Hygo Energy Transition's initial public offering has reportedly been cancelled after its chief executive was implicated in the Brazilian corruption probe known as Operation Car Wash.
Reuters reported the $558m IPO has been pulled two days after Hygo's Eduardo Antonello was implicated in a scheme to bribe Petrobras officials to secure a $2.7bn contract in 2011.
Golar LNG has not made any official announcements. The Tor Olav Troil-led company has been planning to spin off Hygo — a joint venture with US private equity firm Stonepeak Infrastructure Partners — as a separately listed company.
Hygo's shares were expected to begin trading on New York's Nasdaq on Thursday.
The company did not return requests for comment.
Antonello had previously worked for John Fredriksen-backed Seadrill and was tasked with drumming up business in his native Brazil.
Brazil's federal police executed 25 search warrants on Seadrill subsidiary Seadrill Servicos de Petroleo on Wednesday.
The investigation reportedly centres on $40m in bribes Antonello is suspected to have paid to Petrobras officials, implicating the 44-year-old in Operation Car Wash, which has been looking into bribes paid to Petrobras officials since 2014.
To date, Tor Olav Troim-backed Golar's only comment has been that it is aware of the allegations and that they do not relate to Antonello's work at Hygo.
Review launched
"However, in an abundance of caution, Hygo has initiated a review to seek to confirm that there have not been any deviations from its culture of compliance in connection with Mr Antonello's service to Hygo," Golar said.
Golar was once part of Fredriksen's portfolio before he split with former business partner Troim.
Hygo was Golar's latest attempt to spin off its gas carrier fleet, an effort that began nearly two years ago.
The New York-listed company initially had plans last November to join forces with Awilco LNG and TMS Cardiff Gas to create a new gas carrier owner, but that deal fell apart with Golar citing "misalignment".
The news caused Golar's share price to plummet, closing at $6.86 on Thursday after finishing on Wednesday at $10.14.
In early trading on Friday, the shares rose $0.89 to $7.77.
