Dangote, Saipem Joint Venture, Raises Competition

Africa’s leading indigenous conglomerate, Dangote In­dustries Limited has an­nounced a multi-million dollar Joint Venture agreement with Saipem, Italian engineering and construction giants.

The agreement has birthed a new company named Saipem- Dangote E&C.

According to a statement from Dangote Group, the company, Saipem-Dangote E&C is a sig­nificant new player in the Nige­rian and Central/West African market, with high technical and financial capabilities.

The statement quoted Group Executive Director, Dangote Group, Mr. Devakumar Edwin as saying that the new Company aims to secure complex Engineer­ing & Construction projects and to execute them at the highest lev­els of efficiency in terms of costs and timing.

Edwin stressed that the new venture will maintain sufficient flexibility to adapt to different project requirements.

Saipem and Dangote Group have a track record of success­ful collaboration, drawing on the strengths and competences of both Companies. Dangote’s financial strength, expertise and standing in the Sub–Saharan Af­rican market will complement Saipem’s unique capabilities in E & C.

This new partnership confirms the shared commitment of the two groups to both the Nigerian market and sub-Saharan Africa more widely.

Edwin said, “We are confident that our partnership with Saipem will position us as a major player in the oil & gas sector.

“Dangote’s financial strength, expertise and standing in the sub–Saharan African market will complement Saipem’s unique ca­pabilities in E & C in developing new business.

“Saipem values the satisfaction of its clients in the energy indus­try, tackling each challenge with safe, reliable and innovative so­lutions. Dangote Industries and Saipem shall gain mutual benefit from this partnership”.

Saipem Central Africa Re­gional Manager Giuseppe Surace said: “The combination of two excellences like Saipem and Dan­gote in Central Africa creates a new efficient and sustainable way of working along the whole value chain”

Dangote Group is one of Af­rica’s largest industrial conglom­erates. It has been a key investor in the Nigerian economy for a number of years, and is seeking to help the country create a more efficient industrial and energy infrastructures, via strategic investments in a number of up­stream oil and gas projects.

It is also at an advanced stage of project development in the downstream sector. The Group is developing power generation, gas exploration and fertiliser produc­tion projects.

The Nigerian economy will benefit from Dangote Group’s in­vestment plans, which include a major refinery and petrochemi­cal complex in Lekki, new E&P gas supply pipelines and other infrastructure.