Professional Documents
Culture Documents
C a s e s t u d y
NIGERIA
Nigeria
INDEX
SAIPEM AT A GLANCE Saipem activities Saipem throughout the world Main financial results Saipems human resources SAIPEM SUSTAINABILITY Sustainability organisation Methodology Saipems sustainability policy Saipems sustainability talent FEDERAL REPUBLIC OF NIGERIA OVERVIEW The country in brief Most of Nigerias - Oil production and Consumption The environmental issue The social aspect SAIPEM GROUP IN NIGERIA The company Saipem Group organisation in Nigeria Saipem Group temporary activities in Nigeria Recent acquisitions Company Organisation and management system Mission and policies STAKEHOLDERS RELATIONS Saipem Employees in Nigeria Trade unions Local communities Clients Local suppliers and subcontractors PERFORMANCE INDICATORS THE ENVIRONMENTAL PERFORMANCE Water Consumption Energy Consumption Waste Gas Emissions THE SOCIAL PERFORMANCE Employees distribution Training Safety Health THE ECONOMIC PERFORMANCE Saipem contribution to the Local Economy Safety expenditures Medical expenditures Environmental expenditures Employees salaries & benefits FUTURE CHALLENGES GLOSSARY & KEY WORDS
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6 7 7 8 8 9 10 11 12 12 13 14 14 15 15 17 17 18 18 19 20 20 22 23 23 23 24 24 25 25 26 26 27 27 28 28 28 30 30 31 31 32 33 33 33 34 35
SUSTAINABILITY
INTRODUCTION
This report is part of Saipem's Sustainability programme for the years 2003-2005. For the first time in its history, Saipem has published local reports illustrating its socio-economic and environmental performance in Nigeria, Kazakhstan,
Azerbaijan and Peru. Since 1997, Saipem has been developing HSE reports, providing in-depth analyses of the Saipem Group's overall performance. The ever-increasing interest by stakeholders in companies' socio-economic data has spurred the Oil&Gas sector to produce sustainability reports, and Saipem has reacted accordingly. Saipem felt that, by producing a single report for the whole Saipem Group, it would overlook important country-specific aspects. Therefore, the Company decided to publish several reports on various countries of operation. In 2004, Saipem focused on operations in Nigeria, Kazakhstan, Azerbaijan and Peru for the period 2001 to 2003. All reports share the same structure, although available data and the individual nature of each site make each document unique. These reports are prefaced by a general introduction to Saipem's approach in developing operations throughout the world; they contain an analysis on the environmental, social and economic impact of the company's activities, so as to illustrate Saipem's endeavour, in quantitative terms, to develop actual Local Content in the Country.
SAIPEM
SUSTAINABILITY
SAIPEM
SUSTAINABILITY
SAIPEM
SUSTAINABILITY
A GLANCE
SAIPEMS MISSION
SAIPEM AT
Pursuing the satisfaction of our clients in the energy industry, we tackle each challenge with safe, reliable and innovative solutions.We entrust our competent and multi-local teams to provide sustainable development for our company and the communities in which we operate.
Saipem is one of the world leaders in supplying services to the oil & gas sector, particularly in offshore engineering and construction. Between 1998 and 2001, the Company invested heavily to strengthen its offshore fleet, both in offshore construction and in offshore drilling. As a result, Saipem's fleet is amongst the most technologically advanced and efficient in the sector. In May 2002, Saipem acquired the French engineering company Bouygues Offshore, this allowed the Company to become a leading contractor in the field of complex EPIC projects (Engineering, Procurement, Installation and Construction). In addition this operation allowed the constitution of a group which is a real global contractor, with relevant local presence in strategic and emerging areas, such as Western Africa, the former Soviet Union, Central and South East Asia, North Africa and the Middle East.
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SUSTAINABILITY
SAIPEM ACTIVITIES
The new Group is organised in six worldwide business units. It enjoys superior competitive positioning for the provision of EPIC services to the oil and gas industry, with a particular focus on activities in remote areas, deepwater environments and gas related projects. Offshore Construction: Saipem is the consolidated leader in offshore construction, with main activities covering engineering, construction, and installation of platforms, subsea structures, floating production systems, and subsea pipelines. The most powerful asset in Saipem's fleet is Saipem 7000, a semi-submersible vessel capable of lifting structures of up to 14,000 tons and laying pipelines in ultra deep waters. Other vessels include Castoro 6 and Semac 1, capable of laying large diameter pipelines, Saibos FDS (Field Development Ship), a specialised vessel used for the development of deep water fields and Saipem 3000, a vessel capable of lifting structures of up to 2,400 tons. The company's recent acquisitions further strengthened its engineering and project management expertise. Drilling: Saipem's mobile offshore drilling fleet consists of one state-of-the-art drillship (Saipem 10000), five semi-submersibles and four cantilevered jack-ups. Saipem drilling operations are carried out on behalf of the major corporations in the oil and gas sector. Saipem owns 23 drilling rigs and 15 workover rigs capable of operating at depths ranging from 2,500 to 10,000 meters at elevated temperatures and in high pressure environments. Leased FPSO: Saipem entered this sector in 1996 as a new player offering a unique combination of the capabilities of a major EPIC contractor with the worldwide presence of an owner of first class drilling and construction vessels. Saipem's wholly owned fleet enables the company to provide a full range of installation, construction and transportation services suited to the most challenging floating system installations. Onshore Construction: Saipem is world leader in the onshore construction sector having laid more than 60,000 km of pipelines over five continents and built some 100 oil refineries, petrochemical plants, power plants, oil and water pumping stations and natural gas compression stations. The Company specialises in the laying of large diameter pipelines, above all in adverse climatic conditions and difficult to reach areas. Liquefied Natural Gas: Saipem entered this high-potential market by establishing a new group which has the necessary technological capabilities to construct LNG tanks and is experienced in the construction of offshore and onshore LNG import and export terminals. Maintenance Modification and Operation: Saipem's presence in the last link of the value chain enables the Company to offer end-to-end solutions to energy service providers. This kind of activity allows Saipem to streamline processes, increase productivity and offer clients plans of continuous improvement.
Principal Operating Centers Offshore Offshore Drilling float. Prod. Lng & maritime works Engineering Centers Onshore Drilling Maintenance Modification and Operation (MMO) Yards/bases Other Offices/Activities
Onshore
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SUSTAINABILITY
(*) Includes Saipem s.a. (formerly Bouygues Offshore) figures from the third quarter
The trend in human resources from 1999 to 2002 shows significant growth, culminating in 25,196 employees in 2002 following the acquisition and integration of Saipem s.a. (formerly known as Bouygues Offshore). In 2003, the new Group was rationalised with the total number of employees at the end of the year falling to 21,556. Saipem has always been a truly international company, constantly focusing on integration at local level. In 2003, non-European international employees represented 67% of the total workforce. If we analyse Saipem's personnel by nationality, we see that the majority are French (17%), followed by Italian (11%). The third largest nationality within the Saipem Group is Nigerian making up 10% of the total number of employees.
European
Other Nationalities
20%
15%
10%
5%
0%
Fra
nce Italy geria ssia aijan pines hstan India ngola A Ru zerb hilip zak Ni A P Ka
ru Pe
y A er US orwa Oth N
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SUSTAINABILITY
Consistent with its policy on continual improvement of the management system, Saipem has undertaken a comprehensive assessment of its approach in several strategic countries.In particular, Saipem has begun analysing the sustainability approach used
on certain projects with the aim of providing information for current initiatives. A dedicated team has been working since May 2002 to identify and raise awareness on all initiatives concerning sustainable development and look at possible areas of improvement. Their activities focused firstly on the identification of the relevant indicators of Saipem's worldwide operations from the socio-economic standpoint. This required an assessment of the accounting system and the collection of data both at Corporate and site level. The identification of indicators was followed by the assessment of social and environmental initiatives at site level. Having analysed strengths and weaknesses of its sustainability approach, Saipem resolved that the modus operandi to adopt in the future would be based on the ideals of sustainability. This means achieving the following milestones: Economical: to increase Saipem's contribution to the local and global economy through its economic results; Social: to safeguard the development of local communities, human rights, guaranteeing good working condition, freedom of association, repudiating any form of discrimination, forced or juvenile labour, corruption, safeguarding dignity and promoting health and safety; Environmental: to minimise any environmental impact Saipem activities may have.
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SUSTAINABILITY ORGANISATION
Managing social issues along with policies on local content have long been a commitment of Saipem Group. In 2002, Saipem produced a new mission statement which underlined the importance of a proactive approach to sustainability, concurrently setting up a dedicated team with proven experience. The Corporate Sustainability Team's responsibility is to propose, assess and support the development of local level initiatives based on Saipem's mission. The team is part of the Corporate QHSE Department, which has a long-standing presence within the Saipem Group organisation. An essential role in sustainability management is played by the Sustainability Network, which was set up by the Sustainability Team, bringing together different departments from the various operating companies, which can aid the development of socioeconomic initiatives with their own distinctive competencies. Other corporate departments, such as the Human Resources and Administration and Finance Department, also play a pivotal role in the Sustainability Network, along with Saipem Sustainability Facilitators who represent Saipem Sustainability Team in Key Areas. To streamline efforts related to the development of the Sustainability approach, Saipem has identified certain geographical areas of business which are deemed to be of key importance. The identification of these key areas varies in line with the evolution of the business activities throughout the world. In 2003, the Sustainability Key Areas were: Algeria, Angola, Azerbaijan, Kazakhstan, Malaysia, Indonesia, Thailand, Nigeria, Peru, Venezuela, Russia, Saudi Arabia, Oman, and UAE (United Arab Emirates). In each key area, a Sustainability Facilitator appointed by the Saipem Group Resident Area Manager is responsible for the co-ordination of sustainability initiatives at local level. The sustainability facilitator mainly promotes and develops, with the involvement of the local senior management, initiatives for the increase and improvement of local content, for the good relationships with the local stakeholders and the sustainability accounting.
Sustainability Facilitators
Nigeria Peru Algeria Angola Azerbaijan Kazakhstan Russia Saudi Arabia, Oman, UAE Malaysia, Indonesia, Thailand
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METHODOLOGY
The approach adopted in the preparation of this report is the result of several analyses Saipem recently carried out, together with Eni and the Fondazione Eni Enrico Mattei. Many contributions came from a benchmarking survey of sustainability publications and the following Corporate Social Responsibility Guidelines: Global Reporting Initiative (GRI) guidelines, International Network for Environmental Management (INEM) guidelines, World Business Council for Sustainable Development (WBCSD), among others. In the development of Saipem local reports an approach consistent with the GRI guidelines was chosen, in order to adopt indicators relevant to most of the reporting organisations and of interest to most of the stakeholders. The Global Reporting Initiative (GRI) is a multi-stakeholder process and independent institution whose mission is to develop and disseminate globally applicable Sustainability Reporting Guidelines. These Guidelines are for voluntary use by organisations for reporting on the economic, environmental, and social dimensions of their activities, products and services. Begun in 1997, GRI is an official collaborating centre of the United Nations Environment Programme (UNEP) working in cooperation with UN SecretaryGeneral Kofi Annan's Global Compact. The aim of the GRI Guidelines is to assist reporting organisations and their stakeholders in articulating and understanding contributions of the reporting organisations to sustainable development. The assessment of Saipem's activities in terms of sustainability allows us to evaluate the merits of each indicator proposed by GRI Guidelines and introduce more specific ones. The information contained in this report was collected both at site and corporate level. A specific Sustainability Accounting Standard was created to gather qualitative and quantitative data from sites. Whenever possible, this report spans a period of three years, from 2001 to 2003. This report is one of four Local Sustainability Reports Saipem published in 2004 and illustrates Saipem's approach in Nigeria. Data encompasses onshore construction and drilling as well as offshore construction projects performed by two Group companies operating in Nigeria. Environmental data has been separately provided for onshore and offshore activities, whereas social and economic figures are inclusive of all areas of business. Data was collected from the following sources: Accounting system for HSE data Accounting system for the management of medical expenses Financial Accounting system for the Group Interviews and sustainability accounting system at local level This is the first attempt by Saipem to analyse the social, economic and environmental impact of specific operations in a particular country; this effort has been supported by the recent introduction of the sustainability accounting system and the ever increasing involvement of Saipem's personnel in sustainability issues.
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12 SUSTAINABILITY
FEDERAL REPUBLIC
OVERVIEW
Nigeria has been producing oil since 1958. Its the 11th ranked Nation in the world for its reserves and the second in Africa, with estimated proven oil reserves of 22.5 billion barrels. Daily oil production stands at over 2 million barrels, half of
which is produced offshore. The share of offshore production is increasing as all the recently discovered fields and development projects are offshore. Oil and gas companies operate in Nigeria through joint venture contracts with the National oil company, the Nigerian National Petroleum Corporation (NNPC). Most of Nigeria's crude exports are destined for the United States and Western Europe, with Asia also becoming an increasingly important market. In 2002, Nigerian crude exports to the United States averaged 567,000 bbl/d (6.27% of U.S. imported crude oil) a decrease versus 842,000 bbl/d in 2001 (9.03% of U.S. imported crude oil). According to the International Monetary Fund (IMF) and the Energy Information Administration (EIA), in 2002 the oil export revenues totalled 17.2 billion of dollars; i.e. 90% of total export revenues.
OF NIGERIA
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Life expectancy (2003) Population growth rate (2003 est.) Religions Languages Economic Indicators Gross Domestic Product (GDP) (2002) GDP - real growth rate (2002) GDP - per capita (2002) GDP - by sector (2002) Inflation rate (consumer prices) (2002 est.) Industrial production growth rate (2002 est.) Labour force (1999) Labour force - by sector (1999) Unemployment rate (1992) Environmental Indicators Area Land use (1998 est.)
Source: Energy Information Administration, Country Analysis, Nigeria 2003 and Central Intelligence Agency (CIA), The world Fact Book, Nigeria 2003
U.M.
2001
2002
2003
Reserves Production
24,000 2,199
27,200 2,013
25,000 2,275
Nigeria's total primary energy consumption has more than doubled since 1980. Owing to its continuing population boom and the further development of the country's economy (fuelled by oil development), Nigeria's energy consumption has risen from just 0.42 quadrillion Btu (quads) in 1980 to approximately 0.92 quads in 2001. Petroleum consumption accounted for the lion's share of Nigeria's total energy consumption in 2001, making up 61.4% of the total. Natural gas accounted for the bulk of the remainder with 31.7%, with hydropower (6.8%) and coal (0.2%) rounding out the country's fuel mix. In recent years, natural gas has made inroads in Nigeria, up from 22% of the country's primary energy consumption in the mid-1990s to nearly 32% today. Nigeria's government is keen to expand natural gas consumption to relieve some of the pressure on native forests, which continue to be burned for fuel in many rural areas. There are four refineries in Nigeria (Port Harcourt 1 and 2, Warri and Kaduna), but the level of output is quite low. While Nigeria's state-held refineries are slated for privatization, plans for several small, independently-owned refineries are being developed. Nigeria has awarded 18 private refinery licences after opening up
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the country's downstream sector to private investment. The lack of refinery capacity in the country has been a key factor in Nigeria's latest fuel crisis, in February 2003.
Supply and Consumption Coal Crude Oil Petroleum Products Gas Nuclear Hydro Geotherm Solar, etc Renewable and Waste Electricity Heat Total Production 39 119,115 0 13,285 0 595 0 73,990 0 0 20,7024 Imports 0 0 4,802 0 0 0 0 0 0 0 4,802 Exports 0 -107,176 -1,296 -6,634 0 0 0 0 0 0 -115,107
Source: IEA Energy Statistic 2001 - in thousand tonnes of oil equivalent (ktoe) on a net calorific value basis
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SUSTAINABILITY 15
1963, with a federal structure and three regional governments based on the compass points of north, east, and west. A fourth region, the Midwest, was later added. The Country's political structure was increased to nineteen states in 1976, with Abuja as the new federal capital. Between 1987 and 1991, a total of eleven states were created, and just recently in 1996, six additional states were added, bringing the administrative structure of the federation to thirty-six states. The Framework for Nigeria's Economic Growth and Development (2003 - 2007), established interesting targets of improvement in the social issues as stated in the report, the Government will optimize its provision of an enabling environment, involving the support of basic healthcare, appropriate education, water supply, sanitation and communication. These services or facilities will be used to ensure support for robust economic activity from the priority areas identified by Government. Education Government will support the provision of appropriate education and skills for running a private sector led economy. Priority will also be given to facilities that provide training to workers. In the health sector, the main policy objective of Government is the provision of sustainable basic health care delivery systems to all Nigerians. With this and other facilities, Government will aim at improving the quality of life for the average Nigerian. Government will also seek to raise the National life expectancy rate from 53 years to 65 years and reduce the infant mortality rate.
250
200
150
100
50
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Target 2027
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IN NIGERIA
The Saipem Group has a structured organisation operating in West Africa. It has been operating in West Africa for over 30 years, with Nigeria serving as the pivotal base for the major projects, resulting in:
Drilling: over 350 onshore wells and over 120 offshore wells Pipelines: over 1000 km of pipe laid Plants: over 30 EPC Plants Installations Saipem operates in Nigeria through the following four subsidiaries: Saipem Contracting Nigeria Limited, involved in Engineering, Procurement, Construction and Fabrication for onshore activities; Saipem (Nigeria) Limited, involved in drilling activities both onshore and offshore; Saipem Logistic Services Limited, established in 2002, providing logistic support to group companies in Nigeria; FPSO Mystras Nigeria Limited, set up to support purchasing and operations of the FPSOs. Saipem S.p.A., Saipem S.A., Sonsub and Saibos develop specific projects as foreign companies even if registered with the Nigerian Department of Petroleum Resources (DPR).
SAIPEM GROUP
SAIPEM
SUSTAINABILITY 17
Saipem has been always characterised by a local presence in Nigeria but several years ago, Saipem recognized the need to consolidate the Company's operational requirements. This has resulted in the construction of a purpose built Operations Base in Port Harcourt. Saipem activities are supported by three logistic bases and a maintenance centre: The Nigerian Head Office for the Saipem Group, based in a recently constructed building in Lagos and performs activities of contract administration, cost control and project management. The Saipem Operations Base complex of about 460,000 m2, located on riverside on the Bonny River at Rumuolumeni and has a production capacity of 100,000 man-hours per month. During 2003, it has been expanded and refurbished to increase its capability to support platform construction and all Saipem Group Nigerian activities. Onne Free zone Maintenance centre in Port Harcourt
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platform and its installation using the 'float-over' method. The project was carried out utilising the pipelay and heavy-lift vessel Castoro Otto and the work lay barge SaiBos 230; Preparatory activities have begun on the EPIC project East Area EPC2 on behalf of Exxon Mobil; the project comprises engineering, procurement, construction and installation of three plat forms, in addition to the laying of subsea pipelines. The project will be carried out utilising the derrick pipelay vessel Castoro Otto and the work lay barge SaiBos 230; On behalf of TotalFinaElf, operations have started on the EPIC project Amenam 2, comprising engineering, procurement, construction of a platform and its installation utilising the 'float-over' method. The contract will be performed in joint venture with Technip-Coflexip (30%). In addition to projects performed by SaiBos (Saipem Group) and its participation to the Group's engineering and project management activities, Saipem s.a., directly or through several direct subsidiaries, carried out the following works: On behalf of Esso Exploration & Production Nigeria Limited, involvement in the EPIC project Erha for the fabrication of pipe racks, power generation module and flare. On behalf of Mobil Producing Nigeria Unlimited, fabrication of the Jacket for the Yoho platform. 2003 onshore activities in Nigeria were as follows: On behalf of NAOC, engineering activities for the NLNG Phase 3 Obiafu/Obrikon project have been completed, whilst material procurement and construction activities relating to prefabrication and installation works are progressing. On behalf of NAOC, construction and installation works for the fourth compression module at Obiafu-Obrikon have been completed. On behalf of NAOC, mobilisation of the Construction Project Team has been completed for the Okpai Power Plant project; civil, mechanical and electro instrumentation works are progressing, whilst engineering and material procurement activities are underway. On behalf of NAOC, civil works are progressing in various areas. On behalf of NGC (Nigerian Gas Company), having completed the Rehabilitation of NGC Gas Metering Stations project, extra works requested by the Client have been carried out. On behalf of TotalFinaElf, installation operations of two Screw Compressors at the Obaji plant have been completed. Drilling onshore activities in 2003 were developed by Saipem rigs: Rig 5892, Rig 5832, Rig 5823. A high-depth drilling rig concluded operations on behalf of NAOC as part of a contract for the drilling of four wells; a medium/high-depth rig operated on behalf of NAOC within a one-year contract with an option of an additional 12 months; another medium/high-depth rig successfully completed drilling operations on behalf of Elf Petroleum and was transferred to Algeria at the end of the year.
RECENT ACQUISITIONS
Offshore activities: On behalf of Elf Petroleum Nigeria Ltd, the EPIC contract for the 'Amenam II' project, comprising engineering, procurement, construction and installation of a platform and a bridge for the Amenam field. The contract was awarded to the JV comprising Technip-Coflexip (30%); On behalf of NNPC (Nigerian National Petroleum Corporation)/Mobil, the EPIC contract for the 'East Area EPC2 Additional Oil Recovery' project, comprising engineering, procurement, construction and installation of three platforms, in addition to the laying of subsea pipelines; On behalf of Exxon Mobil Nigeria, the three-year charter of the semi-submersible drilling platform Scarabeo 7. Onshore activities: On behalf of NAOC, the Okpai Power Plant project, involving the construction of a 'combined cycle' Power Generation Plant. The contract was awarded to Saipem S.p.A. in consortium with Alstom Power Italia (leader). On behalf of Shell Petroleum Development of Nigeria Ltd., the debottlenecking for Soku LNG Gas Supply Plant Facilities. On behalf of Naoc, GTS-4 EPC project for the gas pipeline in the River State.
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SUSTAINABILITY 19
HSE Team
MANAGING DIRECTOR
Security
Contracts
QHSE
Commercial Drilling
Onshore Commercial
Onshore Operations
Drilling Operations
Fabrication
Saipem Group in Nigeria has a well structured management system covering all company core and support processes. The system has been designed in line with the Saipem Corporate Policies, Guidelines and Standards. In order to ensure a proper implementation of the policies and procedures, dedicated teams have been appointed for the various disciplines such as Quality Assurance, HSE, Local content, etc.
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Community Relations Policy Saipem Nigeria is highly committed to developing and maintaining friendly and mutually beneficial relationships with its host communities. The Company intends to achieve this objective by: Establishing and maintaining an effective communication channel with host communities Identification and implementation of fair procedures for hiring of local personnel Establishing a rapid response approach to complains from the communities No interference in local affairs of employees as well as behaviour that could be offensive to local traditions, customs or religious practices Participation in some local activities of the communities to promote social integration Assisting the communities in harnessing and developing available local manpower
Mr Otobo Evi Local Content Manager
Local Content Policy A company with a Human Face In line with the Corporate Sustainability Policy, Saipem Logistics Services Ltd has established a Local Content Policy based on the following principles: Implementation of an effective and transparent sustainability communication network within the Group Provide training to develop human capital and building competencies in the management of field of Sustainable local capacity developments Maintain an open and transparent dialogue in decisions, which affect all stakeholders Maintain the Health, Safety and Environmental aspects in compliance with existing HSE policy and principles Protect the Environment, respect of Human and Social rights of employees and Contribution to local economic development Establish a reliable verification system for the performance of suppliers according to sustainability principles
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RELATIONS
Saipem has always adopted a direct approach with its stakeholders, especially at operating sites, such as in Nigeria. This approach often results in initiatives aimed at answering specific requirements from clients, local communities
and authorities. So far, no formalisation system for the management of the stakeholders' requirements had seemed necessary. With the development of the operations and their diversification, Saipem has experienced an increase in the number of stakeholders and of their requests. The Company, therefore, reached the conclusion that a formalised management system would facilitate the job and simplify the relationship with stakeholders. Saipem now needs a more formalised approach that would enable it to answer all stakeholders exhaustively. At Corporate level Saipem is developing guidelines to formalize the mapping, analysis and consultation of local stakeholders. This procedure will be implemented during major Saipem stakeholders' relationships at local level. In 2003, Saipem Group in Nigeria improves its external communication through the development of a booklet titled Here to Stay. This brochure presents the base and the operations, but also Saipem efforts to develop local content. This report is further attempt to achieve a more formalized relationship with stakeholders. This chapter details several initiatives carried out by Saipem for its major stakeholders.
STAKEHOLDERS
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22 SUSTAINABILITY
TRADE UNIONS
Saipem Group employees in Nigeria are represented by four main trade unions; they act on behalf of senior and junior staff and for the construction and drilling workers. Trade unions as representative for Saipem local employees, support Saipem in maintaining positive and strict relationship with workers. Trade Unions sign the contractual agreement, which is updated and revised every two years. The last agreement was signed in October 2002 and is effective until September 2004. The percentage of workers who subscribed to the trade union is 75% of the total local employees, the vast majority being Junior staff (75% of subscribers).
LOCAL COMMUNITIES
One of the main stakeholders of Saipem Nigeria is the local community. A successful relationship with the local communities is a prerequisite for the success of Saipem's operations, as communities have a big influence in Nigeria's Oil&Gas market. Saipem aims to develop the relationship with the local communities and find the best balance between local communities' requirements and company's ability to fulfil them alongside the business needs. Saipem's approach is based on direct contact with the local communities. This is the reason why Saipem developed a well-organised internal structure, thereby avoiding the risk connected with the use of intermediaries. Saipem's main considerations are for the needs of three different communities in the area of Rumuolumeni. Attention is also given to various communities local to the areas where the projects are developed, especially at the beginning of onshore projects. Local communities' requirements consist mainly of finding jobs for their members and gaining an advantage for existing industrial and commercial enterprises from Saipem presence. Saipem is implementing an intense program to maximise local content, in terms of local employment and also local purchasing, as described in the local contribution paragraph. On the other hand, Saipem bound by the technical and contractual requirements set by the client. Communities' relations are mainly based on memorandum of understanding, an agreement signed by Saipem and local communities before the beginning of a project. This sets the percentage of local employment and purchasing and states Saipem's commitment in the development of the community. In most of the cases a memorandum of understanding doesn't satisfy the community in the long term and a continuous process of consultation is necessary. In order to facilitate the consultation process with local communities, Saipem regularly involves all the communities in a consultation forum. During this event, Saipem is used to describe the project and underline the main socio-economic and environmental effects of the project. This assures transparency with regard to the real possibilities for Saipem to maximise local content. A consultation forum was organised in April 2002, at the beginning of the third phase on the OB/OB project. With the support of the client and the local authorities, Saipem managed to convene all the necessary parties to the forum. The main communities were represented by over 1,000 people. This interesting also aimed at facilitating relationships with local suppliers. In 2003, Saipem started the construction of a power generation plant in the area of Okpai. This plant will supply approximately 480 MW of electricity to the region and thanks to the 'combined cycle' the project will optimise the power output and minimize gas emissions. Okpai communities are involved for the first time in oil and gas activities and this is the main reason why negotiations and mutual knowledge will require long process and a high level of attention from both parties. After signing the Memorandum of Understanding with the Communities, Saipem periodically meets communities' representatives by organising consultative forums that are managed by Saipem local lawyer.
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CLIENTS
During the period under consideration, projects developed by Saipem were commissioned by many different clients, such as Eni, Exxon Mobil and Total. Oil companies are operating and producing in Nigeria through locally registered branches. Nigerian Branches can often sign joint venture agreements with the Nigerian National Petroleum Company (NNPC). The Nigerian Government has recently introduced a Production Sharing Contract (PSC) for offshore activities. This agreement implies that oil companies can invest in exploration and development of new fields, which remain the property of NNPC. During the production phase, the operator pays taxes and royalties on products, whereas revenues are divided between the operator and national government. This contract, which is supposed to be the future in the Nigerian oil and gas sector, lasts 30 years. Oil companies are expected to comply with local development requirements, measured in percentage of local content. Today, no law is in force that sets the minimum percentage of local content of the various projects but the Nigerian Government is expected to change this soon. An official document by the National Committee on Local Content - Synchronised Report on Enhancement of Local Content in the Upstream Sector of the Oil & Gas Industries in Nigeria - already targets improvement for local content percentage at 95% for the multinational operating and service companies. Saipem efforts to improve the local content for its activities are seen as an advantage for clients with regard to the local authorities' requirements. Saipem informs its clients about the percentage of local content of its projects and initiatives important for the local development. Again the relationship between Saipem and its clients is very close and different departments involved in operations discuss specific issues directly with the clients' representatives. During new project acquisition, clients' requirements on local content and on the management of socio-economic aspects are increasingly important. Saipem, pursuant to the HSE management system, is developing a formalised approach to be implemented during projects proposal phase.
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24 SUSTAINABILITY
INDICATORS
THE ENVIRONMENTAL PERFORMANCE
PERFORMANCE
The Nigerian Federal Government established the Federal Environmental Protection Agency (FEPA) in 1988 to protect, restore and preserve the ecosystems in Nigeria. The Federal Ministry for the Environment is one of theGovernment Environmental
Authorities for monitoring, controlling and coordination environmental issues for companies operating in the Country. Saipem activities are audited by FEPA as per the regulatory compliance requirements existing in Nigeria. The aim of this section is to show the Saipem Group's environmental performance in Nigeria. Saipem is implementing a planned and systematic Environmental Management System at Rumuolumeni operational base. This process is already underway and steps have already been taken to fulfil the requirements of ISO14001. Saipem is to expand its operational base in Rumuolumeni in order to take into consideration future projects requirements. As per the existing Regulatory Compliance requirements, new industries and major development projects are to submit Environmental Impact Assessment (EIA) reports to the local Authority. For this, in 2003, Saipem developed an EIA report and fulfilled all legal requirements. All environmental data in this section, comes from the HSE accounting system, which has helped Saipem over the years to develop the accountability for the Corporate HSE report. As already mentioned, Saipem is involved in both offshore and onshore activities. Sometimes offshore and onshore data are presented separately to emphasise the results from the two different activities. Whenever possible, environmental data has been integrated with other indicators in order to present a more comprehensive performance evaluation.
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SUSTAINABILITY 25
WATER CONSUMPTION
On Saipem offshore vessels, water is mostly used by the engine cooling systems and ballasting operations, for which sea water (non desalinated) is mainly utilized. Water is also used for general services on offshore vessels. Water consumption for onshore activities mainly involves general services. Water's consumption trend is also strictly related to the pipelines commissioning; this activity requires large amount of water that really influence the early overall consumption. In Nigeria, the main source of water comes from ground (47%) rather then other sources. This is clearly evident at the Rumuolumeni base where there are two boreholes to cater for the base's entire water requirements. In the new camp at Okpai, established for the development of a power plant project, the service water supply and treatment have been particularly well planned, with the implementation of advanced systems. Most of the onshore projects camps have water treatment facilities which are monitored on monthly basis. The water analysis data clearly indicates that all the parameters are in strict compliance with the local regulations. In 2003, total water consumption for Saipem Group operations in Nigeria is approximately 120,000 m3. To easily analyse water consumption trend, the data are compared to Worked Man Hours (WMH).
3,000,000 2,000,000
1,000,000 0
WMH
Water Consumption
WMH
Water Consumption
ENERGY CONSUMPTION
Offshore & Onshore Drilling - TOE/Drilling mt
0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 Offshore 2001 2002 Onshore 2003
2001
2002
2003
Since the electricity supplied from public network is not suitable for Saipem use, power is generated by power generators using diesel at almost all Saipem projects sites. Approximately 75% of the fuel is used by the power generators and the remaining 25% by vehicles. In 2003, a spillage in the fuel pumping station area in Rumuolumeni occurred. A spillage occurred whilst offloading from the pumping station to the oil tanker, due to a pressure build-up in the pipeline, caused by rags and plastic materials clogging the pipe's filter. This resulted in the rubber gasket failing and approximately 800 l of diesel oil spilling out; as a result; the area in and around the fuel pumping station was impacted. HSE Emergency Response Team responded immediately and brought the situation under control. In 2003, total diesel consumption was 25,000 tons. To show the energy consumption through graphs; TOE (tonne of oil equivalent) are compared to drilling meters for the offshore and onshore drilling activities and TOE versus number of employees to evaluate energy consumption in Rumuolumeni base. In 2003, a spillage in the fuel pumping station area in Rumuolumeni occurred. A spillage occurred whilst offloading from the pumping station to the oil tanker, due to a pressure build-up in the pipeline, caused by rags and plastic materials clogging the pipe's filter. This resulted in the rubber gasket failing and approximately 800 l of diesel oil spilling out: as a result, the area in and around the fuel pumping station was impacted. HSE Emergency Response Team responded immediately and brought the situation under control.
TOE/ drilling mt
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WASTE
In 2003, waste generation decreased versus previous years (1,470 tons in 2002 to 910 tons in 2003). This is true for both hazardous and non hazardous waste. This performance improvement is attributed to better management in the collection and discharge of waste particularly at the Rumuolumeni base, which is also supporting various Saipem offshore units. Waste volumes may increase on account of various news projects. Since ISO 14001 certification process started in 2003, efforts have been made to improve waste management. In 2003, 36% of non hazardous waste consisted of ferrous refuses, 14% urban waste and 13% organic cooking waste. All waste were disposed off by local accredited waste disposal contractors. 76% of hazardous waste comprised exhausted engine oil, 6% was waste from the water treatment plant. To describe the waste production trend, waste materials are compared to drilling meters and number of employees in Rumuolumeni Base.
2003 Non Hazardous Waste
Offshore 44% Rumuolumeni Base 28% Onshore drilling 14% Onshore construction 14%
0.012
Ton/Drilling mt
0.009
Offshore 46% Rumuolumeni Base 21% Onshore drilling 31% Onshore construction 2%
0.006
0.003
2001
2002
2003
GAS EMISSIONS
Gas emissions from Saipem operations in Nigeria are estimated based on its diesel and gasoline consumption. Main air pollutants such as CO, NOx, SO2, CO2, are calculated based on the fuel consumption in the reference period. In 2003 estimated CO2 emissions were 87 Ktons, CO emission was 1.2 Ktons, NOx 0.95 Ktons and SO2 0.1 Ktons. Emission's coefficients adopted to calculate gas emission from operations are based on studies and analyses carried out by Saipem. These coefficients
CO2 Emissions/WMH
0.06 0.05 Ton/WMH Ton/WMH 0.04 0.03 0.02 0.01 0.00 n.a. 2001 2002 2003
SO2 Emissions/WMH
n.a. 2001
2002
2003
Onshore
Offshore 0.0008 0.0007 0.0006 0.0005 0.0004 0.0003 0.0002 0.0001 0.0000 Offshore
Onshore
NOx Emissions/WMH
CO Emissions/WMH
Ton/WMH
0.0004
2002
2003
Offshore
Onshore
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can be considered, at present, as the most appropriate ones to estimate the emissions produced by operating activities. Tons of gas emissions are easily compared in the reference period by applying the indicator for tons of emissions versus worked man hours.
The aim of this section is to analyse the main data related to the social area of the Saipem Group operations in Nigeria. For the first time Saipem is disclosing in a structured document the specific social performance information on Nigeria. In particular this section includes employee distribution, training, safety performance and health and safety programs. One of the Saipem's targets for 2004 is the formalisation of an accounting system through the adoptions of a specific procedure that will ensure the evaluation of each projects local Content.
Expatriates 19%
Locals 81%
EMPLOYEES DISTRIBUTION
The increase of local manpower is a Top Management commitment for the whole Saipem Group. The Saipem Group in Nigeria has been endeavouring to increase the number of local employees since starting operations in this Country. In 2003, Saipem consistently increased the number of employees (107%), thanks to new project acquisitions and the high backlog of the Saipem Group in Nigeria. The number of local employees in 2003 increased by approximately 145% versus 2002, i.e. an even greater percentage than the overall increase in employees. In 2003, local employees made up 81% of the total, versus 68% in 2002. .
TOTAL NUMBER OF EMPLOYEES Expatriates Local % of Local employees 2002 1,211 384 827 68% 2003 2,506 476 2,030 81%
Non local
Saipem's long term activity in Nigeria has enabled the development of long-standing Nigerian employees professional skills. One of the main targets of Saipem Group in Nigeria is to improve the standard of local content as well as the number of local workers. In 2005 Saipem Group in Nigeria aims to achieve 90% of local workers and to increase this percentage to 95% by 2006. This is a very challenging target that can be attained thanks to a strategic local content development plan and an intensive professional training program. Starting from the selection of its subcontractor, as will be explained later on, Saipem is favouring local companies, adopting internationals subcontractors only where goods are not available locally. Both local and international subcontractors are driven by Saipem to use local manpower and increase their local content. As consequence, the number of local employees working for Saipem's subcontractors at the Rumuolumeni base is even higher than that of Saipem (84% of local subcontractors employees).
TRAINING
Saipem construction and drilling activities uphold the highest professional and safety standards. This depth of knowledge can be achieved only through comprehensive training programs. With regard to professional training, local employees are flanked by their supervisor, who can support them in the execution of daily activities. The organisational structure adopted gives expatriates the responsibility to teach and transfer knowledge to a small number of local employees who work under them. Following this on the job training some local employees have the chance to develop their professional skills further. Saipem couldn't currently quantify the value of this on the job training but formalisation of the training system is planned for the next year. The efficiency of the on the job training is demonstrated by employees experience shown below. During 2003 Saipem was focused on an intense HSE training program, spending 17,017 training hours on HSE items. The following graph shows HSE training hours for general induction and technical training for specific operations. Saipem also developed health training courses for employees focused on: Sexually Transmitted Diseases (STDs), including HIV/AIDS; First Aid training and Malaria awareness.
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Details on the health programs will be described in-depth in the following paragraphs. Saipem training activities are also aimed at local students who are undertaking a one year internship at Saipem. This internship gives to some young local graduate the possibility to complete their background with practical and technical skills that will be necessary to be involved in the Oil & Gas sector. In 2002 all trainee students were employed by Saipem at the end of their internship. In 2003 the number of these Industrial Trainees was 13, who were involved mainly in the logistic department.
3,000
2,000
1,000
e g e ur s tion urs iftin Co Co ven dL fety an Pre ion Sa uct l ing ting Ind era igg gh n R Fi Ge Fire
e re g is id ng ers ling tion urs din lys tA sho rivi nd Oth Co era na ffol Off Firs eD Ha Op ent ty A Sca al siv sic ne afe nu fen Ba gem Cra bS Ma De na Jo Ma fety l sa na atio cup Oc
INTERVIEW WITH ADENIJI RAMONI - OPERATION MANAGER RIG 5832 How long have you been working for Saipem? Since 1988 How old were you, when you joined Saipem? I was 27 years old What was your professional role at the beginning? Tool pusher trainee What was your professional skill before enjoying Saipem? I had got some professional experience with an oil company, the then Petroleum Inspectorate now Department of Petroleum Resources (DPR). How old are you now? 43 years old Where do you came from? From the South- west of Nigeria - about 100 km from Lagos. My family still lives there because I prefer them to stay in my original town. What are main steps of your professional development? After four years of working as a tool pusher, in 1992 I was promoted to operation manager for Rig 5847, a mechanical rig that was dismissed by Saipem some years ago. Since 1994 I have been operation manager for Rig 5892 and now I'm working for Rig 5832. I'm also Logistic operational manager for some Saipem Offshore activities. I've been following the projects from Rumuolumeni Base since 2001. How many people are working under your supervision? Saipem employed about 114 people working on Rig 5832. About 11 expatriates, 73 local staff, about 30 contractors. How did you improve your professionalism? Saipem was a very challenging experience for me. Saipem gave me the possibility to grow but my own endeavour was very strong since the beginning. I followed the training courses needed to develop my job skills and I received on job training from very enthusiastic people who shared with me the feeling of being part of a great Company. I think the Company can improve and encourage professional growth of locals, focusing more and more on professional training. From my point of view, local workers must be proud to work for Saipem and this could be achieved if people transmit their commitment to the job and to the Company itself. What are your future professional target? I'm going to give the maximum I can to this Company as I've been done since the beginning, but I would like also to share my know-how with other local employees who can grow as I did. Do you think some of your colleagues are following your professional growth? I think same of them can really improve their professional skills but the general number of professionals is falling due to the decrease in onshore drilling operations. This is a general trend of the onshore drilling operations in this Country; there are many
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reasons for this but I think that the main reason is connected to the costs that the contracting companies and the oil & gas companies have to support working with the communities. Local Communities are asking more and more to the Companies and operating in certain areas is no longer profitable for them. What initiatives can Saipem take in order to let more Nigerians improve their skills? First of all, expatriates and especially Italian people, should share their passion for working in this sector and the Saipem Group. We need to improve the chances of retaining who we have already trained giving them career opportunities and training them on additional skills. This will allow us to allocate people to different professional role if necessary.
SAFETY
Saipems commitment to safety is one of the daily targets for all operations personnel. Safety performance has been recently characterised by an improvement obtained by a huge effort of the HSE staff. The safety training developed to almost all employees, the particular care in the use of Personal Protective Equipment (PPE) and the top management's commitment are some of the key issues of the HSE management in Nigeria. The graphs below show the LTIFR (Lost Time Injuries Frequency Rate) of the Saipem Group in Nigeria in 2003 compared with the previous years (2.85 versus 2.93). Although all data points to an improvement in the safety performance, the Saipem Group in Nigeria experienced a fatality in May 2003. During maintenance operation on a grader, a team of 3 heavy duty mechanics was removing the right front wheel in order to repairing the bearing of the wheel drum. Whilst hammering the wheel on the internal side, the rim locking ring blew off striking the left leg of one of the mechanics, semi-amputating the leg under the knee. The worker died in the hospital. The investigation following the incident underlined ones more the need for ongoing training at all levels and an increasingly precise assessment of operational risks.
HEALTH
At all Saipem's site and/or project worldwide, medical assistance is internally managed by Saipem's staff. The Rumuolumeni base has a clinic and a team of 12, comprising both doctors an nurses, employed to assure medical service to employees and subcontractors working at the base and on nearby operational sites. All other main Nigerian projects involve at least one doctor and in most cases one local nurse. The total number of people working for the medical department in Nigeria in 2003 was 28, 18 of whom are locals. In particular, the Medical Staff is in charge of preventive activities, curative, administrative and organizational activities. With regard to preventive activities, Saipem's medical department performs medical examinations (pre-employment medicals and periodical examinations); immunization and chemoprophylaxis programs; health risk assessment in addition to hazard identification, evaluation and control (location, biological, chemical, physical and psycho-social factors). Training and educational programs are also part of the preventive activities. The 2003 training programs focused HIV/AIDS, Sexually Transmitted Disease and Malaria awareness. The Sexually Transmitted Disease (STDs) program was developed by Saipem Corporate Medical Department and implemented by Medical staff at local level. The program is based on an Information-Motivation-Behaviour Skills model and focuses on three fundamental determinants for
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30 SUSTAINABILITY
STD, HIV/AIDS risk reduction: 1. Information regarding STD, HIV/AIDS transmission and prevention; 2. Motivation to change high risk sexual behaviour; and 3. Behavioural skills for performing specific STD, HIV/AIDS preventive actions/measures. About 60% of the employees were involved in STD, HIV/AIDS training in 2003. The health training program for 2004 is to be very intense and Saipem strives to achieve at least 70% of overall targets. Beside the STD, HIV/AIDS, another significant initiative is the Malaria Control Program (MCP) developed by Saipem's Corporate Medical Department and implemented in Nigeria. The program consists of: Awareness - through a specific education program Avoidance of Bites by mosquitoes Compliance with recommended chemoprophylaxis Early Diagnosis and prompt treatment Although information on Malaria risks is widespread among employees, certain difficulties in convincing people on the effectiveness of chemoprophylaxis still subsisted. A recent statistic (2003) developed among 623 expatriates, shows that, in spite of information received, 454 decided not to adopt the suggested chemoprophylaxis. Next following table shows justifications given by interviewees.
Reasons for non-compliance 1. Adverse effects 2. Did not consider necessary a). Longer stay in endemic area b). Ready access to prompt diagnosis & treatment c). Confident about the effectiveness of bite prevention 3. Contraindication due to medical reasons Mefloquine 17.84% 56.60% 45.91% 43.96% 10.11% 6.82% Drug prescribed Atovaquone+Proguanil 10.79% 5.94% 77.77% 14.81% 7.40% 1.98%
The medical department is also responsible for curative activities, the performance of diagnostic procedures and of the therapeutic methods, both medical and surgical. The referral and/or transport of the sick/injured to a higher level medical if required. Finally, medical staff is also involved in administrative and organisational activities of all issues related to their responsibilities.
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only minor variations over the years. These costs were compared with the overall expenditure of the Saipem Group in Nigeria. This figure includes purchasing of materials and services at local level, labour costs for local employees and local taxes. The cost distribution shows that, in 2003, approximately 30% of the local expenditure is on services, 18% on labour and 16% on taxes.15% of the local costs were on renting of infrastructures and 10% on purchasing of raw materials. The costs for materials, subcontracts and training are less significant comparing to other issues. Comparing the local costs breakdown with the total costs of the Saipem Group in Nigeria, it is evident that most services and taxes costs are local costs, because their percentages decrease when included in the total costs graphs. On the contrary, labour costs are mainly non local costs.
SAFETY EXPENDITURES
As part of the Saipem group costs, particular attention is paid to safety expenditures. Saipem safety costs for 2003 were estimated at 1 million euro. This data refers to safety expenses and not safety investments, which could not be assessed as integrated part of the overall investments done in Nigeria. Safety expenditures comprises consultancy, equipment, personal protective equipment, safety publications, periodic maintenance and control, audits, training and insurance. The majority of safety costs is on Personal Protective Equipment which represents 43% of the total. Training costs are also quite significant (13%). These data do not include the expenditures of the HSE team personnel, which as we said consist of more than 40 people.
Safety equipment: gas detention 2% Safety equipment: fire fighting equipment 4% Safety equipment: signs and posters 6% Safety equipment: other 12% Personal protective equipment (PPE) 43%
Safety publication 1% Periodic Maintenance & Control 4% Safety training 13% Insurance 14% Other actual expenditures 1%
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MEDICAL EXPENDITURES
Medical expenses are recorded on a dedicated accounting system by the medical department. In 2003, medical expenditures were higher comparing to the previous year, especially for the occupational health program. This is due to a steep increase in local staff during 2003.
Hospitalisation 3% Consumables 10% Medicines 28% Medical Personnel Costs 38% Less than one percent 2%
ENVIRONMENTAL EXPENDITURES
The largest share of environmental expenditures, is connected to the management and disposal of waste 55% of the total in 2003. Environmental investments data was not available for analysis.
Environmental consultancy 19% Air pollution prevention and analysis 15% Water discharge management 6%
Supply water treatment & management 1% Waste management and disposal 55% Other environmental actual expenses 4%
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agreed with the unions. The most relevant benefits offered by Saipem to local employees (senior, junior and special contract staff) are as follows: Each employee receives, in addition to medical assistance during service, a monthly allowance for the medical care of his family. The allowance varies depending on the category of the worker; for junior staff the allowance is about 37% of the minimum wage; for senior staff it's over 60% of minimum monthly wage. Another important benefit for local workers is the housing allowance. The value varied depending on the category, however it's over 40% of the minimum monthly wage for junior staff and over 60% for senior staff Local workers receive an allowance to cover transport costs from accommodation to the workplace. It's a relevant amount in relation to the minimum monthly wage: over 50% for junior and over 80% for senior Saipem gives a monthly grant to employees for electricity, water, gas and phone services (around 10% of the minimum monthly salary for each category of worker). Other minor benefits are set out in the contractual agreement between Saipem and the individual employees. All these underline the company's commitment not only towards its employees, but also towards their families. Among these are the annual allowance for children's education and the loan to by a house.
FUTURE CHALLENGES
Saipem Group in Nigeria, following the continual improvement approach, fixed some specific targets in order to increase even more its integration in the Country. As already described, Saipem's target is to have 95% of local employees by 2006. This challenging objective can be achieved also through an intensification of the professional training activity that is already planned. The Training manager and the Local Content manager will be involved in the organisation of new professional training programs as well as in the coordination of already existing training initiatives. The formalisation of some already existing usual procedures will facilitate the managing of them as for example the relationship with the local stakeholders, the assessment and evaluation of the local content. The need to assess the local content has spurred the Company to study the most suitable way to analyse Saipem's local costs. The result is a project cost sheet for each project, on which local costs are presented as percentages. The Local Content evaluation of each project comprises the following: Worked Man Hours by Senior and Junior Local Staff Labour costs for Senior and Junior Local Staff Costs for locally purchased materials Costs for locally purchased services Training costs for Senior and Junior Local Staff Medical expenditures for local staff Donations to local communities The Nigerian Government recently assigned the National Local Content Committee the task of identifying a method to evaluate local contribution of companies operating in Nigeria, in order to set the legal requirement. The commission suggested an approach very similar to that adopted by Saipem. Differences in the two approaches are inclusion by the commission of the costs related to local taxes. For this reason it can be said that Saipem calculated Local Content is undervalued because the project cost sheet doesn't currently consider local taxes. For major projects, Saipem developed a Nigerian Local Content Report, in which the project team sets targets and actual percentage for local content. This report is also a tool for monitoring the achievement of targets in the different project phases. Saipem targets for local content differ from project to project due to their peculiar characteristic. Many obvious differences exist between Onshore and Offshore projects. The average percentage of Local Content target for all Saipem project is 50%. Today, projects achieve 59% of local contribution. These results enable Saipem to fully comply with requirement set by National Committee, which is expected to become law.
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LTIFR=
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A Joint Stock Company with Registered Office in San Donato Milanese (MI), Italy Fully paid-up Share Capital Euro 440,958,400 Fiscal Code and Milan Companies Register No. 00825790157 Other offices: Cortemaggiore (PC) - Via Enrico Mattei, 20
Saipem S.P.A. Contact us: QHSE Dept.- Sustainability Team Daniela Mauri daniela.mauri@saipem.eni.it Tel. +390252044452 Fax. +390252034617 via Martiri di Cefalonia, 67 20097 San Donato Milanese (MI)
Societ per Azioni Via Martiri di Cefalonia, 67 20097 San Donato Milanese (Mi) Tel +39 02520.1 Fax +39 02520.44667 www.saipem.eni.it