By Samuel Indyk
Investing.com – Shares in UK-listed energy company Petrofac Ltd (LON:PFC) tumbled for a second straight day after the company was informed by Abu Dhabi National Oil Company (ADNOC) that they have been suspended from competing for new awards until further notice.
The news comes following the Serious Fraud Office’s (SFO) announcement of additional pleas in January by a former Petrofac employee under the Bribery Act in relation to historic contract awards in the UAE in 2013 and 2014.
Bribery case
In January, former Petrofac employee David Lufkin pleaded guilty to bribery offences in $3.3bln worth of oil deals.
“The offences relate to corrupt offers and payments made between 2012 and 2018 to influence the award of contracts to Petrofac in the [UAE] worth approximately $3bln,” the SFO said in a statement in January.
The SFO said payments of around $30mln were made or due to be made by Petrofac to agents in connection with the UAE contracts.
Current work
Despite the ban on applying for new work, Petrofac said that it will continue to execute two EPC projects for ADNOC that are currently under construction.
“ADNOC has stated that it recognises the long-standing nature of its relationship with Petrofac and has confirmed that its decision will be reviewed on a periodic basis,” Petrofac said in a statement to the exchange.
“Petrofac is committed to operating at the highest standards of ethical business practice. No charges have been brought against any Petrofac Group company or any current officer or employee.”
The share price collapsed 18% on Monday and has so far fallen another 8% on Tuesday to trade an all time low of 99.00.