Keppel initiates arbitration against Seatrium for SGD 68.4 mil over Brazil corruption probe

Singapore-headquartered global asset manager Keppel has initiated arbitration proceedings against Seatrium for a SGD 68.4 million claim (USD 53.2 million) related to Brazil’s corruption crackdown, the companies said on Tuesday (26 August). 

In 2023, Seatrium made provisions worth SGD 82.4 million to pay Keppel against claims related to the crackdown, named Operation Car Wash. 

Seatrium announced earlier this year that it will pay BRL 728.9 million (USD 134.45 million) to Brazilian authorities, as part of leniency agreements. 

On Tuesday, Keppel said SGD 68.4 million was due from Seatrium upon signing the final leniency agreements. 

Seatrium said in its statement that “as there were no binding and legally enforceable agreements signed with the Brazilian authorities before the expiry of the Keppel Indemnity on 28 February 2025, the company had reversed the legal provision of S$82.4 million” in its 2024 financial year. 

Seatrium said it “is reviewing the claims and allegations set out in the Notice of Arbitration and will defend the Arbitration Claim vigorously”. 

“The company has engaged and is in consultation with legal advisers in relation to the Arbitration Claim,” it added. 

Keppel said the arbitration shall be seated in Singapore and conducted in accordance with the relevant rules of the Singapore International Arbitration Centre.

Seatrium was formed when Keppel Offshore & Marine merged with Sembcorp Marine in 2023. 

Related: Singapore: CPIB begins probe into Seatrium for alleged corruption in Brazil
Related: Singapore issues stern warnings to six former Keppel O&M staff for bribery
Related: Singapore-based firm Sembcorp Marine proposes name change to Seatrium
Related: Keppel Corporation and Sembcorp Marine merger concludes at USD 3.34 billion

Photo credit: Keppel
Published: 28 August, 2025