SAIPEM Oil Gas - Asia Pacific

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ASIA PACIFICSaipem Sustainability TalentC a s e s t u d y

Asia Pacific

Saipem Sustainability TalentC a s e s t u d y


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

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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.




LETTER BY THE CHAIRMAN AND THE MANAGING DIRECTOR OF SAIPEM S.P.A.The industrial development of the Saipem Group reflects that of the Oil and Gas industry itself in many respects. This is especially true in frontier areas, where Saipem is committed not only to resolving technological challenges, but to contributing to social, cultural and environmental development. This also responds to the input of a growing number of stakeholders, whose interest is not limited to strict economic or technological performance, but also in the concept of sustainable development in our business. As clearly reflected in our Mission Statement, globally, Saipem is adopting an approach that combines sustainable development with other business needs. The methods are based on a simple but ambitious concept: embracing diversity; developing an everexpanding, truly international organization comprising multi-local teams working together to achieve predetermined targets. The Sustainability Programme that Saipem started implementing in 2001 is the result of thoughtful, comprehensive, internal assessment. The diversity of our projects and the specificity of environments in which they are performed, are the reason for adopting a Local Approach to Sustainability. Our path towards Sustainability has an over-riding objective: beneficial integration of our activities within a local context, and leveraging the Companys talents to create better opportunities for local communities. We need to evaluate and present our performance to date to our stakeholders, and to improve it in future. Pietro Franco Tali Chairman & C.E.O. Hugh James O'Donnell Managing Director

LETTER BY THE CORPORATE QHSE MANAGER OF SAIPEM S.P.A.Saipems approach to sustainability initiatives management provides the annual commitment of external communication so as to give a possibility to our stakeholders to examine closely Saipem reality. These case studies belong to the commitment of transparency, clarity and assurability we took last year with all Saipem stakeholders, developing a specific disclosure of the way Saipem is working in the frontiers areas. The reports published last year on Saipem activity in Nigeria, Peru, Kazakhstan and Azerbaijan already achieved of spreading out this commitment both at Saipem Corporate and at site level; both internally and externally; both through our initiatives and upon requests. We received interesting feedbacks from our readers and we tried to positively implement all suggestions within these new case studies, that represent detailed analysis supported by greater experience and knowledge. The utilisation of the sustainability case studies in the contracting phase for the new projects in the country suggests us to better point out the impacts Saipem has in the country on its economic, environmental and social development. The distribution to the local stakeholders, on the other hand, suggested us to facilitate the comprehension of the contents translating it in the country mother tongue. We translated the Peru report in Spanish for our Peruvian stakeholders and we are going to do the same for these new case studies. In particular the Angola case study will have a Portuguese version which is even nearer to our local readers. We also asked a third part evaluation of the case studies. This measure was undertaken to identify the points to be improved successfully and strong points to be included also in these new publications. The reporting activity of this year focused the attention on other three Countries where Saipem is operating and is contributing through its business to the local development: Angola, Asia Pacific Region and Oman. Angola represents for Saipem a great commitment for the future activities, all operations are growing especially in the offshore markets which involve increasingly more Saipem based locally companies and many of our vessels. Saipem considers the Asia Pacific region as one of the most relevant fields in the world for the offshore projects in place and for the support activities developed for the Far East as for example for the Sakhalin Island. In Oman Saipem developed an interesting onshore project which characteristics and the commitment of the project staff gives us the opportunity to collect and issues their socio-economic and environmental experience in a published case study. Saipem external communication is expected to grow constantly supported by an accounting system of these data and information that will be more and more reliable. This represents another challenge not only for my staff but also for all Saipem world. Sabatino De Sanctis QHSE Senior Vice President

Saipem Corporate Milan




LETTER BY THE GROUP RESIDENT AREA MANAGERAny possibility to understand the countries where we operate and to know better ourselves is an important investment to assure many kinds of improvement. This is the value I gave to the analysis that was carried out in order to prepare this report. We studied these countries from social, economic and environmental point of view and we tried to identify our points of strength and points of weakness. To this purpose we deeply investigated Saipem approach and behaviour in terms of HSE management, human resources strategy, business and operations management. I am convinced that any Sustainable Development could only be effective when the growth is profitable to all Parties involved, and when it is done in the respect of the people aspirations and in full respect of our planet. With this spirit, and after having gathered all information subject of this study, our next step will be for us to determine how we can improve our management of operations and the integration of our companies in the various countries under our Area with the aim of a sustainable development. The idea to share this experience with our stakeholders through the publication of this case study came out naturally. The analysis we developed embraced most of the countries involved in our both onshore and offshore operations, mainly Malaysia, Indonesia, China, Thailand and Australia. It is a very huge area with many different characteristics, social, cultural, political and religious. This diversity is one of the challenging factors when operating in such a large region, which must be seen as a stimulating parameter from which, we should take advantage by enhancing synergies and complementarities. We thought interesting to describe briefly our activities giving a better idea of Saipem contribution in this part of the world. I hope this effort will be somehow useful for our clients in order to recognised Saipem attempt to contribute to the development and the care of the people and countries where we are operating. We will distribute this document to our employees, especially the local employees, in order to give them the possibility to be more and more part of our Group and realize how Saipem is paying attention to grow in harmony with a sustainable development. Michel Lain Group Resident Area Manager Asia Pacific






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, Install