs and FPSO operations. Although it has been quoting for jobs in Brazil for some years, the company finally established a local office in 2008. BW Offshore currently…