Illustrative photo of an oil refinery plant in winter — Illustrative image. Photo: Evgeny Fedorov, CC BY 3.0

Contract Amendment, Refinery Edition: Arzew Zone 4, Lightly Used

One amendment to a Sonatrach contract. Payment via consultant, agent and several transfers. SEC findings consented to.

Sold2011National

$75,000≈ €67KAs stated in the source: $75,000 in bribe payments

Already sold, to Honeywell International Inc., in 2011. Nothing on Lobay is for sale.

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Seller

Role: Sonatrach official (downstream development director at the state-owned oil and gas company)
Institution: Sonatrach (Algerian state-owned oil and gas company)
Country: Algeria

Item specifics

Condition	SEC cease-and-desist order, 2022-12-19. Findings consented to, final
Location	Algeria
Seller	Sonatrach official (downstream development director), name not disclosed
Winning bidder	Honeywell International Inc. (via Honeywell's Belgian subsidiary)
Category	Energy
Sold	2011
Payment method	Paid by a consultant, who was repaid through an agent via intermediary transfers
Returns	No returns. SEC: $81,158,193 disgorgement and prejudgment interest (Brazil and Algeria together), 2022

Description

What the bribe bought

According to the SEC, Honeywell International Inc. obtained $3,118,350 in profits from the Algeria conduct, ordered to be disgorged.

Return on bribe: Every $1 of bribes earned about $42.

What happened

In 2011, a consultant paid a Sonatrach official $75,000 in bribe payments on behalf of Honeywell's Belgian subsidiary. The payments bought an amendment to a Sonatrach contract for work at the Arzew refinery (Zone 4). The consultant was repaid through an agent via a series of intermediary transfers. On 2022-12-19 the SEC issued a cease-and-desist order, and Honeywell consented to the SEC findings. Disgorgement and prejudgment interest of $81,158,193 covered the Brazil and Algeria conduct together.

Read the article

SEC Charges Honeywell with FCPA Violations (press release 2022-230) · U.S. Securities and Exchange Commission

Official record

In the Matter of Honeywell International Inc., Order Instituting Cease-and-Desist Proceedings (Release No. 34-96529) · U.S. Securities and Exchange Commission

Shipping & returns

Authority	Kind	Amount	Year
U.S. Securities and Exchange Commission	disgorgement and prejudgment interest (covers Brazil and Algeria together)	$81,158,193≈ €72.5MAs stated in the source: $81,158,193	2022