Brazil Probes Saipem Contract

The Brazilian regulatory authorities are probing a 2011 engineering contract that state producer Petrobras awarded to Saipem. They suspect irregularities, the Italian firm said late May 30, expressing confidence that it would be found to be all legitimate.

Petrobras, as leader of the Consortium BMS 11, awarded the contract worth Brazilian reais 249mn (about $60mn today),  for the installation of the underwater gas pipeline connecting the Lula and Cernambi fields in the Santos Basin.

Saipem said it would "co-operate 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."