On December 14, 2016, SBM Offshore learned that the Higher Council of the Public Prosecutor's Office (Ministério Público Federal, "MPF") upheld the decision by the Fifth Chamber for Coordination and Review and Anti-corruption of October 6, 2016. The Higher Council decided not to accept the appeals filed by the MPF and the General Counsel for the Republic (Advocacia-Geral da União, "AGU") and referred the case back to the Fifth Chamber and the prosecutor handling the case for further review and next steps.

The Higher Council is the highest institutional body within the MPF, in which prosecutors from all seven chambers of the MPF are represented.

The Company remains committed to engage with all relevant authorities until the Leniency Agreement is approved by the Fifth Chamber and the Company has been notified thereof. Such notification will make the Leniency Agreement, duly signed with the Brazilian Ministry of Transparency, Oversight and Control (Ministério da Transparência, Fiscalização e Controle - "MTFC"), the MPF, the AGU, and Petrobras, binding upon the parties. Until then, the Company is not under any obligation to make payments under the Leniency Agreement.

The Leniency Agreement further remains subject to review by the Federal Court of Accounts ("TCU"), which is not a condition precedent to the Leniency Agreement.

It is currently not possible to predict the timing or final outcome of the approval process