Temporary Sanction of Saipem Results in Contract Restrictions in Brazil

Written by Paulo Nogueira

Published on 15/01/2024 at 14:14

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Saipem Faces Restrictions for New Contracts in Brazil Due to Prohibition on Contracting with Public Administration, Final Decision.

Saipem, an Italian engineering, drilling and construction services company, is facing challenges in securing new contracts in Brazil due to the restriction on engaging in new negotiations with the country’s public administration in the coming years.

The Brazilian company, Saipem do Brasil, is under investigation by the Comptroller General of the Union (CGU) for alleged irregularities in awarding a contract for the installation of a pipeline dated December 2011, by the consortium BM-S-11. The CGU’s final decision was issued on January 12, 2024, limiting Saipem’s options in the Brazilian market.

Saipem: Italian Engineering, Drilling and Construction Services Company

According to the Italian player, the CGU altered its previous provisional decision, which consisted of the prohibition on contracting with the Brazilian public administration issued on December 29, 2022, and replaced it with a ‘temporary’ suspension limited to a period of two years.

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New Offshore Contracts and Recent Sales

Saipem secured several new deals in 2023. At the end of November 2023, the Italian giant obtained two new offshore contracts valued at approximately US$ 1.9 billion to work with ExxonMobil in Guyana and Equinor in Brazil.

Prior to this, the company won a letter of award (LOA) worth billions with ADNOC of the United Arab Emirates, in consortium with the National Petroleum Construction Company (NPCC). The Italian giant also recently sold an FPSO vessel, which is operating in the Espírito Santo Basin, off the coast of Brazil.

Temporary Sanction of Saipem Results in Contract Restrictions in Brazil

Saipem Faces Restrictions for New Contracts in Brazil Due to Prohibition on Contracting with Public Administration, Final Decision.

Saipem: Italian Engineering, Drilling and Construction Services Company

New Offshore Contracts and Recent Sales

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Temporary Sanction of Saipem Results in Contract Restrictions in Brazil

Saipem Faces Restrictions for New Contracts in Brazil Due to Prohibition on Contracting with Public Administration, Final Decision.

Saipem: Italian Engineering, Drilling and Construction Services Company

New Offshore Contracts and Recent Sales

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

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China outpaces Elon Musk with Unitree humanoid robot available on AliExpress for $6,800, with free shipping and international delivery, turning billionaire technology into something anyone can buy online.

Lula says that the Brazilian naval industry will “thrash” China and Korea, while the government announces billions for barges, pushers, and a new hydro terminal in the Amazon.

Far from football, São Paulo idol and former national team player becomes a wine producer in Italy, transforms the nickname “Prophet” into his own brand, and now runs a winery, restaurant, and hotel in Piedmont.

Train of up to 111 tons leaves China for Brazil, crosses almost 20,000 km in up to 70 days by ship, and arrives in São Paulo in such a tight operation that a truck even had to deflate its tires to pass under a viaduct.