According to several announcements released by Singapore-based offshore engineering giant Seatrium (formerly Sembcorp Marine), the company will pay a total of approximately US$188 million in fines to the Brazilian and Singaporean governments to settle the “Operation Car Wash” anti-corruption case.
Operation Car Wash (Brazilian: Operacao Lava Jato) is a sweeping corruption investigation launched in Brazil in 2014. Seatrium announced in February that it had reached a settlement in principle with Brazilian authorities regarding Operation Car Wash. The case related to a contract Sembcorp Marine won from Sete Brasil a decade earlier, which was allegedly obtained through bribery.
Under the settlement agreement, Seatrium would pay approximately S$182.4 million in costs related to the investigation. Seatrium has also paid S$82.4 million in compensation to Keppel in connection with the case. Furthermore, Singaporean authorities have completed their investigation into allegations of corruption and bribery against Sembcorp Marine, determining that there is sufficient evidence to prosecute. Under a provisional agreement reached between the Singapore Corrupt Practices Investigation Bureau and Seatrium, the company was required to pay a fine of US$110 million to resolve the allegations in Singapore.
In a filing submitted to the Singapore Exchange on July 30, Seatrium stated that it had signed a “leniency agreements” with tBrazil’s Public Prosecutor’s office and would sign similar agreements with Brazil’s Attorney General’s office and its Comptroller General of the Union “iin the next few days.”
Under the terms of the latest leniency agreement, Seatrium is required to pay a final settlement of 729 million Brazilian reais (approximately US$131 million) to Brazilian authorities. Additionally, under an agreement with the Attorney General’s Chambers (AGC) of Singapore, Seatrium is required to pay a US$110 million fine to Singaporean authorities as part of a deferred prosecution agreement. Under the agreement, Seatrium will be exempt from criminal prosecution in Singapore if it meets certain conditions.
Although the agreement still needs to be approved by the Singapore High Court, the AGC has allowed Seatrium to deduct up to US$53 million from the US$110 million it owes to pay fines to Brazilian authorities.
That means Seatrium just needs to pay AGC US$57 million, bringing the total settlement amount to US$188 million. All payments have to be made by September 28, 2025, or else Seatrium will have to deal with inflation and exchange rate adjustments.
In addition, according to a statement from the Singapore AGC, Seatrium must “review and further enhance its ethics and compliance program to reduce the risk of similar conduct recurring.” If Seatrium fails to comply with the terms of the deferred prosecution agreement approved by the Singapore High Court, the deal may be terminated and criminal proceedings will be initiated by the Singapore AGC.
Following the final agreement with Brazilian and Singaporean authorities, Seatrium reversed a provision of S$14 million (approximately US$10.8 million) in its second-quarter financial results. In a filing with the Singapore Exchange, Seatrium stated: “As a result, the transaction will have no material impact on the Group’s earnings per share and tangible net asset value per share for the fiscal year ending December 31, 2025.”
With the conclusion of the deferred prosecution agreement and payment of the above amounts, Singapore authorities have concluded their joint investigation of Seatrium and will not take further action against the company or its executives.
Seatrium stated, “With this positive development, the company is keen to move forward, to ride on the energy market tailwinds to create transformative offshore energy solutions globally and ultimately deliver long-term sustainable growth. At the same time, the company firmly adheres to the highest standards of corporate governance and business integrity, including a zero-tolerance attitude toward fraud, bribery, and corruption. Currently, the company has established robust policies and procedures aimed at instilling the highest standards of discipline, ethics, and compliance awareness across its global operations.”