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Transocean Denies Misconduct Related to Petrobras Scandal

Last week, word spread that Transocean Ltd.RIG is linked to the corporate corruption scandal of Petroleo Brasileiro S.A. or PetrobrasPBR . In a counter argument, the offshore drilling giant denied any misconduct related to the scam.

Eduardo Costa Vaz Musa, the former executive of the Brazilian state-run energy player, stated in a plea bargain testimony that he got a payment from Transocean after the drilling player won a contract from Petrobras. In details, it was in 2007 that Musa was offered bribe to let Transocean operate 10,000 drilling rigs of Petrobras. The ex-Petrobras executive confessed that he started getting payments in 2012, when Transocean secured the Petrobras contract.

However, after Musa's statement was made public, Transocean argued that it hasn't found any body among its staff and agents as involved in any wrong doing. In fact, Transocean added that it got the contract from the largest integrated energy firm in Brazil and one of the largest in Latin America simply because it qualified as the top technical and economic bidder in the process of competition.

Transocean revealed that it will go on with its investigation program to ensure that no wrongdoing was made. Most importantly, the company said it might also take support from governmental agencies in the future if the need arises. Moreover, Transocean commented that it has always been strongly committed to comply with the utmost standard of corporate ethics.

Switzerland-based Transocean is the world's largest offshore drilling contractor and leading provider of drilling management services. As of Mar 18, 2015, the company owned, or had partial ownership interests in, and operated 68 mobile offshore drilling rigs. Its drilling fleet consists of 43 high-specification deepwater floaters, 15 mid-water floaters and 10 high specification jackups.

Currently, Transocean holds a Zacks Rank #2 (Buy). Some other well-placed players in the energy sector are Tesoro Corporation TSO and Halcón Resources Corporation HK . Both stocks sport a Zacks Rank #1 (Strong Buy).

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TESORO CORP (TSO): Free Stock Analysis Report

PETROBRAS-ADR C (PBR): Free Stock Analysis Report

TRANSOCEAN LTD (RIG): Free Stock Analysis Report

HALCON RESOURCS (HK): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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