Oilfield Co. Owes $233M for Sanctions Violations

(CN) - Schlumberger Oilfield Holdings agreed to plead guilty and pay a $233 million penalty for violating United States sanctions forbidding trade with Iran and Sudan, the Justice Department announced.

Under the terms of the settlement, Schlumberger will pay a $155.1 million criminal fine -- reportedly the largest criminal fine imposed for a U.S. sanctions violation -- and forfeit $77.6 million in illegally obtained profits.

In addition, the holding company will also be on corporate probation for three years while its parents company agreed to hire an independent consultant to review and monitor the holding company's compliance procedures.

According to prosecutors, between 2004 and mid-2010, Schlumberger provided oilfield services to customers in Iran and Sudan through non-U.S. subsidiaries. These services included providing technical expertise to carry out critical equipment repairs.

While carrying out these activities, company employees took steps to hide capital spending requests intended to benefit the sanctioned nations.

In a statement, Schlumberger said it has reviewed its compliance protocols, and made appropriate enhancements to address the issues discovered during the Justice Department's six-year investigation.

In a statement, a company spokesperson said Schlumberger has ceased operations in Iran and Sudan, and that the company is "satisfied the matter is finally resolved."

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