To his excellency the substitute federal judge of the 3rd federal criminal court of rio de janeiro

1.6Mooring buoys for PRA 1 platform

On 19/10/2004 PEDRO JOSÉ BARUSCO FILHO, in his capacity as Executive Manager of Engineering in the Services Department of Petrobras, drafted a Request for authorization for the Commencement of Contracting (SIC), along with José Antonio de Figueiredo (then E&P Executive Manager, South – South-East), Erardo Gomes Barbosa Filho (then Executive Manager, E&P Services) and Armando Oscar Cavanha Filho (then Executive Manager, Materials).

RENATO DE SOUZA DUQUE, to whom BARUSCO reported, was Director of Services, and on 11/11/2004 took part in the approval, by the Executive Board of Petrobras, of the Request drafted by BARUSCO (doc. 24).

On 16/02/2006, after SBM Imodco Inc. had submitted the lowest price in the bidding process, RENATO DUQUE, in order to obtain a better deal on the bribe for BARUSCO from the SBM representatives, successfully requested the Executive Board of Petrobras to withdraw approval of the contracting of SBM for the project (doc. 25).

The following contracts were subsequently signed⁵³ in Rio de Janeiro:

- contract nº 0801.0020263, on 28/04/2006, still between Petrobras and SBM, in the sum of US$ 61,705,307.46;

- contract 02/10, in the sum of US$ 218,449.42, on 05/10/2010, now between PDET Offshore S.A. and SBM;

- contract 03/11 (direct contracting), in the sum of R$ 9,383,796.00, on 08/04/2011;

- amendment 01 to contract 02/10, in the estimated total sum of R$ 8,878,962.98, on 30/01/2013.

PEDRO JOSÉ BARUSCO FILHO took part in contract nº 0801.0020263, and contract 02/10.

JULIO FAERMAN and LUIS EDUARDO CAMPOS BARBOSA DA SILVA took part in these contracting procedures as representatives of SBM, making use of the structure of both FAERCOM Energia Ltda and OILDRIVE Consultoria em Energia e Petróleo Ltda, which had been set up by them on 01/02/2006.⁵⁴

The partnership between FAERMAN and LUIS EDUARDO as representatives of SBM resulted in a 50-50 split of revenue (statement of 14/05/2015, at 14h30m – doc. 03):

“He met his partner LUIS EDUARDO, who at the time was employed by ABB, a partner company of SBM, during a bidding process won by MODEC. BARUSCO gave a good reference for LUIS EDUARDO at the time. LUIS EDUARDO was a shareholder in OILADVISE and later, with the deponent (acting through FAERCOM), formed OILDRIVE. In the first two bidding processes in which SBM took part and won, following the beginning of the relationship of the deponent with LUIS EDUARDO, (P-53 turret and PRA-1 mooring buoys), which were run by the Services Department, LUIS EDUARDO received 50% of the profits. The bidding processes subsequently won involved OILDRIVE (P-57, FPSO Cidade de Paraty and FPSO Cidade de Ilhabela). Payments made abroad were made in favor of offshore companies belonging both to LUIS EDUARDO (save in the case of mistake, the offshore company Vista, for example) and to the deponent (e.g. Bienfaire).”

The commission of FAERMAN and LUIS EDUARDO, received from SBM for this business, was 10%.

ROBERT ZUBIATE took part in this bidding process as one of the representatives of SBM, along with FAERMAN and LUIS EDUARDO (doc. 26). In this context, there were various communications sent by ZUBIATE, FAERMAN and LUIS EDUARDO to the Petrobras Bidding Committee.⁵⁵

ZUBIATE, for example, was the person who presented the statement of pricing by SBM.⁵⁶

DIDIER KELLER continued as CEO of SBM and in this capacity appointed the SBM representatives in the bidding process (doc. 27).

The improper payments relating to the PRA-1 mooring buoys were made in Switzerland, by means of bank transfers from the offshore company accounts of FAERMAN and LUIS EDUARDO to BARUSCO, and amounted to not less than US$ 200,000.00.

In the words of PEDRO BARUSCO, “following the decision by Petrobras to install two mooring buoys alongside the PRA1 Platform for the transport of oil, a bidding process was held which SBM won, by submitting a price which was much lower than the second placed bidder (20 million dollars lower); that for his part in the project, the deponent received a fixed sum, which was 200 or 300 thousand dollars, he does not remember exactly which of the two figures it was; That this sum was paid in Switzerland, in the same way as all the others; That he believes that this operation was carried out in 2004/2005; That in this project, as in all the other engineering projects, the deponent’s team drafted the basic project, the bidding, took the project to the board and monitored the work, in other words they worked on it from beginning to end; That the deponent makes it clear that he might even have spoken to Julio Faerman about the installation of this mooring buoy, but that he considers this to be irrelevant, because SBM, along with some three or four other firms, are the only suppliers of this heavy equipment for offshore exploration, hence the involvement of SBM and the others was natural in such projects; The deponent at this point makes it clear that this payment, like the others, was not in exchange for any particular act of his, but was a kind of good will payment by the company and, therefore, he can say that the winner of these bidding processes, to the best of his knowledge, was in fact the one who submitted the best bid; that, however, it is clear that the bribe was in some way included in the costs of these contracts.”

BARUSCO at this time had started to demand larger payments, around 1%, in his capacity as Executive Manager of Engineering in the Services Department, reporting to RENATO DE SOUZA DUQUE, and the two became partners in committing crimes of passive corruption and other offences.

As stated by JULIO FAERMAN, referring to the SBM contracts in which commissions of 1% were paid to BARUSCO (turret for P-53, two mooring buoys for PRA-1 and purchase of P-57): “BARUSCO was now Executive Manager in the Services Department, and his attitude changed, because, as stated, he started to demand payment of commission at the rate of 1%, saying that he ‘needed’ to receive such sums, with the implication that he would be passing on part of them to someone else. The deponent and LUIS EDUARDO were present at the meeting in which BARUSCO demanded a rise in his commission to 1%.” (statement of 21/05/2015, 10h30m – doc. 05).

In a spreadsheet showing the bribes received at Petrobras, BARUSCO recorded that RENATO DUQUE received one half (100 thousand dollars) of the total bribes in the case of the mooring buoys for PRA-1, in the following manner:

“that where the words “US$ 200 thousand SAB/MW” appear under Mooring Buoys PRA1, it was anticipated that this sum would be split between the deponent (Sab, referring to the name of an old girlfriend) and DUQUE (MW, meaning My Way, the code name by which the deponent referred to Duque, although DUQUE himself was not aware of this nickname); (...) that the sums owed to DUQUE were always paid to him by the deponent by way of set-off for bribes which he was to receive; (...) that DUQUE did not take part in these bribe negotiations (mooring buoys for PRA-1 and P-53 turret), but from the way in which things were happening, he would have to receive part of these sums; that because of back problems he used a bag with wheels in Petrobras, in which he didn’t normally transport cash, although this happened sometimes, taking money to DUQUE; that it was the deponent who negotiated with FAERMAN and LUIS EDUARDO, and they probably knew that in some cases there would be sums due to DUQUE” (statement of 20/03/2015, 14h00m – doc. 28).

FAERMAN has identified account 606422, belonging to the offshore company Bien Faire, at J. Safra Bank in Geneva, as the recipient account for commissions from SBM Holding Inc on this contract, which were paid through JP Morgan Chase Bank in London in the following manner:

Shortly after the first receipt of commissions by FAERMAN, there are transfers from accounts of FAERMAN and LUIS EDUARDO to BARUSCO, as shown below, totaling about 200 thousand dollars, all at the J. Safra Bank in Geneva:

The fact that these sums were paid outside Brazil was never declared to the relevant Brazilian federal authorities by FAERMAN, LUIS EDUARDO or BARUSCO.

The nature, origin, location, movement and ownership of these sums, the proceeds of crimes committed against the public purse, were concealed and disguised, inter alia through the use of companies set up in tax havens, especially in the British Virgin Islands.

1.7Turret for P-53

The total value of the initial contract was US$ 81,347,883.00.

BARUSCO and ZUBIATE also signed amendment 1, which on 01/09/2006 raised the total value of the contract to US$ 88,029,228.00, and amendment 3 on 30/01/2007, both of which extended the term of the contract.⁵⁸

JULIO FAERMAN and LUIS EDUARDO CAMPOS BARBOSA DA SILVA took part in this business as representatives of SBM, not only through FAERCOM Energia Ltda, but also through OILDRIVE Consultoria em Energia e Petróleo Ltda, and split the profits 50-50, as in the other businesses in which they acted jointly on behalf of SBM.

FAERMAN disclosed the following receipts in accounts of offshore companies in Switzerland, paid by SBM Holding Inc.:

Bank	Offshore company	Account holder(s)	Account	Date	Amount (USD)
PICTET	JOURNEY ADVISORS	JULIO FAERMAN	587869	25/7/2006	1,631,000.00
SAFRA	TORI MANAGEMENT	FAERMAN and LUIS EDUARDO	606031	16/2/2007	601,321.05
SAFRA	JANDELL INVESTMENTS	JULIO FAERMAN	602086	23/7/2008	600,000.00
PICTET	JOURNEY ADVISORS	JULIO FAERMAN	587869	8/2/2011	6,059.11
	2,838,380.16				2,838,380.16

The improper payments were made in Switzerland, by means of bank transfers between the accounts of the offshore companies of FAERMAN and LUIS EDUARDO to BARUSCO (Marl Trader, Tropez and/or Dole), at an approximate rate of 1% on the initial contract and its amendments, and totaledUS$ 1,000,000.00.

BARUSCO at this time had started to demand larger payments, around 1%, in his capacity as Executive Manager of Engineering in the Services Department, reporting to RENATO DE SOUZA DUQUE, and the two became partners in committing crimes of passive corruption and other offences.

As stated by JULIO FAERMAN, referring to the SBM contracts in which commissions of 1% were paid to BARUSCO (turret for P-53, two mooring buoys for PRA-1 and purchase of P-57): “BARUSCO was now Executive Manager in the Services Department, and his attitude changed, because, as stated, he started to demand payment of commission at the rate of 1%, saying that he ‘needed’ to receive such sums, with the implication that he would be passing on part of them to someone else. The deponent and LUIS EDUARDO were present at the meeting in which BARUSCO demanded a rise in his commission to 1%.” (statement of 21/05/2015, 10h30m – doc. 05).

In a spreadsheet showing the bribes received at Petrobras, BARUSCO disclosed that RENATO DUQUE received 60% of the total bribe in the case of the P-53 turret, in the following manner: “where it shows Casa 0,6 MW 0,4 Sab’ for the P-53 turret, it means that the whole bribe of 1% was for employees of Petrobras, here the deponent (Sab) and DUQUE (MW);⁵⁹ that these amounts owing to DUQUE were always passed on to him by the deponent by way of set-off for bribes which he was to receive; (...) that DUQUE did not take part in these bribe negotiations (mooring buoys for PRA-1 and P-53 turret), but from the way in which things were happening, he would have to receive part of these sums; that because of back problems he used a bag with wheels in Petrobras, in which he didn’t normally transport cash, although this happened sometimes, taking money to DUQUE; that it was the deponent who negotiated with FAERMAN and LUIS EDUARDO, and they probably knew that in some cases there would be sums due to DUQUE” (statement of 20/03/2015, 14h00m – doc. 28).

Thus BARUSCO received US$ 1,000,000.00 in bribes in Switzerland by means of bank transfers, as already mentioned, and passed on US$ 600,000.00 to DUQUE in cash.

The improper payment was received by PEDRO JOSÉ BARUSCO FILHO, directly, and by RENATO DE SOUZA DUQUE, indirectly, by virtue of their positions as Petrobras employees. The payment was promised and paid by JULIO FAERMAN and LUIS EDUARDO, on the orders of ROBERT ZUBIATE, so that the Petrobras employees could take official steps, with at least BARUSCO being in breach of his duty to the company.

In the words of PEDRO JOSÉ BARUSCO FILHO, “in this case the deponent had to become more actively involved and fight for SBM to win the contract, because Blue Water had submitted a lower price; that the deponent then started to pass information to JULIO FAERMAN and LUIS EDUARDO so that they could improve the SBM bid, which was done; That in this case the deponent received 1% of a contract of around 100 million dollars; that in the same way as in the other cases, this money was paid directly in Switzerland” (statement of 26/11/2014, at 13h30m – doc. 08). It can thus be seen that BARUSCO, along with FAERMAN e LUIS EDUARDO, acted in such a way as to frustrate the competitive nature of the process.

The fact that these sums were paid outside Brazil was never declared to the relevant Brazilian federal authorities by FAERMAN, LUIS EDUARDO or BARUSCO.

The nature, origin, location, movement and ownership of these sums, the proceeds of crimes committed against the public purse, were concealed and disguised, inter alia through the use of companies set up in tax havens, especially in the British Virgin Islands.

1.8Construction, purchase and operation of FPSO P-57

The following contracts were⁶⁰ both signed by PEDRO JOSÉ BARUSCO FILHO, in his capacity as Executive Manager of Engineering in the Services Department of Petrobras, and by DIDIER KELLER on behalf of SBM. The witnesses were José Orlando Melo de Azevedo and JULIO FAERMAN:

- contract 0801.0000032.07.2 (contract for engineering, purchase and construction), with Appendix XVIII showing the price of US$ 1,195,000,000.00.

- contract nº 0801.0039420.08.2 (contract for the provision of operating services), where clause five showed the value simply as “XXX”. Subsequently, on 26/08/2008, amendment 01 was signed, which showed an explicit price of R$ 114.786.882,00 (which, nevertheless, had already been shown originally in Appendix A of the contract).

JULIO FAERMAN, LUIS EDUARDO CAMPOS BARBOSA DA SILVA and ROBERT ZUBIATE took part in the process as representatives of SBM, for example attending meetings with the Bidding Committee in Rio de Janeiro on 01/11/2007, 13 and 14/12/2007, and 17/01/2008.⁶¹

During the term of the contract, KELLER was succeeded by “TONY” MACE, who signed a Memorandum on 12/07/2011. Dealing with the receipt of US$ 99,068.17 from Petrobras relating to FPSO P-57, the memorandum ordered payment of 1/3 of this amount to OILDRIVE, in the sum of US$ 33,022.72, and 2/3 to FAERMAN’s Bien Faire at J. Safra Bank in Geneva, in the sum of US$ 66,045.45 (doc. 30).⁶²

The commission owed by SBM to its agents on the P-57 contract was fixed at 3%, 1% being paid in Brazil and 2% in Switzerland.

SBM paid a large part of the commissions relating to P-57 in Switzerland, to FAERMAN’s Bien Faire account at J. Safra Bank in Geneva. A sequence of emails from SBM (entitled “RE: GL – MGT Legal – Preparation of an Agreement – Compensation for Services Rendered – P57 – Jubarte”), obtained through international cooperation with the Netherlands and following a court order, shows SBM’s intention not to formalize a contract with any offshore company of FAERMAN (or even of LUIS EDUARDO). In an email of 23/11/2008, Didier Beynet informed Jay Printz of the terms agreed by FAERMAN with “DK/HT”, meaning DIDIER KELLER and Hanny Tagher. FAERCOM was to receive a commission of 3% and was to supply services through two companies: OILDRIVE, which would receive 1%, and Bien Faire, which would receive 2%. In an email of 28/11/2008, Jay Printz argued that more information would be required on OILDRIVE and Bien Faire, such as directors, shareholders or quotaholders and associated companies.

On 13/07/2009, Mike Wyllie returned to the subject and stated that the contract should refer only to OILDRIVE, and not to BIEN FAIRE⁶³ (doc. 31, official translation in progress).

The improper payments were made in Switzerland, by means of bank transfers between the accounts of offshore companies, either belonging only to FAERMAN (Bien Faire, Jandell, Valinor, all at J. Safra in Geneva), or to him and LUIS EDUARDO (Tori, Boslandchap, also at J. Safra in Geneva) to BARUSCO (Dole Tec, Marl Trader and Tropez Real Estate accounts, all at J. Safra in Geneva), at a rate of 1% on the value of the contract, making a total of approximately US$ 12,000,000.00 (twelve million US dollars), from 2008 until at least 2010.

The improper payment was received by PEDRO JOSÉ BARUSCO FILHO, directly, by virtue of his position as a Petrobras employee. The payment was promised and paid by JULIO FAERMAN and LUIS EDUARDO CAMPOS BARBOSA DA SILVA, on the orders of ROBERT ZUBIATE, DIDIER KELLER and subsequently “TONY” MACE, so that BARUSCO could take official steps.

In the words of PEDRO JOSÉ BARUSCO FILHO, “for his part in the matter, JULIO FAERMAN and LUIS EDUARDO promised to ask for an extra 1% commission for the deponent, which they obtained and a sum of 12 million dollars was actually paid to the deponent; That the deponent did not share this money with RENATO DUQUE; he does not remember if he agreed to share it or not, but he didn’t share it; That the deponent also states that even if he had agreed he would not have paid because of his lack of organization”; […] “he received this money in the same way as the other amounts in Switzerland: the deponent also states that he received these sums between the middle of 2008 and October 2010”.

The fact that these sums were paid outside Brazil was never declared to the relevant Brazilian federal authorities by FAERMAN, LUIS EDUARDO or BARUSCO.

The nature, origin, location, movement and ownership of these sums, the proceeds of crimes committed against the public purse, were concealed and disguised, inter alia through the use of companies set up in tax havens, especially in the British Virgin Islands.