Saipem Faces Brazil Probe

Italian oilfield services player Saipem said that two of its subsidiaries are being investigated by Brazilian administrative authority over supposed irregularities in a contract award back in 2011.

The alleged irregularities include Saipem’s French and Brazilian units, who were awarded a €56-million contract by Petrobras in December 2011 for the installation of the subsea gas pipeline connecting the Lula and Cernambi fields in Santos Basin.

Saipem said it will cooperate in the administrative proceedings by providing all the clarifications requested by the competent administrative authority and have confidence in the correctness of the award of the above mentioned contract and in the absence of circumstances to affirm the administrative liability of the companies.