Dangote, Saipem Announce Joint Venture In Central And West Africa
SAN FRANCISCO, April 01, (THEWILL) – Africa's leading indigenous conglomerate, Dangote Industries Limited, has announced a multi-million dollar Joint Venture Agreement with Saipem, the Italian engineering and construction giants.
The agreement has given birth to 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 the 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, while maintaining 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.
According to Edwin, “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 fertilizer 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.