SINGAPORE, Keppel Ltd has launched arbitration proceedings against shipbuilder Seatrium Ltd to recover S$68.4 million (US$53.3 million) tied to Brazil’s high-profile corruption probe, Operation Car Wash, both companies confirmed on Tuesday.
In 2023, Seatrium had set aside S$82.4 million to cover potential claims from Keppel related to the case. However, the company said that obligation expired in February 2025, noting that no binding agreements with Brazilian authorities had been signed before the deadline.
Earlier this year, Seatrium agreed to pay 728.9 million reais (US$134.5 million) under leniency agreements with Brazilian prosecutors. Keppel has argued that the S$68.4 million payment became due once Seatrium signed its final settlement. Seatrium said it is reviewing Keppel’s arbitration claims and intends to contest them “vigorously.”
Keppel’s offshore and marine division merged with Sembcorp Marine in 2023 to form Seatrium. Brazilian authorities have previously searched Sembcorp’s shipyard as part of Operation Car Wash, a sweeping investigation launched in 2014 that uncovered systemic graft and implicated senior political and business leaders across Latin America.
