Singapore High Court approves Seatrium's US$110m deferred prosecution deal over Brazil corruption

Singapore-listed offshore and marine company Seatrium Limited will not face criminal prosecution over a long-running corruption probe in Brazil after the General Division of the High Court approved a deferred prosecution agreement (DPA) on 24 April 2026.

The approval, granted by Justice Hoo Sheau Peng at a private hearing, confirms terms signed by Seatrium and the Attorney-General's Chambers (AGC) on 30 July 2025.

The DPA takes legal effect only upon judicial approval, which the court granted after determining that it serves the interests of justice and that its terms are fair, reasonable, and proportionate.

What the agreement requires

Under the DPA, Seatrium is required to pay a financial penalty of US$110 million to Singapore's Public Prosecutor.

Separately, Seatrium has also made payments to Brazilian authorities as part of leniency agreements concluded with prosecutors in Brazil under Operation Car Wash. According to Seatrium, the AGC agreed that up to US$53 million of those Brazilian payments may be credited against the Singapore penalty.

Seatrium confirmed in a bourse filing that the net amount payable to Singapore authorities after that offset is US$57 million, equivalent to approximately S$73.3 million.

The company said it has already made the necessary provisions for this payment in its financial statements for the financial year ended 31 December 2025. It added that there is no material impact on the net earnings or net tangible asset per share of the Group for the financial year ending 31 December 2026.

Beyond the financial penalty, Seatrium has also committed under the agreement to reviewing and strengthening its ethics and compliance programme to reduce the risk of any recurrence of similar conduct.

Operation Car Wash and Seatrium's exposure

The case is linked to Operation Car Wash, a sweeping anti-corruption investigation that Brazilian authorities launched in 2014. The probe uncovered a network of bribery involving major corporations and senior officials, centred on contracts awarded by state oil company Petrobras.

Seatrium, which was previously known as Sembcorp Marine Limited before a corporate merger and rebranding, became implicated over allegations that improper payments were made to secure projects in Brazil. The investigations extended across multiple jurisdictions, with both Brazilian and Singapore authorities examining the company's conduct.

On 30 July 2025, Seatrium signed a leniency agreement with Brazil's Public Prosecutor's Office and finalised an equivalent agreement with the Brazilian Attorney-General's Office and the Comptroller General of the Union. Under those agreements, the company made a final settlement payment totalling BRL728,933,258.58.

Based on the conversion rate of BRL1.00 to S$0.231 applied by the company at the time of the settlement, Seatrium stated the Brazilian payment totalled approximately S$168.4 million.

Singapore investigations and individual charges

In Singapore, the Corrupt Practices Investigation Bureau investigated both Seatrium and individuals associated with the company.

In March 2024, two former executives — including the former chief executive of Sembcorp Marine — were charged with corruption offences for allegedly paying bribes exceeding S$20 million to advance the company's business interests in Brazil.

Separately, the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD) conducted a joint investigation into potential breaches of the Securities and Futures Act 2001 and the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992.

That investigation has since concluded. Seatrium stated in July 2025 that MAS and CAD had informed the company that no action would be taken against the company and/or its officers.

Compliance conditions and consequences of breach

The AGC noted in its press release of 30 July 2025 that should Seatrium fail to comply with the terms of the DPA as approved by the High Court, the Public Prosecutor may apply to terminate the agreement.

In the event of termination, criminal proceedings may be initiated against the company in respect of the alleged offences.

Seatrium was represented at the High Court hearing by a legal team from Drew & Napier, led by Adam Maniam.

Shares of Seatrium rose 1.7 per cent, or four cents, to S$2.41 on 24 April 2026 before the announcement was made.