Saipem Barred from Public Contracts in Brazil for 2 Years

The Brazilian administrative authority has suspended Italy's Saipem and its subsidiary Saipem do Brasil from contracting with the country's public administration for two years, the engineering and construction group said on Friday.

The decision stems from the final ruling in the administrative proceedings initiated against the companies in relation to alleged irregularities in the award of a gas pipeline contract in 2011.

The sanction has no impact on ongoing projects in Brazil, Saipem said, adding it would appeal the decision.

In November, the Italian company said it had won two offshore contracts in Brazil and Guyana worth around $1.9 billion in total.

(Reuters - Reporting by Francesca Landini, editing by Alvise Armellini)