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Temporary Sanction of Saipem Results in Contract Restrictions in Brazil

Written by Paulo Nogueira

Published on 15/01/2024 at 14:14

Oil and Gas

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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.

ARTICLE CONTINUES BELOW

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.

Source: © OFF Shore Energy

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Decisão Final de Investimento

Paulo Nogueira

Graduated in Electrical Engineering from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), he worked for several years in the offshore oil and gas, energy, and construction sectors. Today, with over 8,000 publications in online magazines and blogs on the energy sector, the focus is to provide real-time information on the Brazilian job market, macro and microeconomics, and entrepreneurship. For questions, suggestions, and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes at this contact.

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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