Settlement with the U.S. Department of Justice regarding the Nigeria LNG Project
Jan. 18, 2012
Marubeni Corporation (“Marubeni”) hereby announces that, as of January 17, 2012 (EST), Marubeni has entered into a Deferred Prosecution Agreement (the Agreement”) with the U.S. Department of Justice (“DOJ”) regarding the Nigeria LNG Project as described below.
Nigeria LNG Limited, a government-linked company of Nigeria, developed a project to build LNG plants in Nigeria (“the Project”, which includes Train 1 to Train 6). In order to be awarded the construction contracts for the Project, Technip S.A. (a French corporation), Snamprogetti S.p.A. (an Italian corporation), M.W. Kellogg Ltd. (a U. S. corporation. a predecessor company of Kellogg, Brown & Root, Inc.) and JGC Corporation (a Japanese company) formed a consortium (“TSKJ”). Between 1995 and 2004, TSKJ was awarded contracts by Nigeria LNG Limited. Marubeni executed Service Agreements with TSKJ regarding the Project (excluding Train 6) and assisted TSKJ in obtaining the contracts.
The DOJ conducted an investigation into the four companies comprising TSKJ and other relevant parties on suspicion of violation of the U.S. Foreign Corrupt Practices Act (“FCPA”) in respect of the alleged payment of bribes to Nigerian government officials in relation to the TSKJ’s obtaining the contracts for the Project. As part of the investigation, the DOJ conducted an investigation into Marubeni, leading to entry of the Agreement. Under the Agreement, Marubeni will pay US$54.6 million (approximately 4.2 billion Japanese Yen) to the DOJ.
The effects on the consolidated business forecasts as announced on October 31, 2011 will not be material.