A&O Shearman FCPA Digest | SEC v. Noble Corp. (S.D. Tex. 2010)

Source Documents

Nature of Business
Noble Corporation (“Noble”) is an international oil and gas drilling contractor that owns and operates drilling rigs through its subsidiaries and affiliates. In March 2009, Noble re-domesticated from the Cayman Islands and is now incorporated in Switzerland; the company is headquartered in Sugar Land, Texas.

Influence to be Obtained
Between January 2003 and May 2007, Noble’s Nigerian subsidiary (“Noble‑Nigeria”) allegedly paid a total of at least $79,026 as “special handling charges” to its Nigerian customs agent. Noble‑Nigeria and certain employees of Noble Drilling Services Inc., Noble’s U.S.‑subsidiary, had allegedly been informed that a portion of the money paid to the Nigerian customs agent would be paid to the Nigeria Customs Service officials for the purpose of illegally obtaining extensions for the temporary import permits for the rigs in the Nigerian waters, so as to avoid the need to either permanently import the rigs or export and re‑import the rigs to obtain new temporary import permits.

Enforcement
In June 2007, Noble informed the SEC that it was conducting an internal investigation of its operations in Nigeria and thereafter disclosed the findings and cooperated with the government’s investigations. On November 4, 2010, Noble, without admitting or denying the allegations, consented to the entry of final judgment, under which Noble would be enjoined from violating the anti‑bribery, books and records, and internal controls provisions of the FCPA and pay a total of $5,576,998 in disgorgement of its profits gained and costs avoided, with prejudgment interest. On the same day, Noble entered into a non-prosecution agreement with the DOJ, agreeing to pay a monetary penalty of $2,590,000.