Professional Documents
Culture Documents
Asia Pacific
INDEX
INTRODUCTION SAIPEM AT A GLANCE Saipem mission statement Saipem activities Saipem through the world Main Financial Results Saipem Human Resources SAIPEM SUSTAINABILITY Sustainability organisation Methodology Saipems sustainability policy ASIA PACIFIC OVERVIEW Countries in the Area Peoples Republic of China Republic of Indonesia Republic of Malaysia Kingdom of Thailand SAIPEM GROUP IN ASIA PACIFIC REGION Companies operating in the area Companies Organisation Projects in the Area STAKEHOLDERS RELATIONS Matrix on Sustainable Impact Human Resources Strategy Clients Satisfaction Subcontractors and local partners PERFORMANCE INDICATORS Saipem Asia Pacific Group QHSE Management System Saipem Asia Pacific Group QHSE Objectives and targets 2005 ENVIRONMENTAL INDICATORS Energy Consumption Water Consumption Waste generation Air Emissions ECONOMIC INDICATORS Contribution to the Local Economy HSE Expenditures SOCIAL INDICATORS Employees distribution Safety performance Training Health GLOSSARY & KEY WORDS
4 7 7 8 8 9 9 10 11 12 13 14 15 16 17 18 19 20 20 21 21 24 24 25 25 26 28 28 30 30 30 31 31 32 32 32 33 34 34 35 36 36 37
SAIPEM
SUSTAINABILITY
INTRODUCTION
This report is part of Saipems Sustainability programme for the years 2005-2007. After successful publication of case studies on Nigeria, Kazakhstan, Azerbaijan and Peru, Saipem has published new local reports illustrating its socio-economic and environmental performance in Angola, in the Asia Pacific Region and in the Sultanate of Oman.
Thanks to this new effort the sustainability approach is extending its coverage in the Saipem world, involving more and more people, projects and external environments.
SAIPEM
SUSTAINABILITY
SAIPEM
SUSTAINABILITY
SAIPEM
SUSTAINABILITY
SAIPEM AT
A GLANCE
SAIPEMS MISSION STATEMENT
Pursuing the satisfaction of our clients in the energy industry, we tackle each challenge with safe, reliable and innovative solutions. We entrust our competent and multi-local teams to provide sustainable development for our company and the communities in which we operate.
Saipem is one of the leading companies in providing services to the Oil & Gas sector, mainly in offshore engineering and construction. The Company invested heavily in the past years to reinforce its offshore fleet, both in offshore construction and in offshore drilling and today Saipem's fleet is one of the most technically developed and efficient in the sector. With the acquisition of the French engineering company Bouygues Offshore in May 2002, Saipem became a leading contractor in the field of complex EPIC projects (Engineering, Procurement, Installation and Construction). This acquirement helped Saipem turn into a real global contractor, with significant local presence in strategic and emerging areas, such as Western Africa, the former Soviet Union, Central and South East Asia, North Africa and the Middle East.
SAIPEM
SUSTAINABILITY
SAIPEM ACTIVITIES
Saipem Group consists of six worldwide business units. It provides EPIC services to the oil and gas industry, with a particular focus on activities in remote areas, deepwater environments and gas related projects that allows the Group to enjoy a superior competitive positioning. Offshore Construction: Saipem is the consolidated leader in offshore construction, with main activities covering engineering, construction, and installation of platforms, subsea structures, floating production systems, and subsea pipelines. The most powerful asset in Saipem's fleet is Saipem 7000, a semi-submersible vessel capable of lifting structures of up to 14,000 tons and laying pipelines in ultra deep waters. Other vessels include Castoro 6 and Semac 1, capable of laying large diameter pipelines, Saibos FDS (Field Development Ship), a specialised vessel used for the development of deep water fields and Saipem 3000, a vessel capable of lifting structures of up to 2,400 tons. The company's recent acquisitions further strengthened its engineering and project management expertise. Drilling: Saipem's mobile offshore drilling fleet consists of one state-of-the-art drillship (Saipem 10000), five semi-submersibles and four cantilevered jack-ups. Saipem drilling operations are carried out on behalf of the major corporations in the oil and gas sector. Saipem owns 23 drilling rigs and 15 workover rigs capable of operating at depths ranging from 2,500 to 10,000 meters at elevated temperatures and in high pressure environments. Leased FPSO: Saipem entered this sector in 1996 as a new player offering a unique combination of the capabilities of a major EPCI contractor with the worldwide presence of an Owner of first class drilling and construction vessels. Saipem's wholly owned fleet enables the company to provide a full range of installation, construction and transportation services suited to the most challenging floating system installations. Onshore Construction: Saipem is world leader in the onshore construction sector having laid more than 60,000 km of pipelines over five continents and built some 100 oil refineries, petrochemical plants, power plants, oil and water pumping stations and natural gas compression stations. The Company specialises in the laying of large diameter pipelines, above all in adverse climatic conditions and difficult to reach areas. Liquefied Natural Gas: Saipem entered this high-potential market by establishing a new group which has the necessary technological capabilities to construct LNG tanks and is experienced in the construction of offshore and onshore LNG import and export terminals. Maintenance Modification and Operation: Saipem's presence in the last link of the value chain enables the Company to offer end-to-end solutions to energy service providers. This kind of activity allows Saipem to streamline processes, increase productivity and offer clients plans of continuous improvement.
West Africa 25,6% CIS - Asia 14,5% Central - South America 12,2% Far east 8,5% Europe 8,4% Middle east 8,3%
CIS - Europe 8,1% North Sea 5,7% North Africa 5,7% North America 2,2% Italy 0,4% Other Asia 0,4%
Principal Operating Centers Offshore Offshore Drilling float. Prod. Lng & maritime works Engineering Centers Onshore Drilling Maintenance Modification and Operation (MMO) Yards/bases Other Offices/Activities
Onshore SAIPEM
SUSTAINABILITY
European
Other Nationalities
In 2005 Saipem total staff was of 25446, about 3500 employees more than in 2004. Saipem's interest in the social development of the areas of operations was expressed in 2004 both through the internal management and commitment, both externally, in participatory actions with local communities. This implied the adoption of procedures for selection and management of employees which can be adapted to the provisions and needs of the various reference countries. The Local Content Policy requires the Local Content policy means that the relationship with local workers is directly developed, avoiding as much as possible the use of agencies; this meant a particular commitment on the part of Saipem, both in terms of resources and responsibility, strongly supported by the commitment of Top Management. One result of this approach can be seen in the significant number of nationalities (103 at December 2005) which makes up the Saipem staff worldwide.
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SAIPEM
For the second year Saipem decided to publish his sustainable approach through local case studies. Following the last year approach to focus on specific countries of activity, this time the analysis has been carried out on Asia Pacific region, Angola and Oman. These areas together with Nigeria, Peru, Azerbaijan
and Kazakhstan already subject of the last year reports, are particularly important for Saipem and are countries in which some positive contributions from a sustainable attitude have a particular value. Saipem has successfully continued the path toward a more conscious approach and this second step enlarges the coverage of Saipem sustainability analysis including three other significant areas. The analysis developed in order to produce the case studies is just the tip of the iceberg that is composed by a program of continual improvement that involves the HSE management, the Human Resources and the procurement approach.
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SUSTAINABILITY ORGANISATION
In 2002, Saipem created a mission statement which emphasized the meaning of a proactive approach to sustainability, and set up a dedicated Corporate Sustainability Team with proven experience. The team belongs to the Corporate QHSE Department, which has an established presence within the Saipem Group organisation, and proposes, assesses and supports the growth of local level initiatives based on Saipem's mission. The team also set up the Sustainability Network, which plays an essential role in sustainability management by bringing together different units that aid the development of socioeconomic initiatives with their own distinctive competencies. Even corporate departments like the Human Resources and Administration and Finance Department, have an important role in the Sustainability Network, along with Saipem Sustainability Facilitators who represent Saipem Sustainability Team in Key Areas. Saipem has identified some geographical areas of business of key importance that vary along with the evolution of the business activities throughout the world; this allows the Company to rationalize the efforts related to the development of the Sustainability approach. In 2003, the Sustainability Key Areas were: Algeria, Angola, Azerbaijan, Kazakhstan, Malaysia, Indonesia, Thailand, Nigeria, Peru, Venezuela, Russia, Saudi Arabia, Oman, and UAE (United Arab Emirates); they are still of interest in 2005. A Sustainability Facilitator selected by the Saipem Group Resident Area Manager operates in each key area and is responsible for the co-ordination of sustainability initiatives at local level. His main task is the promotion and the developing, with the involvement of the local senior management, of initiatives aimed at the increase and development of local content, at good relationships with the local stakeholders and at the sustainability accounting.
Sustainability Facilitators
Nigeria Peru Algeria Angola Azerbaijan Kazakhstan Russia Saudi Arabia, Oman, UAE Malaysia, Indonesia, Thailand
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11 SUSTAINABILITY
METHODOLOGY
These case studies have been developed with a structure that include a general overview of Saipem world, a general presentation of the most peculiar socio-economic and environmental characteristic of the country in analysis. It follows the description of the Saipem operation in the area, the presentation of the main stakeholders and the relative Saipem approach. The case study is then closed by an overview of the most important environmental, social and economic indicators of the analysed Country. The information contained in this report was collected both at site and corporate level. The attempt was to follow the same information given in the past reports and when possible to improve the detail of information and data, following also the indications of the third part involved in the evaluation of the previous case studies. The report on Asia Pacific Area mainly refers to 2004 data, where possible also 2005 data are included for a more exhaustive presentation of the activities. The report considers the following Saipem realities: COMPANY: PT SAIPEM INDONESIA Saipem (Malaysia) Sdn Bhd Saipem Asia Sdn Bhd BRANCH: Saipem Asia Sdn Bhd, Thailand Branch Saipem (Portugal) Commercio Maritimo s.u., Lda., Australia Branch YARD: BATAM PROJECT: EPIC LAMMA BP Tangguh Sakhalin Top Side TTP Project TTM Peciko IV Bayu Darwin Bongkot TLO ASSETS: Semac1 CASTORO 10 CASTORO 8 CASTORO 2 Data was collected from the following sources: Accounting system for HSE data Accounting system for the management of medical expenses Financial Accounting system for the Group Interviews and sustainability accounting system at local level
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SAIPEM
13 SUSTAINABILITY
OVERVIEW
The Asia Pacific region is spread over a large geographic area of about 4,100,000 km2 which includes the East of India, south and south east Asia, Sakhalin, Australasia and the pacific island region. The Asia Pacific region, home to 53% of the world's population and 20% of its land area
(UN report, 2002). The Asia Pacific Region is a major contributor to world trade; more than one fifth of the entire worlds population lives within the region, one quarter of the worlds gross national income is earned by regional members, 12 of the top container ports in the world are located in the Asia Pacific Region and 3 of the 5 airports by cargo volume. Economic and population growth in Asia Pacific have resulted in rapid increases in energy consumption in recent years. In 2002, South Asia accounted for approximately 4.1% of world commercial energy consumption, up from 2.8% in 1991 (EIA, 2003). An important implication of rising energy demand in South Asia is its impact on the regions level of carbon emissions. As of 2002, South Asia accounted for 4.8% of global carbon emissions (EIA, 2003).
ASIA PACIFIC
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AUSTRALIA
THE COUNTRY IN BRIEF
Social Indicators Population: Population growth rate: Life expectancy at birth: Ethnic groups: Religions: 20,090,437 (July 2005 est.) 0.87% (2005 est.) 80.39 years (2005 est.) Caucasian 92%, Asian 7%, aboriginal and other 1% Catholic 26.4%, Anglican 20.5%, other Christian 20.5%, Buddhist 1.9%, Muslim 1.5%, other 1.2%, unspecified 12.7%, none 15.3% (2001 Census) English 79.1%, Chinese 2.1%, Italian 1.9%, other 11.1%, unspecified 5.8% (2001 Census) $642.7 billion (2005 est.) purchasing power parity - $32,000 (2005 est.) agriculture: 3.4%, industry: 28.2% , services: 68.4% (2004 est.) 2.7% (2005 est.) 10.42 million (2005 est.) 5.2% (2005 est.) 1.6% (2005 est.)
Languages: Economic data Gross Domestic Product GDP GDP - per capita GDP - composition by sector Inflation rate (consumer prices): Labour force: Unemployment rate: Industrial production growth rate: Environmental Indicators Area:
total: 7,686,850 sq km land: 7,617,930 sq km water: 68,920 sq km Natural resources bauxite, coal, iron ore, copper, tin, gold, silver, uranium, nickel, tungsten, mineral sands, lead, zinc, diamonds, natural gas, petroleum Land use: arable land: 11.32%, permanent crops: 7.23%, other: 81.45% (2001) Total energy consumption 5.59 quadrillion Btu (2002 est.) Energy-related carbon dioxide emissions 410.38 million metric tons (2002 est.) Fuel share of carbon dioxide emissions Coal (58.5%), Oil (29.2%), Natural Gas (12.2%) (2002 est.) Status in climate change negotiations Annex I country under the United Nations Framework Convention on Climate Change (ratified December 30, 1992). Has signed, but not ratified, the Kyoto Protocol (April 29, 1998). Environment - international agreements party to: Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Seals, Antarctic Treaty, Biodiversity, Climate Change, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping,Marine Life Conservation, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling
Source CIA world factbook, 2005
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15 SUSTAINABILITY
Economic Indicators Gross Domestic Product GDP GDP - per capita GDP - composition by sector Inflation rate (consumer prices): Labour force: Unemployment rate: Industrial production growth rate: Environmental Indicators Area:
total: 9,596,960 sq km land: 9,326,410 sq km water: 270,550 sq km Natural resources coal, iron ore, petroleum, natural gas, mercury, tin, tungsten, antimony, manganese, molybdenum, vanadium, magnetite, aluminum, lead, zinc, uranium, hydropower potential (world's largest) Land use: arable land: 15.4%, permanent crops: 1.25%, other: 83.35% (2001) Total energy consumption (2002E): 43.2 quadrillion Btu Energy-related carbon dioxide emissions (2002E): 3,322.4 million metric tons of carbon dioxide Fuel share of carbon dioxide emissions (2002E): Oil (20.2%), Natural Gas (2.1%), Coal (77.7%) Status in climate change negotiations Non-Annex I country under the United Nations Framework Convention on Climate Change (ratified January 5th, 1993). Signatory to the Kyoto Protocol (signed May 29th, 1998 - approved August 30, 2002). Environment - international agreements party to: Antarctic-Environmental Protocol, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling
Source CIA world factbook, 2005
SUSTAINABILITY 16
REPUBLIC OF INDONESIA
THE COUNTRY IN BRIEF
Social Indicators Population: Population growth rate: Life expectancy at birth: Ethnic groups: Religions: Languages: Economic indicators Gross Domestic Product GDP GDP - per capita GDP - composition by sector Inflation rate (consumer prices): Labour force: Unemployment rate: Industrial production growth rate: Environmental Indicators Area: 241,973,879 (July 2005 est.) 1.45% (2005 est.) 69.57 years (2005 est.) Javanese 45%, Sundanese 14%, Madurese 7.5%, coastal Malays 7.5%, other 26% Muslim 88%, Protestant 5%, Roman Catholic 3%, Hindu 2%, Buddhist 1%, other 1% (1998) Bahasa Indonesia (official), English, Dutch, local dialects, the most widely spoken of which is Javanese $899 billion (2005 est.) purchasing power parity - $3,700 (2005 est.) agriculture: 15.1%, industry: 44.5%, services: 40.4% (2005 est.) 9.3% (2005 est.) 110.4 million (2005 est.) 10% (2005 est.) 2.1% (2005 est.)
total: 1,919,440 sq km land: 1,826,440 sq km water: 93,000 sq km Natural resources petroleum, tin, natural gas, nickel, timber, bauxite, copper, fertile soils, coal, gold, Silver Land use: arable land: 11.32%, permanent crops: 7.23%, other: 81.45% (2001) Total energy consumption 4.45 quadrillion Btu* (2002est) Energy-related carbon dioxide emissions 299.8 million metric tons (2002est) Fuel share of carbon dioxide emissions Oil (52.8%), Natural Gas (25.8%), Coal (22.0%) (2002est) Status in climate change negotiations Non-Annex I country under the United Nations Framework Convention on Climate Change (ratified August 23rd, 1994). Signatory to the Kyoto Protocol (signed July 13th, 1998 - not yet ratified). Environment - international agreements A party to Conventions on Biodiversity, Climate Change, Endangered Species, Hazardous Wastes, Law of the Sea, Nuclear Test Ban, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94 and Wetlands. Has signed, but not ratified, Desertification and Marine Life Conservation.
Source CIA world factbook, 2005
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17 SUSTAINABILITY
REPUBLIC OF MALAYSIA
THE COUNTRY IN BRIEF
Social Indicators Population: Population growth rate: Life expectancy at birth: Ethnic groups: Religions: Languages: Economic indicators Gross Domestic Product GDP GDP - per capita GDP - composition by sector Inflation rate (consumer prices): Labour force: Unemployment rate: Industrial production growth rate: Environmental Indicators Area: 23,953,136 (July 2005 est.) 1.8% (2005 est.) 72.24 years (2005 est.) Malay and other indigenous 58%, Chinese 24%, Indian 8%, others 10% (2000) Muslim, Buddhist, Daoist, Hindu, Christian, Sikh; note - in addition, Shamanism is practiced in East Malaysia Bahasa Melayu (official), English, Chinese dialects, Tamil, Telugu, Malayalam, Panjabi, Thai $248 billion (2005 est.) purchasing power parity - $10,400 (2005 est.) agriculture: 7.2%, industry: 33.3%, services: 59.5% (2005 est.) 2.9% (2005 est.) 10.67 million (2005 est.) 3.6% (2005 est.) 4.8% (2005 est.)
total: 329,750 sq km land: 328,550 sq km water: 1,200 sq km Natural resources tin, petroleum, timber, copper, iron ore, natural gas, bauxite Land use: arable land: 5.48%, permanent crops: 17.61%, other: 76.91% (2001) Total energy consumption 2.3 quadrillion Btu* (2002est) Energy-related carbon dioxide emissions 140.6 million metric tons (2002est) Fuel share of carbon dioxide emissions Oil (49.0%), Natural Gas (39.2%), Coal (11.8%) (2002est) Status in climate change negotiations Non-Annex I country under the United Nations Framework Convention on Climate Change (ratified July 13th, 1994 ). Ratified the Kyoto Protocol on September 4, 2002 . Environment - international agreements A party to Conventions on Biodiversity, Climate Change, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Life Conservation, Nuclear Test Ban, Ozone Layer Protection,Ship Pollution, Tropical Timber 83, Tropical Timber 94
Source CIA world factbook, 2005
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KINGDOM OF THAILAND
THE COUNTRY IN BRIEF
Social Indicators Population: Population growth rate: Life expectancy at birth: Ethnic groups: Religions: 65,444,371 (July 2005 est.) 0.87% (2005 est.) 71.57 years (2005 est.) Thai 75%, Chinese 14%, other 11% Buddhism 95%, Muslim 3.8%, Christianity 0.5%, Hinduism 0.1%, other 0.6% Thai, English (secondary language of the elite), ethnic and regional dialects $545.8 billion (2005 est.) purchasing power parity - $8,300 (2005 est.) agriculture: 9.3%, industry: 45.1%, services: 45.6% (2005 est.) 4.8% (2005 est.) 35.36 million (2005 est.) 1.4% (September 2005) 8.2% (2005 est.) total: 514,440 sq km land: 511,770 sq km water: 2,230 sq km tin, rubber, natural gas, tungsten, tantalum, timber, lead, fish, gypsum, lignite, fluorite, arable land arable land: 29.36%, permanent crops: 6.46%, other: 64.18% (2001) 3.1 quadrillion Btu* (2002est) 188.6 million metric tons (2002est) Oil (55.9%), Natural Gas (24.7%), Coal (19.4%) Non-Annex I country under the United Nations Framework Convention on Climate Change (ratified December 28th, 1994). Signatory to the Kyoto Protocol (February 2nd, 1999 - not yet ratified) A party to Conventions on Climate Change, Endangered Species, Hazardous Wastes, Marine Life Conservation, Nuclear Test Ban, Ozone Layer Protection, Tropical Timber 83 and Tropical Timber 94. Has signed, but not ratified, Biodiversity and Law of the Sea.
Languages: Economic data Gross Domestic Product GDP GDP - per capita GDP - composition by sector Inflation rate (consumer prices): Labour force: Unemployment rate: Industrial production growth rate: Environmental Indicators Area:
Natural resources Land use: Total energy consumption Energy-related carbon dioxide emissions Fuel share of carbon dioxide emissions Status in climate change negotiations
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REGION
COMPANIES OPERATING IN THE AREA
IN ASIA PACIFIC
SAIPEM GROUP
Saipem operates in the Asia Pacific region through the following Local Companies: PT Saipem Indonesia and PT Sofresid Engineering located in Jakarta (Indonesia); Saipem Malaysia Sdn. Bhd. and Saipem Asia Sdn. Bhd. both located in Kuala Lumpur (Malaysia); Saipem Singapore,
Saipem Asia Thailand Branch in Bangkok (Thailand) and Saipem SPCM Australia Branch in Perth. This case study focuses only on the companies which have the most significant environmental, economic and social impacts on the community, mainly PT Saipem Indonesia, PT Sofresid Engineering, Saipem Malaysia and Saipem Asia.
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COMPANIES ORGANIZATION
The following chart represents the typical organization and structures of Saipem Group Companies in Asia Pacific Region.
Managing Director
Administration, Finance and Control (AFC) Quality, Health, Safety and Environment (QHSE)
Assets (ASST)
Offshore Operations
Commercial (COMM)
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21 SUSTAINABILITY
in China to Lamma Island in Hong Kong with 1x12 tee, 0.7 km pipeline Future line from Lamma Island to sub sea termination, 18 cable crossings on mainline, Pre-trenching & backfilling of shore approaches at Lamma (0.6 km) and Shenzhen (2.34 km), Post-trenching of entire remaining mainline, Rock dumping of 13 km offshore at Lamma navigation channel and at crossings, Natural backfill for rest of mainline, Anchor model tests to finalise required rock berm at Lamma & Shenzhen approaches, and Lamma channel, Pre-commissioning of both pipelines, and Commissioning assistance of mainline. Sakhalin II Pipelines Project on behalf of Sakhalin Energy Investment Company Ltd. (SEIC), comprising engineering, procurement, installation and construction of a pipeline system connecting the Lunskoye and Pitun-Astkhskoye platforms to the island of Sakhalin; the onshore approach was completed in 2004 by utilising the derrick lay barge Castoro II; the Sakhalin II Topsides project on behalf of Samsung Heavy Industries, comprising the transport and installation of topsides for the Lunskoye and Piltun-Astkhskoye B platforms, the latter being the largest platform ever installed with the float-over method Projects completed in 2005 Conoco Phillips Bayu Undan: gas export to shore at Wickham Point on the Middle Arm Peninsula near Darwin, Australia via a 502.3 km submarine pipeline. The Gas Export Pipeline feeds gas into a LNG facility which receives, meters and regulates the arrival pressure of the gas. The Multiplex - Saipem Joint Venture was responsible for the installation and pre-commissioning of the Construction 26 gas export pipeline. Shell Serawak: Provide Heavy Lifting Barge (Castoro-8) and associated equipment for installation of A Jacket & Platform, location around 100km offshore North of Miri, East Malaysia. Provide Project Management with respect to the Castoro-8 vessel. Review of Installation Engineering Procedures. Provide the Castoro-8 vessel for Charter by TLO Snd Bhd, inclusive: Marine crew, permanent onboard equipment, NDT equipment & personnel, ROV, upending clamp and vessels consumables. Dong Fang & Lu Feng: Provide Heavy Lifting Barge (Castoro-8) complete with Marine / Operational crews and an AHT 8000 BHP for the installation of Dong Fang WHPA (1300 MT) / WHPB (1300 MT) Jackets / CEP slug catcher. Lu Feng LF13-1 Module, and pipelaying of a 12km, infield pipeline from LF13-1 to LF13-2 Platforms (Pipe in pipe OD 16 and ID 12 ). Installation Engineering required to verify and/or study the installation requirement for C-8. PMT inclusive of Logistic & Procurement, QHSE Project Control. Supply of HLB Castoro-8 and one AHT 8000 BHP, associated equipment for installation works, marine crew, riggers, catering and installation supervision. TOTAL - Peciko 4 / Phase 2: Peciko field is located offshore at about 25 kilometers of the Senipah terminal. PCK4/EPSC2 consists of two new platforms SWP-E and K including MP and HP facilities and associated risers. EPCI of two jackets, one TDD (127.5 MT), two decks, one boat landing, Vent Boom, one Trunkline from Senipah to SWP-E (24 OD, 24.1 km), three 20 OD HP/MP sealines 15.1 km, two 24 HP/MP sealines. One 20" oily water disposal pipeline from Senipah terminal including the diffuser. Modification of existing platforms MWP-A,B & C and SWP-G to accommodate bipression facilities and the new trunkline/sealine system. All necessary risers, piping, fittings, valves, instruments and pig receiver/ launcher for the following identified future pipelines. PTT E&P - Bongkot Platform & Pipelines: The Bongkot Field is located in the Gulf of Thailand, 150 km off the eastern coast of Thailand, 180 km North East of the town of Songkhla. Water Depth ranges from 70 to 80 meters. LOT 1: Sour Process Platform SPP and Bridges: Saipem was responsible for transportation and installation of the LOT. Hook-up and pre-commissioning was part of SMOE Scope of Work. LOT 2: Sealines WP9 to WP13 and WP13 to SPP: The full LOT was SAIPEM Scope of Work. This included design, procurement, fabrication and installation of both pipelines. Transportation and Installation of the new flare boom on WP9 platform including the removal of the old one. LOT 3: Existing Platform Modifications: Design, procurement, fabrication, transportation and installation of the new 20 Riser on WP9 platform. ERHA, YOHO: completion of the hull fabrication in a Singaporean shipyard, as part of the EPIC type project Erha, on behalf of Exxon Mobil, involving the engineering, procurement, construction, transport and commissioning of an FPSO installation on the Erha field in Nigeria. Projects signed in 2005 THAI Oil: New Offshore Crude Oil Unloading Facility Project EPCI of : Pipeline dia. 52 x 1 WT, X65, sour service, length of 14.4 km with concrete coating of 6 x 12 km and 5 on shore approach segment. WEIZHOU & Bajiaoting Pipelines: Provide Castoro-10 complete with Marine / Operational crews and an AHT 8000 BHP for the pipelaying works of 9km 6 OD pipeline 5.6km 6 OD pipeline and 18.3km 12 OD pipeline. The optional Bajiaoting Project covers the installation of 2 lines of 8 OD pipeline at 7km each. BP Berau / Tangguh Platforms & Pipelines: The Tangguh Gas Production Facilities Project is located in the bird head area of Papua, 3000 km from Jakarta. EPCI of 2 wellhead platforms and pipelines: Clad pipelines (2 nos.) and Submarine Cables (3 nos.) 19km offshore (+7km for
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SUSTAINABILITY 22
S
inter cable) & 1 km onshore. Platforms and Onshore site Facilities: 2 nos. Wellhead, 6 legs jackets (1600 MT) and 1800 MT Topsides.
Offshore Construction fleet operating in Asia Pacific Saipem 3000 Mono hull derrick pipelay ship capable of laying rigid and flexible pipes in deep waters and lifting structures of up to 2,000 tons Castoro II Derrick lay barge capable of laying pipe of up to 60 diameter and lifting structures of up to 1,000 tons Castoro Otto Mono-hull derrick pipelay ship capable of laying pipes of up to 60 diameter and lifting structures of up to 2,200 tons Castoro 10 Trench barge capable of burying pipes of up to 60 diameter and laying pipes in shallow waters Semac I Semi submersible pipelay vessel capable of laying large diameter pipes in deep waters S-45 heavy load transportation barge
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RELATIONS
MATRIX ON SUSTAINABLE IMPACT
Clients requirements
> Sustainability commitment > Time & Cost observance > HSE Performance & Targets
STAKEHOLDERS
CLIENTS
Environmental impact
> Using of natural resources > Air emissions > Noise and dust > Waste production
Saipem Policy
Client satisfaction
Saipem Policy
Local Purchasing
Subcontractors requirements
Growing Sustainability
Social Impact
> Moral integrity > Equity HSE commitment > Increased professionalism & Know how > Development of new business
EMPLOYEES
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SUSTAINABILITY 24
SAIPEM
25 SUSTAINABILITY
CLIENTS SATISFACTION
PT Saipem Indonesia certificated its quality system in 2003 according to the ISO9000 standard. The management system has been always characterised by a special care in the relation with the clients through a well organised system of measurement and monitoring of the customers satisfaction. This is carried out through the use of customer satisfaction survey at commercial phase and offshore operations. The analysis of the result of the result of the clients consultation through the costumer satisfaction provide interesting information and input to the senior management with the target of continued improvement of the quality of the projects developed. Saipem operations in Asia Pacific are developed for either local public companies or private international Oil&Gas companies and most of the time acting as an EPCI contractor. However in certain cases Saipem can also be working for clients who are indeed Oil and Gas Contractors like Saipem. In this latter cases Saipem is mainly acting as a simple installation contractor. The list of main Saipem Companies clients is presented below: In Indonesia: Total, Gunanusa, Conoco Phillips, BP In Australia: Woodside Conoco Phillips Clough BHP Billiton In Thailand TTM Ltd Trans Thai Malaysia PTT E&P Public Company Limited PTT Ltd Thai Oil Ltd In China & Honk Hong COOEC - China Offshore Oil Engineering Co HEC In Malaysia TLO In most of the cases, clients are responsible to establish and keep the relationship with the local authorities and the local communities. Usually International Oil & Gas Companies are dealing directly with local structures. In order to become a stakeholder of a Oil & Gas reservoir, to get all permits and right of ways, to construct the project and eventually operate in the country, its requested a lot of involvement and deals between the O&G Companies and local Authorities and Communities. So since the very beginning privilege talks and relationships are established at Clients level. In all projects the relationships with local communities or authorities are particularly important for a smooth performance of the operations. This is now the case for the Tangguh project where as described above the Client BP Indonesia has developed a specific program for the local communities requiring the contractors to follow the same. Nevertheless in some cases the relationships with local communities are left under the Contractors responsibilities. This was the case for the previous projects in Thailand and for all the projects in Australia where Saipem had to coordinate and manage all so called Industrial Relations.
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List of 100% Local Subcontractor Indonesia Subcontractor Type of Subcontractor PT. Gunanusa Utama Fabricators. Cilegon. Fabrication, Construction, Loadout & Seafastening of Jackets & Platforms. PT. Ninda Pratama, Batam Installation Aids, Logistics base PT. Bredero Shaw, Batam Line pipe & Bends Coating works. PT. Noble Denton Utama Marine Surveyor Services PT. NACAP Indonesia HDD Offshore & Onshore Pipelay works PT. Penkonindo (Van Oord) Rock Dumping works PT. KBR / Granherne Pty. Ltd. HSE Engineering PT. Eskimo Wieraperdana HVAC Package PT. Transtel Engineering Telecommunication works PT. Fugro Indonesia. Pre-engineering Surveyor PIH Indonesia Field Joint Coating Services PT. Wide & PIN Independent Inspection Services Citra Panji Manunggal, Balikpapan Onshore Construction H & H, Balikpapan Fabrication Services PT. Inamco Field Joint Coating Services Malaysia Subcontractor MPE Lindung Sdn Bhd. Allied Marine & Equipment Sdn Bhd. Singapore Subcontractor Bredero Shaw (Singapore) Pte Ltd. Offshore Joint Services (OJS). Eastern Navigation Pte Ltd. Sonsub International Pty Ltd. Noble Denton Singapore Pte Ltd. SMOE
Type of Subcontractor Line pipe & Bends Coating, Anode Installation. Field Joint Coating Services. Line pipe Transportation. ROV Services Marine Survey Services. Construction
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INDICATORS
SAIPEM ASIA PACIFIC GROUP QHSE MANAGEMENT SYSTEM
PERFORMANCE
The international approach and the complexity which characterize Saipems activities have led the Company to the development of an efficient management system. Saipem Quality, Health, Safety and Environment Management System is structured on three levels to assure a consistent
performance level throughout all the Companys operations: Corporate Level, which defines policies, guidelines and standards for all Saipem Operating Companies; Operating Company Level, which defines policies, goals, procedures and work instructions to be adopted in each Operating Company; Project Level, which defines specific plans and procedures for each project.
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The System operates in compliance with both Local legislation and Clients requirements. Its effectiveness is guaranteed by the data acquisition and the performance monitoring system implemented by the Corporate Departments. The QHSE MS has reached a high level of implementation across the Company, because all the employees are involved in a communication and training process which aims at enhancing their QHSE awareness. PT Saipem Indonesia achieved the certification of its quality and environmental management system according to the international standard ISO9000 in the 2003 and ISO14001 in the 2004. PT Saipem certified also its safety system according to the OHSAS 18001:1999 standard in the 2004. The management systems are also supported by the implementation of different policies as: PT Saipem Indonesia Quality Policy PT Saipem Indonesia HSE Policy PT Saipem Indonesia Environmental Policy PT Saipem Indonesia Alcohol and Substance Abuse Policy PT Saipem Indonesia Emergency and Crisis Policy PT Saipem Indonesia Smoke Free Policy
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Continual Improvement
Continue certification to ISO 14001:2004 (Upgrading) Environmental Management System and OHSAS 18001:1999 Occupational Health & Safety Management System Integration of Quality Management System of Saipem Indonesia and Sofresid Engineering Improvement of Management system within APAC Region Promoting awareness towards the implementation of the Quality and HSE Management Systems within the Company Ensuring Company Management system document structure comply with corporate document system structure and Management Ensuring the requirements of Company are clearly defined to Projects in order to prevent disconnection/disjoint of management systems between Company and Projects Ensuring consistent implementation of the Internal System Audits Ensuring consistent implementation of the APAC Regional System Audits Achieve LTIFR target (<1.0) of APAC via HSE Proactive Indicators Assess, monitor and safeguard employees health through Health Performance Indicators implementation.
ENVIRONMENTAL INDICATORS
The accounting of the environmental data took into consideration activities related to the management of the offices Saipem has in the Asia Pacific Region and operations related to the vessels working in the area. The environmental impacts of offices are mainly related to the energy consumption and are not considered relevant in a general evaluation of projects environmental impacts. Most significant environmental aspects are related to the vessels operations in term of energy consumption and waste produced. Environmental data are not comparable within different years because in Asia Pacific Region each year is characterised by different projects developed by different vessels.
ENERGY CONSUMPTION
The energy consumption of the offices located in Jakarta, Kuala Lampur and Perth was about 150 tep of electric energy in 2004. More important are the energy consumption of the vessels that are considered in this analysis. The total energy consumed in 2004 was about 24,200 tep, 50.7% of which consumed as diesel, 49% as fuel oil with a low sulphur concentration and 0.2% of electric energy self generated by the vessels.
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WATER CONSUMPTION
Also concerning water, the consumption related to the activity onshore is just for office use of service water that in 2004 was about 3,200 m 3. All vessels operating in the area consumed in 2004 about 1million of m 3 of water, this data includes also water from sea and not desalinated for use as ballast water that is discharged after the use. For this reason it is better to say that the water consumption of the vessels is about 76,500 m 3 in 2004.
Desalinated Sea Water 6% Non Desalinated Sea Water 93% Service Water 1%
WASTE GENERATION
Jakarta and Kuala Lampur offices generated in 2004 about 2.15 tons of non hazardous waste, most of which composed by paper and plastic. All Saipem vessels operating in the area produced about 1,850 tons of non hazardous waste and 7,150 of hazardous waste. Concerning non hazardous waste most of them are non ferrous metal refuses (20%), ferrous metal refuses (18%), cooking organic waste (17%) and other non hazardous waste of different type. The hazardous waste from Saipem are generated by vessels in the offshore operation and are mainly oily water (94%) small percentage of oil filters and exhausted oil from engines. The total amount of hazardous waste in 2004 is about 7,160 tons.
2004 Non hazardous waste - Offices 2004 Non Hazardous waste Vessels 2004 - Hazardous waste Vessels
Ferrous metal refuses / waste 18% Non-ferrous metal refuses / waste 20% Paper and cardboard 2% Wood 3% Plastic 8% Absorbent waste 1%
Vessels hold cleaning waste 1% Mixed urban waste 11% Used tires 1% Cooking organic waste 17% Other non-hazardous waste18%
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AIR EMISSIONS
Saipem operation is characterized by a small impact due to air emissions because the only emission generated by Saipem activities are linked to the combustion of oil products. Data on CO, NOx and SO2 are presented in the following graph and generally less then 1,000 tons in one year. Regarding the Green Houses Gases (GHG), in 2004 the emission of CO2 was about 78,000 tons; this data, as the other presented in this paragraph are calculated on the basis of energy consumption, through the formula available from the most recent literature. Again the emission considered are produced by Saipem vessels, emissions from Saipem activities within Jakarta and Kuala Lampur office are not considered because very small.
1000
800 Ton
600
400
200
CO
NOx
SO2
ECONOMIC INDICATORS
The evaluation of the economic impacts of the Saipem companies operating in the Asia Pacific region takes into consideration the local charge Saipem incurs in the development of its activities. Another aspect considered in this evaluation is related to the HSE expenditures.
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The following graphs compare the expenditures Saipem had in the Asia Pacific Region with the others costs paid outside the region. Local costs represent 75% of the expenditures Saipem companies had for work related issues. 50% of the costs for materials are local costs and 14% of the expenditures for services are local.
HSE EXPEDITURES
Local costs 14% Non local costs 86%
Saipem HSE management requires investments and current expenditures that represent another important indicator of the sustainability attitude. Main safety and environmental expenses are related to the vessels operating in the Asia Pacific region, in particular in 2004 main safety expenditures were related to the PPE (Personal Protective Equipment)that represent the 67% of the total and to the safety training as the 12% of the total. Regarding the safety investments, the more relevant value is connected to the fire fighting systems that are the 67% of the total. Saipem vessels involved in 2004 operation in the area totally spent for safety about 522,000 US$.
2004 Safety Current Expenditures - Vessels 2004 Safety Investments - Vessels
Personal Protective Equipment 67% Safety Training 12% Safety equipment: gas detention 10% Periodic Maintenance & Control 3% Safety equipment: other 3%
Safety equipment: Advertising signs & posters 2% Safety equipment: Ergonomic equipment 1% Safety equipment: Fire fighting equipment 1% Other current expenditures 1%
Fire fighting systems 67% Rescue & evacuation systems 14% Advertising signs & posters 11% Plants' Safety Improvements 8%
Regarding the environmental expenditures, in 2004 mainly were related to the management of water discharge (62%) that is a peculiar problem for the offshore operations by vessels. Another significant voice is the management of the supplying water that represent the 37%, finally the third voice of cost is the management and disposal of waste. Waste and water also determine the main environmental investments on board of Saipem vessels; especially the supplying vessels treatment plants represent almost the totally amount of the environmental investment for the 2004 that was about 230,000 US$.
Water discharge management 67% Supplying water treatment and management 37% Waste management and disposal 1%
Supplying water treatment plants 92% Waste treatment and disposal plants 7% Wastewater treatment plants 1%
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SOCIAL INDICATORS
EMPLOYEES DISTRIBUTION
Saipem is working to increase in each country of operations the percentage of local workers and their possibility to increase professionalism in the Oil & Gas sector. In order to represent this effort, the following graphs show the employees distribution in the offices located in Jakarta, Kuala Lampur, Perth, Bangkok and Singapore: 75% of employees in Saipem offices are locals. PT Saipem Indonesia has the biggest total number of employees that in 2005 were 284, 62% of them Indonesian, PT. Sofresid Eng. also has a large number of employees, 218 at December 2005 of which 92% locals. Saipem Malaysia has 23 employees all locals and Saipem Asia has 33 employees, 14 of which locals. PT Saipem Indonesia was characterized by an important increase in the number of employees involved between 2003 and 2005; in 2003 the workforce was of 109 employees compared to the 281 of the 2004 and the 284 of the 2005. A large number of local employees has a high position within the company; in all companies, 27% of the managers are locals. In particular Saipem Malaysia has four managers all locals while PT Sofresid has a percentage of local manager that is about 39%.
Employees distribution by age
25% 20% 15% 10% 5% 0%
0%
<25 26-30 31-35 36-40 41-45 46-50 51-55 >56
<1
1-5
6-10
11-20
>21
The total staff in Saipem companies is characterised by mainly by people between 31 and 40 years old (48%); 16% are employees quite young between 26 and 30 years old and 13% are the workers between 41 and 45 years old. The large percentage of Saipem companies employees has a quite short seniority in the companies at local level; between 1 and 5 years. The reason of this results is to be found in the short story that characterised Saipem companies in the Region. Data regarding Saipem vessels need to be considered separately due to the peculiarity of the operations that are managed on board. About 10% of the crews of the vessels operating in the area are local employees. This percentage is particularly important for Castoro 10 where local employees represent the 26%. The average age of personnel on board is between 30 to 40 years old. While the higher percentage of the crew has between 6 to 10 years of seniority.
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SAFETY PERFORMANCE
Saipem has in its core values for all operations the zero incident targets. This means an intense effort in organising a management system that can support the achievement of this objective. Main 2005 results are presented in the APAC (Asia Pacific) pyramid where performance indicators and proactive indicators are included. This scheme of safety and quality results is monthly presented to the top management for information and following actions. In 2005, regarding injury incidents, 3 lost time injuries were registered, one by the APAC Offshore Business Unit, one by subcontractors and one within Asset and Maintenance operations. 8 Restricted work Case were registered, 11 medical treatment case and 49 first aid cases. Non injury incidents are also included in the APAC pyramid as the proactive indicators achieved by the Saipem companies operations.
No. of Pro-Active Indicator: 1) HSE Training Hours 2) HSE Management Visits 3) Tool Box Talk 4) Job safety Analysis 5) HSE Meeting 6) HSE Inspection 7) SHOC Report
1,200,000
0.8
WMH
600,000
0.4
300,000
0.2
LA M M A
Ta ng gu h
ng ko t
PE CI KO
Bo
IC
PT
DA
RW
(T
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Worked Manhours
Frequency Rate
BA YU
EP
BP
TL O
VI
TT P
TM
IN
FR
900,000
0.6
800,000
2.0
600,000 WMH
1.5 FR
400,000
1.0
200,000
0.5
0.0
10
AC
TO RO
TO RO
SE
CA S
Worked Manhours
TRAINING
Training is very important in the management of Saipem business. Both HSE training and professional training is essential in order to achieve and keep a good performance and to assure a continual improvement of Saipem management. During 2004, in all operations in the area about 17,000 hours of HSE training have been developed, of which 83% on safety issues, 11% on environment and 6% on health. Most of this HSE training (87%) has been developed on board of the Saipem vessels operating in the area while the professional training has been organised mainly onshore in Indonesia. In 2005 HSE training hours were even more than in the previous year, registering about 26,766 hours.
CA S
Frequency Rate
HEALTH
Saipem has in its policy a special care in the assurance of the health of his employees. In Asia Pacific area, as in most of Saipem operations around the world, the health department is active to assure the good conditions of its employees with internal doctors and nurses and an internal management of the emergencies. The health care also involves Saipem subcontractors that are subjected to Saipem medical department periodic audits. The objectives of these audits are the evaluation of sites and local medical structures that includes: Medical facilities, Medical staff, Policies, Medicines and equipment, Health management (hygiene inspections, medical check-up, etc). Audits also considers the local medical structures as the hospital capability in handling emergencies, medical specialities and availability of equipment. The medical staff is also undertaken to develop health risk assessment, that includes the evaluation of the biological hazards, infectious contamination of the food, sexually transmitted diseases hazard, psychological hazards, chemical hazard etc. In 2005 a vaccination campaign has been carried out within Saipem employees. Saipem was offering the influenza vaccination to everybody, but, of course it was not compulsory. The results are: 213 Nationals (Indonesia) vaccinated; 73 expatriated vaccinated.
CA S
TO RO
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LTIFR=
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A Joint Stock Company with Registered Office in San Donato Milanese (MI), Italy Fully paid-up Share Capital Euro 440,958,400 Fiscal Code and Milan Companies Register No. 00825790157 Other offices: Cortemaggiore (PC) - Via Enrico Mattei, 20
Saipem S.P.A. Contact us: QHSE Dept.- Sustainability Team Daniela Mauri daniela.mauri@saipem.eni.it Tel. +390252044452 Fax. +390252034617 via Martiri di Cefalonia, 67 20097 San Donato Milanese (MI)
Societ per Azioni Via Martiri di Cefalonia, 67 20097 San Donato Milanese (Mi) Tel +39 02520.1 Fax +39 02520.44667 www.saipem.eni.it