Italian oil and gas industry contractor Saipem has formed a joint venture (JV) with Nigeria-based Dangote Group to develop new business in central and west Africa.

Both firms will create a new company, named Saipem Dangote E&C, which intends to secure complex engineering and construction projects.

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A realisation capacity will focus on efficiency, with respect to costs, timing and flexibility, in order to respond to various requirements associated with particular projects.

"The JV confirms the shared commitment of the two groups to both the Nigerian market and sub-Saharan Africa."

The new JV will benefit from Dangote’s financial strength, expertise and presence in the sub-Saharan African market.

The company has launched an oil and gas investment programme, complemented by Saipem’s capabilities in E&C, to develop new business.

The JV confirms the shared commitment of the two groups to both the Nigerian market and sub-Saharan Africa, Saipem said.

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Saipem has been operating in Nigeria for more than 50 years.

Saipem Contracting Nigeria operates principally as an engineering, procurement and construction contractor to implement projects including oil, gas and water pipelines, oil, gas and industrial plants, infrastructures, fabrication of offshore structures and maintenance services.

Saipem, a subsidiary of Italian energy firm Eni, operates in the engineering and construction, and drilling businesses, with a bias towards oil & gas-associated activities in remote areas and deep-waters.