Technip takes US$ 328 million Nigerian bribery charge

By Chris Sleight16 February 2010

Technip has announced a € 245 million (US$ 328 million) charge in its fourth quarter accounts to resolve bribery charges relating to the construction of a liquefied natural gas plant in Nigeria ifrom 1994 to 2004.

The company has been in discussion with the US Securities and Exchange Commission (SEC) and Department of Justice (DoJ) relating to the charges involving the TSKJ joint venture, which is believed to have paid bribes to secure work between 1994 and 2004. Technip has a 25% interest in the consortium, with other participants including KBR, Snamprogetti and JGC Corporation.

Although the discussions are on going, Technip said the € 245 million (US$ 328 million) charge reflected the likely cost of resolving the issue. Chairman and CEO Thierry Pilenko said, "Our discussions with the SEC and DoJ have intensified over the last weeks. There is now a roadmap to a satisfactory global resolution of all potential claims in the US arising from the investigation. This is why we are now able to estimate the monetary cost of a resolution in our fourth quarter accounts."

Last year Halliburton agreed to pay fines totalling US$ 559 million, relating to bribes paid by its former subsidiary KBR on the project. It is thought that more than US$ 170 million was paid to Nigerian officials by the TSKJ consortium via a London, UK-based lawyer with government connections.

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