Italian services firm Saipem confirmed on Wednesday that Milan prosecutors are looking into alleged international corruption tied to a 2011 contract awarded by Brazil’s Petrobras.

According to Reuters, prosecutors are investigating a contract awarded by state owned Petrobras to Saipem SA (France) and Saipem Do Brasil in 2011.

Last month, prosecutors in Brazil alleged that former Petrobras engineering director Renato Duque showed unfair favoritism to Saipem during an a undersea gas pipeline contract auction for the offshore Brazil Lula and Cernambi fields.

Prosecutors allege that Duque accepted bribes from a Saipem representative in exchange for favoring the company during the contract auction, Reuters said.

Brazilian officials claim that Duque received $1 million in bribes through a Swiss bank account along with $174,000 worth of art in exchange for favoring Saipem, the Wall Street Journal.

Duque was arrested along with 17 others in November for a range of corruption charges tied to Petrobras deals.

He was the second senior Petrobras official to be arrested as part of the ongoing probe, known as Operation Car Wash.

Saipem said it is cooperating fully with the investigation and added that it has not received any notification about the matter from Brazilian judicial authorities.

Italy’s Eni owns a 43 percent stake in Saipem.

In June, Saipem launched an internal audit after learning that an inquiry into a former Saipem do Brasil consultant had been opened.

“This internal audit is still ongoing,” Saipem told Reuters.

Saipem said last month that it will cut 8,800 jobs during the next two years after booking about $1 billion in write downs in the second quarter and slashing its annual guidance.


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