The US Securities and Exchange Commission has launched an investigation into oilfield services provider Baker Hughes’ sale of products in projects that were impacted by US sanctions.
According to the company’s recent SEC filing, it was notified in December 2020 that the government would be examining its books and records and internal controls of sales related to impacted projects. Baker Hughes said it was cooperating with the SEC and providing requested information.
The contractor did not specify which projects were being scrutinized in the filing, but did recently halt work on the Gazprom-led Nord Stream 2 natural gas pipeline designed to double the export capacity from Russia to Germany in order to avoid US sanctions levied on the project by the US Administration.
Baker Hughes said it had initiated an internal review with the assistance of outside legal counsel regarding internal controls and compliance related to US sanction requirements.
Both the SEC investigation and the internal review are ongoing, and the contractor said it could not anticipate the timing, outcome, or potential impact of either on its finances or otherwise.
In the same filing, Baker Hughes said it devotes significant resources to maintain a comprehensive global ethics and compliance program, which is designed to prevent, detect, and appropriately respond to any potential violations of the law, its Code of Conduct, and other company policies and procedures.
