Weatherford International, a Swiss oilfield services company that trades on the New York Stock Exchange, and several of its subsidiaries and affiliates have settled with the US Treasury Department’s Office of Foreign Asset Control (“OFAC”), the US Commerce Department’s Bureau of Industry and Security (“BIS”) and the US Attorney’s Office for the Southern District of Texas (“USAO”) for multiple sanctions and export controls compliance violations. OFAC alleged that Weatherford violated (i) the Cuban Assets Control Regulations by engaging in 441 transactions totalling nearly $70 million to provide oilfield equipment and services to sanctioned entities and persons in Cuba; (ii) the Iranian Transactions and Sanctions Regulations by providing oilfield services in Iran totalling $23 million; and (iii) the Sudanese Sanctions Regulations by conducting its oilfield services business in Sudan, including 45 transactions totalling $300k. BIS alleged the same violations and also that Weatherford exported items to Venezuela and Mexico controlled under nuclear non-proliferation export restrictions.
Weatherford settled with OFAC for $91,026,450, reflecting that OFAC determined Weatherford’s conduct was wilful. It settled with BIS for $50 million, which was the single largest civil penalty ever levied by BIS, and it paid a $48 million monetary penalty pursuant to a deferred prosecution agreement with the USAO as well as $2 million in criminal fines. The $91 million settlement with OFAC was deemed satisfied by the $100 million assessed under the settlements with the USAO and BIS.
At the same time, in addition to the alleged sanctions violations, Weatherford also settled allegations that it violated the Foreign Corrupt Practices Act. The settlement involved $87.2 million in fines under an agreement with the US Department of Justice and an additional $65.6 million in penalties under an agreement with the Securities and Exchange Commission. In total, Weatherford was assessed $252,690,606 in penalties and fines.