SAN FRANCISCO, April 22 (Reuters) – Halliburton Co said it could scrap its indemnification of KBR Inc for penalties related to corruption charges prior to their separation if KBR opts to handle the government probes itself.
A KBR joint venture is in talks with Britain’s Serious Fraud Office to settle an investigation into bribes paid to Nigerian officials between 1994 and 2004 to secure $6 billion in contracts for the Bonny Island liquefied natural gas project.
KBR and Halliburton reached a $579 million U.S. settlement over Bonny Island, and France, Nigeria and Switzerland are conducting their own investigations into the case.
But in its latest filing with U.S. financial regulators on Thursday, Halliburton included a phrase for the first time on the possibility of ending its indemnity of KBR, an engineering company that split from the oilfield services giant in 2007.
“As a condition of our indemnity, we have control over the investigation, defense, and/or settlement of these matters,” Halliburton said in the quarterly filing with the Securities and Exchange Commission, referring to the Bonny Island probes.
“We have the right to terminate the indemnity in the event KBR elects to take control over the investigation, defense, and/or settlement or refuses to agree to a settlement negotiated and presented by us,” Halliburton said.
Halliburton has estimated its remaining obligation to KBR under the indemnity at $72 million.
A KBR spokeswoman declined to comment, but said its own disclosure would be included in a filing to accompany its first-quarter earnings next Thursday. (Click HERE for original article)
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