Schlumberger Settles with DOJ on Sanctions Violations

By Stephen Levy

A subsidiary of Schlumberger reached a record-breaking settlement with the Department of Justice due to its violations of U.S. sanctions and the International Emergency Economic Powers Act, reported The Wall Street Journal. The plea deal, released on March 24^th, requires Schlumberger to pay $155.1 million dollars for violating the sanctions, a record fine for violating U.S. sanctions, as well as surrendering $77.6 million in profits. Schlumberger, the largest oil services company in the world, was accused by DOJ of exporting drilling equipment to Iran and Sudan, both oil-producing countries sanctioned by the United States. In particular, Schlumberger had relied on its non-U.S. registration to export goods to the sanctioned countries, but had American employees work on the exports. The settlement will potentially end a long investigation for the DOJ, who have pursued similar actions against Commerzbank, HSBC, Barclays, BNP Paribas, and Standard Chartered.