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Petrofac Can Now Compete For ADNOC Deals After Suspension

Petrofac Can Now Compete For ADNOC Deals After Suspension

Following a year-long ban, the UK-based oilfield services supplier Petrofac is once again permitted to compete for bids from the UAE’s state-owned oil and gas company ADNOC.

Petrofac said it had received notification from the Abu Dhabi National Oil Company (ADNOC) that the suspension imposed on the company on March 15, 2021, had been lifted and that Petrofac had been reinstated in ADNOC’s commercial directory.

Petrofac is now permitted to compete in all of ADNOC’s planned new bids, effective immediately as a result of this restoration of rights.

This decision recognizes Petrofac’s collaboration with ADNOC’s internal assessments, as well as the company’s commitment to complying with the ADNOC Group Supplier Code of Ethics, which was established in 2012.

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Also included are Petrofac’s attempts to improve governance and establish new rules and processes to ensure that the company complies with all relevant laws and regulations.

Following the announcement in January 2021 by the Serious Fraud Office of additional pleas by a former employee under the Bribery Act of 2010 concerning historic contract awards in the United Arab Emirates in 2013 and 2014, Petrofac, the UAE’s oil and gas giant, was barred from bidding for new contract awards.

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To be clear, a former executive of Petrofac entered a guilty plea in January 2021 to bribery charges stemming from contract wins in the United Arab Emirates valued at around $3.3 billion. David Lufkin, the former Global Head of Sales of Petrofac, entered a guilty plea to three charges of bribery at Westminster Magistrates’ Court.

The specifics of the plea agreement were that Lufkin admitted his part in soliciting and paying bribes to agents to influence the award of two contracts to Petrofac in 2013 and 2014, as well as the awarding of a change to that contract in 2014.

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His involvement in fraudulent payments on the Upper Zakum UZ750 Field Development Project and a front-end engineering design contract issued to Petrofac in 2014 on the Bab Integrated Facilities Project, both of which are situated in Abu Dhabi, was also admitted in his plea agreement.

The suspension was preceded by an announcement from ADNOC that, owing to the long-standing nature of its partnership with Petrofac, the company will reassess its decision on a regular basis. It is as a consequence of this decision that Petrofac is now permitted to bid for ADNOC contracts once again.

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