Petrofac PLC (LON:PFC) saw its shares drop over 16% this morning after the oil services group said it has suspended its chief operating officer and ring-fenced the activities of its chief executive officer from a Serious Fraud Office investigation into the company, related to Unaoil and other agents.
On May 12, Petrofac revealed that Ayman Asfari , its CEO, and Marwan Chedid, its COO, had been questioned by the SFO in connection with the ongoing investigation into Monaco-based Unaoil.
Petrofac said Asfari and Chedidhave were questioned under caution by the SFO, the company said in its May 12 statement, adding that it was cooperating with authorities.
In a statement today, the FTSE 250 firm said Asfari will continue in his role CEO but “to ensure full separation of operational duties and the investigation, he will not be involved in any matters connected to the investigation, and will have no role or responsibilities for engaging with or liaising with agents and consultants.”
Separately, the group added, Chedid has been suspended from his role until further notice, and as a consequence has resigned from the board.
Petrofac stated: “These actions do not in any way seek to pre-judge the outcome of the SFO's investigation.”
In early morning trading, Petofac shares were down 16.2%, or 99.5p at 515.5p.
“Decisions signal the Board's determination to cooperate fully with the SFO”
The group’s chairman Rijnhard van Tets said: "These decisions signal the Board's determination to cooperate fully with the SFO and its investigation, whilst ensuring Petrofac continues to deliver for its clients."
The SFO last year launched a criminal investigation into oil and gas services firm Unaoil, its officers, employees and agents in connection with suspected bribery, corruption and money laundering in the global oil industry.
Petrofac said on May 12 it had engaged Unaoil for the provision of consultancy services in Kazakhstan between 2002 and 2009.
Today, the group revealed that during 2016 its board commissioned an independent investigation, with the support of external advisors, into allegations in the media in relation to Unaoil.
Petrofac said its board shared the findings of that investigation with the SFO, but the SFO has informed the group that it does not accept those findings.
The firm added that SFO has also informed it that it “does not consider the company to have cooperated with it, as that term is used in relevant SFO and sentencing guidelines.”
Petrofac also said that it “is devoting very significant resources in its current engagement with the SFO.”
Petrofac shares shed nearly 13% when the SFO probe was first revealed on May 12, and have remained under pressure since.
Amec Foster Wheeler also co-operating with SFO over Unaoil
Meanwhile, press reports today said that oil services peer John Wood Group PLC’s (LON:WG. £2.2bn takeover of Amec Foster Wheeler PLC (LON:AMFW) could be thrown off course as the pair have been dragged into the international investigation into alleged corruption at Unaoil.
The Daily Telegraph reported that a circular published to disclose details of Wood Group's acquisition of its energy support services rival reveals that Amec is also co-operating with the SFO over its criminal investigation into potential bribery corruption and money laundering.
In early trading, Wood Group shares shed 2.3%, or 17p at 729.5p, and Amec Foster Wheeler lost 3.2%, or 17p at 517p.
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