Wood Group to pay $9.5 million for alleged negligence at offshore sites in Gulf of Mexico

By Mark Iandolo | Mar 7, 2017

WASHINGTON (Legal Newsline) — The U.S. Department of Justice announced Feb. 23 that Wood Group PSN Inc., a Nevada corporation based in Houston, will pay $9.5 million in two separate cases involving allegations related to conduct in the Gulf of Mexico.


The company will pay $7 million for allegedly falsely reporting the safety inspections carried out at offshore facilities in the Gulf of Mexico over a number of years. It will pay $1.8 million for the purported negligent discharge of oil into the gulf, a violation of the Clean Water Act.


“The events of November 2012 at West Delta 32 were tragic, and since then federal prosecutors have worked diligently to investigate and understand the full scope of criminal conduct,” said acting assistant attorney general Jeff Wood. “Today’s plea agreement demonstrates the Department of Justice’s commitment to the integrity of federal safety programs and accountability for those who falsify federal safety inspection reports.”


The alleged failure to inspect and maintain facilities the company had contracts with and the alleged negligence of its company employees led to a site explosion in the gulf that killed construction workers Avelino Tajonera, Elroy Corporal and Jerome Malagapo.

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