Pride International pays corruption penalty

United States: Pride International has settled a dispute with the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), paying US$56.2 million in a case related to bribing foreign officials.

Under the terms of the settlement, Pride Forasol, an international subsidiary of Pride International, pleaded guilty in the U.S. District Court in Houston for violations of the U.S. Foreign Corrupt Practices Act (FCPA). Pride Forasol was sentenced by U.S. District Judge Lynn Hughes to pay a fine of US$32.625 million.

The DOJ and Pride International have entered into a three-year deferred prosecution agreement. If Pride remains in compliance with the agreement, at the conclusion of the term, the charges against Pride will be dismissed with prejudice.

In November 2010, Pride also settled civil FCPA charges with the SEC, agreeing to an injunction against further violations of the FCPA and disgorgement and prejudgment interest totalling US$23.5 million. No civil penalties were sought or imposed by the SEC.

Reuters reports that the company claimed that less than US$1.0 million were paid to government officials in Venezuela and Mexico. An internal audit uncovered the discrepancy.

Pride International operates a fleet of 25 rigs, including four deepwater drillships, 12 semi-submersible rigs, seven independent leg jackups and two managed deepwater rigs.

The company also has two ultra-deepwater drillships under construction. The company's floating rig fleet operates primarily offshore Brazil and West Africa.

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