Schlumberger has to pay $237.2mn in fines after its subsidiary Schlumberger Oilfield Holding pleaded guilty to violating U.S. sanctions related to Iran and Sudan, Reuters has reported.
Following the guilty plea, the oilfield service company has agreed a corporate probation that will last for three years.
During the probation Schlumberger will have to stop its operations in Iran and Syria and hire an independent consultant to review its policies on complying with sanctions.
The French-US oil services giant said in a statement it voluntarily stopped oilfield operation in Iran as of the second quarter of 2013 and said it has ceased oilfield operations in Sudan as of the plea agreement.
The plea agreement is the latest in a series of cases in which the U.S. prosecutors penalised a global company for violating U.S. sanctions.
“This plea fully resolves the investigation of the Company, and we understand there is no ongoing investigation of Company personnel,” Schlumberger said in its statement.
“The Company cooperated with the investigation, and we are satisfied that this matter is finally resolved.”
The U.S. Attorney working on the case said the company has for years and in a variety of ways facilitated trade from Sugar Land in Texas, where its headquarters are.
“Today’s announcement should send a clear message to all global companies with a U.S. presence: Whether your employees are from the U.S. or abroad, when they are in the United States, they will abide by our laws or you will be held accountable,” he warned.
Legally, any company involved in business in the U.S. which accepts work in a sanctioned country risks prosecution by the US court, experts said.
Schlumberger was prosecuted in part because U.S.-based employees provided technical assistance with the company’s drilling tools in Iran and Sudan, the Attorney said.
According to court documents, Drilling & Measurements (D&M), a U.S.-based Schlumberger business segment, provided oilfield services to Schlumberger customers in Iran and Sudan through non-U.S. subsidiaries of Schlumberger Oilfield Holding Limited (SOHL).
Although SOHL had policies and procedures designed to ensure that D&M did not violate U.S. sanctions, SOHL failed to train its employees adequately to ensure that all U.S. persons, including non-U.S. citizens who resided in the United States while employed at D&M, complied with Schlumberger’s sanctions policies and compliance procedures, according to additional reports.
Schlumberger is the world’s largest oilfield services company and employs approximately 120,000 people in more than 85 countries.
