Brazil Lifts Ban on Saipem's Business Units

(Credit: Saipem)

Saipem SA and Saipem do Brasil have become fully operational with state-owned companies in the Brazilian market following the annulment of the prohibitory sanctions issued by the Federal Court of Brasilia.

On December 20, 2024, the Federal District Court of Brasilia, ruling on the petition of Saipem SA and Saipem do Brasil, established that the already obtained annulment of the Controladoria-Geral da União (CGU)’s order - which prohibited these companies from contracting with the Brazilian public administration for two years - is effective immediately.

As a result, Saipem SA and Saipem do Brasil, whilst pending the appeal proceedings, are once again fully operational with state-owned companies in the Brazilian market, with immediate effect.

To remind, in October 2024, Brazil’s Federal court annulled a two-year ban imposed on Saipem’s two business units from contracting with the Brazilian public administration.

The decision to prohibit Saipem’s two businesses was taken due to alleged irregularities in the award of a contract related to gas pipelines, dating back to 2011.

Since that was a ruling nullifying an administrative measure, under Brazilian law, an appeal phase had to follow, during which the effects of the annulment ruling were suspended.