1122HSE-2005 Eng

spm_bilHSE_L04_06_07_04
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Health Safety Environment

Report 2005
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Health Safety Environment

Report 2005
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SAIPEM / HEALTH SAFETY ENVIRONMENT REPORT 2005
MISSION STATEMENT
"Pursuing 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 for the communities where we operate".
Core Values
Commitment to Safety, Integrity, Openness, Flexibility, Integration Commitment, Innovation, Quality,
Competitiveness, Teamwork, Humility, Internationalisation.
Countries of activity
AFRICA
SOUTH EAST ASIA AND OCEANIA
Australia, China, Indonesia, Malaysia,

Singapore, Thailand
EUROPE
Algeria, Angola, Cameroon, Congo,

Egypt, Gabon, Libya, Morocco, Nigeria,
Sudan
Italy, France, Belgium, Croatia,

Germany, Ireland, Luxembourg,
Netherlands, Norway, Portugal,
Romania, Spain, Switzerland, Turkey,
United Kingdom
AMERICAS
MIDDLE EAST
Abu Dhabi, Dubai, Iran, Kuwait, Oman,

Qatar, Saudi Arabia, Sharjah, United
Arab Emirates
CSI
CENTRAL ASIA
Astrakan, Azerbaijan, Georgia,

Kazakhstan, Russia
India
Argentina, Brazil, Canada, Ecuador,

Mexico, Peru, United States, Venezuela
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Letter from the Chairman

The methodology
4
6
About us: SAIPEM Group Structure and Activities
12
Performance Overview
16
16
18
18
19
Health Targets
Safety Targets
Environment Targets
Sustainability Targets
21
21
22
23
23
Health
Safety Plan 2006 / 2007
Environment
Sustainability Program 2006
Priorities and Plans
HSE Management System
25
HSE Training year 2005 for Saipem
29
Corporate Responsibility
32
33
Building Common Accountability Framework
35
35
37
39
Health Reporting System and Expenditures

Medical Services Rendered in 2005
Health Main Activities
44
44
45
45
47
47
51
Commitment to Safety
Safety performance analysis
Accidents analysis
Accomplishments and Failures
Pro-active indicators
Safety Expenses
52
52
54
Commitment to environment
Environmental Performance Data
61
61
65
67
Dolphin project: respect for the sea

Kizomba B project: Saibos in angolan deep water
ERHA Project: a huge challenge called FPSO
Health
Safety
Environment
Main focus on
Saipem at a glance: 2005 results
70
Definition of Terms
71
Verification of the Report
74
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Letter From The Chairman
Once again I have the pleasure of presenting the Health,

Safety and Environmental (HSE) report by the Saipem
Group on our 2005 HSE performance covering all
operations worldwide. This report reflects a desire by
Saipem to remain open and accountable to the community
for its HSE performance. It provides an overview of our
achievements, considers challenges and establishes goals
for the future. Although progress was made progress during
2005, with statistically the safest year in terms of Lost Time
Injury frequency rate since records began, and considerable
improvements in the environmental area have been
achieved, we are in no position to celebrate these
successes. Indeed, in 2005 six of our colleagues died as a
result of our activities. Our thoughts should be with their
families and our efforts must increase to ensure that these
tragic events never occur. The loss of life as a result of our
work is simply unacceptable and our targets cannot be
anything but Zero Fatalities. I expect all our personnel to
keep this in mind by ensuring that we take safety very
seriously in every task we undertake in our activities.

Everybody needs to be a leader in safety, therefore
personally accountable for it. Our focus in 2006 will be on
developing these leadership themes and cascading specific
training programs at various levels of our organization. Our
QHSE Department has a key function in supporting all our
managers and operatives in the fulfillment of their HSE
responsibilities and the various tools and initiatives
launched by the company shall be fully embraced by
everybody. The protection of the health and safety of
personnel and the environment is not only a top priority for
the Group. It is a core value of the company and needs to
be a personal value and commitment of each employee.
These expectations are also demanded by our key clients
who hold us to the highest HSE standards as well as to
developing a positive safety culture. In line with the
industry culture of continuously seeking opportunities to
improve, the companys performance in 2005 saw
improvements in a number of important areas which
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The Chairman Pietro Franco Tali
included risk and incident analysis, emergency

management, environmental protection and sustainable
development. Saipem has implemented several methods
to determine root causes, improve management systems
and share lessons learnt from each incident. Precautions
have been taken to limit risks by appropriate analyses and
by adapting our assets to technological progress. Besides
the continuously monitoring of our plants and processes
and complying with internal and external regulations, we
have an incident management of and an emergency
organization with detailed alert and hazard control plans.
In 2005 Saipem took steps to improve the quality of our
reporting, and a new software, the Environmental Web
Report, was created. Further improvement has been
achieved in the air emission factors methodology based on
fuel consumption reports. Saipem has also focused its
attention and efforts on improving and developing its
Environmental Management System aimed at managing
the potential environmental impacts connected to
construction activities. Sustainability has once again been a

central part of Saipems way of doing business.
I do not want to go into more details, but I invite you to
read the in-depth analysis on the various topics offered in
this comprehensive Annual HSE Report which I welcome,
and which presents a very good overview of our
commitment, performance and challenges for the future.
Our Corporate QHSE Department, who prepared this
analysis, and all our worldwide HSE network have, as I said
before, an important role in supporting, advising and
facilitating the effective fulfillment of the HSE
responsibilities which each of you holds as a Company
employee. I wish to extend this concept to all Saipem
stakeholders who are reading this report and are directly or
indirectly involved with our operation. I sincerely believe
that only our joint efforts and commitment can make this
journey to safety the most effective possible and will lead
us to the achievement of our vision of zero fatalities. I look
forward to your feedback.
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The methodology
The aim of the Annual HSE Report is to describe our own
major HSE performances by means of statistical data and
parameters. The present HSE Report analyses all the main
activities over which Saipem had exercised its operative
control during the twelve-month period from 1 January to
31 December 2005.
This document, drawn up yearly and distributed to the
public (shareholders, financiers, public opinion,
environmental groups, national and local authorities,
clients, etc.), tends to provide a comprehensive overview of
the following principles:
Saipem's Health, Safety and Environmental policy;
Importance that the Company assigns to these issues;
How Saipem has structured its HSE system to implement
the policies and achieve the set objectives;
Way the Company operated in 2005 to assure workers'
health and safety and to preserve the environment in the
Countries where it operated;
HSE Performance in 2005;
Particular initiatives undertaken in the HSE area during
the year. The Report contains both a qualitative description
of the above principles and quantitative HSE data, such as
consumption of natural resources, production of waste,
atmospheric emissions, safety related indicators, expenses
incurred for actions in favour of workers' health, safety and
environmental protection.
In order to collect and process these data, Saipem uses an
IT system introduced in 2002 which is improved year by
year. The major innovation introduced in 2005 is the
specific software (i.e. Environmental Web Report) custom
made for Environmental data collection and available on
intranet by the majority of Saipems sites, projects and
companies. This new software has been introduced in order
to improve the monitoring and the evaluation of the

environmental performance and results, as well as to
identify the aspects that can be better dealt with.
The continuous improvement of our system has enhanced
the accounting methodology in terms both of the
comprehensiveness of the area of consolidation and
accuracy of measurements. Whenever necessary, the
historical sequences are updated using the same methods
for the purposes of data comparison.
In particular, the present report contains a revision of the
emission factor for atmospheric pollutants: for this reason
the data concerning the previous years has been
recalculated on the basis of the new coefficients. Generally,
the evaluation of atmospheric emission can be determined
following two methods: the direct one, by continuous
measuring of pollutant concentration at the points of
emission; and the indirect one, by estimates based on
emission coefficients which consider both combustion
systems as well as the quality of fuels used. Because of the
numerous and diverse sources of emissions related to
Saipems activity, the only reasonable way that can be to
obtain a reliable quantification of the atmospheric
emissions is the indirect estimation based on fuel
consumption. The introduction of a new methodology, based
on evaluation models and criteria set up by international
organizations, leads to an improvement of the accuracy and
reliability of the emissions quantification and, at the same
time, allows Saipem to align with the International Standards
for the calculation of the air emissions such as CORINAIR
(methodology issued by the United Nations Economic
Commission), UKOOA (methodology issued by United
Kingdom Offshore Operators Association) and IES
(methodology developed by ENI).
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The methodology generally used for the indirect estimation

of atmospheric emissions is based on "successive
approximation" starting from the resources available:
recalculations should result in an improvement of the
accuracy and completeness of the inventory and ensure the
consistency of the historical series.
Moreover, as from this year, in addition to the usually
monitored pollutants (i.e. CO, CO2, SO2 e NOX), CH4,
NMVOC and PM are also considered.
The environmental indicators used in this report can be
divided into two main groups (i.e. absolute indicators and
relative indicators). The former refer to objective physical
parameters (such as tons of consumed fuel, m3 of
consumed water, expenditure in euros, etc) while the latter
are obtained from the ratio between the absolute indicator
and the production of the relevant activity (for example
tons of consumed fuel / km of pipeline laid, m3 of consumed
water / tonnes of structure lifted, etc). The relative
indicators attempt to eliminate the natural' variation of the
absolute ones caused by production changes: the relative
indicator thus measures only genuine changes in efficiency
and can be profitably used to evaluate the improvement of
an activity from an environmental point of view, offering
the possibility of a comparative analysis through the years.
In view of the considerable diversification of Saipem's
business, it was considered appropriate to continue the
usual practice of presenting quantitative data aggregated
by type of activity (offshore constructions, onshore
constructions, logistic bases / offices, etc.).
A further innovation, specific to environmental/safety
expenses and investment accounting, was introduced in
2005. The required data are now extracted directly from
the SAP or SPSPC database, thus providing a more accurate
expenditure recording method. Such software is used

extensively in most process-based companies, and
currently involves about 80% of Saipems structure.
An important part of the self-improving process mentioned
above is represented by a new revision of the Corporate
Standard for the Annual HSE Report, whose target is
improving our reporting system in order to present ever
more useful and accurate information.
As for the past years, also in 2005 we have decide to check
the reliability of the information contained in the present
Report by a third part audit conducted by an external
verification company. Moreover this check provides us
some valuable indications and suggestions for the
continuous improvement of data clarity and Report
readability. The list provided with the following map
includes all the Sites/Projects involved in the collection of
the HSE data.
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Saipem Projects and Sites of activities

Offshore Construction B.U.
Projects
AIOC Transport &
Installation
Sabratha Platform
SaiWoo - Sable Tier II
Canada
Saipem SpA - Bahr
Essalam
Saipem America - BP
projects
Sonsub Ltd Worksites
Sonsub A.S.
Sonsub PTY
Peciko IV
Bayu Darwin
Bongkot
TTM Project
Lamma project
TL Offshore Project
BP Tangguh
TTP project
Sakhalin Pipelines &
Cables
Sakhalin Topsides
East Area EPC 2
Yoho
Amenam AMP 2 Project
Kizomba B Project
West Espoir
Rosa- Lirio
Marimba
AKPO
DP4 AGIP Bour RIG
remooval
PS1 Persian Gulf
Dolphin project
Baltim North
Engineering projects
BP Rhum
Conocophilips
Ormen Lange
Tullow Oil
Maersk Dan 949020
Nexen Buzzard pipelines
& subsea structures
949290
Nexen Buzzard transport
& Installation 949310
Shell BRFD
Frigg Cessation 949480
Langeled 949330
Petromar Soyo
Boscongo
Saipem Mediteraneean
Services- BOS Shelf
Vessels
Saipem 355
Bar Protector
Castoro 2
Castoro 6
Castoro 8
Castoro 10
Polar Prince
Grampian Surveyor
HOS Innovator
HOS Dominator
Normand Cutter
Highland Navigator
Maersk Reliance
DP Reel
Maersk Explorer
Far Sovereign
Onshore Construction B.U.

Oil & Gas Upstream
EWRB Pipeline Project
EWG-1 Pipeline
Conversion To Sales Gas
Okpai Power Plant
NLNG Phase3 Gas Supply
Soku Gas Debottlenecking
GTS-4 Gas Suply Pipeline
GTS-2/4 Slug Catcher
Karachaganak Main
Works
MAF - Sohar Crude Oil
Pipeline Project
ROD Project Algeria
TCHAD Cameroun
SOFRESID FRANCE
BOS Sofresid Algerie
OSBL - Offsite Battery
Limits - Total Gonfreville
OCP -Office Cherifien de
Phosphates Morroco
Rosa Lirio E&P Adaptation of FPSO for
Girassol
Berroughia Power Plant
Algeria
Sakhalin II Onshore
pipeline
Transporto Gas ad Alta
Pressione -Italy Gela
LNG, Maritime Works

& Floaters B.U.
Fabrication Yard
Intermare Sarda Arbatax
Rumoulumeni
DLH Kwanda & Exxon
Petromar Malongo
Crawler
FDS
Saipem 3000
Saipem 7000
Semac 1
SB 230
Hazira Port and LNG

Terminal Project
Huelva IV LNG Tank Cartagene LNG tank Guangdong LNG
Receiving Terminal
Fos de Cavou LNG tank
Freeport
Zeebrugge Extension
LNG tank
Tanger Port
Soyo Angola Quay Side

Expansion
Caucedo Puerto Mtce
Monaco II - maritime
works
Gela Italy
Costa Azul - Mexic
ERHA - EPC & Towing for
FPSO
Dalia EPC for FPSO
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Maintenance Modification
Operations B.U.
CAMOM
Techoprojecto
Internacional
CPC Maintenance Russia Office
Petromar MMO projects

Cameroun Maintenance
Tchad Maintenance
Energy Maintenance
Services
Drilling B.U.
Saipem 10000
Scarabeo 3
Scarabeo 4
Scarabeo 5
Scarabeo 6
Scarabeo 7
Perro Negro 2
Perro Negro 3
Perro Negro 4
Perro Negro 5
AZ 5820
AZ 5891
AZ 5895
Rig 2
Rig 216
Petrex Peru
Petrex Venezuela
Az 5843
Rig G 125
AZ 5863
AZ 5870
AZ 5827
Onshore Drilling
AZ 5825
AZ 5889
AZ 5892
AZ 5893
AZ 5894
AZ 5832
AZ 5898
Rig 101
Rig 102
Rig 201
Rig 202
AZ 5829
AZ 5846
Saipem Jakarta - Sitiwan

PT Ninda - Batam
SanVitale Ravenna - Italy
Saipem Spa Sharjah
Branch - UAE
SCNL - Nisco & Onne
Nigeria
Saipem Algeria - Hassi
Messaud - Algeria
Saudi Arabia Saipem Dammam Base
Cortemaggiore Italy
SaiPar - Drilling Camp Kazakhstan
ERS Schiedam Base
San Donato
San Giuliano
Saipem Energy
International
Saipem Aktau Office
Sonsub Aberdeen Facility
Office
SonSub AS Stavanger onshore
SaiBos Onshore
Saipem Malaysia - Kuala
Lumpur office
Saipem - Perth Office Australia
Saipem Jakarta Office
Global Petroprojects
Services - Zurich
Saipem Portugal
Comercio Maritimo
Saipem Mediterranean
Services (office &
workshop Rijeka)
Moss Maritime A.S.Norway
SaiPar Aksai Office
Base Pointe Noire
Saipem America Inc
Saipem FPSO Marghera
(office & workshop)
CEM Sandouville
Saipem SA Head Office
Petromar Office - Luanda
& Kwanda
Saipem India (SIPS)
Saipem UK Office
Saipem Egypt - Cairo
Office
Leased FPSO
Integrated Projects
Katran-K Beregovaya
Compression Station
Kashagan Trunk and
Production Flow Lines
Head Offices
Offshore Drilling
Logistic Bases
Firenze
Mystras
FPSO Magdelaine - Dubai

FPSO Vitoria
Kashagan Piles & Flares

Kashagan Drilling
ERSAI Kuryk Fabrication
yard
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10
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LEGENDA
Yards & Main Logistic Bases/Offices

Main Areas of Activities
Engineering Centers
Drilling Activity
11
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About us: SAIPEM Group

Structure and Activities
Saipem Group operates as a global contractor in the oil

industry services market, in the onshore and offshore
Constructions and Drilling sectors. It is also involved in the
field of Infrastructures and Floating Production. Saipem
Group operates nationally and internationally through a
structured and integrated network of operating structures.
The Group is organized into six business units, three of
which Onshore Constructions, Maintenance Modification
& Operation (M.M.O.), and Liquefied Natural Gas (L.N.G.)
are based in Paris, where there is also the knowledge centre
for engineering, procurement, and project management,
and three Offshore Constructions, Offshore and Onshore
Drilling, and Leased FPSO are in Milan, where the technical
services and special projects task force are based as well.
Offshore Construction
Saipem Group possesses a strong, technologically advanced
and high versatile fleet in addition to a comprehensive
spread of sector-leading engineering and project
management expertise.
12
These unique capabilities and competences, together with

a long-standing presence in strategic frontier markets
comprise an industrial model that is particularly well suited
to EPIC (Engineering, Procurement, Installation and
Construction) projects. Amongst the semi-submersible
fleet equipped with the most advanced state-of-the-art
technologies, the most noteworthy vessel is Saipem 7000
thanks to its dynamic positioning system, 14,000-tonne
lifting capacity and its capability to lay subsea pipelines in
ultra deep waters using the J-lay system, which can handle
a suspended load of up to 4,500 tons during pipelay
operations. Other vessels include Castoro Sei, capable of
laying large diameter subsea pipelines; the Field
Development Ship (FDS), a special purpose vessel used in
the development of deep water fields, equipped with a
dynamic positioning system and a 600-tonne lifting
capacity crane, in addition to a vertical pipelaying system
able to work in water depths of up to 2,000 metres; the
vessel Saipem 3000, is capable of laying flexible pipelines
and installing umbilicals and mooring systems in deep
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waters and installing subsea structures of up to 2,200 tons.

Saipem also boasts a strong position in the subsea market,
operating highly sophisticated and technologically
advanced vehicles, such as subsea ROVs (Remotely
Operated Vehicles), i.e. purpose-equipped robots, able to
carry out complex deep-water pipeline interventions.
Group companies operating in the Offshore Construction
sector, in addition to the parent company, are: Saipem s.a.,
its directly controlled companies SaiBos Construes
Maritimas, Bos Congo, Petromar, PT Sofresid Engineering
and its associated company Offshore Design Engineering.
Also: Saipem UK, Saipem America., Saipem (Malaysia),
Saipem Asia, PT Saipem Indonesia, Saipem Luxembourg,
Saipem (Portugal) Comrcio Martimo, Sonsub Ltd, Sonsub
A/S, Intermare Sarda, Saipem Contracting (Nigeria), Saipem
Energy International, Saipem FPSO, ERS Equipment Rental
& Services, Saipem Mediterranean Services, StarGulf, ER SAI
Caspian Contractor, Bos Shelf Moss Maritime.
Offshore drilling
In 2005, the Group operated in the Offshore Drilling sector
in West and North Africa, the Persian Gulf, Norway, Peru and
India. Amongst the Groups fleet, the following vessels are
of particular interest: Saipem 10000, capable of working at
depths of up to 3,000 metres using its dynamic positioning
system; Scarabeo 7, a semi-submersible vessel capable of
operating at depths of up to 1,500 metres and Scarabeo 5,
a fourth generation semi-submersible vessel, capable of
working at depths of over 1,800 metres and drilling to a
depth of 9,000 metres. Besides the parent company, other
Group companies operating in this sector are: Saipem
Nigeria, with headquarters in Lagos, presiding over the
strategic area of West Africa; Petrex, operating in South
America; Saudi Arabian Saipem, operating in the Persian
Gulf; and Saipem (Portugal) Comrcio Martimo, which
manages all drillships, apart from Scarabeo 5, managed by
Saipem SpA, Sonsub Ltd also operates in this Sector,
supporting operations with its remotely operated vehicles
(ROVs).
Leased FPSO
Significantly strength in design expertise in the floating
production sector and ability to manage turnkey projects,
have led Saipem Group to won the first contract on a
standalone basis in the high growth leased FPSO market.
The fleet comprises: FPSO Firenze, and FPSO vessel, Mystras.
All initiatives of the year have being developed in joint
venture with Single Buoy Moorings. In addition to Saipem
SpA, companies operating in the Leased FPSO sector are:
FPSO - Firenze Produo De Petrleo Lda, FPSO - Mystras
Produo De Petrleo Lda. Furthermore, the following
companies provide support in respect of engineering,
procurement and project management: Moss Maritime,
Saipem s.a., Saipem Energy International SpA, Saipem Fpso

SpA and Saipem Luxembourg SA.
Onshore Construction
The Groups strengths in the Onshore Construction sector
are its construction capabilities allied to its engineering and
project management competencies, which allow the Group
to focus on challenging projects such as the laying of large
diameter pipelines and the construction of upstream plants
in difficult areas.
The regions in which the Group has a long-term presence
and operates consistently are the Arabian Peninsula,
Nigeria, Russia and Algeria. The Group is also still engaged
in Kazakhstan, where it operates in joint venture with
another international contractor. Moreover, the Group
operates in Oman and Franca. In addition to the parent
company (individually or in association with other
international operators), the following subsidiaries carry
out onshore construction activities: Saipem s.a. and its
subsidiaries Saipem Contracting Algeria, Sofresid
Engineering, SIPS, and associated companies Starstroi and
Lipardiz Construao de Estruturas Maritimas Lda.
Furthermore, Saipem Contracting Nigeria, Saudi Arabian
Saipem and Katran K also operate in this sector.
Onshore Drilling
In the Onshore Drilling sector, the Group operates in Italy,
Algeria, Egypt, Nigeria, Saudi Arabia, Kazakhstan, Russia,
Peru and Venezuela through the parent company as well as
Saipem Nigeria, Petrex, Saudi Arabian Saipem, Sadco (an
Indian company jointly owned and managed with Aban
Drilling Co.) and SaiPar (jointly owned and managed with
Parker Drilling Co and operating in Kazakhstan).
Liquefied Natural Gas (LNG)
In the last few years, the Saipem Group has developed a
strong presence in this sector. Operations are mostly
carried out by Saipem s.a., which operates in this sector
through its controlled companies: Technigaz, world leader
in EPC projects, Guangdon Contractor, Hazira Cryogenic
Engineering and Costruction Management and Hazira
Marine Engineering and Construction Management; and
through its associated companies GTT (Gaz Transport et
Technigaz), leader, with Moss Maritime, in the LNG
transport segment thanks to innovative and highly
advanced technology, Societ pour la realisation du Port de
Tanger Mditerrane and Servicios De Construcciones
Caucedo, Saimexicana and Saigut. Furthermore, Saipem
SpA and Saipem America also operate in this sector.
Operational activities are focused mainly in the Mediterranean
area in addition to two particularly challenging and demanding
projects currently underway in India and China. Two new
projects have just started in United States and Mexico.
13
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Pagina 14
through the companies Camom, Tecnoprojecto

Internacional Projectos e Realizacoes Industriais and
Petromar. Also operating in this sector is Energy
Maintenance Services SpA a company jointly owned and
managed with Eni Exploration & Production, which focuses
on maintenance activities for all industrial plants of Eni
E&Ps industrial plants in Italy.
Maintenance modification and operation (MMO)

The Saipem Group has only recently started operating in this
sector, which completes the range of services offered to oil
companies. In this sector, Saipem s.a. currently provides
services mainly in Western Europe and Russia, in
petrochemical plants and refineries, and in West Africa in
upstream oil infrastructure. Operations are carried out
Offshore Construction - Laid pipelines

2000
Km
1750
1500
1250
1000
750
500
250
2001
2002
2003
2004
2005
Onshore Construction - Laid pipelines

Km
1400
1200
1000
800
600
400
200
2001
2002
2003
2004
2005
Offshore Drilling - drilled meters

m
14000
12000
10000
8000
6000
4000
2000
2001
14
2002
2003
2004
2005
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Offshore Construction - Installed structures

200000
ton
175000
150000
125000
100000
75000
50000
25000
2001
2002
2003
2004
2005
Onshore Construction - Industrial palnts

ton
35000
30000
25000
20000
15000
10000
5000
2001
2002
2003
2004
2005
Onshore Drilling - drilled meters

m
700000
600000
500000
400000
300000
200000
100000
2001
2002
2003
2004
2005
15
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Performance Overview
Health Targets
Health Performance Indicators (HPI-s) are for the Medical
Department not only a control tool but also a means by
which to assess the way that specific medical activities are
carried out in peripheral units and Companies as well as at
corporate level. HPI-s reflect the current state-of-art, as they
highlight points needing to be improved, indicating the
areas where, by concentrating efforts and resources, results
can be obtained.
Each year the indicators are adjusted in order to cover as
completely as possible all health issues. In 2005, for
instance, ten indicators were used. Seven indicators were
used in peripheral units and Companies. Six of them are:
pro-active indicators which monitor exposure, or other
factors, which may influence health before an illness occurs:
accomplishment of the Medical Fitness Examination system
for expatriate and local personnel within the Saipem group
of Companies; the number of vaccinations provided to
expatriate employees, linked to work-related biological
risks; the number of personnel involved in STD (sexually
transmitted disease) prevention training and information
16
courses; the number of medical personnel attending

specific training courses; the number of performed
medevac drills recorded on the standard format and sent
to the medical coordinator and the number of
health/hygiene inspections carried out. One of them is a
reactive indicator, which monitors the consequences of
exposure (incidents): the frequency of repatriations due to
sickness per million manhours.
Corporate indicators used were: number of News&Updates
issued, development of health risk assessment software and
completion of the Saipem Med Sheet Summary. Total
number of Saipem employees included in HPI database is
17802 in 77 working sites.
Medical Fitness Examination system for expatriate and
local personnel.
As part of the preventive activities for workers, the medical
certification of expatriate employees, conducted as preemployment and periodical medical fitness examination,
reached the percentage of 94% of employees (against the
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target of 90%).
The medical fitness for local personnel reached the percentage
of 91% (the target being of 80%). Both targets established for the
number of medical fitness certificates for expatriate and local
personnel were accomplished.
Vaccination campaign against communicable diseases
Vaccination campaigns were always considered to be a key
factor in the prevention of communicable diseases that can be
acquired in and out of industrial premises.
According to local peculiarities, project/site clinics had different
inoculation programs. A number analysis shows that 82% of all
expatriate employees are vaccinated against the communicable
diseases considered a risk for a certain area. The target for 2005
was set at 75%.
Accomplishment of repatriation system
The target for frequency rate of cases repatriated for health
reasons from Saipem operating sites in 2005 was set at a value
of below 0.7. The target has not been achieved by the deadline,
Description of the indicator
with 1.29 repatriations per 1 million MWH. The main cause for
not reaching the target is that in 2005 14 new Doctors have
been employed by Saipem mainly on offshore sites. At the
beginning, they didnt have much experience of Saipem, its
structures and operating procedures, therefore, in some cases
they repatriated personnel without having used all the facilities
and support that Saipem makes available.
Training courses and information on the sexually
transmitted diseases
First aid induction courses, educational programs for sexually
transmitted diseases and awareness courses about the health
risks present in certain areas are programs deemed to increase
the level of health education of our employees and to encourage
them to adopt the correct behavior and lifestyles that will
improve and safeguard their health. The target for the number
of employees attending the educational courses on STD
prevention was 75%. The percentage of employees who
attended the STD courses was 51%. The objective has almost
been achieved, if we consider that the target takes into
Target
Result on december 2005
90%
80%
>75%
94%
91%
82%
>75%
51%
25%
38%
1/month/site
0,62/month/site
1/month/site
1,64/month/site
<0.7
1,29
CORPORATE INDICATORS
Issuying News&Updates
Development of Health risk assesments software
100%
100%
100%
100%
Saipem Med Sheet Summary
100%
PROACTIVE HPI
Percentage of employees with valid
A) Expatriates
medical fitness examination
B) Locals
Percentage of expatriates vaccinated against diseases
considered to be at risk in the working geographical region
Percentage of personnel (expatriates and locals)

who attended training in the prevention of Sexual
Transmitted Disease (STD)
Medical personnel who attended Advanced Trauma Life
Support (ATLS) and/or Advanced Cardiac Life Support
(ACLS) training courses this year
Conducted MEDEVAC (Medical Evacuation) drills at operating
sites/projects
Number of conducted hygiene inspection
REACTIVE HPI
Frequency of case repatriated for health reasons from
Saipem operating sites
Note
Not interfering with

national vaccination
programs for local
employees
Percentage of the
employees on the
working sites who
attended the STD course
The validity of the
ATLS and ACLS
course is 4 years
Reflecting
the emergency
preparedness
Prevention of the
communicable
disorders
Number of case
repatriated per million
man workhours
Quartely issuying
Full development
of the software
75% Editing and distribution
process of Saipem
Medical Departments
information sheet
17
28-08-2006
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consideration only employees that were involved in courses in

2005, not those who did them previously, and has thus been
inaccurately defined.
Training courses for medical personnel
In order to maintain emergency preparedness levels and
to keep medical personnel working for Saipem
worldwide up-to-date with latest theoretical and
practical information regarding Emergency Medicine, the
Head Office Medical Department has organized, and will
continue to organize, specific refresher courses. The
training follows international guidelines for emergency
medicine and is structured around two main thematic
groups: ATLS (AdvancedTrauma Life Support) and ACLS
(Advanced Cardiovascular Life Support). According to the
HPI summary report for 2005, the percentage of medical
personnel who attended these courses this year reached
38%, surpassing the set target of 25%.
Performed medevac drills recorded on the standard
format and sent to the medical coordinator
Emergency drills should be conducted on every site once a
month. Drills simulate actual emergencies where
practicable, and confirm response and action times. The
drills are an essential part of the overall safety program and
ensure that everyone fully understands their role in case of
emergency. The target for 2005 was of 1 medevac drill per
site (100%). The target has not been achieved with the final
score of 0,62/month/site (62,33%). One of the main goals
for 2006 will be to improve performance in the
achievement of this target.
Conducted health/hygiene inspections
The health/hygiene inspections should be conducted as a
prevention measure for communicable disorders. The
target was 1/month/site (100%), meaning that in every site
should have at least 1 health/hygiene inspection per month.
The target was fully achieved with the result of
1,64/month/site (100%).
Safety Targets
In 2004, we recorded safety improvements achieving a
reduction of more than 22% in our Lost Time Injury Frequency
(LTIF). A LTI is recorded when an injury causes a worker to miss
a day or more of work. Since 2001, our LTIF has declined from
around 4.7 cases per 1 million man-hours to 1.21 in 2005.
This is a considerable achievement which, added to the about
10% reduction of our Total Recordable Injury Frequency (TRIF),
fulfills the overall target for the Group. However some of the
single Business Units did not accomplish their individual goal,
with Onshore Construction, Drilling Operations, Leased FPSO
18
and LNG business units not achieving an improvement in their

LTIF rates. A breakdown of safety statistics for each Business
Unit can be found in Chapter on safety Despite the progress
made in reducing injury rates, serious incidents continue to
occur. In 2005, there were 6 fatalities, compared with 8 in
2004. The 6 consisted of four employees and two contractors.
As underlined by our Chairman in his opening letter to this
report, these figures are simply unacceptable and all our
efforts must be directed to achieving the target of Zero
fatalities. However, we keep working on the development of
positive safety culture across the organization and our Proactive Indicators, fully shown in Chapter on safety, are a clear
demonstration of this focus.
With reference to the target to increase the number of
internal and external HSE training hours, in 2005 we have
managed to achieve an impressive 92% increase. Further
analysis of this data can also be found in Chapter on safety.
Environment Targets
Saipems strong commitment to environmental protection
in 2005 can only be fully appreciated by looking at the
day-to-day environmental management of each and
every project in progress around the world. If it were
possible to illustrate sites and projects comparing
relative environmental performances now with those of
some years ago, such commitment would be clearly
perceived immediately . The signals would be improved
waste management, the controlled use of water
resources and fuels, spill prevention practices and
planning, environmental training carried out among the
entire workforce, and the awareness, in a word, of the
importance of performing daily activities aimed at
minimizing and preventing potential negative impact to
the environment. It is therefore difficult to focus on any
single initiative to illustrate environmental management
for 2005. The first real witness of the development of
environmental awareness in all Saipem projects and
Companies is the issuing of the Corporate Environmental
Policy. It expresses the commitment undersigned by
Saipem Top Management to the protection of the
environment, and the will of the entire Group to strive to
apply criteria and sound practices aimed at ensuring that
the projects are realized with a view to preventing or
minimizing the disturbance to the environment. An
important initiative is the program of air emission
reduction on Saipem fleet vessels. Following the Marpol
requirement on air pollution prevention, which came
into force in 2005, Saipem has taken the opportunity not
only to plan action aimed at ensuring compliance with
such requirements, but also to identify action aimed at
air emission reduction also in those cases which were not
28-08-2006
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covered by the regulation (e.g. on engines, incinerators,

etc.) Also related to air emissions is the other important
environmental initiative of 2005. It consists in a study
that has been carried out in order to compare the
emission factors being used by Saipem to estimate air
emissions due to fuel consumption, with the most
internationally recognized air emission modeling, i.e.
Corinair, Ukooa, and IPCC. This study led to the
identification of the best set of air emission parameters
most properly resembling Saipem activities, and also to
the widening of the range of air pollutants considered.
Not only CO, CO 2, NO x and SO 2 are estimated, but also
CH 4, non-methan organic volatile compounds and
particulate matter. Finally, the other important
environmental initiative carried out during 2005 is the
creation of a new Software (i.e. Environmental Web
Report), a specific software that has been developed and
implemented in order to obtain a reliable and effective
instrument for monitoring and evaluating environmental
performance and achievements. The time required to
create this new data reporting method underlines once
more the importance attributed by Saipem to the
Objective
Sustainability Targets
Following the publication of the Sustainability Case
Studies on Saipem activities in Azerbaijan, Kazakhstan,
Nigeria and Peru in 2005, the sustainability team focused
its efforts on the analysis of other countries in the Asia
Pacific Region and Angola. The target was to develop also
in these areas an assessment of social, environmental and
economic factors in order to understand and evaluate
2005 Target
Health
Employees medical fitness certificates
Vaccination campaign for expatriate personnel
Reduction for the total frequency rate
of repatriation in respect to the previous year
Focus on health education and training activities
for Medical Personnel: ACLS/ATLS (Advanced Cardiac
Life Support/Advanced Trauma Life Support)
Training programs and prevention courses
on Sexually Transmitted Diseases (STD) and HIV
Safety
Zero fatalities
Reduction of all types of accidents
Increase of internal and external HSE training

Environment
Significant Environmental incidents
Environmental prosecutions and fines
ISO 14001 certification for Groups companies
90% of international personnel

80% of local personnel
>75% of expatriated personnel exposed to risks
= target nearly achieved
Result
10% reduction = <0,7 /million WMH
25%
>75% of total workforce
(local & expatriates) at project sites
Zero fatalities
10% reduction for Drilling Operations, Offshore Constructions,
LNG, Maritime Works & Floaters, Head Offices,
Logistic Bases & MMO. Achievement of 2004 target
for Onshore Constructions & Leased FPSO
+10% vs 2004
Zero significant incidents
Zero fines and prosecutions
Development of ISO14001 compliant
Environmental Management System for Saipem Nigeria
Sustanibility
Key Studies on Sustainability
= target achieved
environmental aspects of its activity: through the analysis

of the collected data, it is in fact possible to evaluate the
effectiveness of the investments and the measures
adopted, and to point out the aspects that can be
improved. Moreover, as the Environmental Web Report is
run on intranet, it allows real-time transmission of the
environmental data from the peripheries to the
Corporate, wider distribution of the Software to the Sites
projects/Companies, and easier communication of
updates and changes from the Corporate to the
Sites/projects/Companies.
Two Key Study on Indonesia and Angola
= target not achieved
19
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Saipems operational impact within the local context.

Information collected during the assessment exercises
makes up the case studies of the previous years experience
which were produced following the same methodologies.
Moreover, in 2005 also Saipems operation in Oman was
Saipems second time QHSE award has

been announced at all its sites around
the world. As part of the ongoing
process of integration between HSE
and quality, from 2005 the award also
includes the evaluation of the quality
performance of companies, sites and
projects, thus becoming the QHSE
award.
Saipem QHSE performance evaluation
is avhieved by means of analysis of
specific parameters identified in the
four issues. Regarding quality,
parameters were related to: QHSE
Management System and specific
quality performance indicators, such as
internal audit plan, process and target
indicators, quality training, client
satisfaction information etc.
Health parameters considered in the
evaluation of companies and projects
20
taken into consideration and represents the third case

study produced in the year. This unexpected result was
achieved thanks to strong project management
commitment and the valuable collaboration of HSE staff
on-site.
were: the development of health

programs, the development of Health
care documentation system, alcohol &
drug policy, health certificates,
Vaccinations, MEDEVAC Procedures,
health training and information
courses, medical reporting.
Safety performance was evaluated
through the training programs on
safety, risk management, client
satisfaction, safety reporting &
communication, sub-contractor
management, safety campaign and
quantitative parameters such as LTI
Frequency Rate.
Finally, environmental performance
evaluation was based on parameters
such as the implementation of an
environmental management system,
monitoring / measuring campaigns /
survey, environmental audit,
environmental reporting, training and

the obtainment of the ISO 14001
Certification.
Evaluation methodology included
individually weighted QHSE themes;
Saipem 10000 came first, Saudi
Arabian Saipem Ltd second and
Saipem Norway, Scarabeo 5 and
Saipem Contracting Nigeria Ltd. joint
third.
The QHSE awards ceremony was held
in May 2005 at the head office in San
Donato Milanese and was an
opportunity for Saipems Top
Management to express and exchange
views on QHSE during operations.
After showing the methods used to
evaluate candidates, trophies were
awarded to the managements of the
winning organizations.
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Priorities and Plans
Health
Health Performance has been positive and the objectives
defined in 2005 have been confirmed in 2006.
In some cases, the need has arisen to modify objective
measurement in order to allow improved monitoring. In
other cases, more restrictive targets have been defined to
continually improve process efficiency. For instance, targets
set to measure the objective of the accomplishment of
medical fitness examination certificates for all local and
expatriate personnel, which was achieved in 2005, will be
confirmed in 2006 with more restrictive targets,
respectively 92 % and 90%. The vaccination campaign
objective for expatriate personnel, which has been
satisfactorily achieved, will also be reinforced in 2006, with
a more challenging target of more than 78 % of expatriate
personnel exposed to risks being vaccinated. On the other
hand, the 10% reduction of the total repatriation frequency
rate has not been achieved, with a final score of 1.29. This
performance indicator represents the repatriation
frequency per million work man-hours. The main cause for
not reaching this objective can be linked to the
employment of 14 new Doctors in 2005, mainly assigned

to Saipem offshore sites. On taking up their duties within
our organization they did not have much experience of
Saipems operating procedures, which resulted in some
personnel being repatriated without full use having been
made of all facilities and support that Saipem makes
available to them.
However, the Medical Personnels Health Education and
Training Activities objective was achieved, with specific
ACLS/ATLS (Advanced Cardiac Life Support/Advanced
Trauma Life Support) training offered to 37% of medical
personnel. However, in 2006 the measure will be better
defined to Number of Medical personnel trained with a
specific training course at least once during the past four
years. With these measures, the target will be 100%.
The objective to enhance training programs on Sexually
Transmitted Diseases, inclusive of AIDS prevention courses,
has been nearly achieved.
We should admit that the target has not been correctly
defined, because it takes into consideration only employees
21
28-08-2006
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Pagina 22
that have been involved in courses in 2005, not counting

employees that previously received the training. In fact the
objective has as its main goal the monitoring of employees
who have been involved in the courses at least once in their
Saipem working life. This objective has been confirmed in
2006, but the measure will be changed to the ratio of the
number of employees involved in STD prevention courses
(AIDS-inclusive prevention courses) at least once in their
Saipem working life and the total number of the work force
present in Project sites. The target will be >70%.
Safety Plan 2006 / 2007

At the beginning of the year the Saipem Corporate
Overseas Safety & Environment Co-ordination team
formulated the Safety Plan for 2006 identifying the key
areas which deserved particular focus and intervention.
Past performance was taken into consideration and the
need for a change in safety culture was identified.
A two-year plan was developed and presented to the
Company Top Management. The Top Level Saipem safety
objectives can be summarized as follows:
Zero Fatalities
Enhance Group Safety Culture
Reduce the number of Total Recordable Injuries
In order to achieve the above objectives a detailed
management program inclusive of six key supporting
objectives was developed.
Before entering into details, it is important to review some
key facts (better explained in the relative chapter on safety
performance analysis) which supported the identification
of the abovementioned key areas.
Over the past three years no substantial improvement
on accidents frequency rates has been achieved. Instead,
safety statistics show a plateau, as in line with overall
industry performance.
Accident investigations revealed that about 80% of all
injuries are due to unsafe actions, with incorrect
behavior and poor attitude as main causes.
Almost half of all major injuries, including fatalities,
involve subcontractor personnel.
Over the past years all our major clients have increased
their focus on Leadership in Safety and launched various
related programs and initiatives.
It is a key expectation of all major operators that their
subcontractors implement similar programs. A pro-active
approach towards these themes does not only help Saipem
enhance safety culture and performance, but can also bring
a competitive advantage.
Having identified and analyzed these facts, it was decided
to pay particular attention to the following key supporting
safety objectives, which constitute the heart of Saipem
22
Safety Plan 2006 / 2007, and only the implementation of

which can contribute to the achievement of the Top level
Objectives earlier identified.
Each Business Unit is expected to work towards the
Corporate Top Level Objectives and Targets and develop
safety management programs in line with, but not limited
to, the following key supporting objectives:
1. Enhance Leadership in Safety
Management at all levels in the Group is responsible for
leading and engaging the workforce in safety and
demonstrating visible commitment to the safety initiative.
A Leadership in Safety Workshop program will:
- enhance senior and line management awareness on
safety responsibilities
- help them demonstrate how they can pro-actively lead
safety
- promote leadership and safe behavior at all levels within
the Group
A Saipem key client has confirmed full support to share with
us their experience and their Leadership in Safety Program,
and to facilitate the development and execution of a
tailored Saipem Workshop.
2. Enhance Field HSE Training
Employees need to be competent to perform tasks that
may impact on safety in the workplace. Training helps
people acquire the skills, knowledge and attitudes to make
them competent in the HSE aspects of their work.
Focus on this area will help raise the level of safety
competency and training in the most hazardous of Saipems
environments.
3. Re-energize Sites / Units Safety Auditing Program
Auditing is a key element of the safety management system
as it constitutes the feedback loop which enables Saipem
to reinforce, maintain and develop its ability to reduce risks
and to ensure the continued effectiveness of the HSE
management system.
The purpose is to formalize an auditing program with the
aim of ensuring that appropriate management
arrangements are in place, adequate risk control system
exits and compliance with Saipem SMS and regulatory
standards (i.e. ISM) are assured.
4. Work with Key Subcontractors to improve their HSE
Performance
Around of 50% of Saipems major injuries (including
Fatalities) involve subcontractors. Comprehensive and
systematic subcontractor safety programs can improve the
HSE performance of both Saipem and subcontractors.
Saipem subcontractors need to work towards the overall
objective of No harm to people or the environment as
28-08-2006
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result of their activities and manage HSE through a

continuous improvement approach.
Saipem should make a pro-active contribution to improved
subcontractor HSE performance.
5. Implement Program for Improved Risk Assessment
Management
Risk Assessment is the foundation of an effective Safety
Management system as it provides the necessary
information to reduce risks and mitigate the impact of
Saipems operations on HSE.
The purpose of this objective is to standardize the
expectations and techniques to be used for an effective and
adequate risk assessment process across the Group, and
ensure they are systematically used for the identification of
hazards, assessment of risks, and identification of
appropriate mitigation activities.
6. Improve Group safety Network Communication
The sharing of safety experience, lessons learnt and best
practice is recognised as a modern and effective way to
achieve improvements on safety performance.
A repeat of the Group QHSE Managers meeting event
organised in 2002 is planned with the aim of facilitate the
sharing of Operating Companies HSE experiences and reaffirming Corporate HSE expectations with the involvement
and contribution of key clients (i.e. ENI, Exxon, Total).
Saipems vision of safety, commitment to the above
summarized 2006 / 2007 Safety Plan, and our continuous
striving towards an incident and injury free workplace is
illustrated by the picture below and may be summed up
with the motto: Climb to Succeed.
Environment
Following the Commitment expressed in the Saipem
Environmental Policy, issued in August 2005, improvement
in environmental protection and management is to be
pursued and has to be the ultimate objective to strive for
in 2006. Such improvement will be sought by means of
various activities. First of all, it will be important to carry on
the program of air emission reduction on Saipem fleet
vessels. Following the Marpol requirement on air pollution
prevention, Saipem has started planning a series of actions
that will continue in 2006, aimed at reducing emissions
produced by engines and incinerators. Moreover, besides
actions deriving from the Marpol requirement, Saipems
intention is to make measurements of air emissions and
water discharge emissions on board some of the vessels of
the fleet. These analyses have the scope of knowledge of
the real impact generated by the vessels and will be also
used to validate the new air emission factors developed in

2005. Another target activity for 2006 consists in
monitoring the level of use and clear understanding of
the Environmental Web Report by all peripheral
Companies/Branches/Sites and Projects throughout the
Saipem Group. On the basis of the results thus obtained,
the need for a training program will be evaluated and
implemented should it prove necessary. Finally, the focus
will have to remain on the continuation of activities of
environmental protection on all projects and particularly
for those taking place in sensitive areas and with the
presence of endangered species, such as the Sakhalin
projects and the Dolphin project in Qatar.
Sustainability program 2006

The Sustainability program for 2006 will focus both on the
internal management of improvement rates for Corporate
Sustainability and on the external communication of
analysis of the impact of Saipem operations on social,
environmental and economic factors.
An internal multifunctional team will be formed according
to the definition of a new sustainability data accounting
methodology. The possibility of collecting at Saipem
Corporate all available and pertinent information from the
operational sites is the first attempt to complete the
analysis of Saipem operations from the point of view
Sustainability in all Saipem contexts. Saipem will try to
define at site level specific programs to be implemented in
order to monitor and manage the positive and negative
impact of the operations in relation to the country in which
the work is taking place.
New countries within the Saipem sphere will be involved in
the development of specific analyses at a local level that
will lead to the publication of new case studies on
sustainability. A more defined procedure for the Social
Impact Assessment will be another target for the
sustainability team aimed at satisfying Saipem clients and
monitoring from the outset of main projects the possibility
of embracing these issues. All related activities,such as the
Monthly Sustainability Newsletter, the internal training and
updating according to the new international literature, will
be maintained and improved in 2006.
23
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Target 2006
Health
Accomplishment of the medical fitness examination
system for the personnel within the group companies
Vaccination campaign for expatriate personnel
Reduction for the total frequency rate of repatriation
in respect to the previous year
Focus on health education and training activities
for Medical Personnel (ACLS/ATLS -Advanced Cardiac
Life Support/Advanced Trauma Life Support)
Training programs and prevention courses
Lon Sexually Transmitted Diseases (STD) and HIV
Safety
Fatalities
Lost Time Injuries (LTI)
Total Recordable Injuries (TRI)
Environment
Significant Environmental incidents
ISO 14001 certification for Groups companies
Sustainability
Accounting system & corporate standard
24
Number of expatriates with valid medical fitness 92%

Number of local personnel with valid medical fitness 90%
Number of expatriates vaccinated employees >78%
Number of Saipem employees repatriated due to diseases
<0.7 per MWH
Number of medical personnel with a specific training course at last
once during the past year 100%
Number of employees involved in sexually transmitted disease
prevention course >70%
Zero
Frequency Rate 15% less than 2005
Frequency Rate 10% less than 2005
Zero significant incidents
Zero fines and prosecutions
Development of ISO14001 compliant Environmental Management
System for Saipem Nigeria
Develop a Saipem group sustainability accounting system
Emission of a corporate standard for Social Impact Assessment
28-08-2006
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HSE Management System
For the last few years, Saipem Corporates main issue has
been to reach a high level of implementation and
integration of Health, Safety and Environment
Management System (HSE MS) across the Group.
The international approach which characterizes Saipems
activities and the ever increasing complexity and risks
involved in modern projects is at the basis of our
continuous motivation for developing an effective
management system aimed to continuous improvement.
Due to the complex and varied nature of Saipems activities,
the Corporate HSE Department rely on the Operating
Companies and the Project Managers to achieve the
established objectives, with the full support of the local /
project HSE Managers. The relationships between
Operating Companies / Projects Managers and the
Corporate is based on a clear and mutual understanding of
Missions, Policies and Objectives.
The HSE MS is mainly organized at three levels, to assure a
consistent performance level throughout its operations:
Corporate Level: defining policy, guidelines and standards
for all Saipem Operating Companies

Operating Company Level: defining policy, objective,
organization, procedures and work instructions to be
adopted in each Operating Company
Project Level: defining specific plans and procedures for
each specific project
The documents which form the HSE MS at the various
levels, and their interaction, are shown on the flow chart
below. The diagram illustrates the hierarchy of HSE
documentation which exists to provide clear
understanding of precedence and priorities of the
documents which comprise the HSE Management System.
This structure enables alignment of Operating Companies
to the Corporate management system and allows
Companies HSE Management Systems to integrate with
those of customers at local/project level as well as the
flexibility to accommodate any variation in local legislation.
Saipem is committed to achieving the highest standards of
Health, Safety and Environment within all its business
25
28-08-2006
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Hierarchy of HSE Documentation

CORPORATE
COMPANY
PROJECT/SITE
HSE POLICY
POLICY
HSE GUIDELINES
OBJECTIVES
PROJECT HSE
PLANS,
PROCEDURES
ORGANISATION
HSE STANDARDS
PROCEDURES
activities. The HSE Mission and commitment can be

summarised as follows:
Developing a culture that achieves excellence in HSE
performance through the active participation and support of
all management, employees, customers and suppliers.
Promoting a culture which believes in all accidents being
avoidable, unnecessary and morally unacceptable.
Providing our employees with the training and tools to
ensure that they have the knowledge and skills needed to
implement the Company HSE Policies and perform their
work competently.
Providing advice and support to the Project Management
Teams to ensure compliance with Company standards and
all applicable legal, regulatory and contractual requirements.
The Saipem HSE Policy which sets the HSE values and
direction for the entire group is supported by the
following primary objectives:
Identification of all hazards and management of all
relevant risks
Systematic and accurate management of all methods
and activities for safeguarding health, safety at work and
protecting the environment
Performance of operating projects in line with current
laws, best available technologies and practices
Continual reduction of the number of undesirable events
with the ultimate aim of achieving zero accidents and
occupational diseases by adapting suitable measures for
preventing or reducing professional risk exposures
Limiting impact on the natural environment where
projects take place
The above objectives are achieved by pursuing a
26
continuous pro-active approach to the HSE issues aimed at

influencing attitudes and promoting safe and healthy
behavior. Pro-active involvement of both management and
workforce is reinforced and praised through the
implementation of rewarding schemes and awards at both
corporate and project levels. Specific awareness campaigns
and training programs are also conducted with the intent
to help people acquire the skills, knowledge and attitudes
to make them competent in the HSE aspects of their work.
An open and effective communication system is
maintained and continuously promoted. The sharing of
safety experience, lessons learnt and best practice is in fact
recognized to be an effective way of achieving
improvements on safety performance. Saipem Corporate
HSE MS is formed around the following 15 HSE
Management Principles which define the basic
requirements of the HSE management systems in all
Saipem Operating Companies.
1. MANAGEMENT COMMITMENT
Senior Management will provide visible, strong and proactive leadership and commitment to develop, implement,
audit and maintain the HSE Management System and the
relevant culture.
2. RISK MANAGEMENT
All hazardous operations and conditions will be identified,
the risks assessed and the relevant actions implemented
throughout the activities in order to prevent all accidents.
3. HUMAN RESOURCES
All personnel will have adequate physical fitness,
competency, training and attitude to carry out their duties
in safe manner.
28-08-2006
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4. COMMUNICATION
An effective and open communication system on HSE
matters shall be established and maintained for internal
and external interested parties.
5. ENVIRONMENTAL PROTECTION
All potential environmental impacts will be assessed,
evaluated and actions shall be taken to avoid any damage
to the environment and to restore original conditions.
6. COMMERCIAL
Basic processes shall be adopted in order to guarantee that
all cost factors and other commitments are assessed to
carry out the activities in accordance with Company HSE
Management System.
7. ENGINEERING
All facilities, plants and equipment will be engineered in
compliance with the best international HSE requirements
and statutory legislation.
8. PURCHASING
Suppliers will be selected, inspected and assessed in order
to guarantee the compliance with HSE requirements and
so that only safe material and equipment are purchased and
used within all Saipem activities.
9. OPERATIONS MANAGEMENT
Safe systems of work will be implemented by carrying out
all operations in compliance with Company HSE
Procedures, client requirements and statutory legislation.
10. SUBCONTRACTORS & SERVICES
Sub-contractor and Services Companies will be selected in
full compliance with Saipem HSE requirements. Their
activities shall be audited and evaluated in order to ensure
that safe conditions are maintained at the working sites.
11. ASSETS MANAGEMENT
All assets will be maintained, examined and inspected in
compliance with the statutory requirements,company and
international safety standards.
HSE Responsabilities Lines
HSE FUNCTION
Supporting, Advising, Coordinating, Facilitating
Training, Auditing, Reviewing, Recommending
HSE ORGANISATION
LINE MANAGEMENT RESPONSABILITY
CHAIRMAN and CEO

QHSE
SENIOR VICE PRESIDENT
CORPORATE
HEALTH, SAFETY & ENV MANAGERS
OPERATING COMPANY
HSE MANAGER
OPERATING
COMPANY
MANAG. DIRECTOR
CHIEF OP OFFICIER
BU SENIOR VP
OPERATING COMPANY MANAGING DIRECTOR
BU/DEP MANAGER
SUPERVISORS TEAM LEADERS
ASSET MANAGER
EMPLOYESS
PROJECTS/SITE MANAGER
PROJECT HSE MANAGER
PROJECTS/SITES
SUPERVISORS TEAM LEADERS

HSE ENGINEERS/MEDICS
EMPLOYESS
SUPERINTENDENT
VESSEL MASTER
CONST./DRILLING ORGANISATION
MARINE/TECH. ORGANISATION
EMPLOYESS
EMPLOYESS
HSE ENGINEERS/OFFICER
VESSEL
27
28-08-2006
18:31
Pagina 28
12. EMERGENCY PLANS AND PREPAREDNESS

Emergency plans, consistent with identified hazardous
conditions, shall be prepared and maintained and
periodical emergency drills shall be performed.
13. INCIDENT & ACCIDENT MANAGEMENT
All incidents and accidents will be duly investigated to
identify the causes and to prevent re-occurrences. A
reporting system shall be settled and implemented.
14. AUDIT
An independent audits system shall be implemented to
determine whether activities and related results conform
to planned arrangements and are suitable to achieve the
HSE Policy and objectives.
15. HSE MANAGEMENT SYSTEM REVIEW
The HSE Management System shall be reviewed yearly by
the Senior Management to guarantee a continuous
improvement as well as to meet new requirements and to
update the system with more experienced operations.
The above HSE Principles and their embedded
requirements are implemented and integrated into all
Group processes.
The HSE MS is continuously subject to monitoring and
review of the Corporate HSE Department, and the results
and analysis of this process are periodically shared with the
Companys Senior Management.
A key element of the HSE MS which deserves particular
focus is Management Commitment and Leadership in Safety.
Management at all levels in the Group are responsible for
In accordance with both international

and Company safety management
principles, all Group entities have
programs and procedures in place for
auditing the HSE Management System.
Audits are periodically conducted to
determine whether activities and
related results conform to planned
arrangements and are suitable for
achieving HSE Policy and objectives.
Results of the audits are presented to
local and corporate management so
that continued relevance of the HSE
Management System and overall HSE
performance can be evaluated.
28
leading and engaging the workforce in safety.

Managers need to demonstrate visible commitment to the
safety initiative and to provide the necessary resources to
ensure that an active HSE MS is implemented.
The further enhancement of Senior and Line Management
awareness on safety responsibilities and pro-active
leadership towards HSE is currently a key supporting
objective of the Saipem Corporate two-year Safety Plan
(2006/2007).
All employees are also individually responsible and
accountable for all HSE issues relating to themselves and
those with whom they associate.
A HSE function network is in place at all levels to support
the HSE role and responsibilities of Corporate / Operating
Company / Project / Site Management
This principle and organization can be represented in the
following flow chart:
The diagram above illustrates HSE as a Line Management
Responsibility. The HSE Organization provides for an
unbroken delegation of duties through the line
management to the workforce who operate where the
hazards arise. The diagram also shows the HSE function
network from the support role at the project/site level with
a functional reporting line to the operating company HSE
Manager, which is in turn supported by the Corporate HSE
function, to deliver the appropriate level of HSE
competence and resources according to the business
needs. On the vessel, the HSE Engineer / Officers support
both the Master or Superintendent and ensures a direct link
between the vessel and the Corporate HSE Department /
Project Management Team.
In other words, as part of this auditing

process Saipem verifies that it is doing
what it said it was going to do.
Operating Companies and Project
Teams have the freedom to schedule
and organize HSE Management System
audits. Moreover, Saipem Corporate
performs worldwide audits in
accordance with a schedule issued on
a yearly basis.
An exercise to collect all QHSE Group
auditing activities in 2005 was
conducted at the beginning of the year
and resulted in the following data.
Saipem Group companies / sites /

projects were subject to 781 audits,
of which 586 were Internal Audits
and 195 by Third Parties such as
Clients and Certifiers
As a result, 2,418 Corrective Action
Requests were raised, 49% of which
were satisfactorily addressed and
closed-out at the end of 2005
140 external audits to Subcontractor
activities were performed
Saipem counts 111 qualified QHSE
auditors within its organization
28-08-2006
18:31
Pagina 29
HSE Training year 2005 for Saipem
Today, there will not be any project, vessel, rig or site in the
Saipem Group conducting their activity without an
adequate training program for all Saipem project
personnel, regardless of nationality and job position. HSE
training is not only a legal or a client requirement set forth
in the most important regulation worldwide, but
represents also an effective instrument for transferring and
sharing HSE know-how and awareness throughout the
personnel within the Company. It is also an irreplaceable
and invaluable tool for keeping Supervisors and Operators
up-to-date with current HSE technology and best practices.
The massive increase in hours dedicated to training, socalled In-house training (that means a job related
formation), bears witness to the importance of these
statements: Saipem passed from 273.146 training hours for
the year 2004 to 523.354 training hours for the year 2005.
Saipem has increased by about 90% the time dedicated to
personnel training. The relative table also shows that
Saipem has increased by more than 100% the in-house
training rate (calculated for an employee for 1000 hours
worked) passing from 1.86 to 3.73 hours. This rate means

that each employee for every 1000 hours worked
underwent almost 4 hours of in-house training, whereas in
2004 the hours of in-house training were only 2. The
relative chart shows that the overall Saipem Group average
training rate is 4.18, with both offshore business units well
over of the average rate. Instead, the Onshore Construction
and Leased FPSO Business Units are well below the average
rate, even if the worked man hours for onshore
construction are more important and, therefore, the
resulting training rate is more significant. Consideration
must be given to the Offshore Construction Business Unit,
which has improved by more than 200% its training
performance. Only Leased FPSO has worsened its in-house
training performance, but that could be due to the reduced
activity of 2005.
In 2005 Saipem developed a Corporate Standard to set out
minimum requirements for the implementation of HSE
training activities for all personnel. This Standard refers to
training on HSE-related matters, and for each one a course
29
28-08-2006
18:31
Pagina 30
Saipem Training hours

Business unit
Offshore construction
Onshore construction
Driling
Leased FPSO
LFM
MMO
Integrated projects
Others
TOTAL
In - house
Training
External
Provider
Statutory
Total
training
Hours
Worked
Total training rate (*)
272.614
55.679
73.750
580
39.219
26.545
27.685
27.283
523.354
14.021
940
6.944
0
0
0
0
1.056
22.961
35.813
0
13.441
719
0
0
0
15.224
65.197
308.427
55.679
87.191
1.299
39.219
26.545
27.685
42.507
588.551
41.080.893
36.916.034
12.628.314
1.417.927
20.917.194
9.499.065
6.196.024
12.132.140
140.787.590
7,51
1,51
6,90
0,92
1,87
2,79
4,47
3,50
4,18
2005
5,84
6,64
2,12
1,87
1,51
2,79
2004
5,02
2,17
3,97
1,02
1,08
3,26
difference (%)
16,30
206,08
-46,72
83,96
39,61
-14,24
4,47
2,25
3,73
2,07
1,86
8,67
100,62
In-house training hours and comparison with year 2004

Training Hours
Business unit
Drilling Operations
Offshore Constructions
Leased FPSOs
LNG, Maritime Works & Floaters
Onshore Constructions
Maintenace Modification Operations
2005
73.750
272.614
580
39.219
55.679
26.545
Integrated Projects
Other (Logistic Bases & Head Offices)
TOTAL SAIPEM GROUP
27.685
27.283
523.354
In-house training rate (%)
2004 difference (%)

57.254
28,8
84.421
222,9
720
-19,4
34.494
13,7
44.747
24,4
26.221
1,2
25.289
273.146
7,9
91,6
(*) Training rate is: Training Hours/Million Worked Hours
has been developed which is performed by means of inhouse schedules suited to specific company needs. The
courses are divided into two categories: Type "A" (Approved
Professional HSE Courses) and Type "B" (Standard HSE
Courses). Courses belonging to the type A will be
delivered through an accredited third-party organization.
At the end of the course an approved professional
certification will be issued to the participants. A final
assessment or scheduled refreshment may be required,
depending on course provider and accredited training
program. Courses belonging to the type B foresee a nonaccredited certification; they are delivered either by
Company internal resources or third-party training
organizations. The standard, of course, does not consist of
Statutory Training on HSE and Emergency - related matters
provided in compliance with applicable Regulations and
International Standards (i.e. STCW, OPITO, OLF etc.) and
administered by authorised providers. For this type of
training we refer to another Corporate Standard.
As said before, the development and implementation
activity of this "In-house" training has been partially carried
out utilising an external internationally recognised training
provider. In the year 2005 an extensive campaign was
conducted with emphasis on offshore construction
30
operations. This campaign alone provided almost 23.000

training hours.
The typology of certifications (A and B) issued for the
courses provided is assessed at around the 50% mark.
The following figure shows all in house training courses
grouped together in six main categories and expressed in
percentages. From this figure it is clear that the training has
focused mainly on the lifting issue, more than 35% of the
total amount. This datum reflects what is in reality the
Companys most important activity, and care has been paid
to the issue. Also encouraging is the percent of Risk
Assessment and Permit to Work courses delivered to
middle-upper management training.
28-08-2006
18:31
Pagina 31
Total Training hours per 1000 Worked Hours

8
Training Hours / Million Worked Hours
7
6
5
4
3
2
1
Offshore
construction
Onshore
construction
Driling
Leased FPSO
LFM
MMO
Integrated projects
Other
Main In-house Training Courses

40
35
30
25
20
15
10
5
Hazardous Substances
Management
Lifting Equipment
Management
Lifting Operations
Management
General Safety
Awareness
Working at Height
Management
Risk Assessment
& Permit to Work
HIV/AIDS information campaigns were continuously

done. A total of 3900 trainings were performed by
health department in 2005. This constitute a dramatic
rise of 70.6% compared to last year partially due to
more accurate recording of this activity. Drilling BU
performed was a training champion with a total of
1742 trainings, followed by Offshore with 1045
trainings done.
MEDICAL TRAINING
Trainings have been a part of Saipem med

responsibility with particular emphasis on health
related risk on each project location. With influenza
worldwide, massive information campaigns on
influenza were performed in all Saipem entities.
Other trainings such as Malaria and STD including
45
40
35
30
25
20
15
10
5
Offshore
Onshore
Drilling
FPSO
LFM
MMO
Integrated
projects
Logistic
bases
Head
offices
31
28-08-2006
18:31
Pagina 32
Our Commitment for Sustainability
Sustainable development is an integral part of Saipem

culture and core business. Urged by a relative lack of
resources when compared to with the Oil&Gas Companies,
and high levels of exposure to risk owing to the nature of its
operations, Saipem has always endeavoured to make a key
to success what is called Local Content and, more recently,
Sustainability.
The sustainable management covers the whole range of a
company's interaction with society at large, from health,
safety and environmental protection to conditions of
employment, local economy and labour standards, social
development and human rights. From this definition, the
sustainabilitybecomes for us a strategy for gaining
long-term competitive advantage and a vehicle that helps
our business to achieve planned targets.
In order to achieve long-term positive results, we believe
that crucial factors for consideration are both the
importance of financial issues for shareholders and values
such as health, safety, environmental care and social
responsibility for our employees, the environment and the
32
communities with which we interact.

The Saipem Sustainability Team, in cooperation with
representatives from all the other Company functions, has
been working since 2002 to develop a strong culture of
sustainability at all levels and functions within the
Company, through specific training programs, informative
and awareness campaigns, local Case Studies, focused on
key countries, distribution of principles, policies and
management tools that foster and reinforce the internal
network.
An essential aspect of this approach is Company
commitment to the development of the communities in
which Saipem works and makes its business. We depend on
and must contribute to the socioeconomic development
and the conservation of natural resources around the world.
In its international operations, in fact, Saipem places
particular emphasis on acting with the proper respect for
local customs, traditions, culture and being sensitive to any
potentially disruptive effects that its presence might cause.
Moreover, aware of the effects of its operations, Saipem has
28-08-2006
18:31
Pagina 33
also long been committed to conserving and protecting

the environment, preserving the health of and to ensure a
safe workplace for all its employees and seeking the
wellbeing of and secure conditions for the communities
where it operates.
Part of the Saipem Sustainability Program is aimed only at
attempting to gauge and manage some of these effects on
local contexts, through social, economic and
environmental analyses and studies. During 2005, three
new Sustainability Case Studies were finalized on Saipem
activities and the socio-economic situation of Oman,
Angola and the Far East (editing and printing are still
ongoing), that add to the previous ones on Kazakhstan,
Nigeria, Peru and Azerbaijan. The Case Studies are our best
examples of and fully reflect our approach to sustainability,
which can be summarized as act locally, on the micro
level, that is where our commitment to sustainability and
responsibility is most effective, while considering a global
and comprehensive strategy.
Saipem has operations in 51 countries and its teams
comprise more than 122 nationalities working together.
That said, it is clear that our workforce represents an
extremely diverse range of cultures, experience, know-how
and professions.
A large part of Saipems operations are located in emerging
countries with economies in transition. We are also
conscious of the vulnerability and difficulties of some social
contexts, where our most demanding stakeholders live.
Their expectations are a starting point for our work on the
challenges presented by sustainable development and on
our social responsibilities for our activities. For this we pay
careful attention to some core principles and aspects:
Local development and employment: we are committed
to meeting the requests of local authorities, communities
and civil society to encourage and promote the
Within its institutional activity,

the AEI (Agenzia Europea per gli
investimenti) annually issues a rating
of the companies included in the S&P
MIB40 of the Italian Stock Exchange
aimed to evaluate the implementation
of the voluntary principles of corporate
governance and corporate social
responsibility promoted by the
European Commission, the
Organisation for Economic Cooperation and Development (OCSE)
and the United Nation.
Saipem achieved the second place
with a score of EE+ considering that
development of local and national industry and to create

jobs in the host country. We believe our contribution,
through local purchasing of equipment and services - when
the country or regions manufacturing industry is
sufficiently developed - and by implementing training and
skill transfer initiatives, might help to diversify and promote
local economies, to increase base and technical knowledge,
to improve expertise and skills. We attach particular
importance to the expertise and skills of our employees.
Respect and promotion of human rights: that is ensuring
that human rights are respected wherever we operate,
while promoting fairness, diversity and employee dialogue.
Respect of neighbouring communities and contributing
to the development of host countries
Informing neighbours about our operations and maintaining
reciprocal communication
Contributing to economic and social development in
host regions, in particular the least developed
Building Common Accountability

Framework for Sustainability
To make our commitment to sustainable development
more tangible and measurable, we are evolving our
reporting practices by expanding the collection of data and
qualitative information, in order to offer a more complete
picture of activities performed in terms of both quality and
quantity and to provide the most reliable account of the
impact of our projects and way of operating. This will allow
us to report not only our environmental, safety and health
performance, but also to extend the reporting to economic
and social indicators. In particular we are currently
evaluating standards to measure the social aspects of our
the maximum result was achieved by

ENI with EEE-.
considered as the average while the E

is under the average.
The evaluation of the companies

included in the rating was processed
through the analysis of the official
documentation issued from the
companies. AEI usually doesnt ask for
specific information to the companies
considering that they regularly issued
information to their stakeholders.
AEI is a European Group with an

economic interest (Gruppo Europeo
dInteresse Economico (GEIE)) based in
Bruxelles and with the aim to promote
within companies ethics behaviour,
Corporate social responsibility and the
Social Responsible investments
according to the United Nations and
OCSE indications.
In the final evaluation, AEI includes the

company in one of the 8 levels EEE; EEE;
EE+; EE-; E+; E; E-; the EEE level is the
best in class, the EE- has to be
33
28-08-2006
18:31
Pagina 34
performance. In so doing, we are guided by the reporting

guidelines issued by the Global Reporting Initiative (GRI), the
most widely recognized standard for sustainability reporting.
With the aim of setting up by the end of 2006 a planning and
control process that combines economic, environmental and
social aspects (in line with the "triple bottom-line" principle),
the Sustainability Team in cooperation with all the other
functions involved is working to outline a series of specific and
appropriate indicators (Key Performance Indicators KPIs) and
Saipem Sustainability Newsletter

Saipem fosters within its workforce the
dissemination of information and
education on sustainability by a
monthly newsletter.
Sustainable development, Triple
Bottom Line, CSR, ethical funds,
reporting. These and many others are
the subjects dealt with in 2005 by
Sustainability News available at ENI
HSE portal www.hse.eni.it and at
Saipem internal Bacheca published
by the Sustainability Team to increase
the culture of CSR and of commitment

to sustainable development, especially
for, but not limited to, the oil&gas
sector.
The bulletin has sections on
international and Italian news from
reliable sources on environmental,
social and economic issues, and a
monthly focus where a particular
theme concerning sustainability is
briefly presented.
The last newsletter of 2005 was a
Special Edition on CSR. It dealt with an
CORPORATE SUSTAINABILITY POLICY
A network where everybodys commitment

contributes to the common well-being
Sustainability incorporates three principles that
are of particular significance within Saipem:
protection of environment, respect of human and
social rights of employees and contribution to
local economic development.
Saipem is committed to promoting Sustainable
Development in all facets of its global activity in a
manner that is compatible with the socioeconomic and environmental needs of its Clients.
Saipem employees should have the opportunity
to develop while working in an environment that
is increasingly healthy and safe, whether on site or
on board a vessel. Saipem approach to Corporate
Sustainability is based on creation of long term
shareholder value by contributing to the
development of the local communities where we
operate. Saipem is committed to achieving such
development through environmental protection,
economic growth and social progress, attention to
local suppliers and professional training for local
employees. This commitment is managed
34
to create a system of data collection.

As mentioned above, the accounting and reporting of
financial and non-financial data relating to the KPIs for
sustainability require the participation both of the
Corporate area, (Sustainability Team and representatives
from the other Corporate functions, for specific themes
directly related to their areas of activity) for the definition
of the system, and of each Site/Project and Company for
periodic accounting.
overview of the concept of

sustainable development and CSR,
practices for implementing CSR
policies, benefits and practices of
sustainability reporting, and many
useful references to deepen the
subject.
A specific section is dedicated to
Saipems approach to sustainability
and communication, and the
compliance and adherence
to the international guidelines
of GRI (Global Reporting Initiative).
through these shared Sustainability Practices:

- Conducting operations and relationships with
integrity and honesty, valuing the richness of
each culture and respecting Human Rights;
- Managing the Health, Safety and Environmental
aspects in compliance with existing HSE Policy
and Principles;
- Maintaining an open and transparent dialogue
in decisions which affect stakeholders;
- Researching the possible impacts of activities
in host countries, both prior to, and during,
project execution;
- Monitoring social, economic and environmental
performance with the aim of measuring
Saipems impact so as to ensure compliance
with legal requirements and best practice
guidelines;
- Establishing a reliable verification system for
the performance of suppliers according to
Sustainability Principles;
- Providing training to develop human capital
and build competencies in the management of
field of Sustainable Development;
- Implementing an effective and transparent
Sustainability communication network within
the Group.
28-08-2006
18:31
Pagina 35
Health
In the complex world of oil and gas industry, the focus has
been placed on health management issues as an additional
competitive value to Saipems business management.
Particular interest has been demonstrated in related
programs such as sustainable development and focused
health awareness. With the concerted effort of Management
and Health Department, 2005 has been a challenging year for
Saipem Med with the implementation of several health
related initiatives with primary stress on preventive activities.
Backing up the guidelines in Corporate Health Standards with
strong professional principles and commitment, along with
preventive activities and an efficiently applied health
management system has raised the Medical Departments
performance level. Efficient coordination among QHSE,
Health and Human Resources Department sustained by
practical and direct involvement of Line Management at all
levels covered the majority of gaps registered in previous
years. Saipem has maintained its commitment to promoting
and guaranteeing the protection of its employees health. For
several years now, the control of medical fitness for all
employees within Saipem group has been strictly

implemented prior to employment/assignment and on
periodical basis. Various Health Information campaigns and
programs were fully enforced at all sites; Malaria Control
Program to all high-malaria risk locations, Sexually
Transmitted Disease including HIV/AIDS Information
campaign and Avian Influenza Information Campaign, as well
as Vaccination Program to all sites. Other campaigns were also
carried out by the Health Department according to site
peculiarities such as: a cardiovascular risk factor assessment
program, an anti-smoking campaign, safe food handling etc.
PRIIN People Readiness In (First Aid) Intervention - were
conducted continuously in all project sites and vessels.
Health Reporting System

And Expenditures
The coverage of the health reporting system was intensified
in 2005 embracing also sites without medical personnel.
35
28-08-2006
18:31
Pagina 36
Health reporting system is based on a specific software: GIPSI

(Gestione Informatica Prestazioni Sanitarie Individuali). This
program allows management of all heath relevant issue,
guaranteeing the full respect of
2005 has been a challenging year medical
confidentiality
and
for Saipem med with the individuals privacy. The recent
implementation of several health revision of Corporate Medical
related initiatives with primary Standards issued in June 2005
accent on preventive activities. clearly defined the requirements
Saipem maintained its
and responsibilities of the three
commitment in promoting and
reporting groups: 1. Site with
guaranteeing the protection of its
medical personnel and GIPSI
employees health. For several
years now, the control of medical program, 2. Site with medical
fitness for all employees within personnel but without GIPSI
Saipem group has been strictly program, 3. Site without medical
implemented prior to personnel. Companies and project
employment/assignment and on sites who dont have medical
periodical basis. personnel due to operational
structures and strategic location have to submit health
related reports as stipulated in the Corporate standard on
Medical Reporting (STD-COR-HSE-006). QHSE manager or
HSE unit in charge is responsible for the completion of these
reports. The overall year has shown an increase in reporting
coverage within the Saipem group. An increase of 29% in the
number of operating sites was achieved compared to last year
(2004-100 and 2005-129 operating sites). In addition, 20
more units, the majority of them subsidiaries Head Offices,
published reports on an annual basis. Due to an increase in
demand from projects and in order to meet the shortage of
personnel, 52 new Health Professionals were integrated into
the Saipem Med family. Compared to the previous year with
194, 2005 had a team of 246 health professionals, for an
increase of 26.8%.
That said, the main objective within the Health department

focuses on Health prevention, promotion and protection.
In 2005, 8368 fitness examinations (i.e. medical fitness +
periodical visit, as reported in the next chart) were
conducted for Saipem group employees. There was a slight
increase of 4.6% with reference to previous year figures of
8000 visits. This figure does not include fitness examination
done by GPS employees in their country of origin. The
development of an efficient system for calculating these
visits and the respective expenses is one of the goals for
2006. The highest numbers of visits were performed by
Head Offices which were 2407 or 28.76% of the overall
total. This means that head offices played an important role
controlling the medical fitness examination of Saipem
group employees. Drilling BU bagged second place with
2302 visits or 27.51%, followed by Onshore BU and Offshore
BU which had 1696 and 1257 visits respectively.
A 43.33% increase in the number of vaccinations was
implemented for all sites this year (20047376 and 200510,572 doses). This increase was due mainly to an intensive
campaign against Influenza. Offshore BU plays a major role
in providing vaccinations rendering a total 4015 doses to
Structure of actual Health Expenditures - 2005
0.6%
Research & Dev.
2.3%
Consumables
64.7% Medical Personnel Cost

3.5%
Medical Structures
10.6% Occupational Health

Program
Medical Examination
5.5%
Medical Attention
9.7%
Medicines
1.8%
Other Expenses
1.3%
Work Environment Monitoring
n.
11000
Health expenditures - 2005
10000
9000
9000
8000
8000
7000
7000
6000
6000
5000
5000
4000
4000
3000
3000
2000
2000
1000
1000
2001
Medical Fitness
36
2002
2003
Periodical Visit
2004
2005
Vaccination
thousand euro
2001
Investment
2002
2003
Actual Expenses
2004
2005
Total
28-08-2006
18:31
Pagina 37
Total health expenses per Business Unit - 2005

2250
thousand euro
2000
1750
1500
1250
1000
750
500
250
Offshore
Onshore
Drilling
FPSO
LFM
Annual expenses per site - 2005

thousand euro
90
80
70
60
50
40
30
20
10
2001
2002
2003
2004
2005
its employees or 37.98% of the overall total, a figure which

has justified a compulsory Influenza vaccination to all Offshore
units. Onshore BU performed considerably as well with 2237
doses or 21.16% followed by Head Offices and Drilling with 1810
and 1763 vaccinations respectively.
Health services related expenses were strictly monitored this
year with the aim of optimizing the cost without affecting the
quality of health services provided to all Saipem subsidiaries and
employees. The cost of health professionals plays an important
role in this years statistics; 64.7% of the overall cost was spent on
salaries of health professionals and management expenses,
amounting to 5.16 Million euros. Nearly 15% of this amount
belongs to Other Management Expenses of Petromar Soyo in
Angola, which was 758 thousand euros
The occupational health program has a total expenditure of 844
thousands euros, or 10.6% of the overall cost, followed by
medicines and medical attention amounting to 775 thousand
euros and 438 thousand euros respectively. It shows that by
MMO
Integrated
projects
Logistic
bases
Head
offices
providing the appropriate manpower and resources,

unnecessary cost of medicines, consumables, third party referral
and hospitalization can be minimized. Drilling BU came top this
year with 1912 thousand euros or
2005 provides an increase in
24% of the overall cost, followed by
reporting coverage within the
Offshore BU with 1560 thousand
Saipem group. The coverage of
euros. A total of 7.98 million euros
health reporting system was
was spent during the entire 2005.
intensified in 2005 embracing also
Analyzing the overall costs, there
sites without medical personnel.
was a noticeable increase in total
The recent revision of Corporate
expenses compared to 2004, but
Medical Standards issued in June
with a remarkable increase in
2005 clearly defined the
reporting sites coverage, the cost
requirements and responsibilities
per operating sites is slightly
of the three reporting groups;
elevated. In 2005, the average cost
1.Site with medical personnel and
GIPSI program, 2.Site with
per single operating unit was 62
medical personnel but without
thousand euros or an increase of 5%
GIPSI program, 3.Site without
with reference to last year which
medical personnel.
was 59 thousands euros. The 20
units reporting annually were not considered as operating sites
since they were (head) offices providing support to various sites
and vessels. This explains the slight increase of cost per single
operating unit, but is indicative of more precise and efficient
data collection and elaboration.
Medical Services Rendered In 2005

GIPSI has been operational for years now on the vast
majority of projects within the Saipem group. Apart from
its main goal of providing a tool for employee health
monitoring, this program serves as a tool for Saipem Med
to evaluate the performance of single medical units. The
effectiveness of data collection has been monitored
37
28-08-2006
18:31
Pagina 38
monthly by providing the feedback information on their

reporting to all sites and vessels using GIPSI.
Saipem Med and its peripheral units attended 56,478
medical and surgical cases during the course of 2005. It was
delivered to all Business Units
The effectiveness of data within the Saipem Group of
collection has been monitored Companies. The cases have been
monthly by providing the classified according to the 10th
feedback information on their Revision of classification of
reporting to all sites and vessels diseases given by the World
using GIPSI. GIPSI has been
Health Organization (WHO).
operational for years now to vast
The highest numbers of cases,
majority of projects within the
15,807 or 28% of the overall
Saipem group. Apart its main goal
total, are classified in the Factors
as tool for employees health
monitoring, this program serves influencing Health status group.
as a tool for Saipem med to This towering number is due
evaluate the performance of mainly to Vaccinations, Malaria
single medical units Chemoprophylaxis, other preventive
activities such as contraceptive
management and follow-up check-ups of employees
from different sites. So, once again prevention heads the
overall activities of Saipem Med. The second highest figures
were due to Diseases of the respiratory system with 8953
cases, followed by Symptoms, signs and abnormal clinical
Distribution of medical services rendered in 2005
28%
Factors influencing health status and contact with health services
15.9% Diseases of the respiratory system

12.4% Symptoms, sign and abnormal clinical and laboratory findings,
not elsewhere classified
12.3% Diseases of the muscoskeletal system and connective tissue
38
8.2%
Diseases of the digestive system
7.8%
Diseases of skin and subcutaneous tissue
6.1%
Certain infections and parasitic diseases
3.3%
Diseases of the eye and adnexa
1.5%
Diseases of the circulatory system
1.5%
Diseases of the nervous system
0.8%
Diseases of the ear and mastoid process
0.7%
Diseases of the genitourinary system
0.4%
Endocrine,nutritional and metabolic diseases
0.2%
Other diseases
0.9%
Accident
and laboratory findings with 7009 cases. A total of 102

cases belong to other diseases, comprising 93 cases in
Mental and behavioral diseases, 8 cases of Disease of the
blood and blood forming organs and a single case of
Neoplasm. There were 526 accidents recorded in 2005,
including both non work-related and work-related cases
(First Aid Case, Lost time Injury, Medical Treatment Case
and fatality).
HEALTH AUDITS
Saipem Med is a unique department within

Saipem Group Companies developed with the aim
to carefully, successfully and responsibly manage
the health of all Saipem employees. To mange
health means not only to provide medical services
in case of emergency, but also and above all to
assess, monitor, and safeguard employee health,
prevent disease, protect health through a number
of activities and to promote healthy lifestyle and
behavior. Health management is process of
dealing with, controlling and making decisions in
issues related to the health of individuals or
community(s). On the other hand, the Health
Management System (HMS) is a set of interrelated
and interacting elements governing and
controlling the Companys health organization,
establishing health-related policies and objectives
and achieving those objectives, in order to
demonstrate its ability to meet customer and
regulatory requirements, and enhancing
customer (internal and external) satisfaction
through the effective application of the system,
including processes for continuous improvement.
Saipems HMS is based on number of documents
(policies, standards, guidelines and procedures)
issued at Corporate, Company and Project level.
Their content is in line with current Oil and Gas
industry requirements and recommendations,
but also with international and local laws and
regulations. To verify their implementation and
effectiveness with Saipem Groups Operating
Companies and at operating sites it was essential
to establish the health auditing system which will,
through Corrective Action Requests,
recommendations and revisions of the document
assure continuous improvement in Health
Management.
28-08-2006
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Pagina 39
Health Main Activities

Fighting Malaria Saipem Strategies And Outcome
Malaria is a deadly disease that can kill within hours. It kills
over a 2 million people each year and some 3.2 billion
people living in 107 countries are at risk. Ninety per cent of
these deaths occur in the sub-Saharan region of Africa. This
is an immense human tragedy, which is all the more painful
Health Audits in Saipem

Health Audits in Saipem were performed following
the requirements of Corporate Standard for HSE
Audits Management System (STD-COR-HSE-004-E),
by Corporate QHSE-Medical Department and
Area/Business Unit Health Coordinators. Out of 37
audits planned for the year 2005, 28 were completed
in compliance with the above mentioned Standard
and reported to Saipem Med Corporate. As the
consequence of these audits, 73 Corrective Action
Requests (CAR) arose. By the end of the year, 47 (or
67%) of them were closed. A total of 53 reminders for
CARs, not closed on time or still open, have been sent
to the auditees. Some CARs introduced long-term
actions which are due to be completed in 2006.
Health Audits - 2005
n.
40
35
30
25
20
15
because malaria is both preventable and curable. That is

the reason why Saipem initiated a campaign against malaria
in 2003 and it has been monitored continuously up to now.
In 2005, twenty-seven project sites and vessels from
endemic malarial countries were involved in the Malaria
Control Program (MCP). The information campaign against
this deadly disease was disseminated continuously to all
non-immune employees. Refresher courses were run
Companys core Business, and will establish

Health Management as Saipems
competitive value.
It is also shown that the GIPSI reporting system
is a basic tool and moving point as well as a
powerful help and support to all the medical
personnel in Saipem.
Once again, it has been proved that Line
Management leadership and commitment is
essential for achieving excellence.
For the future, Saipem Med intends to intensify the
auditing activities and apply its improved
recording and reporting system, involving as key
players medical personnel, but also more and more
Line Managers at all levels. As health is not only
absence of illness but mainly the state of general
well-being, Health Management is more and more a
shared and inter-departmental responsibility that
aims to assure on all Saipems working sites
professionally prepared, healthy, motivated, loyal
and productive employees. That is why the
fulfilment of the Health Audits plan has been
chosen as one of the Health performance indicators
for the year 2006.
10
Corrective Action Requests - 2005
Audits Planned
Audits Performed
80
n.
70
Some bold points coming from audits

One of the main strong points made during
Corporate audits pointed out the need for a more
pro-active and business management role of
Health Coordinators and medical personnel in
general. This will give to the Line Management
proper a picture of Saipem Med activities and
achievements, thereby showing what kind of
support this department is giving to the
60
50
40
30
20
10
C.A.R.s Generated
C.A.R.s Closed
39
28-08-2006
18:31
Pagina 40
repeatedly to achieve our target of zero fatalities and to

minimize the number stewardable cases of Malaria,
minimizing the risk of exposure among employees of
Saipem Group of Companies. A total of 1523 employees
successfully attended the MCP courses held in various sites
and vessels. All 382 non-immune employees working under
ExxonMobil Projects complied with clients requirements
on Malaria Compulsory Chemoprophylaxis Program
(MCCP). Comparing malaria cases in the period between
2003 and 2005, there is a continuous rise in overall
reported cases over the 3-year span. One of the reasons for
this increase is the continuous yearly increase of the
number of sites involved in MCP. Only 15 sites were
involved in MCP in 2003, 22 in 2004 and 27 project sites
and vessels have been reported this
Malaria is a deadly disease that year. The efficacy of MCP can be
can kill within hours. In 2005, determined by evaluating the
twenty - seven project sites and number of reported cases versus
vessels from malaria endemic exposure hours. In comparison
countries were involved in with 2004 having 62 reported
Malaria Control Program (MCP). cases, 2005 had 95 cases.
Refresher courses were done Considering an increase of 38.38%
repeatedly to achieve our target: in Man worked hours (17.570.552
Zero fatalities and minimize the
MWH in 2004 VS 24.314.516 MWH
number of Malaria stewardable
in 2005), there is just a slight
cases, minimizing the risk of
increase in overall Malaria Case
exposure among employees of
Saipem Group of Companies. Rate compared to last year (0,71 in
2004 and 0,77 in 2005) . This result
would be much better if better results had been obtained
on a single onshore construction site in Nigeria, where
more than 2/3 of overall cases were registered. Good results
do not stop Saipem Med recommending a continuous
effort in the fight against Malaria. The information
campaign must be implemented continuously for all new
Malaria Case Rate - 2003/2005
5
4,5
4
3,5
3
2,5
2
1,5
1
0,5
Non-Immune
Rate
2003
40
Semi-Immune
Rate
2004
Subcontractors
Rate
Overall
Rate
2005
Malaria control program - Non-Immune population - 2003/2005

%
100
95
90
85
80
75
70
65
60
Attendance
on MCP
2003
Compliance with Exxon

Mobil Requirements
2004
2005
employees, and refresher courses must be run where

necessary. An intensive campaign regarding malaria
prophylaxis, including the use of chemoprophylaxis has to be
carried out just before and during the rainy season. An indoor
and outdoor fumigation campaign, with appropriate chemicals
and with right timing (when the mosquitoes are active), must
be done regularly with particular focus on Onshore projects.
Permethrin-based insecticidal spray for clothes is strongly
recommended for used on all onshore projects.
Cardio-Vascular Risk Factors Assessment

(CFRS) Program
The International Health Bodies statistics have issued a warning
with regards to the increase in the number of cardio-vascular
(CV) diseases around the world, especially in reference to cardiac
ischemic illnesses and cerebral-vascular accidents. The
continuous proliferation of these pathologies can be seen as a
veritable pandemic. For their eradication, the development of
sustainable and functional, preventive and educational
programs has become a real necessity. Like any other medical
structure whos activity is at least 90% prevention, health
protection, promotion and prophylaxis, Saipems Medical
Department have set the basis and developed a program
dedicated to cardio-vascular (with cardiac and cerebral risk)
disease prevention.
Named Cardio-vascular risk factor assessment program, the
project was created in the spring of 2004. Its implementation
started in May 2004 when the procedure itself and the
application methodology were distributed to certain peripheral
operational units. The main role of these units was to determine
the applicability of such programs in remote locations, where
the access to specialized medical services is burdened by
objective factors like: offshore location of the project, lack of
28-08-2006
18:31
Pagina 41
appropriate and reliable third-party medical structures, etc. The

decision and initiative of the CFRA program development within
Saipems Medical Department came as a natural consequence
of statistical results obtained at the end of 2003. These showed
an increased number of repatriations due to cardio-vascular
pathologies. Thus, at its beginning the CFRA program involved 5
(five) different locations. The selection criteria were the
endowment level of the clinics and the total number of the
personnel deployed on the respective work sites. The clinic
endowment set-up C includes an automatic laboratory
(Reflotron), equipment that allows the measurement of the
most important bio-chemical parameters representing cardiovascular risk factors, such as: TC (total cholesterol), HDLC (high
density cholesterol) and blood glucose level. The other tracked
parameters (blood pressure, smoker status, age, various
treatments for pre-existing CV conditions) were obtained
through a specific anamnesis established for this screening. The
units chosen for the implementation of this program were: new
logistic base Nigeria, Castoro 8, Saipem 7000, Saipem 10000
and FDS SaiBos. These five units represent the etalon for the
three most important Saipem Business Units: onshore
construction, offshore construction and drilling. Unfortunately,
due to objective reasons or inefficient implementation or
approach methods, the final data base contains persons
pertaining to only three locations: new logistic base Nigeria,
Castoro 8 and Saipem 7000.
The final data base, persons who joined the program during a
one-year application time, includes 209 employees from
different age groups. The study showed a prevalence of the
persons over 45 years of age.
In what measure the percentages correspond to Saipems real
personnel age structure is difficult to appeciate as the
participation to this screening program was voluntary, showing
a higher degree of interest among persons over 45 years of age.
As already stated the parameters followed were:
Age
Factor's incidence in study group

225
200
175
150
125
100
75
50
25
Total
Smoking
High BP
Total
cholesterol
HDLC
Diabetes
Smoker status
Blood Pressure value
Total Cholesterol fasting value
HDLC fasting value
Blood sugar fasting value
These parameters represent the most important risk factors for
cardio-vascular disease development. How these factors
influence the incidence of CID (Coronary Ischemic Diseases and
CVS (Cerebral-Vascular stroke) was the subject of this screening.
Assessing the presence and incidence of these factors in the
screened group, the results show the following situation:
The relative graph shows the number of employees assessed in
which one of the parameters followed (risk factors) was higher
than the normally accepted values or simply present (smoking).
It is easily to see the predominance of smoking, increased values
for total cholesterol (over 5 mmol /dl) and abnormal values for
HDLC (values under 1.2 mmol /dl).
Elevated blood pressure and diabetes have a relatively small
incidence compared to others factors, their presence being
correlated with pre-existing
conditions (the presence of
Like any other medical structure
whos activity is at least 90%
diabetes can be genetically
prevention, health protection,
determined or due to pancreatic
promotion and prophylaxis,
endo-secretion abnormalities) or
Saipems Medical Department set
age-psychosomatic related as in
the basis and developed a
HBP cases. Expressed in numbers, it
program dedicated to cardiocan be seen that the predominance
vascular (with cardiac and
of smoking with 41.62%, increased
cerebral risk) diseases prevention.
values for TC with 39.71% and
abnormal (decreased) values for HDLC with 38.27%. Specific
intervention concentrated on eliminating the habit of smoking
or changing diet, both of which can eventually, according to this
graph, lead to a decrement in CID and CVS appearance risk.
Without excluding or overlooking the existence of high blood
pressure or the presence of incipient or onset diabetes,
dedicated treatments, can, in a more limited fashion, influence
positively the overall CID and CVS occurrence risk.
The average risk of CID within the general population (aged
between 20 and 45) is 4,75% for a 10-year period (this means
that within 10 years 4,75 % of population will experience a heart
attack). As shown in relative table, evaluating the risk based on
parameter measurements among our employees of different
age groups, between 26% and 48% of the persons examined are
more at risk than the general population.
The 40-45 year-old group is most at risk from CID, with almost
50% of the persons included in the screening showing an
elevated risk of cardio vascular entities developing.
On the other hand, cerebral vascular stokes (CVS) are marked
by elevated values in all age groups in respect of the CID risk.
As can be seen in the 30-40 and 40-45 year-old groups, almost
all individuals involved in the Program have the risk factor
above that of the general population, which is 1,75%. The
cause of this increase may be susceptibility of cerebral
41
28-08-2006
18:31
Pagina 42
vascular diseases to the studied risk factors. The main

achievement of the screening program at this stage is
represented by the identification of the persons and groups
more at risk compared to the general population. As was
pointed out, the prophylaxis measures and specific
treatments must be started early as well as specific programs
directed towards risk factors prevention. In order to
implement these campaigns and act against the impact that
these factors have, the targets for the next years (2006 and
2007) are a medical education and work-force counseling
approach. Physical exercise, avoiding the conditions leading
to obesity and non-smoking campaigns are the main points
CID risk (20-30 y.o.)
CID risk (>45 y.o.)
26.10%
44.44%
48.48%
37.37%
CVS risk (20-30 y.o.)
CVS risk (>45 y.o.)
39.13%
93.65%
87.87%
83.33%
Influenza Vaccination Campaign 2005

Introduction
Yearly epidemics of influenza typically occur during the winter
months in temperate regions and have been responsible for
severe respiratory diseases, sometimes with a fatal outcome for
persons at risk. Influenza vaccination is the primary method for
preventing influenza and severe complications. In the complex
world of the Oil and Gas Industry, where the migration of
personnel from one part of the planet to another is frequent, it
becomes extremely important to prevent the outbreak of
epidemics, especially nowadays when the whole world is under
the threat and influence of Avian
In the complex world of Oil and Gas Influenza.
Industry where the migration of Apart from avoiding possible
personnel form one part of the globe interaction with the Avian Influenza
to another is frequent, it becomes (H5N1) virus (experts are saying that
extremely important to prevent the the question is not whether it will
epidemics outbreaks especially happen but when it will happen),
nowadays when the whole world is prevention of influenza outbreaks
under the threat and stress of Avian
in close communities such as an
Influenza. Through the influenza
offshore unit or a drilling rig can
vaccination program 2005, Saipem
diminish absenteeism, thus
has once again proved its
increasing the productivity of the
commitment towards the health of
their employees and towards the unit, and diminish costs in terms
prevention to be the main tool to of medicines, laboratory analyses
protect it. and hospital treatments. Not to
mention the effects of medical
emergency management and/or repatriation due to
possible complications. On the other hand, having
42
that we will focus on at our operating sites. Other risk factors,

like hypertension and diabetes will remain the domain of the
practising doctors, with Saipem Med monitoring the conditions
during the presence on respective working sites. In the future,
new technologies (maybe also telemedicine) applied to Saipem
Med goals and purposes will assure the contact and cooperation
between Saipems doctors worldwide, and better development
of the health monitoring and surveillance programs.. Their
correct application and the compliance of the people involved
in the screening process will be re-evaluated in 2006 and 2007
and the success of the program shall be a step forward for
Saipem Med.
personnel vaccinated practically eliminates the spread of

the influenza virus among the local communities through
contact with the local workforce, thus contributing to the
sustainable development of the business. Avian influenza
is an infection caused by H5N1 virus. Its natural reservoir
are wild migratory birds, who spread it to poultry. The avian
flu virus does not spread easily or rapidly among humans,
however flu viruses have the capacity to mingle with one
another and morph in to new strain. This is one of the
reasons why health officials keep such a close watch on
outbreaks of avian flu. If someone with human influenza
also becomes infected with avian influenza, there is a
chance that the virus could mingle and turn in to a new
virus that could spread easily from person to person. This
could lead to a world-wide epidemic (or Pandemic) of
influenza caused by a strain that has the strength of the
Avian flue virus and the capability to be easily transmitted
from human to human. Here is the importance of the
influenza vaccination as a tool for individual and
community protection from influenza. Saipem, as a worldwide operating company in oil and gas industry, is paying
particular attention to this issue.
Description of the Program
QHSE Saipem Med is closely monitoring the world-wide
situation regarding Avian influenza. As part of the
preventive measures, apart from the guidelines for medical
personnel, the Department has taken many steps like
circulating up-to-date information and statistics regarding
Avian Influenza, based on WHO bulletins, to all sites and
28-08-2006
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Pagina 43
projects, conducting information courses and publishing

educational leaflets and posters on sites and projects about
preventive measures. But we consider the most important
step to be the implementation of the influenza vaccination
campaign 2005. The Influenza vaccination campaign 2005
in Saipem Group of Companies was initiated in the month of
October and almost fully completed by December. On
certain sites, the vaccination program continued in early
2006. The program was compulsory for the offshore units,
because of the close contact between the employees living
and working there, and was voluntary for onshore units and
office personnel.
Outcome Of The Program
Some difficulties were encountered during the program
such as local unavailability of vaccines, transportation and
customs clearance. With inter-department cooperation
and proper information campaign by medical professionals,
Saipem Med overcame all these obstacles.
Prior to the vaccination, all the employees who adhere to
the campaign were informed about the influenza disease,
advantages of the vaccination, and possible complications.
Persons allergic to eggs were excluded from the campaign.
All the candidates for vaccination were asked to sign a
consent form. In offshore units a total of 3457 employees
were vaccinated, including the subcontracting workers,
which is 89% of the total work force in Saipem offshore
operational units. On the onshore projects & offices 3791
employees were vaccinated including subcontracting
workers, bringing the total number of vaccinated
employees in Saipem Group of Companies to 7248.
Employees vaccinated under the respective national health
service programs are excluded form this number. If we
consider the total number of Saipem Group employees we
will see that approximately 30% of Saipems overall
population was vaccinated. Keeping in mind the extremely
low percentage of employees that, according to
international standards, are recommendable for
vaccination, this is a result that we all can be very proud of.
Conclusion
As a world-wide operating company, Saipem is very
concerned about the health of its employees and paying
more attention to the preventive aspects of health.
Through this influenza vaccination program 2005, Saipem
has once again proved its commitment to the health of its
employees and to prevention as the primary means of
safeguarding employee health. Of course, the cost of this
program is considered by the management to be an
investment for the future health of our employees.
43
28-08-2006
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Pagina 44
Safety
Commitment to Safety
Saipem recognizes that workplace accidents are costly,
preventable, and unacceptable in its work environment,
therefore through polices, guidelines, targets and strategies
Saipem management is committed to the goal of eliminating
all workplace injuries, illnesses, and over-exposure. This goal
can be achieved only by continuously and systematically
improving the HSE Management System, reducing hazards,
and modifying unsafe behavior.
In fulfilling these responsibilities, Saipem Group:
Plans and implements strategies, including a management
system, to achieve defined health and safety objectives
and continuously improve health and safety performance;
Ensure safety is a prime consideration in all operations
and practices;
Provides safe systems of work and equipment, plant and
machinery etc, including adequate protective clothing
and equipment for use by staff;
Provides information, instruction, education programs,
training and supervision to ensure staff know how to
work safely and what risks exist in their workplace;
44
Defines HSE responsibilities and educates managers and

staff to ensure effective management of health and safety;
Ensures risk management systems are in place and fully
functional;
Continually reviews and develops safety policies and
procedures;
Investigates all accidents and near misses and implements
preventive action; and
Supports injured staff in their rehabilitation and return
to work.
In return, Saipem employees and subcontractors comply with
safe work practices and procedures and take reasonable care to
protect their own health and safety, as well as the health and
safety of others in the workplace.
28-08-2006
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Pagina 45
Safety performance analysis

The calculation of Saipem Group safety performance for 2005 is
based on a total of 140,787 million worked manhours submitted
by almost 200 Saipem-managed projects and sites. Even though
new projects were launched in 2005, the total number of
worked hours diminished by 4% against the figures reported in
2004 (146,525 million worked manhours). This decrease was
caused by the completion of some important onshore
construction projects in Kazakhstan, Saudi Arabia, Tchad and
also LNG Tanks Construction Projects in Spain and India.
The five-year trend of the three performance indicators: LTI
Frequency Rate, Severity Rate and Total Recordable Incidents
Frequency Rate are presented in the chart below. It can be seen
that all three safety performance indicators measured against
the figures reported in 2004 have had a declining trend. The LTI
Frequency Rate (1,21) decreased by 23% from the values
calculated for 2004 (1,56) and by 9% from the target established
for 2005 (1,33).
LTI frequency rate & total recordable frequency rate
Frequency Rate
Severity Rate
6,00
0.08
5,00
0.06
4,00
3,00
falling guide post.

May 15th, Rig 102 Saudi Arabia, one assistant driller fell from
A-Frame structure of the mast resulting in fatal
injuries to head.
August 6th, Okpai Power Plant Nigeria, one carpenter
fell from a height of 20 meters.
November 7th, Bosshelf Fabrication Yard Azerbaijan a
subcontractor electrician entered into a restricted area
and consequently fell from a height into the Jacking
house roof area
December 3rd, Dolphin Project Qatar a subcontractor
quality inspector was caught between the pipe and
suction booth of the internal paint section.
The above mentioned events were analyzed in order to
identify the root causes of behavioral and system failures.
Action plans and lessons learned
LTI Frequency Rate, Severity Rate
have been implemented and
and Total Recordable Incidents
disseminated among Saipem
Frequency Rate during 2005 have
companies and wherever similar
had a declining trend compared
activities are carried out in order
to the values of 2004.
to prevent re-occurrences.
Special attention has been given also to analysis of all the
events reported, some of the relevant cases being
published in safety bulletins and alerts issued at corporate
or company/ project level and which were shared within
Saipem Group companies.
0.04
2,00
0.02
1,00
FTL
6 Fatal accidents
LTI
164 Lost Time Injuries
WRC
2001
2002
LTI Frequency Rate
2003
Severity Rate
2004
2005
Total Recordable
Frequency Rate
332 Medical treatments
FA
3.113 First Aid Cases
NM
SHOC
This improvement is given by the reduction of the number of

accidents with days lost, which diminished by 26% in 2005.
Total Recordable Incidents Frequency Rate had a decreasing
trend compared to 2004, but reached a similar level with the
values reported in 2003 and 2001. The value of Total Recordable
Incidents declined by 13% against values reported for 2004, due
to the reduction of the number of Lost Time Injuries (26%) and
also of Medical Treatment Cases (21%), which led to a Total
Recordable Incidents Frequency Rate decrease of 10%.
Besides these encouraging trends it should be mentioned that
the number of accidents includes the six accidents which had a
tragic outcome, six people loosing their life, of which two were
subcontractor personnel.
These tragic events took place as follows:
February 24th, Tanger Port Morocco, one driver died being
caught under an overturned water sprinkle tank.
May 8th, Saipem 3000 Nigeria, a welder was struck by a
169 Work Restricted Cases
MT
2.443 Near Miss

166.431 Safety/Hazard
Observation Cards
Accidents analysis
Accidents are the result of a combination of causal factors
occurring at the same time, in the same space, either
distinctly or in correlation. For this reason not only the
accidents with very serious outcomes are analyzed in order
to identify the unsafe acts and unsafe conditions, but also
minor events, such as first aid cases and near misses, are
taken into consideration when the assessment of the
potential outcome reveals that some hazards might have
had different outcomes. At the beginning of 2005, a new
standard was released at corporate level for Accident
Investigation Management. According to this guideline
each event is investigated in relation to the real and/or
45
28-08-2006
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Pagina 46
were caused by falls from a height. Among other causes,

the main behavioral causes identified and which led to
accident occurring were:
Overconfidence of the injured persons, who in trying to
attempt to save time, placed themselves in dangerous
positions;
Failure to use protective equipment even though this
was required by the working conditions ;
Lack of safety awareness by ignoring the restrictions and
work in hazardous areas.
73% of accidents with days lost were the result of employees
unsafe acts/practices while carrying out their tasks, while in 27%
of accidents the major factor was the unsafe working conditions.
Among the unsafe acts/practices the main causes were lack of
attention (16%), wrong operation/installation carried out (12%),
fail to use proper PPE (8%), improper position for task (8%).
One of the major hazards the employees faced this year was
exposure to fire and explosion hazards. In some cases the
explosion of a boiler on a FPSO or fire on board of a drilling
vessel resulted in more than one outcome, affecting people,
damage to assets and environmental pollution.
potential consequence as per Risk Level Matrix.

At the level of the project/site the Site Management has the
responsibility of conducting an accurate analysis of the
outcomes of the reporting system, and to take appropriate
actions in order to eliminate the
Not only the accidents with very hazards and avoid recurrence. At
serious outcomes are analyzed in Corporate level are gathered mostly
order to identify the unsafe acts and the data relevant to accidents with
unsafe conditions, but also the serious outcomes, which are
minor evens, such as first aid cases analysed in a complex database,
and near misses, are taken in giving the possibility to identify the
consideration. main cause of accidents, the source
of injuries, or any other relevant
information necessary for various analysis. The Fatal accidents
were investigated by a team designated at the corporate level,
having the main objectives to ascertain circumstances leading
to the accident, to identify the direct, indirect and root causes of
the accident, to recommend corrective actions to prevent
similar accidents from re-occurring. For each of the fatal
accidents, personal and job contributory factors were identified.
From the six fatal accidents that occurred in 2005, three of them
Type of Injuries 2003-2005

30
25
20
15
10
5
Road
Traffic
Accidents
Fall on
the same
level
Struck by
Striking
against
Fall from
height
Contact
with cut
machines
Caught,
crushed
Lifting/
shifting
Balance
loosing
Foreign
body
into eye
Improper
working
position
Burns
2003
2004
Worked
Manhours
Lost Time Injuries

& Fatal accidents
Total Recordable
Incidents
(LTI & Fatal)

Frequency Rate
Total Recordable
Frequency Rate
Drilling Operations
12.628.314
41.080.893
Leased FPSO
1.417.927
LNG, Maritime Works and Floaters
20.917.194
36.916.034
Maintenance Modification Operations
9.499.065
Integrated projects
6.196.024
Logistic Bases & Head Offices
12.132.140
Saipem Group
140.787.590
37
27
9
27
23
32
3
12
170
108
177
12
144
107
74
11
28
661
2,93
0,66
6,35
1,29
0,62
3,37
0,48
0,99
1,21
8,55
4,31
8,46
6,88
2,90
7,79
1,78
2,31
4,70
Safety Performance
Business Units
& Activities
46
2005
28-08-2006
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Pagina 47
Accomplishments and Failures

Analyzing the safety performance reported for each business
unit and the trends of safety performance indicators reached in
past five years, the Corporate Senior Management decided to
establish for 2005 a series of measures meant to improve the
HSE Management System, with a final goal of general decrease
of LTI Frequency Rate with 10% at level business unit and
Corporate Level, as already mentioned in chapter "Safety Plan

2006/2007". In the table below are presented the
accomplishments and failures of each business unit in reaching
the targets established in 2005. Apart from these pro-active
improvements, at the level of each business unit has been
established safety performance targets which refer to reduction
with 15% of the LTI Frequency Rate, 10% of Total Recordable
Frequency Rate, and zero Fatal accidents, to be achieved in 2006.
Targets LTI Frequency rate & Total recordable Frequency rate

Business Units
LTI Frequency Total Recordable Target established LTI Frequency
and Activities
Rate 2005 Frequency Rate established for LTI
rate 2005
2005
Frequency rate
vs. target
2005
Target 2006
LTI Frequency
Total
Rate Recordable
Frequency
Rate
Drilling Operations
2,93
0,66
8,55
4,31
2,84
1,39
+ 3,2%
- 52,7%
2,49
0,56
7,70
3,88
Leased FPSO
LNG, Maritime
Works and Floaters
Maintenance
Modification Operations
Integrated Projects
Logistic Bases &
Head Offices
Saipem Group
6,35
1,29
8,46
6,88
2,54
1,17
+ 150%
+ 10,3%
5,40
1,10
7,62
6,20
0,62
3,37
2,90
7,79
0,5
3,47
+ 24,6%
- 2,9%
0,53
2,86
2,61
7,01
0,48
0,99
1,78
2,31
1,39
1,4
- 65,2%
- 29,3%
0,41
0,84
1,60
2,08
1,21
4,70
1,33
- 9,2%
1,03
4,23
Pro-active indicators
The best HSE management practices are considered those
where risks are assessed and hazards are identified and
controlled. Reducing risks to an acceptable level can be
achieved only if a series of factors are working together in a
homogenous and well controlled system. Some of these
factors are process development, procedure implementation,
new technologies, and investments that a company makes
with the ultimate aim of eliminating human and system
failures. According to Saipem standards, the behavior
education programs start right from the moment the
employee is arrives on site, when he receives HSE Induction
Training. Specially designed programs tailored to match
employees skills and activities are implemented at the level
of each project for the staff, programs being based on a
specific site Training Matrix. Recognizing the importance of
training as one of first steps in hazard recognition, in 2005
extensive training programs have been implemented
within all Saipem companies, the number of inhouse HSE
training hours reported were over 500 thousand hours,
equivalent of 3,72 hours of training per 1000 worked hours.
This value represents an increase of 100% compared to 1,86
training rate reported for 2004. Offshore Constructions
Business Unit gave the biggest input for this pro-active

indicator, over 50% of HSE training hours were carried out
for the personnel assigned to the offshore construction
fleet, on projects and in fabrication yards.
Safety/Hazard Observation Cards, known also as Undesirable
Events Reporting, reflect the attitude of all employees during
work activities as well as their
In 2005 extensive training
interest in assuring a safe work
programs have been
environment. It is considered a proimplemented within all Saipem
active indicator due to the positive
companies: the number of
influence given to the HSE
inhouse HSE training hours
Management System, and
reported were over 500 thousand
reflects employee involvement in
hours, equivalent of 3,72 hours
of training at 1000 worked hours.
observing the hazardous acts
This value represents an increase
and conditions, giving the
of 100% compared to 1,86 training
management the possibility to
rate reported for 2004.
correct the hazards before they
turn into serious events. In 2005, a number of 166.431 safety
hazard observation cards were issued, which represents a 66%
rise against the figures reported in 2004. This improvement
comes from Offshore Construction Business unit, which
reported 104.727 hazard observation cards, representing
over 60% of cards issued in 2005. The Tool Box Talks
Program plays an important part in the continuous effort to
47
28-08-2006
18:31
Pagina 48
create an increased awareness of hazards present in the

workplace environment and precautions which must be
taken to eliminate or control them. In 2005 a number of
1,18 Tool Box Talks per 1000
During 2005 a number of 166.431 hours worked were reported,
safety hazard observation cards which represents a progress of
were issued: thus represents 66% 46% from the values registered in
raise against the figures 2004.
reported in 2004.
Leadership at all levels within the
Company is responsible for leading and engaging the
employees in reaching the HSE objectives and goals.
Company
management
is
In 2005 a number of 1,18 Tool Box establishing a direct two-way
Talks per 1000 hours worked were communication with employees,
reported, representing a progress contractors and others on HSE
of 46% from the values registered
issues during meetings and
in 2004.
regular visits to workplaces.
Leadership is promoted throughout distribution and
assimilation of experience gained as a result of HSE lessons
Leading indicators rate

Business Units
Safety/Hazard
& Activities
Observation
Cards Rate
Drilling Operations
Leased FPSOs
LNG, Maritime
Works and Floaters
Maintenance
Modification Operations
Integrated Projects
Other
(Logistic Bases & Head Offices)
SAIPEM GROUP
Leading indicators rate

4,00
3,50
3,00
2,50
2,00
1,50
1,00
0,50
SHOC Rate TBT Rate
HSE
JSA Rate
Meetings
2004
Inhouse HSE
HSE
Training Rate Inspections
2005
Tool Box
Talks Rate
HSE Meetings
Rate
Job Safety
Analysis Rate
HSE Training
Hours Rate
HSE
Inspections
Rate
3,23
2,55
0,17
0,17
3,14
1,50
0,12
0,36
0,42
0,39
0,18
0,09
2,59
0,21
0,12
0,32
5,84
6,64
0,41
1,87
1,41
0,24
0,24
0,14
0,36
0,09
0,87
1,07
0,13
0,17
0,22
0,03
1,51
2,79
0,47
0,34
0,09
0,21
1,32
0,55
0,07
0,19
0,20
0,15
4,47
2,25
0,18
0,14
1,18
1,18
0,23
0,43
3,72
0,38
Offshore Construction Business Unit

This year important offshore construction projects
have been developed, some of which are worth noting:
Majorca Subsea Aqueduct installed by Crawler in Spain,
Rhum Field Development in the North Atlantic, which
is considered to be the most complex pipeline
construction, Sabratha Platform installation which is
an offshore platform expected to produce ten billion
cubic meters of natural gas per annum, successful
installation of the BP Clair Platform by Saipem 7000 in
the difficult weather conditions of Scotland offshore,
the successful lifting of the Yoho Topsides in Nigeria,
which was recognized by the client as being the
heaviest lift ever made in West African waters. Besides
projects performance, the recognition received by
48
learned, both inside and outside project and company

boundaries.
Saipem 7000 from Shells Brent RFD Team for good

work performed during the removal of the Brent
Remote Flare and Brent Spar Anchor Blocks must also
be mentioned.
The number of worked man-hours increased by 6% compared
to the values recorded in last year, but the biggest improvement
has been registered in the number of accidents with days lost,
which decreased by 55% against the number of cases reported
in 2004. This positive trend had a positive impact on the LTI
Frequency Rate which decreased by 57% from 1,54 calculated in
2004 to 0,66 calculated in 2005.
The same improvement was reported also at the level of the
number of leading indicators which increased by 44% against
the values reported in 2004, but most significant in terms of
number of Safety Hazard Observation Cards issued (85%) and
28-08-2006
18:31
Pagina 49
Offshore Construction Business Unit

Frequency Rate
Severity Rate
12,00
0.08
10,00
0.07
0.06
8,00
0.05
6,00
0.04
4,00
0.03
0.02
2,00
0.01
2001
2002
LTI Frequency Rate
2003
Severity Rate
2004
2005
Total Recordable
Frequency Rate
number of HSE Training Hours performed (223%).

Management commitment is the successful key in
implementing and developing HSE MS. Starting from this
approach SaiBos organized in 2005 several sessions of
training in Accidents Investigation and Risk management
for vessel staff management (masters, chief officers,
superintendents, etc). The purpose was to raise awareness
among the vessels management regarding the importance
of investigation of all events occurring on board, the correct
approach of investigation and analysis of events, the
importance of team work and communication in incident
investigation, identification of root causes and
establishment of the required corrective actions. As from
2005, Saipem Jakarta has implemented a procedure of
safety performance analysis. This system is meant to analyze
HSE performance throughout the information provided by
the Pro-active indicators vs. Recordable Incidents.
Moreover, special attention is given to pro-active indicators
reported for each project/vessel/office indicating the
weaknesses and strong points of the HSE Management
System and its implementation on the Companys
managed sites.
Onshore Construction Business Unit
In 2005 a series of construction projects have been
marked by completion in Cameroon, Algeria, and Saudi
Arabia, therefore the worked manhours continued the
downward trend which started two years ago, in 2003.
Comparing the number of worked manhours reported in
2005 with those recorded in 2004, there was a decrease
with 11%, and measured against the values reported in
2003, this trend arrived at a 45% reduction. Special
distinction and recognition of HSE performances was
received by MINA Al Fahal - Sohar Pipeline Construction
in Oman for 3 million manhours worked LTI free.
Sakhalin Onshore Construction Project remains one of
the most challenging projects with more than 6000
people working in difficult environmental conditions.

Most of the accidents reported on this project are caused
by harsh winter conditions (snow, ice, temperatures
below 20 degrees), creating the hazards of slipping and
tripping. In 2005 the number of
MINA Al Fahal - Sohar Pipeline
accidents decreased with 34%
Construction in Oman received a
which is reflected also in LTI
Special distinction and
Frequency Rate, this one
recognition of HSE performances
dropped by 26% compared to
for 3 million manhours worked LTI
values reported in 2004.
free.
However the severity rate
increased on the one hand due to the seriousness of
some accidents, whereas, on the other, it was influenced
by the work legislation of the country where the accident
occurred, leading to a negative trend from 0,015 to 0,023
days lost measured at one thousand worked hours.
Onshore construction Business Unit
Frequency Rate
Severity Rate
3,00
0.025
2,50
0.02
2,00
0.015
1,50
0.01
1,00
0.005
0,50
2001
2002
LTI Frequency Rate
2003
Severity Rate
2004
2005
Total Recordable
Frequency Rate
Drilling Business Unit

The 2005 safety performance of drilling activities measured
against the figures reported for 2004 show a slight
downward trend of LTI frequency rate of 7%, from 3,16
reported in 2004 to 2,93 in 2005
In onshore drilling activities, which represents 68% of the
total drilling business unit worked hours, an improvement
has been recorded in terms of accidents with days lost, a
value which corresponds to an increase of 16% of worked
manhours leads to a 34% decrease of the LTI frequency rate
against the performance measured in 2004. However, it
must be remembered that in oshore drilling activities, one
accident had a tragic outcome, the employee fell from a
height and consequently suffered fatal injuries to the head.
For this serious accident a series of corrective measures
have been implemented not only at the level of the rig
where the event took place but the lessons learned have
been disseminated among all companies and activities.
In offshore drilling activities a couple of accidents occurred
with more than one outcome related to explosion
49
28-08-2006
18:31
Pagina 50
hazards. These serious accidents negatively influenced the

trend of LTI frequency rate which increased by 68% against
the performance measured in 2004. Several rigs reached
the outstanding safety performance of more than one year
LTI free. These rigs are: in Saudi Arabia Saipem: AZ 5895, Rig
101, Rig 201; in Saipem Algeria:
In offshore drilling activities
AZ 5893; in SaiPar Rig 2, each of
Scarabeo 5, Scarabeo 3 and AZ
which has two years LTI free. The
5820 reached safety performance
Rig AZ 5893 from Saudi Arabia
of one year LTI free. Special safety
reached three years LTI free and
recognition was given to Scarabeo
7 which reached the Rig 216 from SaiPar, four years
at two years LTI free. LTI free. In offshore drilling
activities one-year LTI-free safety
performance was reached by Scarabeo 5, Scarabeo 3 and
AZ 5820. Special safety recognition was given to Scarabeo
7, which reached two years LTI-free.
Drilling Businss Unit
Frequency Rate
Severity Rate
12,00
0.21
10,00
0.18
8,00
0.15
6,00
0.12
0.09
4,00
number of accidents with days lost was constant, the

number of days lost due to injuries decreased by 25%. This
reduction in number of days lost positively influenced the
severity rate which had registered a decreasing trend with
36% against the values calculated in 2004.
LNG, Maritime Works and Floaters Business Unit
The completion of this important project influenced the
overall number of worked hours reported in 2005, which
registered a reduction of 38% against the values reported in
2004. The number of lost time injuries diminished by 39%, but
these two factors correlated, the number of hours worked
and the number of LTI resulted in no variation of LTI frequency
rate. In 2005, the Erha Project received an award for
outstanding safety performance, reaching 17 million worked
hours LTI free. The Client, Exxon Mobile congratulated the safe
and successful performance of the ERHA FPSO project
The Guangdong LNG project has been awarded for achieving
1 million worked manhours LTI free.
LNG, Maritime Works and Floaters Business Unit
Frequency Rate
Severity Rate
8,00
0.07
7,00
0.06
0.06
2,00
0.03
6,00
0.05
5,00
2001
2002
2003
2004
0.04
2005
4,00
0.03
3,00
LTI Frequency Rate
Severity Rate
Total Recordable
Frequency Rate
0.02
2,00
0.01
1,00
Maintenance Modification Operation Business Unit

The safety performance for maintenance activities carried
out on gas extraction and production facilities from Italy,
France, and Angola had a slight variation in terms of LTI
Frequency Rate, which, measured against the values
registered in 2004, decreased by 13%. Even though the
Maintenance modification operations Business Unit
Frequency Rate
Severity Rate
30,00
0.45
0.4
25,00
0.35
20,00
0.3
15,00
0.25
0.2
10,00
0.15
5,00
0.1
0.05
2003
LTI Frequency Rate
50
2004
Severity Rate
2005
Total Recordable
Frequency Rate
2003
LTI Frequency Rate
2004
Severity Rate
2005
Total Recordable
Frequency Rate
Leased FPSO Business Unit

In September a new contract was awarded for an FPSO
unit which is developing the Golfinho field in Brazil. The
FPSO unit is obtained by converting the Margaux oil
tanker. This new project received the name of Cidad de
Vitoria and it is in Dubai Dry Docks for conversion works.
In June 2005, a serious accident took place on board FPSO
Firenze. An explosion of a boiler produced 7 casualties
which needed medical treatment in hospital due to
contact with hot vapors from the boiler. All seven
subcontractor personnel recovered well and returned to
work. The relative chart shows the increasing trend of
severity rate due high number of days lost by the injured
persons, while the LTI frequency rate trend variation was
not so significant. The LTI frequency rate increased by
28-08-2006
18:32
Pagina 51
only 4% compared to the 2004 figures due to the fact that

worked manhours and number of accidents had more or
less the same evolution compared to values for 2004,
evolution caused in the case of worked manhours by the
two new projects (+116%) and in the case of LTI caused
by the boiler explosion accident (+125%).
Leased FPSO Business Unit
Frequency Rate
Severity Rate
10,00
0.35
9,00
0.3
8,00
0.25
7,00
6,00
0.2
5,00
0.15
4,00
3,00
0.01
2,00
0.05
1,00
2003
LTI Frequency Rate
2004
Severity Rate
2005
Total Recordable
Frequency Rate
Integrated Projects
Following the contracts award in 2004, at the beginning
of 2005 Saipem started the development of Kashagan
projects placed in Kazakh waters of the Caspian Sea.
There are currently three important contracts.
The first offshore contract called Kashagan Trunk and
Flow Lines comprises engineering, procurement, coating,
lying and commissioning of pipes, fiber-optic and control
cables. The second contract, called Kashagan Piles and
Flares involves the construction, assembly, transport and
installation of 45 piles and two flares as well as the
installation of the 16 barge modules which will house the
facilities. The third contract concerns drilling to be
carried out in block D of the reservoir.
The base in Kuryk assures the logistic support for
operational activities mentioned above and also the
construction of offshore structures. After a difficult start,
the Kuryk Base implemented an efficient HSE
management system which yielded a result of 500.000
worked manhours without LTI. Being treated as a
separate entity among the other business units, the
performance of the projects included in this section can
not be assessed against values for the previous years. The
safety performance calculated in 2005 for Integrated
Projects was of 0,48 LTI frequency rate calculated at 6,196
million worked hours.
Safety Expenses
Until the last year, both safety and environmental expenses
were collected by the Corporate team trough a site-by-site
system, with the cooperation of
Erha Project received in 2005 an
the reference person involved in
award for outstanding safety
the accounting of the other data.
performance, reaching at 17
In some cases, there could had
millions worked hours LTI free.
been difficulties in the attribution
Exxon Mobile congratulated the
of some expenses to the right
safe and successful performance
Expense invoice, as some
of the ERHA FPSO project while
expenses had a double validity,
Guangdong LGN project has been
being not only made for HSEs
awarded for achieving 1 million
sake, but also for the operations
worked manhours LTI free
purposes themselves.
After a difficult start, the Kuryk
So, this may have resulted in
Base implemented an efficient
an underestimation of the
HSE management system which
expenditures. Moreover, there
concretize in reaching 500.000
was the necessity to come into
worked manhours without LTI.
line with the Group Accounting
System aimed to the yearly Financial Report and use a more
standardized and reliable system. Mainly for those reasons,
starting with 2005 it was taken the decision to get all these
information from SAP (the informatics accounting system
used world-wide at Saipem Group). In 2005 current expenses
for safety activities totaled 24,5 million euros and are
constituted mainly by Personal Protective Equipments (PPEs)
and Plants and Equipments for safety. Expenses were also
made for safety management, insurances, communication
and awareness and training.
Safety investments, that include all asset expenses made to
provide a site/rig/vessel with facilities capable of improving
operating safety conditions or existing plants or
Safety current expenses
28% Plants and Equipments

35% Personal Protective
Equipment (PPE)
21% Safety management
10% Safety insurances
1%
Communication and awareness
5%
Training
equipment, totaled 9,4 million euros in 2005.
51
28-08-2006
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Pagina 52
Environment
Commitment to environment
SAIPEMs commitment to environment is a key issue of our
way of doing business. Saipem operates in different
countries and ecosystems all around the word, using
equipment that, by their nature, can potentially affect the
environment in various ways. With this awareness our
Group strives to remain committed to the implementation
of sound environmental management and conservation
practices aimed at the realisation of the activities in an
environmentally responsible manner and the minimization
of potential associated impacts. SAIPEM seeks to achieve
high environmental performances with regard to energy
efficiency, air emissions control, water use and discharge
minimization, waste and proper spill management. Special
caution is exercised during the decommissioning phase of
a project: it is in fact Saipems priority to restore the
previous environmental conditions when the working
operations are completed. SAIPEM is committed to
pollution prevention and control, and Subcontractors are
required to follow the same policy. In order to protect the
environment, any potential associated impact is identified
52
at the beginning of the activity and constantly monitored

during the entire project operation. Excellence in
environmental management requires not only strong
leadership but also commitment and contribution from
both employees and sub-contractors at the operations site,
as well as in the offices during the project planning phases.
Saipem in fact believes that commitment, leadership and
the adoption of the best industry systems are obviously
critical to excellence in environmental performance, but
initiative and pro-active efforts are also required to learn
more about the environment, and to continue to improve
all operations. In fact, pollution, which is often associated
with inaccurate management of the potential impacts, can
affect the environment by contaminating air, land and
water. It can affect both people and ecosystems; on the
other hand, pollution is also often associated with a high
economic impact, increasing costs and reducing
competitiveness. This is why good environmental
performances must not be reduced to mere respect of
given legal requirements, but must be considered a market
28-08-2006
18:32
Pagina 53
demand for a profitable return for Company value.

SAIPEM is committed to providing its services in a pollution
preventive manner.
Pollution prevention can have many benefits for business,
including:
Reduced operating costs and increased efficiency
Reduced compliance cost and reduced exposure to
future liability costs
Reduced risks leading to improved insurance and
creditworthiness
Increased environmental protection and resource
conservation
Improved workplace environment and improved worker
safety
Enhanced public image
Greater competitiveness
SAIPEM already has in use specific procedures for the
prevention of and minimization of the environmental
impacts both for onshore and offshore projects aimed at
introducing prevention initiative during the realisation of
new projects and the upgrade of the existing ones. The
most important initiatives include eliminating identified
causes of chronic pollution, upgrading equipment that
could potentially cause pollution on sites and examining
what technological solutions could be taken to prevent the
negative impacts in future installations. Moreover, all the
projects have specific emergency plans to be implemented
in case of environmental accidents.
Waste Management
A Waste Management Strategy is being implemented to
ensure that waste disposal standards follow best practice. A
certain amount of ultimate waste cannot be avoided, but
appropriate systems can be implemented to reduce their
generation and manage them in a way that minimizes any
adverse impact to the environment. The waste
management plan identifies all wastes that can potentially
damage human health and/or environment, and for which
special controls are required for safe handling and disposal.
SAIPEM strives to reduce or eliminate waste from its
operations onshore and offshore by applying a policy that is
based on the commitment to reducing, reusing and
recycling/recovering materials in an economic and
environmentally responsible manner, complying with local
authority regulations. SAIPEM tends to employ the best
environmental option in waste management and recycling
strategies in all its facilities. The minimization of the volume
or relative toxicity of liquid or solid wastes is applied to the
extent practicable. Moreover, best practice procedures are
applied also for the segregation, collection and
transportation of the waste. Waste generated is clearly
labeled and identified when stored and transported. As a
general rule, different waste types are not mixed during
storage except when their methods of disposal are similar,

and special caution is used for hazardous wastes, keeping
the incompatible materials segregated from each other.
Storage areas for waste both offshore and onshore are
being designed to retain spills and leakages, avoiding the
contamination of land and groundwater resources. Wastes
stored onshore & offshore are secured to prevent theft
prior to disposal/destruction. Spill clean up material and
suitable PPE are available at each storage area for chemicals,
oils or discharged fluids.
Conserving water
Within the realization of the Projects, Saipem creates
relevant Water Management plans dealing with both water
consumption and discharge: these plans refer to the
complete water cycle, (including: treatment and storage of
service water, ground water, surface water, desalinized
water or non-desalinized water) and tend to pursue the
protection and conservation of surface, ground and sea
water resources, avoiding any form of adverse effects or
pollution. Moreover, SAIPEM is strongly committed to
monitoring and managing the use of sea water, either as
ballast for ships or engine cooling systems or general
services on board its vessels, as well as the water discharges
into the sea, in accordance with MARPOL and other
international marine legislation.
Air quality
As mentioned above, among the environmental initiatives
of 2005, and as better detailed in the Methodology,
SAIPEM has made a thorough study regarding the
estimation of the air emissions based on fuel
consumption data. The scope of this analysis has been to
compare the emission factors in use in SAIPEM, with the
emission parameters used by different International
Standards. The ultimate goal has been to identify reliable
and accurate emission coefficients to be used for all
SAIPEMs future emission estimations, and to widen the
range of the estimated pollutants.
Not only CO, CO 2, NO x and SO 2 are estimated, but also
CH 4, non-methan organic volatile compounds and
particulate matter. Also, a program of air emission
reduction has been initiated on Saipem fleet vessels
following the reception of the new Marpol regulation on
air pollution prevention which entered into force in 2005.
Spills
Concerning oil and chemical spills, it is SAIPEMs first
priority to prevent this kind of event. SAIPEMs activity, by
its very nature, might generate leakages or spills into the
environment, but the implementation of risk assessment
programs and the implementation of preventive
measures allow these types of incidents to be minimized.
53
28-08-2006
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Pagina 54
SAIPEMs strategy to address spills is based on three main

principles:
Prevention assure the integrity of equipment used to
transport oil and chemicals as well as collection/storage
tankers and production facilities;
Preparedness ensuring that Emergency Plans are in place
and ready to be implemented in case of accidents;
Performance improvement on the basis of the spill events
that may have occurred, lessons are learned and
improvements are put in place to aim at reducing the
number of spills.
Maintaining biodiversity
For the conservation of biodiversity SAIPEM seeks to
enhance collaboration among clients, contractors and
local/regional authorities in providing its services without
affecting different species of flora and fauna, especially for
those areas where critical habitats are present. Some
examples are Sakhalin II Onshore pipeline Project, where
we implemented mitigation strategies, protection
measures and continuous monitoring programs to reduce
the possibility that project activities may cause harm to
the the fishing resources in the hundreds of rivers crossed
by the pipeline, the Sakhalin Offshore pipeline Project,
where protection programs are implemented for ensuring
protection and minimizing disturbance to the critically
endangered western gray whale, and Dolphin Offshore
pipeline Project, where specific protection plans have
been put into practice for the protection of two
endangered species: the green turtle and the dugong.
ASBESTOS: TRAINING EFFECTIVENESS
During 2005, the QHSE top management has decided

to standardize the asbestos management onboard all
Saipem fleet vessels, giving to each operating
company and every single vessel a common tool of
acting through the emission of specific directive and
minimum requirements. The implementation of
these instructions is ensured by duly individuated
roles, each one with specific responsibilities. Vessels
owner issued an asbestos management plan,
containing detailed indication of the operation to be
followed for an optimal management of the matter.
The contents of this document have been determined
54
Environmental Performance Data

On the pages that follow, we provide a quantitative
overview of our environmental performace. Data for 2005
follows the calendar year, from January to December. The
data covers all production sites. For a better understanding,
we provide also a short analysis of the relative indicators,
i.e. those parameters obtained by the ratio between the
absolute values of the physical parameters studied thus far
(energy consumption, water consumption, water
discharges, waste production) and the production of the
respective activities. In particular, apart from the performed
activities described at the begenning of the Report, we have
considered 21.550.864 BBLS for the FPSOs, 148.797 m3 of
concrete for the LNG, 130.346 m3 of concrete produced in
Maritime Works, 31.800 ton of Fabrication and 492.194
working days for MMO. It has to be noted that a business
unit can perform different activities: for example offshore
construction B.U. main activities are both pipe laying and
installation. In this case the relative indicators are
calculated per each main activity (i.e. two relative
indicators per one single B.U.). The relative indicators
permit us to interpret the collected data, to make
comparative analyses through the years and to evaluate the
improvement from the environmental point of view. For
each type of performed activity, i.e. drilling, pipeline laying
and structure installation, as the environment and the
operating conditions are different, onshore activities are
considered distinct from offshore activities. Therefore
the factors that may modify the environmental
taking into account the requirements of various

legislation and on the basis of the best available
technology. The main requirements are:
ACM mapping
Periodic inspections
Maintenance/removal planning
Periodic air monitoring
Onboard training
The implementation of the asbestos management plan
strictly depends on the effectiveness of training activity,
which is articulated in three modules, addressed to
different onboard personnel. The aim of each training
section is reported in the table below. Sometimes it is not
easy to deal with asbestos, especially whit people who
28-08-2006
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Pagina 55
performance vary considerably from one type of operation to

another. It has also to be considered that during 2005 some
projects ended (Green stream- offshore construction; Tanque
de GNL FB-231 LNG facilities; Hazira Port and LNG terminal
project - LNG facilities; ROD integrated development project
onshore construction; OZ 2 -onshore construction;) while
other started from new (Kashagan integrated projects;
Berroughia onshore construction; GTS 2 and 4 slug catchers
erection onshore construction; FOS cavou LNG facilities;
Rifacimento diga Foranea Gela Maritime works). Moreover
other project started in 2004 reached only in 2005 their full
production capacity. For this reason a fluctuation of the
environmental data compared to the ones of the previous
year has to be considered natural.
both onshore and offshore sites. These equipments in fact

use the energy produced by electric power generators
instead of the one withdrawn from the public network or
supplied by others.
Energy consumption 2001-2005
400.000
toe
350.000
300.000
250.000
200.000
150.000
100.000
Energy consumption
Energy accounting is helpful to understand in a synthetic way
the overall impact of the production activities on the use of
natural resources. In order to make possible a comparison
among data derived from different type of energy (i.e. diesel,
gasoline, methane, electric power and LSC/HSC oil) and have
a global indication of the total energy consumption, all the
data are reported in toe, using appropriate conversion factors.
In 2005, in a year when overall production increased, the total
primary energy consumption was approximately 326.834 toe,
against 311.243 toe consumed in 2004. Saipem believes that
is a good practice to disclose the use of energy. This help to
better understand the performances. The next graph
indicates that the highest quota was used to produce
electrical energy to power the equipments (44%) needed in
50.000
have to live in its direct contact. Asbestos is in fact a

delicate topic and for this reason has to be managed with
particular care. The experience reached during this year of
intensive training completely confirms an old belief: the
unknown lead to fear rise, while consciousness inspire
tranquillity. We have noticed that after the training
section, the initial understandable mistrust always left

the place to a general sense of comprehension and
satisfaction.
Our work is not concluded but goes on, taking into
account all the precious suggestion given from our onsite personnel.
Training section
ACM management training
ACM team training
ACM awareness training
2001
2002
2003
2004
2005
Structure of energy consumption for type of use - 2005
38% Internal combustion

Engine
9%
Other
9%
Boiler
44% Electric power Generator
Addressed personnel
Target
Vessel management
Correct implementation
of the asbestos management plan
Proper behaviour during unplanned
onboard activities involving asbestos
Proper behaviour during
onboard routine activities involving asbestos
Specific onboard personnel

Onboard personnel
55
28-08-2006
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Pagina 56
Similar to the previous years, due to the type and power of

the equipment used, the major energy consumers among
Saipem Business Units remained Drilling units and sites (32%)
and Offshore Construction activities (33%).
Analyzing the energy consumption per each type of energy,
the largest consumption is Diesel (72%), used in all the
Business Unit activities, while the use of natural gas (5%) and
electric energy (6%) refers to the use in offices and logistic
bases. Regarding the use of fuel oils, the major part of Saipem
vessel engines are fed with LSC fuel oil (sulphur content
lower than 1%), while the remaining part are propelled with
HSC fuel oil (sulphur content higher than 1%).
Atmospheric emissions
Saipem Group is committed to continuously reducing its
impact on the environment. With this end in view, a series
of measures has been taken to improve air quality in our
operational areas. As already mentioned, SAIPEM has made
a systematic study regarding the estimation of the air
emissions based on new emission factors depending on the
Structure of energy consumption per business unit - 2005
3%
Energy Sources - 2005
Maintenance, Modification
and Operation
33% Offshore Constructions
72% Diesel
17% Onshore Constructions
4%
Gasoline
32% Drilling
6%
Electric Energy
5%
Leased FPSO
5%
Natural Gas
3%
LNG, Floaters and Maritime works
4%
Fuel Oil HSC
7%
Logistic bases/Offices
9%
Fuel Oil LSC
Energy consumption
Activities
Offshore pipelines (Sealines)
Offshore Installation
Onshore pipelines
Plant construction
Offshore Drilling
Onshore Drilling
Leased FPSO
LNG Facilities
Maritime Works
Fabrication
Maintenance, Modification and Operation
2004
2005
Toe/km
Toe/ton
Toe/km
Toe/ton
Toe/m
Toe/m
Ton/BBLS (Oil)
Toe/m3
Toe/m3
Toe/ton
Toe/working days
13,5329
0,2424
39,8967
1,0691
0,4415
0,1069
0,0194
1,0832
0,0249
0,0994
0,0103
30,1566
0,4554
39,6425
1,1234
0,5089
0,1198
0,0011
0,0173
0,0539
0,1931
0,0213
2004
2005
ton/Km
ton/ton
ton/km
ton/ton
ton/m
ton/m
toe/BBLS (Oil)
ton/m3
ton/m3
ton/ton
ton/working days
11,1633
0,0503
35,1649
0,9376
0,4243
0,0986
0,0006
0,8724
0,0244
0,0588
0,004
19,9893
0,2279
27,4431
0,8105
0,3884
0,0977
0,0000
0,0110
0,0332
0,0607
0,0183
Diesel consumption
Activities
Onshore pipelines
Plant construction
Offshore Drilling
Onshore Drilling
Leased FPSO
LNG Facilities
Maritime Works
Fabrication
56
28-08-2006
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Pagina 57
type of pollutant, fuel and source considered. As form 2005,

not only CO, CO2, NOx and SO2 are estimated, but also CH4,
non-methane volatile organic compounds (NMVOC) and
particulate matter (PM). Climate change is one of the most
critical issues of Sustainable Development: there is growing
evidence that this change leads to negative impact on the
environment, inhibiting the radiation of solar heat into
space, causing the warming of the earths atmosphere and
the melting of ice. Due to its nature as an engineering and
constructions company, Saipem is not subjected to the
Emission Trading Scheme set by the Kyoto Protocol. Despite
this, our core values and environmental commitment urge
us to consider our impact on greenhouse gas (GHG)
emissions. The accounts for the CO2 and CH4 emissions,
which constitute the most significant GHG for the Oil & Gas
sector, are expressed in terms of CO2 equivalent
considering that the global warming potential of methane
with respect to CO2 is 21). On a world scale, in 2005, the
CO2eq emission factor per toe used was 3,1 tonnes
CO2eq/toe, in line with the one of 2004.
Another type of pollutant, specific to Saipem operations, is
SO2. This type of emission depends on sulphur content of fuel
used for combustion. It is our policy to enforce as much as
possible the substitution of the High Sulphur Content oil in
favour of Low Sulphur Content oil, thus preventing the cause
of pollution at its root. The sulphur content of another type of
fuel (i.e. gasoline and methane) is negligible and, for this
SO 2 emissions
Ton/year
Ton/year
3,6
1.000.000
3,4
10
2.500
600.000
2,8
400.000
2,6
2,4
200.000
2,2
GHG [ton CO2eq/year]
2.000
1.500
1.000
500
2001
2002
2003
SO2 [ton/year]
2004
2005
KgSO2 /Toe
NOx emissions
Ton/year
Kg/Toe
16.000
49
14.000
47
12.000
45
10.000
43
8.000
6.000
41
4.000
39
2004
2005
37
2001
2002
2003
NO x [ton/year]
3,2
800.000
2003
12
3.000
Ton/Toe
1.200.000
2002
14
3.500
2.000
Greenhouse Gas (GHG) emissions
2001
Kg/Toe
4.000
2004
2005
KgNO x / Toe
other three basic pollutants (NMVOC, CH4 and PM). The total
amount of these pollutants is shown in the following graph. It
has to be noted that the reported value of PM is lower than
the real one because it refers only to boilers and stationary
diesel stationary engines. In the coming years we will try to
provide a more accurate estimation of PM emissions, by
taking into account all possible sources of pollution.
ton CO 2eq /Toe
New monitored pollutans -2005
reason, no specific measures can reasonably be adopted. As a

result of our policy application, we obtained a downward
trend of sulphur dioxide emissions (-8% respect 2004).
Regarding other pollutant emissions, a minor raise in emitted
NOx was recorded. This fact is mainly due to an increased use
of gasoline and diesel fuels. The 2005 relative indicator (kg
NOx/ toe) is almost the same as the one for the previous year,
thus showing that we have maintained the same efficiency of
2004 despite increased energy consumption. As already
explained, in 2005 we introduced the emission calculation of
1.200
ton/year
1.000
800
600
400
200
NMVOC
CH4
PM
57
28-08-2006
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Pagina 58
The contribution of each Business Unit to the total amount of

emissions can be seen in the following chart. The most
relevant part is due to Drilling and Offshore Construction
business units which, taken together, amount to more than
65% of the total.
2004 we can observe a roles changing: Drilling (66%) and

Offshore Constructions (29%).
Regard to the exploiting of different sources of water,
non-desalinated sea water, mainly used for ship ballast
and engine cooling system, represents the 89% of the
whole consumption.
Atmospheric emissions per B.U.
Waste production
Saipem commitment to reduce its impact on the
environment is also applied to waste managment.
35% Drilling
4%
EPIC Onshore
5%
Leased FPSO
3%
LNG, Floaters
and Maritime works
5%
3%
and Operation
Water cosumption per type of use

Water consumption
The minimisation of water consumption and of the
impact on water resources is one of our major concerns.
Due to the nature of its activities, Saipem needs to use
water for different purpose. Efficiently managing the
water consumption Saipem succeeded during 2005 to
continue the downward trend of the past year as the
graph shows.
At Group level, we have been able to sustain this
1%
Roads watering
1%
Concrete production
64% Engine cooling System

28% General Service
6%
Other
Water consumption per Business Unit
Water consumption
3%
1.000 m3 /year
60.000
50.000
3%
LNG, Floaters
and Maritime works
2%
40.000
30.000
31% Drilling
20.000
10.000
2001
2002
2003
2004
2005
Structure of Water Consumption
downward trends and record a 20% fall compared to the

prior year. In 2005, Saipem used 25.448.400 m3 of water,
mostly for engine cooling (64%). Saipem pursues its
commitment to search for new ways to reduce, clean and
re-use water, especially in water stress areas as the
company understands the key role that water resources
play in reducing poverty and sustaining health. During
2005 the major water consumers among Saipem
Business Units are Offshore Constructions (61%),
followed by Drilling (31%). If we look back in the year
58
1%
Surface Water
2%
Desalinated Water
89% Non Desalinated Water

5%
Service Water
3%
Ground Water
28-08-2006
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Pagina 59
Water Consumption
Activities
Onshore pipelines
Plant construction
Offshore Drilling
Onshore Drilling
Leased FPSO
LNG Facilities
Maritime Works
Fabrication
m3 /Km
m3/ton
m3/Km
m3/ton
m3/m
m3/m
m3/BBLS (Oil)
m3/m3
m3/m3
m3/ton
m3/working days
2004
2005(^)
2005(*)
55,19551
0,6374
147,3916
9,5860
1,5959
0,5831
0,0280
8,2963
0,5768
1,8141
0,0392
143,2402
10,9621
332,3977
20,6524
4,0365
0,4477
0,0016
3,7890
1,1470
3,9777
0,0145
4.605,6025
44,3452
552,9185
20,6524
67,4652
0,4479
0,0016
3,7890
1,1546
3,9777
0,0145
(^) referred only to fresh water

(*) referred to all water consumption (except for ship ballast)
Saipem achieved the target of waste reduction: in 2005,

in fact the produced waste was with 7% less than in the
previous year . The disposal method of the waste differs
from one project to another, according to the availability
of the local disposal facilities and from waste types. Most
of the produced waste was recycled (25%) or disposed in
landfills (54%), as per the graph below. Because of the

nature of its activity, onshore construction, offshore
construction and drilling B.U. are responsible for almost
all Saipem Group waste production (respectively 21%,
28% and 21% of the total amount). Regarding the types
of waste produced, hazardous and non hazardous waste,
Produced waste per Business Unit

Produced waste
60.000
ton/year
21% Drilling
50.000
1%
40.000
Leased FPSO
14% LNG, Floaters

and Maritime works
30.000
13% Logistic bases/Offices
20.000
2%
10.000
and Operation

2001
2002
Disposal of Produced Waste
9%
Deposited in Saipem Plants
3%
Deposited in External Plants
4%
Incinerated
in Saipem Plants
5%
Incinerated
in External Plants
1%
Recycled in Saipem Plants
2003
2004
2005
Waste type
24% Recycled in External Plants

6%
Disposed in Saipem Landfills
48% Disposed in External Landfills
67% Not Hazardous Waste

33% Hazardous Waste
59
28-08-2006
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Pagina 60
this is shown in the chart below: 67% was non-hazardous

and 33% hazardous waste. The improvement in waste
management for 2005 in comparison with previous years
is the large amount of recycled waste.
This option in waste disposal still depends on the

availability of recycling technologies in the work areas
where the operations take place.
Moreover, it is Saipem commitment to educate the worker
Waste production
Activities
Onshore pipelines
Plant construction
Offshore Drilling
Onshore Drilling
Leased FPSO
LNG Facilities
Maritime Works
Fabrication
ton/Km
ton/ton
2004
1,1856
0,0491
2005
4,2314
0,0462
ton/Km
ton/ton
ton/m
ton/m
ton/BBLS (Oil)
ton/m3
ton/m3
ton/ton
ton/working days
3,3157
0,7436
0,0533
0,0048
0,0002
0,1061
0,0039
0,0396
0,0036
5,8404
0,4619
0,0701
0,0056
0,0000
0,0290
0,0055
0,1136
0,0026
and raise environmental awareness about selective waste

collection.
Environmental Expenses
As already mentioned about safety expenses, if in the past
years the information regarding the environmental expenses
were gathered directly from sites together with all other
Current expenses
1,9%
Air Pollution Prevention
16,2% Water discharge

management
14,5% Waste management
1,6%
Soil, subsoil and

groundwater protection,
polluted sites remediation
0,4%
Noise and vibration

(external) treatment
& control measures
Environmental expenses
48,7% Environmental Management

0,4%
Environmental Communication and Awareness
16,2% Other environmental activities
24% Investments
76% Current Expenses
environmental indicators, starting with 2005 it was taken the

decision to get all these information from SAP (the
informatics accounting system used world-wide at Saipem
Group), in order to provide more accurate and reliable
figures. Saipem environmental expenses in 2005 totaled 12,5
million euros, equivalents to 27% of the companys
expenditure for safety and environment (total S&E expenses
amounted to euros 46,4 million in 2005). The relative figure
shows how the environmental expenditures are distributed
between Current Expenses and Investments. Major current
expenses are due to environmental management (48,7%) that includes labor cost for all personnel in charge of
environmental protection, auditing activities, third-part
environmental analysis - water discharge management
(16,2%) and waste management (14,5%).
60
Investments in environment-related improvements totaled

2,95 million euros in 2005, 98% of these related to Noise and
vibration treatment & control measures. The other
investments were in Air pollution prevention (17 thousand
euros), Soil, subsoil and groundwater protection, polluted
sites remediation (17 thousand euros), Waste management
(6 thousand euros) and Other environmental activities (8
thousand euros).
28-08-2006
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Main focus on
Dolphin project: respect for the sea

Project description
The Dolphin Project is a gas development being undertaken
by Dolphin Energy Limited (DEL) of Abu Dhabi, UAE. The
project consists of a strategic energy initiative designed to
produce, process, transport and supply substantial
quantities of natural gas from offshore Qatar to United Arab
Emirates (UAE). The exploitation area is located in the
Arabian Gulf, north east of Ras Laffan. Gas will be extracted
from Qatars North Field in order to deliver export sales
gas to the UAE. The reservoir fluid will be produced from
two offshore wellhead platforms located approximately at
70 and 85 Km from Ras Laffan. The well fluids will be
transported to shore by two multiphase sealines. The
onshore production plant at Ras Laffan will process all
reservoir fluids and will export sales quality gas to Taweelah,
in the UAE, through the 48 export pipeline which is
approximately 361 km in length. Saipems scope of work in
the context of the Dolphin Project is as follows:
Detailed Design and Construction of two 36 submarine
gas pipelines for the transportation of wellhead fluids to
the shore of Ras Laffan Industrial City (Qatar);

Detailed Design and Construction of a 48 submarine
export gas pipeline and receiving facilities in UAE;
Detailed Design and Construction of the onshore sections
of the pipelines (2 x 36 and one 48) from the shore
approach to Ras Laffan Industrial City (Qatar);
Detailed Design and Construction of the onshore section
of the export pipeline from the shore approach in Taweelah
to the receiving facilities in the UAE.
RLIC is being developed based on a strategic plan for natural
gas utilization in Qatar, which was drawn up in 1990, to
accommodate a large number of gas-based industries
including gas liquefaction, processing and export,
petrochemicals and refining of condensate. Due to Qatars
vast resources of natural gas, Qatars long term development
potential is quite significant. Within this strategy, the Dolphin
Project took place. The gas will be used to satisfy the energy
requirements of new power & desalination and industrial
development projects throughout the UAE and at a later date
in Oman. If the Dolphin Project, including the Taweelah gas
61
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Pagina 62
pipeline and receiving station, were not to be developed, a

less economic (and potentially environmentally) feasible
alternative would need to be established to provide a suitable
fuel source for industrial development and to supply the
increasing energy demands being placed on the regional gas
network. The project will result in financial benefits to the
UAE as a whole by providing clean gas for industrial
development throughout the UAE and potentially Oman.
Specific social benefits will also arise as result of the project,
such as increased employment opportunities and
infrastructure upgrades.
Projects environmental concerns and biodiversity
Having as a reference various Environmental Impact
Assessments and Environmental Baseline Reports, Saipem
has developed several Environmental Plans and Procedures
describing the interactions between the activities and
environment, evaluating the mutual impacts between
these, and providing mitigative measures to reduce any
potential adverse impacts within acceptable limits.
Whenever feasible the principles of Best Available
Technologies Not Entailing Excessive Cost (BATNEEC) and
Best Practical Environmental Options (BPEO) have been
applied. Once these interactions were assessed, the process
led to the identification Environmental expences (Valued
Environmental Components, VEC) with the potential to be
affected by planned or unplanned project activities. The
VECs that have been identified and evaluated in detail are
summarized below:
Coral reef ecosystems, known to exist in the shallow waters
nearshore Ras Laffan and Taweelah. The pipelines intersect
the reef area. Therefore, the coral reef could have, as a
result, been damaged at the location of the pipeline
crossing and potentially be indirectly impacted to a lesser
extent due to turbidity in water during construction works.
The corals at Ras Laffan were identified as mostly dead,
especially the corals in shallow waters (up to 5m water
depth). Additional environmental survey has been carried
out by Saipem within a corridor of 2 km width which
highlighted the poor condition of the coral reef (mostly
dead). Corals might be considered as the most significant
bio-indicators of the area. Their presence and extension in
fact have been negatively influenced by variation of
temperature, turbidity which does not allow light to get
across the sea and mechanical means, such dredgers and
dropped anchors. At the beginning of the project, coral
rehabilitation was part of Saipems scope of work that
foresaw the installation of 550 of artificial reefs nearshore
Ras Laffan. However, according to feedback received from
Ras Raffan Industrial City the fabrication of artificial reefs
was not giving results due to problems arising from the
shape definition and the pH of the material. This requirement
62
has been anyway deleted from Saipems package.

Mangrove, thriving in a sloping intertidal zone in Ras Laffan
a few kilometres from the shore approach. The main threats
to mangroves are represented by:
- Debris accumulation
- Accumulation of litter, especially non-biodegradable
material, such as plastic trash
- Marine pollution, due to untreated sewage, cargo vessel
tank washing, oily bilge water
No interactions with Mangrove have been identified during
the construction activities.
Marine mammals and Reptiles, listed as an endangered
species that might be potentially affected by human
presence during the construction works:
- Dugongs and Dolphins, which might potentially loose
the habitat due to the pipeline crossing their main feeding
grounds, the seagrass areas.
- Marine Turtles Species, which have their prime distribution
area in the UAE coastal zones south of Abu Dhabi, but
which are known to be nesting on the beaches at the
projected pipeline landings (from April to the hatching
period in August)
Marine Mammals and Reptiles Observers have been

located onboard the key vessels (dredgers and lay
barges), while a Biologist was appointed to monitor the
beach at Ras Laffan Industrial City during the turtle
nesting and hatching period, as per the Supreme Council
for the Environment of Natural Reserves (SCENR)
Clearance. In RLIC, Saipem monitored 1.250 m of
coastline. The monitored area included the Right of Way
(ROW), about 450 m north-west to the ROW and about
650 m south-east to the ROW. Moreover, after the
observation of the last hatchling emergence, in daytime
a broader area was monitored (up to 1.5 km from the
ROW, see next figure), to record the hatch success of
nests that were not in close proximity to the ROW.
28-08-2006
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Surveys: From 20 May to 23 June, daily inspections were

performed within 650 m from the ROW, prior to the start of
works. The position of nests and turtle tracks was recorded
using a GPS and loaded in a GIS. If a nest was detected within
the 75 m of ROW, the RLC Relocation Protocol (which Saipem
worked on jointly with the Authority) was applied and any
eggs found were moved to the Relocation Area designated by
the RLC authorities. All nests within 150 m from the ROW
were fenced with high visibility tape, to prevent trampling and
access to the nest by unauthorized people.
Approx. coastline
Area within 650m from ROW,
causeways, which was daily
monitored
Nesting activity: Between 20 May and 23 June, 12 nest

attempts were recorded. Moreover, 22 turtle tracks without
evidence of nesting were observed on the beach, within
650 m from the ROW. Ten further nest attempts were
observed prior to 20 May, therefore 22 nesting attempts
have been recorded within 650 m from the ROW during
the nesting season of 2005. All turtle tracks observed have
been identified as the tracks of hawksbill turtle
Eretmochelys imbricata.
Regarding to mitigation measures performed, in two cases a
nest attempt was observed within the 75 m of ROW; in both
cases, the RLC relocation protocol was applied. On 7 May, only
four eggs were observed within the egg chamber of the nest;
they were moved to the designated Relocation Area. A further
nest attempt was observed within the ROW. The potential
nest was excavated; however, neither eggs or egg chamber
were present in this nest. It is believed that the turtle was
disturbed during the nest excavation, and returned to the sea
without laying eggs. It is extremely unlikely that the turtle has
been disturbed by the works activity, since nesting occurs in
night time, and no works were ongoing in night time until the
end of nesting season. The abundance of foxes in the RLC area
is probably the main source of disturbance for nesting turtles.
Following the above protocol, nine nest attempts within 150
m from the ROW were fenced with high visibility tape, to
prevent trampling and access to the nest by unauthorized
people. The presence of fencing helped the identification of
nest positions after the end of the nesting season. During the
hatching period (from beginning of July), the shoreline 650 m
NW and SE from the ROW was patrolled 4-5 times per night,
to record the emergence of hatchlings and to discourage the
predation by foxes. The shoreline was usually monitored
before sunset, 2-3 times in the darkness and after dawn.
Moreover, after the observation of the last hatchling
emergence, during the first two weeks of August, a broader
area was monitored in daytime (up to 1.5 km from the ROW),
to record the hatch success of nests that were not in close
proximity to the ROW.
The aims of patrolling were:
- Detecting the emergence of hatchlings, to avoid that
they approach to the works area, with the subsequent
risk of injuries
- Reducing the risk of predation by foxes
- Evaluate the clutch size and the hatch success of hawksbills
in the area
The position of hatched and of predated nests was
recorded using a GPS. Nests predated or partially predated
by foxes were excavated to evaluate the possible presence
of further eggs; if eggs were still present within the nests,
the nest was refilled. If possible, straight line carapace
length, plastron length, carapace height and carapace width
were measured using a calliper; hatchlings were weighed
using an electronic balance.
The following mitigation measures have been taken:
- Reduction of light intensity
- Strict monitoring of nests expected to hatch
- Induction of construction personnel and personnel on
board vessel
- Protection of nests from predation by foxe
Next attempt within the ROW:

relocation protocol appliied
Within 650 m from the ROW, hatchling emergence was

observed between 2 July and 20 July. Emergence was
observed from six nests: three nests were completely
successful, three nests were partially predated by foxes and
protected using plastic net / timber; one nest was
completely destroyed by foxes. Foxes were frequently
63
28-08-2006
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Pagina 64
observed in proximity of nests; in several cases, foxes have

been observed trying to excavate nests.
During the hatchling period, only a single hatchling has
been observed in proximity of the ROW. However, at least
500 turtle hatchlings emerged from the nests within 1,5
km from the ROW, and 150 of them emerged within 600 m
from the ROW. This observation suggests that the
mitigation measure adopted to avoid the interactions
between works and hatchlings (such as reduction of light
emission and strict monitoring of nests in proximity of the
ROW), have been successful. Moreover, the lower mortality
and the lower predation rate in the nests close to the ROW
suggest that the continuous monitoring has been
successful to increase the hatch rate of hawksbill turtles in
this area. The third significant VEC identified was the
Seawater Quality, which might be potentially impacted by
hydrotesting and commissioning of the pipelines. The base
case foreseen to discharge the water, used for the
hydrotesting, of the 48 export pipeline and the 2x36
Sealines offshore Qatar, close to the two Platforms.
Currently Saipem is assessing whether it is feasible to
discharge the 48 Export Pipeline offshore Taweelah (UAE)
where however there are restrictions due to Environmental
Permits issued by the Environmental Agency Abu Dhabi
(EAAD), which requires that hydrotesting water shall be
discharge at a water depth of 15mt, more than 10 km from
the coast. The Taweelah site in fact is close to an existing
power and desalinisation plant and the chemicals used for
the pre-commissioning might create problems to the
intake channels of the Plant. This is still an ongoing issue,
Saipem is currently assessing whether it is possible to
discharge inside the outlet channel of the adjacent Shared
Facilities Company (SFCO).
The turbidity is the greatest issue as far as the dredging and
backfilling activities are concerned. The Saipem landfall
location in fact is between Intake and Outfall channels of
the Taweelah Power and Desalination complex (TPDC).
Dredging & backfilling activities cause turbidity due to
suspended matter, which in turn potentially blocks the filter
at Intake channels. Addressing this concern, Saipem has
performed an extensive Study and Modelling with the
objective of assessing the environmental impact of
dredging works on the Cooling water intake of TPDC as well
as meeting the stringent norm, i.e not to exceed the 10%
above natural turbidity set by Environmental Agency Abu
Dhabi (EAAD).
As a result of this, the following mitigating measures have
been applied:
- Material dredged by backhoe dredger disposed away
from Cooling water Intake by Split barges instead of by
the side of the trench thereby avoiding plume from disposal.
- Spreading pontoon deployed with submerged diffuser
for disposal of material dredged by Cutter Suction Dredger
64
(CSD). This reduced the amount of suspended matter and

sedimentation length.
- Silt screens are kept ready for use on the beach as a
contingency measure based on turbidity which is daily
monitored by water sampling as well as Turbidity Sensors
at two locations of Intake channel.
Project Safety Concerns
The Dolphin pipeline will cross a sea section with extensive
existing infrastructure, including existing and future
planned oil/gas development fields, oil pipelines, gas
pipelines, cables, shipping routes and water intake for
desalination and power generation. Any mutual interaction
between the Dolphin pipeline and other infrastructure may
result in adverse effects on the environment.
Mitigating measures taken to reduce environmental risk
include:
- Route selection so as to reduce interference to the minimum
feasible;
- Safe design of crossing constructions to ensure avoiding
any direct contact between pipes;
- Heavy coating of the Dolphin pipe, to reduce damage
potential;
- Coverage with concrete mattress in heavy traffic zones;
- Emergency preparedness and response planning, in
close consultation with third parties;
- Trenching and backfilling in shallow waters and at Das
Island Shipping Channel.
Another great issue of the project, for any vessel working
close to the two Platforms (Field) in Qatari Waters, is the
H2S. The following actions have to be taken:
- All personnel shall be trained in the use of BA equipment
and on the risk associated with the H2S,
- Any vessel coming within the Field shall be equipped
with portable breathing apparatus (BA) sets and gas
detectors (H2S presence, lack of oxygen) and alarms,
- Moored non self-propelled vessels shall be equipped with
an air breathing cascade system which has to provide
extended life support beyond the duration offered by
the BA sets.
As a result of this, Saipem is interfacing with the platforms
Operators in order to acquire information such as
emergency response plan and safe area (500 meter). Aside
from H2S risks, SIMOPS Risk Assessment studies have been
performed to reduce risk ALARP, while Saipem Lay Barge
will lay, abandon and tie-in both the 36 Sealines within the
Platforms 500 meter zone.
28-08-2006
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Kizomba B project: Saibos in angolan

deep water
Project description
Kizomba B project includes development of the Kissanje
and Dikanza reservoirs located in water depths ranging
from 965 m to 1.153 m. The activities were managed in the
Block 15 offshore Angola, that is approximately 370 km
Northwest of Luanda and 145 km west of Soyo.
The Kizomba B field development includes a surface
wellhead platform (SWHP) connected to a floating
production, storage and offloading (FPSO) vessel. Saibos,
the company of Saipem group involved in the Kizomba B
had the following scope of work :
SWHP Tieback System Flexible pipe dynamic risers

and power/signal umbilical extending between SWHP
and FPSO,
SUBSEA Tieback System Subsea flowlines and risers
extending between the subsea well centers and the FPSO,

Oil Offloading System CALM (Catenary Anchor Leg
Moored) Buoy and export oil offloading lines extending
from the FPSO. The project was closed in July 2005.
Safety
Saibos HSE Policy, Objectives and Strategy for the Project
execution ensured the commitment, organization,
systems and resources necessary to implement the
requirements and advance all project activities towards
the goals envisioned. A similar approach was adopted for
all major Suppliers where they were required to operate
under a formalized Safety Plan with an active
implementation through an associated Safety
Management System. With respect to other Suppliers a
Project Safety Plan alone was required. A pro-active
approach was performed to assist the Suppliers and lead
them towards improvement. This issue was addressed as
follows:
The Safety Goals for the project were stated in the Project
Safety Management System (PSMS) Template and its
content with respect to communication of safety
expectations, management commitment and leadership,
safety system resources, selection of Subcontractors, etc.
Each project entity was encouraged and controlled to
translate these HSE Goals, through their Site Specific
Safety Plan and Safety Management System into progress
towards achieving the Safety performance required for
the Project.
Project Cumulative to the end date (July 2005)
SB Project Offices
Sonamet (Angola)
Petromar (Angola)
Offshore (spread)
Total
Hrs.
421.390.00
736.147.00
782.425.00
883.484.00
2.823.446.00
LTI
0,00
0,00
3,00
0,00
3,00
RI
0,00
5,00
12,00
6,00
23,00
LTIR
0,00
0,00
0,77
0,00
0,21
TRIR
0,00
1,36
3,07
1,36
1,63
65
28-08-2006
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Pagina 66
Environment
Saibos submitted to the client an Environmental Impact
Assessment (EIA) Input document identifying all discharges
and emissions associated with its part of the field
development. The actual discharges in terms of waste and fuel
consumption were verified at the end of the Project work and
were found to be in good correspondence with the envelope
estimated by Saibos in their input document. Main
environmental impacts concerned gas emission during
installation from fuel oil consumption, and during welding
activity mainly CO2 from welding fumes. Manning waste
corresponding to about 100.000 man-days, which
corresponds to the legal release of a small-size town of 6000
people over 10 days. During the installation of suction
anchors, the volume of water and sediment displaced was
approximately 13.000 m3. Discharge of Inhibited Seawater
during pre-commissioning to sea is about 1.700 m3 with
initial and final concentrations of 0,96 m3 (600ppm) and 0,16
m3 (100 ppm) respectively of active inhibitor.
Dye concentration will be approximately 50 ppm or 0,07m3.
Social Aspects
Saibos and its Parent affiliated Angolan Companies
(PETROMAR Lda & KWANDA Lda) have made a long-term
commitment to develop in Angola through investment in and
implementation of its businesses. In order to maintain a high
level of construction activity in Angola, plus to be able to meet
the needs & requirements of the oil & gas industry in general,
the following long-term plans have been implemented:
Retaining existing capable local skilled & unskilled employees
by providing further skill development & opportunities
for advancement. Recruiting & training more capable
local skilled & unskilled work-force, including employees,
skilled workers, specialists and engineers.
Further development & improvement of existing facilities.
Investment in new and state-of-the-art tools & equipment
to meet the stringent requirements of the evolving
deepwater market.
Transfer of knowledge & know-how to local partners &
suppliers, or to foreign partners with local Angolan subContractors & suppliers.
Saiboss objective was to maximize local content cognizant
of the required schedule, based on skill level, local
capabilities and competitiveness with the international
market in terms of price, quality and delivery. The intention
was to complete in excess of 6.000 tons of steel in Angola
representing more than 1.500.000 man-hours. Two major
Angolan Sub-Contractors were required to support Saibos
in its scope of work: SONAMET Yard in Lobito (South of
Angola) and PETROMAR Yard in Soyo (North of Angola). In
addition, KWANDA Lda (previous DLH Operator) assisted
with all logistic & procurement issues from KWANDA Base
(also in Soyo).
66
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ERHA Project: a huge challenge

called FPSO
Project description
In early September 2002 Saipem s.a. and Saipem Contracting
Nigeria Ltd (SCNL) signed a contract with Esso Exploration and
Production Nigeria Limited (EEPNL), the operating affiliate of
ExxonMobil in Nigeria, for the supply of one of the largest floating
structures ever built, the Erha FPSO. The EPC contract consists of
design, procurement, construction, integration and
commissioning of the vessel. The Erha field is located in block
OPL 209, for which the concessionaire is the Nigerian National
Petroleum Corporation (NNPC), EEPNL have a production
sharing contract with NNPC and will operate the field in
partnership with Shell Nigeria Exploration and Production
Company Limited (SNEPCO). The field is located approximately
90 km (60 miles) from the nearest part of the Nigerian coast,
roughly 5.36N, 4.35E, and is about 100 nautical miles from
Lagos itself. The FPSO will be spread moored in a water depth of
approximately 1,200 m (3,900 ft) with a single point mooring
buoy located approximately 1,8 km from the FPSO for oil
offloading. The FPSO Hull measures 274m in length, 63m in
width and 32m in depth and has a gross weight of 188.800tons
rising to 377.000 tons when loaded. The topsides comprise 23
modules, built by three separate fabricators, ranging from 1 to 3

decks in height, plus a 100m flare tower and 100 man living
quarters with a heli-deck capable of receiving a Sikorsky S-92
helicopter with another parked out of the landing zone. The
weight of the topsides is over 30.000tons. The Hull was awarded
to Hyundai Heavy Industries (HHI) at Ulsan. The flare tower,
several modules, the two huge overboard stair towers and the
riser protection frames were constructed by Saipem Contracting
Nigeria Ltd in the Port Harcourt facility, which was significantly
extended in size partly due to the project, in Nigeria. The
remaining modules and the integration of the topsides onto the
hull were given to SMOE, a contractor based in Singapore, and
Malaysian Shipbuilding and Engineering (MSE), a Malaysian
contractor. The FPSO was towed from Singapore on 17-Oct-05
towards Nigeria and at that time the offshore phase
commenced.
Safety
ERHA Project Management demonstrates visible leadership
and commitment to Safety issues by communicating,
promoting and implementing the Company HSE Policies at
the highest level, in line with the Corporate Mission and
Policy. Before fabrication works started, SAIPEM prepared a
HSE Project Management Plan covering the four
construction sites (Nigeria, Malaysia, Korea, and Singapore)
and each yard prepared a specific Site Safety Plan. Yard HSE
audits were carried out and an HSE two day workshop was
organised to align with HSE matters in Korea, Malaysia,
Singapore and Nigerian sites one month before the
construction started. The workforce involvement in Safety
system is at all levels development, communication,
implementation and review. Personnel at all levels also
participate in Safety training to develop their awareness
and competence and apply the same to their work. Every
personnel takes personal responsibility in implementing
and improving the Safety Management system. Main
contributions came through:
Site reports, incident report, unsafe act/unsafe condition
report and contributions during meetings. Observations
and reports provided by site personnel are utilised in
developing and improving Work Procedures which are
eventually implemented by personnel in various work
locations.
Site meetings, participation in awareness trainings which
are then cascaded to other workers and participation in
Risk Assessment exercises. During site HSE meetings and
awareness trainings, personnel at all levels communicate
their experiences and observations which are used as
learning points for the development and improvement
of the QHSE system
And particularly throughout the fabrication period:
Any individual receives a one hour Erha HSE induction
Daily inspection system started
A daily coordination meeting started with Permit To Work
approval (where daily safety inspection feedbacks are
shared and used in daily toolbox meeting)
Daily toolbox talks started
Weekly safety talks started (Work is stopped and all
workers receive a 20 minutes HSE speech)
Each yard had an audit one month after work start
Each yard had then an audit every three to four months
Each yard had an audit by a SAIPEM Corporate Physician
(check the nearest hospital as well as the site clinic)
A program of emergency drills is followed up (fire evacuation,
injury response, spill, etc): one drill every 2 months. One
drill includes an evacuation exercise performed in
conjunction with the Singapore Civil Defence.
Safety awareness campaign, with a different theme each
month.
Between the three topsides construction sites alone, in
67
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Singapore, Malaysia and Port Harcourt, SAIPEM personnel

on ERHA Project has so far expended over 17 million
man-hours without a single lost time incident.
Environment
Environment protection actions for the ERHA project have
been concentrated on a very strict spill prevention (2 spill
emergency drills were organized in Singapore) and
management program with the client and also a thorough
waste segretative plan has been implemented offshore.
SCNL has introduced several measures in various areas of
the Nigerian yard to reduce and mitigate environmental
impacts, in line with the company environmental policy.
Such measures include the following:
Air Pollution
A new Painting Cabin was constructed in the New
Investment area. Painting area was enclosed / confined
with the ultimate aim of providing scavengers to maintain
ambient air quality levels and check pollution. Moreover,
monthly air quality monitoring is being carried out to
check the pollution levels at different places in the yard.
Water Pollution
In order to reduce and mitigate the pollution of the
nearby Calabar River from activities of Painting/Coating
of pipes and Hydro-testing, besides the new painting
cabin, the following measures have been taken:
1. an accredited Waste Disposal Contractor has been
contracted to dispose of the paints and varnish tins and
left out paints which are hazardous.
2. hydro-testing water has been handed over to a waste
ISO 14001 Gap Analysis

The ISO 14001: 2004 certification
disposal contractor for subsequent disposal.

3. Technical Project designs for the New Investment area
were tailored towards ameliorating potential impacts.
Noise Pollution
Equipments are regularly maintained to reduce their noise
generating level and PPEs are enforced for personnel and
its use. Noise levels are being measured on a monthly
basis at various facilities in the Base and project areas to
suggest measures to protect work force from hearing
problems.
Sewage Disposal
An accredited sewage disposal contractor has been
appointed to dispose of the sewage at Government
approved disposal site.
Spills
Oil spill kits have been placed in the areas where there
exist risks of spillage. A chemical spill kit has been placed
at the New Painting Cabin. Also a separate oil collection
pit was constructed at the Fuel Pumping Station. Training
Programs are conducted regularly for personnel working
in the areas where there are chances of spills. Also,
excavation for construction of concrete drains has been
completed to prevent contamination of soil and ground
/ surface water.
Water Disposal
Accredited waste disposal contractors with competence in
treating hazardous waste have also been appointed for
the collection, treatment and disposal of all waste water in
line with Nigerian regulations. Scrap metal has been
given to the community as per community development
program.
Social Aspects
The ERHA Project of Saipem Contracting Nigeria Limited
(SCNL) maintains a sustainable development practice with
commitment to sustainability principles by creating a
corporate existence in all her project related host
environments. Such practice entails implementation of
Saipem Nigeria talent sustainability programs which focus
on developing young Nigerian employees for sustenance of
the Saipem business here in Nigeria. Most of these
technology-oriented schemes are guided by the principle
conducted by Lloyds Register
commitment to adequately correct
Quality Assurance (LRQA) in April
some of the findings during the gap
2005.
analysis process. ERHA Project was

very much part of the assessment
process was initiated with Gap

analysis for SCNL Operational Base
The LRQA Lead Assessor reported
where ERHA Project activities take
that SCNL has all the capability, the
place. The Gap Analysis was
professional strength and
68
during the Gap Analysis exercise.
28-08-2006
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Pagina 69
that her human resources are the most valued assets in all
businesses. The Monitoring of the oil and gas industry
regulations on sustainability ethics mostly inclined with the
Nigerian Content requirements for all Projects are
communicated to the Project management teams to
ensure full implementation and execution which bears with
contractual requirements for in-country sustenance and
development.
sustainability principles and objectives to all employees

as they form the building block for sustainability.
Below are some other activities in which the Saipem
Contracting Nigeria Limited develops and communicates
her principles on sustainability.
Award of minor aspects of contracts to community
contractors
Participation in community development programs
Implementation of EIA and PIA (Environmental Assessment
Schemes) in any project related environment.
In-house training for all local employees
Effective Security monitoring and alertness programs to
educate staff on security awareness of the Niger Delta
operating environment.
Integration of community youths in sustainable programs
such as skill acquisition, youth seminars and conferences
involving oil and gas industry stakeholders.
The Project therefore ensures the implementation of the

Section relating to local content development which has a
lot in common with the implementation of sustainability
principles. In addition to these, issues that impinge on
personnel welfare, Quality management, Health
management, and environmental management are
topmost in relation to executing company projects in
related host communities.
The ERHA project has established dedicated training plans
and skill acquisition packages to transfer technology to
the employees from the project communities in Nigeria.
In effective execution of this strategy, the implementation
of the MOU (memorandum of understanding) is carried
out to the latter with the host Communities for
harmonious co-existence. Health programs to mitigate
outbreak of epidemics are also organised by the company
in related project and company locations, examples of
which are the awareness campaign on HIV (AIDS). A proactive approach by the company medical team is putting
efforts in place to forestall a spread to project-related
sites. One major tool used by SCNL to harness the
potentials of sustainability development is the use of the
LLA (Lessons Learnt Approach) method in improving
sustainability programs. Most of the clients requirements
on sustainability principles are communicated to the
Project management teams via this exercise. This goes
alongside internal presentation of managements
69
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Saipem at a glance: 2005 results

Health
Proactive HPI
Percentage of employees
with valid medical
fitness examination
A) Expatriates
B) Locals
Percentage of expatriates vaccinated against diseases

considered to be at risk in the working
geographical region
Percentage of personnel (expatriates and locals) who
attended training in the prevention of Sexual
Transmitted Disease (STD)
Medical personnel who attended Advanced Trauma Life
Support (ATLS) and/or Advanced Cardiac Life Support
(ACLS) training courses this year
Reactive HPI
Frequency of case repatriated for health reasons
from Saipem operating sites
No. of the international personnel with valid medical

fitness/total no. of international workforce (TARGET 2005: 90%)
No. of the local personnel with valid medical
fitness/total no. of local workforcemanca (TARGET 2005: 80%)
Percent of expatriated & international inoculated
employees/expatriate & inter. Employees exposed to risks
(TARGET 2005: >75%)
No. of employees involved in sexually transmitted diseas AIDS
inclusive prevention courses/total no. of the workforce
present in Site Project (TARGET 2005: >75%)
No. of medical personnel trained in respect of their
overall number (TARGET 2005: 25%)
94%
91%
82%
51%
38%
Number of case repatriated per million man workhours.

(TARGET 2005: <0,7)
1,29
hour
no.
no.
no.
%
140.787.590
164
6
661
4,7
no.
no.
no.
no.
hour
no.
166.431
166.210
32.761
59.863
523.354
54.172
toe
1.000 m3
ton
326.834
25.448
52.591
ton
ton
ton
ton
ton
ton
ton
61
5.186
955.772
1.025
14.258
537
3.084
Number
Number
Number
Number
13
6
5
10
Hours
Hours
Hours
1044
169,5
102
Safety
Worked Manhours
Lost Time Injuries
Fatal Accidents
Total Recordable Incidents
Total Recordable Frequency Rate
Leading Indicators
Safety Hazard Observation Cards
Tool Box Talks
HSE Meetings
Job Safety Analysis
HSE Training Hours
HSE Inspections
Environment
Energy
Water
Waste
Atmospheric Emissions
CH4
CO
CO2
NMVOC
NOx
PM
SO2
Industrial hygiene
ACM mapping
Noise mapping
Air monitoring
Audit AMP
Training:
Asbestos awarness
Acm team
Asbestos management plan
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Definition of Terms
The specific terms used in the Report are explained in
accordance with the Corporate Standards: STD-COR-HSE002 Safety Reporting and STD-COR-HSE-003 Standard
for Corporate Annual HSE Report, as follows:
Accident
Term to define an unplanned Event or chain of Events that
results in harm to people (injury), damage to property or
the environment, loss of process.
Commuting Injury
Commuting injuries are all of those, which occur whilst a
worker is traveling between a place of residence (Company
provided or personal) and the workplace. Commuting
Injuries are not included in Lost Time Injury and in the
calculation of the Frequency Rate. Occurrences where a
worker is injured whilst traveling on duty are not deemed
to be Commuting Injuries and are included within Lost
Time Injury, Restricted Work Case or Medical Treatment
depending on the consequences.
Company/Branch/Project
Any Company/Branch/Project that are directly owned by
Saipem Group; with this term it is also intended permanent
joint-ventures or specific joint-ventures that are created to
realise a particular project (included Subsidiary, Branch
Joint Venture, Alliance, etc.)
Environmental expenditures
Expenses sustained by Company/Project/Vessel for the
assessment, monitoring and protection of the environment
which are directly connected with the Companys scope of
work, including but not limited to impact assessment
studies, reinstatements related costs, clean up, legal advises
and fees, insurance fees, consultant fees, research and
replacement of polluting/dangerous substances with
environmentally friend products, waste management,
treatment plants, air monitoring.
Events
Term to define all the Accidents, Incidents, Near Misses
occurred during Company and Sub-Contractors activities.
Fatality
Term to define a death resulting from a Work Related Injury,
regardless of the time intervening between the injury and
the death. Fatalities are included when calculating the
number of Lost Time Injuries and Frequency Rate.
First Aid Case (FAC)
Term to define any one time treatment of minor injuries
that usually do not require medical care by a physician (i.e.

scratches, cuts, burns, splinters, not embedded foreign
bodies in the eyes, etc.) and its eventual subsequent visits.
Such treatment is considered FAC even if provided by a
physician.
Greenhouse Gas (GHG)
Gas, such as water vapour, carbon dioxide and methane that
absorbs and re-emits infrared radiation, warming the
earth's surface and contributing to climate change.
Health expenditures
assessment, monitoring and preservation of employees
health whilst at work. These will be comprehensive of, but
not limited to taxes, insurance fees, direct or third parties
fees and compensation for medical check-ups, vaccination,
first aid course, medical treatments, equipment and
facilities, follow-up actions derived from or due to a
consequence of a work related disease / accident which is
accountable to the Company responsibilities as set out by
applicable legislation.
HSC Fuel Oil
High Sulphur Content fuel oil: it refers to the fuel oil with
high sulphur percentage >1% used for the Company
activity. The quantities shall be indicated distinguishing the
different purposes oil has been used for.
HSE Training Hours
Include the program for: Introducing the HSE concepts
which are obligatory under Company/legislative norms,
envisaged at the time all employees were hired; Specific
HSE programs for personnel working in emergency
management; Specific programs for particular jobs. HSE
Training Hours have to be considered as Contact hours
and calculated as the hours of contact between a group of
participants and the instructor. Multiplying the number of
participants by the number of hours the training session
took arrives at the figure to be reported. Do not include
Safety Induction Training such as offshore arrival.
Incident
General term to define an unplanned Event or chain of
Events not necessarily resulting in loss or in harm to people,
damage to property or the environment, loss of process.
Job Safety Analysis - JSA
Is a procedure used to identify, analyze and record the steps
involved in performing a specific job, the existing or potential
safety hazards associated with each step, and the
recommended action(s)/procedure(s) that will eliminate or
reduce these hazards and the risk of a Work Related injury.
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Lost Time Injury (LTI)

A LTI is any work-related injury, which renders the injured
person temporarily unable to perform any regular Job or
Restricted Work on any day/shift after the day on which the
injury occurred. In this case any day includes rest day,
weekend day, holiday. The day of the Accident is not
counted when calculating Lost Workdays. Fatalities and
Permanent Total Disabilities are included in the calculation
of the total the number of the Lost Time Injuries.
Lost Time Injury Frequency Rate (LTIFR)
N LTIx1,000,000
LTIFR=
Total WorkedManHours
Lost Workdays (LWD)
The total number of calendar days on which the injured
person was temporarily unable to work as a result of a Lost
Time Injury. In the case of a Fatality or Permanent Total
Disability no Lost Workdays are recorded. If the Fatality
occurs after several Lost Workdays, both the Fatality end
the Lost Workdays have to be computed.
or offshore sites, are settled such as: H.Q. Building,

Subsidiary companies offices, Branches offices, etc.
Offshore sites
Offshore Work-sites and facilities where operations are
carried out such as: Mobile offshore drilling units, Drilling
Jack-ups, Pipeline Barges and Vessels, Crane Barges and
Vessels, Pontoons, etc., hired or owned by Company/Branch
for the execution of the Company contractual scope of
work. The vessel to be considered must be part of the
Saipem Group Assets
Onshore sites
Onshore Work-sites and facilities where operations are
carried out such as: onshore drilling rigs, pipeline yards,
construction yards, maintenance and/or repair yards or
shipyards, logistic bases, etc., owned by Company/Branch for
the execution of the Company contractual scope of work.
LSC Fuel Oil

Low Sulphur Content fuel oil: it refers to the fuel oil with
low sulphur percentage <1% used for the Company activity.
The quantities shall be indicated distinguishing the
different purposes oil has been used for.
Particulate matter (PM)

It is a complex mixture of extremely small particles and
liquid droplets. Particle pollution is made up of a number of
components, including acids (such as nitrates and sulfates),
organic chemicals, metals, and soil or dust particles. The
size of particles is directly linked to their potential for
causing health problems. Once inhaled, these particles can
affect the heart and lungs and cause serious health effects.
Medical Treatment Case (MTC)

Term to define any work-related injury (infected wounds,
application of stitches, embedded foreign bodies in the
eyes, second and third degree burns, etc.) that involves
neither Lost Workdays nor Restricted Workdays but which
requires repeated treatment by, or under the specific order
of a physician or could be considered as being in the
province of a physician. Medical Treatment does not include
First Aid even if this is provided by a physician or registered
professional personnel.
Road Traffic Accident (RTA)

Any Accident involving a Company or Contractor/SubContractors vehicle during travels in course of
employment. RTA has to be reported in the Monthly Safety
Statistical Report (Form: COR-HSE-048-E) regardless the
occupant of the vehicle sustained an injury or not. When
one or more occupants sustain a personal injury, the RTA
has to be recorded as mentioned above and the relevant
Event (i.e. LTI) has to be reported using the Accident
Investigation Report (Form: COR-HSE-047-E).
Near Miss
It is a hazardous Event/Incident which, under slightly
different circumstances, could have caused an Accident
affecting even people, environment or assets.
Non methanic volatile organic compounds (NMVOCs)
They are all intermediates in the oxidation of fuels. NMVOCs
include a variety of chemicals, some of which may have both
short and long-term adverse health effects (Eye, nose, and
throat irritation; headaches, loss of coordination, nausea;
damage to liver, kidney, and central nervous system, cancer).
Safety expenditures
assessment, monitoring and preservation of employees
safety whilst at work. These will be comprehensive of, but
not limited to insurance fees, consultant fees, legal advises,
safety training, safety maintenance, safety equipment and
system purchasing, personal and collective protective
equipment, safety auditing and follow-up derived costs,
fire/gas detection/rescue and evacuation emergency
communication systems, risk assessments and studies,
safety upgrading of equipment, facilities and assets.
Office facilities
Company offices other than those being parts of onshore
Safety/ Hazard Observation Card

It is a generic term, used to identify all the situations,
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conditions observed and reported by the personnel

employed in a Project or Site. Observation reported are
always dealt with immediately after notification, solved by
means of short-term action and recorded.
Self generated energy
It refers to energy produced internally, from either
renewable or non-renewable sources.
to perform at normal capacity all or part of his regular job

any day after the day in which the injury occurred. In a WRC
the injured person is temporarily assigned to another job
or excused from performing certain parts of his normal
duty. An injury can be classified as WRC only upon written
non objection statement of the injured person.
Service water
It only refers to water withdrawn from public network or
supplied by third parties. The quantities shall be indicated
distinguishing the different purposes service water has
been used for.
Severity Rate
N. LWDx1,000
SR=
Toolbox Talks - TBT
Brief (10 15 minutes) meetings, focused on particular
safety issues, conducted prior to work commencing by a
supervising person whose responsibility is to assure that
the appropriate information is given to promote awareness
and understanding of all the potential hazards which may
affect the safe and efficient job completion.
Total Recordable Incidents (TRI)
Term to define the sum of Lost Time Injuries (including
Fatalities and Permanent Disability Cases), Work Restricted
Cases and Medical Treatment Cases.
Total Recordable Incident Frequency Rate (TRIFR)
N. TRIx1,000,000
TRIFR=
Work Related
A case is Work Related any time it occurs within the Site
Boundaries and within the working time (normal or
overtime). An Event is also considered Work Related when
the exposure in the working environment is the discernible
cause or contribute to an injury or significantly aggravates a
pre-existing injury. The work environment includes the Site
Boundaries and other locations where one or more
Company and Contractor employees are present as a
condition of their employment. Work Related are also all
those Events involving Company personnel when working
within a Third Party Site(i.e. Inspectors, Surveyors, Auditors,
etc.).
Work Restricted Case (WRC)
Term to define any work-related injury not resulting in days
away from work, which renders the injured person unable
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More on Saipem
Thank you for reading our Saipem Group HSE Report. This
report is part of Saipems communication program for
sustainability disclosure. For further details of our

sustainability program, please see the Saipem website
www.saipem.it, where you can find the following
mentioned publications in downloadable form.
Different Light on Saipem

World - 2004
This document highlights
Saipems models and
organisation relating to the
management of SocioEconomic factors and
Quality, Health, Safety and
Environment elements
within the core processes
of the Company.
Nigeria
Content: Saipem's historic
presence in Nigeria,
current and future Group
projects, the development
of local content, their
HSE management, the
commitment to local
purchasing and their
relationship with the
community.
Azerbaijan
The benefits that Saipem has
brought to the development
of the ACG Project in terms
of socio-economic
and environmental
development.
Favouring local suppliers,
the involvement of local
personnel and their
professional development
and the HSE management.
Kazakhstan
Analysis of the Karachaganak
project: involvement
of Kazakh personnel,
professional training
and health care.
From stakeholders' relations
to the project's contribution
to the local economy.
From the management
of environment to the
company's commitment
to safety.
Peru
Content: Saipem
operating company Petrex
S.A. Its integration within
the Country, the medical
and social care of its
employees, HSE
performance and the
analysis of the direct and
indirect financial impact
of its activity.
Oman
The MSCP project developed in Oman represented
for Saipem an opportunity
to evaluate, monitor and
promote the impacts on
the local context in term
of environmental care,
local content development and stakeholders
relations.
Asia
Saipem is developing many
and interesting projects in
the Asia Pacific regions and
this case study aims to
analyse its environmental
and socio-economic
approach, underlining
project peculiarity in term
of sustainability.
Angola
Angola case study
describes the integration
strategy Saipem is
adopting within the
Country thanks to the
settled fabrication yards
and the growing number
of Angolans involved in
the operations.
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Pagina 1
Societ per Azioni

Via Martiri di Cefalonia, 67 - 20097 San Donato Milanese (MI)
Tel. +39.02.5201 - Fax +39.02.52054295
www.saipem.eni.it

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Health Safety Environment

Health Safety Environment

SAIPEM / HEALTH SAFETY ENVIRONMENT REPORT 2005

SOUTH EAST ASIA AND OCEANIA

Australia, China, Indonesia, Malaysia,

Algeria, Angola, Cameroon, Congo,

Italy, France, Belgium, Croatia,

Abu Dhabi, Dubai, Iran, Kuwait, Oman,

Astrakan, Azerbaijan, Georgia,

Argentina, Brazil, Canada, Ecuador,

SAIPEM / HEALTH SAFETY ENVIRONMENT REPORT 2005

Letter from the Chairman

About us: SAIPEM Group Structure and Activities

Priorities and Plans

HSE Management System

HSE Training year 2005 for Saipem

Building Common Accountability Framework

Health Reporting System and Expenditures

Dolphin project: respect for the sea

Saipem at a glance: 2005 results

Verification of the Report

SAIPEM / HEALTH SAFETY ENVIRONMENT REPORT 2005

Letter From The Chairman

Once again I have the pleasure of presenting the Health,

seriously in every task we undertake in our activities.

SAIPEM / HEALTH SAFETY ENVIRONMENT REPORT 2005

The Chairman Pietro Franco Tali

included risk and incident analysis, emergency

construction activities. Sustainability has once again been a

SAIPEM / HEALTH SAFETY ENVIRONMENT REPORT 2005

to improve the monitoring and the evaluation of the

SAIPEM / HEALTH SAFETY ENVIRONMENT REPORT 2005

The methodology generally used for the indirect estimation

expenditure recording method. Such software is used

SAIPEM / HEALTH SAFETY ENVIRONMENT REPORT 2005

Saipem Projects and Sites of activities

Onshore Construction B.U.

LNG, Maritime Works

Hazira Port and LNG

Soyo Angola Quay Side

SAIPEM / HEALTH SAFETY ENVIRONMENT REPORT 2005

Petromar MMO projects

Saipem Jakarta - Sitiwan

FPSO Magdelaine - Dubai

Kashagan Piles & Flares

SAIPEM / HEALTH SAFETY ENVIRONMENT REPORT 2005

SAIPEM / HEALTH SAFETY ENVIRONMENT REPORT 2005

Yards & Main Logistic Bases/Offices

SAIPEM / HEALTH SAFETY ENVIRONMENT REPORT 2005

About us: SAIPEM Group

Saipem Group operates as a global contractor in the oil

These unique capabilities and competences, together with

SAIPEM / HEALTH SAFETY ENVIRONMENT REPORT 2005

waters and installing subsea structures of up to 2,200 tons.

Saipem s.a., Saipem Energy International SpA, Saipem Fpso

SAIPEM / HEALTH SAFETY ENVIRONMENT REPORT 2005

through the companies Camom, Tecnoprojecto

Maintenance modification and operation (MMO)

Offshore Construction - Laid pipelines

Onshore Construction - Laid pipelines

Offshore Drilling - drilled meters

SAIPEM / HEALTH SAFETY ENVIRONMENT REPORT 2005