1126HSE-2001 Eng

H S E
HEALTH SAFETY ENVIRONMENT - 2001 REPORT

CONTENTS
Saipem
CONTENTS
Saipem Group - structure and activities
Main HSE achievements in 2001
The integrated Quality, Health, Safety and Environment Policy
Management of HSE data
10
Safeguarding health
13
Safety
18
HSE training
18
Injury statistics
19
Analysing injury statistics
22
ISM certification
23
Safety expenses
28
Commitment to environmental issues
33
Energy consumption
34
Water consumption
35
Atmospheric emissions
35
Waste production
36
Environmental expenses
37
Relative indicators
39
Verification of the report
48
In 2001 Saipem promoted many initiatives for

workers health and safety and environmental
protection, and this Report gives full details.
I would however like to highlight a few projects,
which are strategic for Saipems future, where
health, safety and environmental issues played a
fundamentally important role.
In the development of the Blue Stream Project,
which is now underway, an unprecedented number
of resources was involved and the technologies
used, environmental impact assessments in
sensitive territories and human resources working
from engineering up to implementation all
represented a thorough testing ground for us in
taking the best possible approach to ensuring the
safety of persons and protection of the environment.
Another project concerns deep water drilling,
which Saipem has invested heavily in, upgrading
its vessels so that they can operate in zero
pollution conditions, and with personnel fully
committed to achieving the best results in safety
management.
At Saipem, we have switched from a traditional
way of handling safety, based mainly on technical
aspects, to a more modern approach which deals
with risks in a systematic and interdisciplinary
way, linking technical factors to human ones, and
attributing increasing importance to workers
training. Awareness and information programmes
The growing interest in environmental issues

shown by the public and institutions is having an
ever-increasing and major impact on the world of
industry and on companies. Saipems steadfast
commitment is geared to seeking ways to minimise
the environmental impact of its activities, starting
from the design stage and not only after projects
have been implemented.
However, despite the improvements achieved in
2001, we are fully aware that we must not rest on
our laurels as far as Health, Safety and the
Environment are concerned; we must strive instead
to operate with a logic of continual improvement.
For this reason, we shall continue in futures years
to invest in training and improving the
competencies and technologies that aim to ensure
our clients are provided with a service which will
always meet their expectations.
Integrating Quality with Health, Safety and the
Environment is, in our opinion, a fundamental step
to guaranteeing increasingly better support for
performing activities in a context of total quality.
The upcoming certification of the Safety
Management System on board offshore vessels,
pursuant to the International Safety Management
(ISM) Code, and the subsequent certification
programme for the Environmental Management
system in accordance with the ISO 14001 standard
represent two further important steps in our
process of internal improvement.
These new commitments, with the full support of
myself and the Companys entire management,
reflect Saipems culture of striving for continual
improvement.
The Chairman
Pietro Franco Tali
are now a key part of our approach to improve

safety at worksites and the results in this Report
clearly show that we are on the right track.
LETTER FROM THE CHAIRMAN
The Health, Safety and Environment Report has

now reached its sixth edition a clear sign of the
Companys commitment to keeping open and clean
communication channels with its employees,
clients and public authorities as concerns the
protection of workers health and respect for the
environment.
This Report aims to underline the positive
approach taken with issues which are increasingly
becoming a major priority in Company
management.
Saipem
LETTER FROM THE CHAIRMAN
SAIPEM GROUP - STRUCTURE AND ACTIVITIES

Saipem

The Saipem Group is a global contractor providing
services to the oil industry in the fields of onshore
and offshore constructions, floating production and
onshore and offshore drilling. The Saipem Group
operates on national and international markets with
a systematic and integrated network of operating
structures.
The parent Company Saipem SpA controls three
companies directly and 35 indirectly and has a
100% share in 26 of these. The Group also
comprises 17 affiliates and jointly held companies
(as well as firms and consortiums it has minority
holdings in).
OFFSHORE CONSTRUCTION
The Groups fleet of state-of-the art vessels, at the

heart of its strategy for growth and development,
have made it a world leader in the offshore
constructions sector in both traditional activities
such as subsea pipeline laying and platform
installations, and high technology used for the
deepwater sector. The groups fleet of semi subs is
equipped with the most advanced technologies and
features: the Saipem 7000, with dynamic
positioning, a lifting capacity of 14,000 tonnes,
Offshore construction - Laid pipelines

km
2,400
pipeline laying using the J system and ability to

suspend an overall load of 4,500 tonnes during
pipe-laying; apart from April and May when it
operated on North Sea projects, the vessel was used
for preparatory activities and subsequent operations
of the Blue Stream Project; the Castoro Sei used for
laying large-sized pipelines and the Field
Development Ship, a special vessel for developing
subsea fields in deep waters, equipped with
dynamic positioning, a crane to lift loads of up to
600 tonnes and a system for the vertical laying of
pipelines down to depths of 2,000 metres. Saipem
is also prominent in the subsea sector, with
technologically advanced equipment, such as
remote controlled subsea vehicles, and workover
technologies using specifically equipped robots for
operations on pipelines in deep waters.
Besides the parent Company, the following are all
involved in the offshore constructions sector:
Saipem UK, Saipem Inc, European Marine
Contractors (a company jointly owned and run with
Halliburton Brown & Root), for which negotiations
to acquire the remaining 50% were finalised in
January 2002, Saibos Construes Maritimas
(a company jointly owned and run with Bouygues
Offshore), Saipem Malaysia, Saipem Asia, PT
Offshore construction - Installed structures

t
120,000
100,000
1,800
80,000
1,200
60,000
40,000
600
20,000
1996
1997
1998
1999
2000
2001
1996
1997
1998
1999
2000
2001
150,000
80,000
100,000
40,000
50,000
1996
1997
1998
1999
2000
2001
Saipem Indonesia, Saipem Luxembourg, Saipem

(Portugal) Comrcio Martimo Ltd, Sonsub, SaiClo
(a company jointly owned and run with the
Australian company Clough), with whom
agreements have been made for acquisition of the
remaining 50% in 2002, Saipem Energy
International SpA (the former Sasp Offshore
Engineering SpA with the remaining 50% acquired
from Snamprogetti), Saipem Energy Ltd (the former
Sasp Offshore Engineering Ltd with the remaining
50% acquired from Snamprogetti), Moss Maritime
(acquired this year) Petro-Marine (acquired this
year), Barnett & Casbarian (acquired this year) and
Intermare Sarda.
1996
1997
1998
1999
2000
2001
FLOATING PRODUCTION
After the good results achieved with its floating

production unit the FPSO-Firenze, the Saipem
group decided to expand and develop this sector of
activity, transforming its new vessel the
FPSO-Jamestown, which was commissioned in
December 2001, and constructing a new vessel the
FPSO-Mystras scheduled for completion in 2003.
These initiatives have all taken place through joint
ventures with Single Buoy Moorings.
In the Floating Production sector, the FPSO
unit-Firenze Produo de Petrleo (a company
jointly owned and run with Single Buoy Moorings)
120,000
Saipem
Onshore drilling
m
200,000
Offshore drilling
m
160,000

Saipem
Onshore construction - Laid pipelines
t
40,000
1,800
30,000
1,200
20,000
600
10,000
1996
1997
1998
1999
2000
2001
and the FPSO-Mystras II Produo de Petrleo

(a company jointly owned and run with Single Buoy
Moorings) both operate.
In order to strengthen its ability to penetrate the
market in Brazil and Angola, a new joint venture
with the Brazilian company Odebrecht was set up;
the acquisition of Moss Maritime will also help the
Company to significantly expand its technical
competencies in this sector.
OFFSHORE DRILLING
In the offshore drilling sector, the Group

operates in North Europe, particularly in Norwegian
waters, and in West Africa, North Africa, the
Persian Gulf, Peru and India. Saipems fleet
of drilling vessels includes the Scarabeo 5,
a 4th generation semi-sub which can operate in
water depths of 1,800 metres and drill down to
9,000 metres; the Saipem 10000 with dynamic
positioning which can operate in water depths of
3,000 metres; the Scarabeo 7 a semi sub which can
operate down to 1,500 metres. Besides the parent
Company, Saipem Nigeria with headquarters at
Lagos, monitoring the strategic area of West Africa,
Petrex operating in South America and Saipem
(Portugal) Comrcio Martimo Ltd which manages
drilling vessels, apart from the Scarabeo 5
Onshore construction - Installed structures
km
2,400
1996
1997
1998
1999
2000
2001
managed by Saipem SpA, are all active in this

sector.
ONSHORE DRILLING
In the onshore drilling sector, the Group operates in

Italy, Algeria, Egypt, Nigeria, Kazakhstan, Peru and
Saudi Arabia, with its parent Company, Saipem
Nigeria, Petrex, SaiPar (company jointly owned and
run with Parker Drilling Co), Saudi Arabian
Saipem, Saipem Perfuraes e Construes
Petrolferas Amrica Do Sul all active. Saipem SpA
in a consortium with Trevi SpA is also involved in
slim cheap drilling in Italy and Venezuela, using
technologically innovative equipment.
ONSHORE CONSTRUCTION
In this sector, the Group has consolidated its presence

over the years with the development of critical projects
in difficult environments, such as laying large-sized
pipelines and constructing oil plants. It operates
permanently in the Middle East and Nigeria and is
also currently working in Kazakhstan, Oman, Ireland
and Algeria. Besides the parent Company (acting alone
or with other international medical personnel), Saipem
Contracting Nigeria, Saudi Arabian Saipem, Saipem
Malaysia and Saipem Asia work in this sector.
SAIPEM
INTERNATIONAL BV
100%
EUROPEAN MARINE
INVESTMENT Ltd
100%
SAIPEM
LUXEMBOURG SA
100%
SAIPEM
UK Ltd
75+25%
EUROPEAN MARINE
CONTRACTORS Ltd
50%
EUROPEAN MARINE
CONTRACTORS
NEDERLAND BV
100%
GLOBAL PETROPROJECT
SERVICES AG SA Ltd
100%
ERS EQUIPMENT
RENTAL & SERVICES BV
100%
SB CONSTRUCTION &
MARITIME SERVICES
BV
50%
SAIPEM PERFURAES E
CONSTRUES PETROLFERAS
AMRICA DO SUL Lda
100%
SAIPEM ASIA
Sdn Bhd
100%
S A I P E M (P O R T U G A L )
GESTO DE PARTICIPAES
SGPS SA
100%
P. T. SAIPEM
INDONESIA
100%
SONSUB Inc
100%
SAIPEM
Inc
100%
FPSO - FIRENZE
PRODUO DE PETRLEO
Lda
50%
SAIPEM
AUSTRALIA Pty Ltd
100%
PETREX
SA
100%
PETRO-MARINE
ENGINEERING Inc
100%
FPSO - MYSTRAS
PRODUO DE PETRLEO
Lda
50%
SAIPEM ARGENTINA
S.a.m.i.c. y F.
99%
SAIPEM ENERGY
INTERNATIONAL Ltd
100%
BARNETT & CASBARIAN

ENGINEERING Inc
100%
FPSO - MYSTRAS
(NIGERIA)
Ltd
100%
SAIPEM
CONTRACTING
(NIGERIA) Ltd 97%
SONSUB
INTERNATIONAL BV
100%
SONSUB
Pty Ltd
100%
SAIBOS
COSTRUES MARTIMAS
Lda
50%
SAIPEM
(NIGERIA) Ltd
89%
SAUDI ARABIAN
SAIPEM Ltd
60%
SONSUB
ASIA Sdn Bhd
100%
SAIBOS FZE
100%
SAIPAR DRILLING
COMPANY BV
50%
SAIBOS
(SERVICES) SAS
50%
SONSUB SpA
100%
UPSTREAM
CONSTRUCTORS
INTERNATIONAL FZCO
50%
SAICLO
Pty Ltd
50%
SAIPEM
(Malaysia) Sdn Bhd
40%
SONSUB Ltd
100%
SAICLO
LUXEMBOURG SA
50%
SONSUB A/S
100%
MOSS MARITIME
A/S
100%
S A I P E M (P O R T U G A L )
COMRCIO MARTIMO Lda
100%
MOSS ARTIC
OFFSHORE A/S
50%
MOSS MARITIME
Inc
100%
MOSS OFFSHORE
A/S
100%
Saipem
SAIPEM ENERGY
INTERNATIONAL SpA
100%
INTERMARE
SARDA SpA
100%
SAIPEM
SpA
SAIPEM GROUP ORGANISATION
MAIN HSE ACHIEVEMENTS IN 2001

Saipem
MAIN HSE ACHIEVEMENTS IN 2001
In 2001 the entire Company structure was involved

in implementing the most significant HSE related
activities.
The activities are summarised below:
implementing and updating Saipem fleet
documentation;
continuing activities to obtain ISM (International
Safety Management Code) certification for the
Groups companies and fleet (Saipem SpA, EMC,
SB CMS BV);
auditing onshore and offshore projects and
operational vessel, to identify any shortcomings,
deficiencies and implement improvement actions;
conducting safety training programmes for
management and operative personnel; this
initiative involved a large number of Saipem
personnel, both onshore and offshore;
conducting audits at rigsites;
continuing environmental monitoring for:
- internal combustion engine exhaust fumes, by
measuring and analysing emissions;
- evaluating the noise risk at offshore fields and
in drilling;
- evaluating the environmental acoustic impact
for onshore drilling plants operating close to
urban centres;
- survey to update data on VDU medical
personnel, and eye tests for personnel using
VDUs for more than 20 hrs weekly;
starting up the Strategic Health Programme
(PSS), created to track direct and indirect costs
of the Groups medical division;

expanding activities at the peripheral QHSE unit
in Bucharest, Rumania, with recruitment and
training of new resources to be involved in
operative projects;
developing new software for environmental data
management; this software will provide for a more
efficient and reliable collection of information
and analysis of data in the annual Health, Safety
and Environment Report;
implementing ministerial no smoking
regulations in work places: no smoking notices
have been put up at the Offices at San Donato
Milanese, special areas for smokers have been
set aside and activities to promote an awareness
of the risks of smoking introduced.
The growing importance which Saipem gives
to QHSE issues has meant that safety performance
indicators have been substantially improved on,
quality non-conformities reduced and preventive
actions for health increased. This in turn has put
the Company in a prestigious position on the
international market as far as quality, health,
safety and environmental management at operative
sites are concerned. Apart from the many letters
of recognition about specific projects sent in to us
by Clients, our achievements have also been
confirmed by IPLOCA, that nominated us winners
of their Safety Award for best offshore contractor
in 2000.
The main objectives of the HSE system are therefore:

the systematic and accurate management of all
methods and activities for safeguarding health,
safety at work and protecting the environment;
development of own projects in line with current
laws, best technologies and practices;
a continual decrease in the number of accidents
with the ultimate aim of achieving zero accidents,
by adopting suitable measures for preventing or
lowering professional risks;
respect for the communities of the country where
operations are carried out, guaranteeing limited
impact on the culture and its traditions and adopting
measures for developing technical know-how;
QHSE: INTEGRATING QUALITY FOR HSE ISSUES

Saipem continued its work of improving, updating
and applying HSE (Health, Safety and
Environment) and Quality systems during 2001,
and its Quality system was awarded ISO 9001:1994
certification.
The Quality and HSE departments were merged
during the year to create a new area which
can meet with and better satisfy the needs
of a national and international market increasingly
focussed on quality, health, safety and
environmental issues.
At the start of 2001, the International Standards
Organisation (ISO) issued the new revision of its
international standard ISO 9001:2000, which has
become the world standard over the last fifteen
years and is used by leading customers as a quality
reference contract requirement.
As a result, Saipem, with the foundation of its
new QHSE department, has set itself the task
of updating the certification of its own Quality
System to the new standard by the end of 2002.
The main development lines for this upgrade
will be:
changing from the functions based approach,

to a process based approach for business,
and focus on activities for continual
improvement;
extending Quality training at all levels, with a
local centre to be setup in Rumania;
consolidating System Audit activities at an
operating company level, and starting up the
same planned, systematic activities at a
Corporate level;
introducing new systems for monitoring
Customer satisfaction and measuring supplier
performance;
introducing new, evolved computer
methodologies (Business Intelligence and
Datawarehouse) for using measurement
indicators at a process level;
creating a System for managing quality costs.
The second stage of this project (July 2001 December 2002) is now underway and is dedicated
to trying out the model in specific Pilot Projects
chosen from sales job orders, as well as investment
and maintenance job orders.
7
respect of Health, Safety and the Environment is a

responsibility of all Saipem personnel.
Saipem
The Companys commitment to improve its own

Health, Safety and Environment management system
has gained increasing importance over the years and
this is clearly reflected by growing investments in this
sector. Company management, apart from committing
itself financially, has used considerable human and
technical resources to safeguard the health of its own
employees and an efficient and tangible change in the
process of managing safety at work.
The key factor in the system adopted by Saipem is
continual improvement and this is based on the
following principles:
Safety, safeguarding Health and protecting the
Environment have the priority on all activities;
all accidents can be prevented;
compliance with national and international laws is
a minimum reference requirement;
T H E I N T E G R AT E D Q U A L I T Y, H E A L T H , S A F E T Y
AND ENVIRONMENT POLICY
THE INTEGRATED QUALITY, HEALTH, SAFETY

Saipem
THE THREE LEVELS OF THE HSE SYSTEM
CORPORATE
COMPANY
SITE/PROJECT
HSE POLICY
POLICY
OBJECTIVES
HSE GUIDELINES
RESPONSABILITY
STANDARD
WORK INSTRUCTION
HSE STANDARDS
limiting impact on the natural environment where

projects take place.
To attain these goals, whilst ensuring that Health,
Safety and Environment standards are uniformly
applied in all Saipem contexts, each Group company
has a suitable QHSE team directly reporting to
Company Management and liaising with the
Corporates QHSE department. The latter is
responsible for steering, co-ordinating and controlling
the entire HSE system of the Group, mainly providing
Company policies and operative support to ensure that
these policies are properly applied at worksites in
countries around the world.
At a Project level, Saipem uses the best technologies
and resources to ensure the development of an HSE
management system which is suitable for the scope of
work, host country and contract requirements.
PROJECT HSE
PLANS, MANUALS
Each new project offers the chance to capitalise on

good and bad experiences of past projects and identify
new initiatives and methods for achieving the goal of
safeguarding workers health.
Great importance is given to training the human
resources working on a project, involving personnel
in the Companys HSE objectives and defining
clear standards and organisational and operative
procedures.
We accomplish this by:
holding safety training programmes based on years
of operative experience and put to the test during
numerous projects;
conducting awareness campaigns for personnel on
environmental protection and safety at work;
running incentive schemes for both management
and the workforce, based on proactive involvement
in order to achieve an excellent safety
performance.
IMPROVEMENT
POLICY
HSE 1 Management
Commitment
HSE 2 Risk Management
PLANNING
HSE 15 HSE Management

System Review
MANAGEMENT REVIEW
HSE
CONTINUOUS
IMPROVEMENT
IMPLEMENTATION
& OPERATION
AUDIT CORRECTIVE ACTIONS

HSE 14 Audit
HSE 3 Human Resources

HSE 4 Communication
HSE 5 Environmental
Protection
HSE 6 Commercial
HSE 7 Engineering
HSE 8 Purchasing
HSE 9 Operations
Management
HSE 10 Subcontractors
HSE 11 Assets
Management
HSE 12 Emergency
Plans
HSE 13 Incidents
Management
Based on ISO 14001 and BS 8800
This all-round approach means that Saipems

procedures for the HSE management system can be
checked and all personnel made aware of and involved
in these issues.
To ensure the continual improvement of the health and
safety of workers and environmental protection, the
HSE management system is routinely reviewed and
revised based on its results and future goals.
Saipem
contractors correctly implement the health, safety

and environmental activities stated in the contract,
and to monitor contract HSE activities rather than
intervene.
HSE activities and performance are monitored and

controlled by continual auditing activity, at three
levels:
system audits: the purpose is to assess that general
procedures involving health, safety and
environmental protection issues, are correctly and
continually applied;
project audits: the purpose is to assess that work
instructions, safety regulations and safety and
emergency plans are followed, and standards and
laws on health, safety and environmental protection
complied with on site;
contractor audits: the purpose is to assess that
M A N A G E M E N T O F H S E D AT A

Saipem
MANAGEMENT OF HSE DATA

The HSE Report is a
document comprising
important information about
Health, Safety and
Environmental results and
performance.
The Report presents the
initiatives taken by Saipem
for Health, Safety and
Environmental issues and
reflects its commitment in
these areas. It is aimed not
only at Group employees, but also at Shareholders,
Customers and Local Communities who host
Saipems worksites, Institutions and Trade
Associations.
The Report has been drawn up following a
well-consolidated methodology based on Corporate
Standards and guidelines provided by other
authoritative bodies involved in environmental
issues.
The Report is divided into two parts:
a qualitative section describing the Saipem
Groups policy on Health, Safety and the
Environment, its main activities and particular
initiatives promoted during the year, in the area
of HSE;
a quantitative section with data on the
consumption of resources (water, energy), waste
produced, injury statistics and costs borne for
activities promoting the health and safety of
workers and environmental protection.
The reliability of information in the Report is
guaranteed by independent certification body.
This certification is based on guidelines issued by
the Forum on Certification of Environmental
Reports promoted by the Eni Enrico Mattei
Foundation and its purpose is to assess the
suitability of the methodology used to prepare
Company statements in the Report, its integrity,
10
clarity and
comprehensibility and
reliability of the data
management system.
This guarantees the
accuracy and correctness of
data in the Report, and
provides Saipem with useful
information about how it
can continually improve the
clarity of data and
readability of the Report.
A new information system for collecting HSE data
has been adopted by all Group companies, sites
and peripheral projects which shows how the
Group is striving to continually improve these
issues.
This tool has improved the reliability of data
collection and its processing, involving
all Group contexts in HSE reporting to a greater
extent.
Quantitative data is presented per type of activity
(offshore constructions, onshore constructions,
drilling, logistic bases/offices), so that the impact
generated by each activity can be understood more
easily.
The sections on waste produced, environment and
safety costs and water consumption have been
enhanced, while a new section detailing the activity
which a Site/project is focused on during each
period of the year has been included.
The section on comments to and interpretation of
quantitative data includes some improvements to
the way indicators have been devised. These
improvements account for the fact the
discontinuous nature of our business (temporary
worksites) means that annual absolute data
have to be weighed differently, depending on the
specific activity carried out. The indicators used
last year were kept so that data can be compared
over time.
Offshore Vessels
Pearl Marine
Castoro 2
Castoro 8
Crawler
FDS (Field Development Ship)
Saipem 7000
Castoro 6
Castoro 10
ONSHORE CONSTRUCTION
AY-1 P/L Conversion Project - KSA
Fahud Sohar Gas Pipeline Project - Oman
Hawiyah Project - KSA
Khuff Gas Project - KSA
Rehabilitation Phase II Project - KSA
Haradh GOSP Project - KSA
DRILLING
Offshore Drilling
Perro Negro 2
Perro Negro 3
Perro Negro 4
Saipem 10000
Scarabeo 3
Scarabeo 4
Scarabeo 5
Scarabeo 6
Scarabeo 7
Onshore Drilling
Petrex - Per
Rig AZ 5823
Rig AZ 5825
Rig AZ 5827
Rig AZ 5832
Rig AZ 5843
LOGISTICS BASES
AND
OFFICES
Logistics Bases
Saipem Algeria Branch - Hassi Messaud Base
Saipem SpA - Cortemaggiore - Italy
Saipem Kazakhstan Branch - Drilling Camp
ERS - Sharjah U.A.E.
Saipem Contracting Nigeria - Rumolumeni
Saipem SpA - San Vitale - Ravenna - Italy
Saudi Arabian Saipem - Dammam Base
Offices
Saipem SpA - San Donato Milanese
Saipem SpA - San Giuliano
ADGF Project Jacarta
ERS - Rotterdam
Intermare Sarda - Arbatax
Saipem Asia - Kuala Lumpur Office
Saipem Inc - Houston Office
Saipem Norway Branch - Stavanger Office
Saipem Turkey Branch - Samsun Office
Saipem UK - London Office
SonSub Ltd - Aberdeen Office
SonSub Inc - Houston Office
SonSub SpA - Marghera Office
11
Rig AZ 5846
Rig AZ 5864
Rig AZ 5870
Rig AZ 5889
Rig AZ 5891
Rig AZ 5892
Rig AZ 5893
Rig AZ 5894
Rig AZ 5895
Rig G-125
Rig n. 101
Rig n. 102
Rig n. 2
Rig n. 201
Rig n. 202
Rig n. 216
Rig n. 230
Rig n. 259
OFFSHORE CONSTRUCTION
Related activities
Blue Stream Project - Pipe Coating (Kuantan)
Blue Stream Project - Russian Onshore Pipeline
Blue Stream Project - Samsun QJ Base-Turkey
Saipem
PRODUCTION SITES INVOLVED IN THE COLLECTION

OF QUANTITATIVE DATA

Saipem
12
As for atmospheric emissions, Saipem has

conducted benchmarking with other sector
companies to further assess the reliability
of its own calculation model in more detail.
The new software application IES
(Inventario Emissivo Siti - Site Emissions
Inventory) produced by EniTecnologie
and Agips calculation model were the main items

evaluated. Results were satisfactory in both cases
with a difference of just a few percent.
It should be noted that data on energy consumption
and atmospheric emissions refer solely
to Saipems activities and not to the work
of subcontractors.
In 2001, the health prevention and protection

programme at Saipems operative sites worldwide
was further consolidated.
In order to work properly, with univocal
procedures understood by everyone and clear
guidelines for Group Company managers and
project managers on how to manage health matters,
it was decided to draw up Corporate Standards
on Health issues.
These standards are vital guide for the efficient and
careful management of health & hygiene,
preventive, training and organisational aspects of
emergencies at Saipem sites.
13
likewise the number of vaccinations rose from

1,504 in 2000 to 2,340 in 2001.
Analysis of current expenses and investments
indicates a fair increase in investments and slight
increase in current expenses justified by personnel
costs going up from 60% to 66.43%.
This is due to the greater number of operative
projects during the previous year, which created 30
new jobs for medical personnel.
Worth noting is that costs of materials and health
structures also had a 13.05% impact on overall
costs.
Saipem
In 2001 training and health prevention and

protection initiatives aimed at Saipem workers
throughout the world were consolidated.
The contribution from medical personnel has been
fundamental, with their skills and total dedication
to their work enabling systematic and constant
health monitoring that focusses on prevention
without neglecting treatment and training.
Besides strictly clinical aspects, medical personnel
also tackled health cost management efficiently, as
an analysis of these costs shows.
Two information sytems for collecting and analysing
data respectively ensure that health and economic
monitoring could take place.
The medical personnel can easily use these systems
in their jobs, to obtain continually updated
information at all times and at the same time
integrate and update head office with data collected
locally from their own work stations.
The systems also provide support for accurate
health control and management planning, with a
view to optimising costs and ensuring a good
quality of medical care.
Initial analysis of data for 2001 highlights an
increase in preventive activities. In fact, preventive
check-ups went up from 379 in 2000 to 1,573;
SAFEGUARDING HEALTH
SAFEGUARDING HEALTH
SAFEGUARDING HEALTH
Saipem
STOP SMOKING INITIATIVES

Non-smokers being exposed to passive smoking
(passive smokers) in the work place is a problem
which has to be carefully addressed by every
company.
Every nation has its own legislation and so the
Company simply has to follow the relevant
provisions.
As Saipem SpA has its administrative offices
in Italy, where no reference laws have yet
been defined, it has decided to adopt
its own policy.
The approach which is to be taken is a gradual
lead-up to ban smoking inside buildings where
Group companies are situated; this will be
preceded by a series of awareness measures and
providing support for smokers a greying group
targeted by doctors reports, advice from families
and remarks which are not always friendly from
colleagues.
As concerns the above, tense relations certainly do
not help to solve this problem: instead they only
make them worse: smokers are often well aware of
the risks they are taking and this is the very reason
why they are highly sensitive.

Campaign could be a chance for smokers to deal
with the issue efficiently and calmly, gradually
reducing the number of cigarettes they smoke and
perhaps giving up for good.
Saipem promoted many activities:
taking part in the no-smoking day with the
slogan Our lungs have had more than enough;
all personnel at the San Donato headoffices
were given an informative questionnaire in
October, written by the Safety and Prevention
Unit and by Workers Health and Safety
representatives.
The results of the survey were posted on the
Companys electronic notice-board;
following this survey, a ban on smoking was
introduced in Saipems offices at the
IV Building, San Donato, and some small rooms
for smokers set aside.
The Health Plan has been entirely updated and

integrated to meet new operative needs. The Plan
details the organisation of the Service, health
planning and prevention in the workplaces, the
management of medical emergencies and
procedures for using the units IT systems.
pharmacological products. Procedures for collecting

medical-statistics, hygiene data and information
about health management costs for each operating
context are also explained.
Special attention has been paid to Medical

Reporting, with specific standards devised for
medical equipment, consumables, instruments and
14
Along with other future initiatives, the ban on

smoking will be extended in the future to cover all
workplaces of the Saipem group.
A Standard has been set up for health checks,

indicating all the protocols used. These have been
based on the types of duties performed and specific
conditions of the geographic area where the person
works.
Moreover, if medical personnel have to operate on

their own when medical emergencies occur, it will be
hard for them to act effectively when managing a
critical situation (with several victims and
particularly serious emergencies).
At the end of the latter two courses, there is a

practical and written exam, with first-aid certificate
issued to successful candidates.
Despite being on-call around the clock at rigsites

and on vessels, medical personnel may not actually
be present when an accident occurs.
For these reasons, personnel suitably trained in first
aid must be present during each shift, apart from
medical staff.
So three first-aid training levels have been

established; general for all employees and especially
for new recruits as part of their HSE induction
training; basic for all personnel with managerial or
control tasks, and specific for first-aiders.
All the certificates have an expiry date and holders

must attend a refresher course to renew them.
First-aiders will have stickers on their helmets and
work overalls at work, so they can be easily
identified.
The number of first aiders is based on the number of
people at the work site, taking into account shifts
and the average rate of absences due to holidays,
sick-leave, etc., with a minimum of two first-aiders
every forty people (plus one for every additional
group of twenty people) per shift.
For this purpose, Saipems medical service, in the

framework of the QHSE Division, has drawn up a
First Aid programme:
for all employees involved in a project, with
particular focus on people who show a natural
inclination for being first aiders;
to promote the characteristics of medical staff
and nurses involved in the programme, defining
the records to keep and relative reporting;
to define the roles of the Corporate and Operating
Companies/Projects in defining and developing
the programme.
To make the courses uniform and training easier,

QHSE has released a CD called Saipem med
with all programme modules available for all
peripheral units.
The aim of the above is to ensure that a training

programme is carried out and that the first aid
training programme is at the same level for the
personnel of all Operating companies and Saipem
Group projects.
Headoffice is providing the peripheral units with

audiovisual material to make the courses more
interesting, as well as posters showing the main first
aid techniques; the peripheral units will provide
other organisational and technical support material.
The purpose of the first-aid training programme is to

provide Group Company employees with general
information and to provide first aiders with in-depth
information, especially about the techniques and
Due to the importance and susceptibility of this

issue, a dedicated Standard (STD-COR-HSE-007)
has been drawn up for the Corporate, and work
instructions for the Operating Companies.
The topics are revised and updated routinely, based

on the latest discoveries made in the field of
emergency treatment and therapy.
15
procedures to adopt in different situations where

they may have to act.
Saipem
All personnel living and working in areas at risk,

with limited local medical support, should be given
good first aid training, in addition to extra training
for rescue operators; in fact the first aid given during
the first ten minutes, known as the platinum
minutes, can significantly reduce the need for urgent
hospital treatment or at least prolong the time before
the patient needs to be hospitalised.
SAFEGUARDING HEALTH
AN INTELLIGENT FIRST AID COURSE
Health expenditures - 2001
no.
2,500
thousand euro
6,000
2,000
5,000
4,000
1,500
3,000
SAFEGUARDING HEALTH

Saipem
Structure of actual health

expenditures - 2001
Medical examination - 2001
1,000
2,000
500
1,000
Research & Dev. 1%
1997
Medical fitness
1998
1999
2000
Periodical visits
2001
Vaccinations
Consumables 1%
Medical personnel costs 65%
Medical structures 5%
Another important standard concerns

Health-Hygiene monitoring, which lists
the requisites and routine controls to conduct
in communal areas to ensure a suitable
hygiene-sanitary level.
The standard deals in particular with the quality
and storage of food, as well as the properties and
treatment of drinking water.
The Emergency Plan training programme aimed at
16
Medical exams 14%

Medicines 7%
Other expenses 6%
Work environment
monitoring 1%
1997
Investments
1998
1999
Actual
expenditures
2000
2001
Total
all worksite personnel, and in particular at some

positions directly involved in handling emergencies
has been updated and scheduled.
These guidelines, approved by Human Resources
Management, are a tool for creating better quality
and precision when working, and outline the
procedures for guaranteeing and ensuring the
protection and safeguarding of all workers health
in a professional and competent way.
The VDU in itself is not a threat to our health:

qualified studies have dispelled doubts about
excessive exposure to electro-magnetic waves as a
result of using PCs.
However, incorrect use can cause a series of
psychological-physical disorders.
The most common are muscular-skeletal related,
disturbances to sight and mental fatigue.
These symptoms are sometimes due to an
unsuitable environment, and the legislators have
taken action over this aspect in a very clear way,
issuing Guidelines for using VDUs (Decree 2
October 2000).
These guidelines specifically define some
parameters such as the size of the work surface,
position of the work station in relation to light and
the microclimate of the work place.
As part of the Saipem QHSE departments
prevention programmes, and in accordance with
applicable laws in Italy (Legislative Decree 626/94
and subsequent amendments, with the EEC law of
21 December 2000) in relation to protecting the
health of employees using VDUs at work, eye tests
were conducted for all personnel at the San Donato,
San Giuliano and Cortemaggiore offices, exposed to
this risk at work.
Operative procedures for this programme were
agreed on with workers safety representatives, the
A preventive ergonomic study was conducted by

Headoffices QHSE department, prior to these tests,
at workplaces and on equipment used by personnel.
All measures (i.e. position of the VDU screen,
replacing chairs with adjustable ones (height and
chair-back, availability of suitable items to make
the working environment more comfortable etc.)
required to ensure that equipment meets the
standards enacted by current laws have been taken.
A questionnaire was then handed out to all
personnel using VDUs to evaluate the length of
time they used them for.
All employees systematically using VDUs for more
than 20 hours a week were included in the study.
New recruits were excluded however, as they had
tests done during their pre-employment check-up.
A surgery was set up at Headoffice, fitted out with
all equipment needed to correctly evaluate the
ophthalmic and ergonomic status of each employee.
This approach cut times for employees and more
check-ups could be performed.
The programme also included check-ups for 530
staff considered at risk; the appointed doctor will
inform the workers health and safety
representatives about the results and will assess
these to define the frequency of future check-ups
based on the results and legal provisions.
17
Manager of the Prevention and Protection

Department and the Appointed Doctor.
Saipem
With the advent of Internet and e-mail over the last

few years, the time spent in front of a PC during the
working day has gradually increased and it is now
quite inconceivable to think of doing most jobs
without the aid of a computer.
SAFEGUARDING HEALTH
HEALTH MONITORING FOR EMPLOYEES USING VDUS.

A SHORT GUIDE TO USING VDUS PUBLISHED
ON THE INTRANET

SAFETY
Saipem
SAFETY
18
2001 was an important year for consolidating and

implementing policies and guidelines which Saipem
Corporate had already defined in its own
organisational system.
The driving factor behind activities in this sector
last year is the principle that Quality, Safety and
Environmental problems often have a common
origin and so a modern and integrated management
system can tackle and solve them.
Within this type of management system, HSE
initiatives should be considered as a critical part of
the general process of carrying out projects, which
must permeate all stages, from planning to
technical design, procurement, construction and
commissioning.
To achieve concrete results we cannot just manage
problems formally, issuing directives and
regulations. Initiatives must generate involvement
and the trust of everyone who works on project
development. In other words and particularly for
safety issues, a widespread safety culture must be
created.
This is the very aim which 2001 training activities
for all workers at Headoffice and operating
countries were based on.
HSE TRAINING
One of the key goals in carrying out and

managing a job order is suitable training and
continuous updating for all employees, in order to
promote a high level of know-how on health, safety
and the environment.
Personnel training is based on duties and
professional roles, following guidelines and HSE
standards of the Saipem Group and often its clients
as well.
Immediately following their recruitment, employees
attend work-specific courses to ensure they can
carry out their jobs safely and to high quality
standards.
The main topics of HSE training courses are:
HSE introduction and orientation;
safety supervision;
safety management;
communication;
operative safety procedures;
road safety management.
Hours of training HSE courses - 2001

hours
30,000
20,000
15,000
10,000
5,000
Nigeria
The training hours in 2001 given by Saipem are

shown in the figure, which plots the data recorded
at training centres set up in some countries where
major activities have started in recent years. The
data refers to formal safety programmes in line with
Company standards and does not include all
training activities conducted at operative sites by
safety personnel assigned to projects.
INJURY STATISTICS
Saipems safety management system aims to pursue

better results and continual improvement of
Company injury statistics in relation to operative
activities. In setting great store by the Groups HSE
policy and implementing the many actions
described in this Report, the entire Groups safety
GPS AG
Saudi Kazakhstan Petrex
(Offshore Arabian (Drilling)
Personnel) Saipem
performance has improved considerably compared

to previous years.
SAFETY
Italy
The data in this Report refers to injury statistics

recorded within the Saipem Group and are
representative of nearly all operating contexts,
including statistics for sub-contractors involved in
Company projects. In some cases, minor, short-term
activities may not have been included in the
statistics, as they were not considered to be of
interest.
The frequency and severity rates are internationally
recognised indicators for injury performance in
industrial contexts. However they only partially
represent the trend of safety activities in an
operating context and in particular only reflect the
FT
-2
Fatal accidents
LTI
- 167
Lost time injuries
WRC
- 21
Work restricted cases
MTC
- 84
Medical treatment cases
FAC
- 4,832 First Aid Cases
NM
- 2,579 Near Miss
UER
- 4,204 Safety Observations

Reported
19
Saipem
25,000
Safety rates
Onshore Constructions Business Unit
F.R.
6
S.R.
0.12
F.R.
2.5
S.R.
0.05
0.10
2.0
0.04
0.08
1.5
0.03
0.06
0.04
1.0
0.02
0.02
0.5
0.01
1997
SAFETY
Saipem
Saipem Group safety rates
20
1998
1999
2000
2001
1997
1998
1999
Frequency Rate
Frequency Rate
Severity Rate
Severity Rate
negative side. In fact these indicators provide no

information about the actions taken to ensure
improved safety conditions. For this reason, Saipem
is taking a new approach to accounting for injuries.
Besides negative events at operative sites, it also
considers pro-active actions taken. This rationale
means that over the next few years, operating
contexts may be identified and evaluated with more
analytical detail. With this new approach, the
health, safety and environment management
requirements already used by major international
organisations are being adopted.
2000
2001
A symbolic representation of events recorded in

2001 is shown in the pyramid-shaped graph. The
events indicate both injuries and suggestions/
observations for improvements made by employees.
monitored. The analysis and investigation system

involves several organisational levels in relation to
an events severity. Overall, 170 incidents were
recorded during 2001 representing all accidental
events which caused the injured person to be absent
from work for at least one working day. In absolute
terms, this value decreased by 11% compared to last
years figure. Despite the many initiatives promoted,
two fatal accidents occurred with Saipem personnel
one on board the Castoro 6 vessel, and the other at
a pipe-coating plant of a subcontractor. In addition
two other fatal accidents occurred in relation to
subcontractor personnel however these cannot be
traced to activities strictly supervised by Saipem.
The diagram shows the performance of frequency
and severity rates over the last 5 years for the
entire Saipem group.
As can be seen, the system recording and analysing

events occurring in the Saipem Group is carefully
The same improvement trend was also recorded for

each Business unit as discussed below.
S.R.
0.14
F.R.
12
S.R.
0.30
0.12
10
0.25
0.10
0.20
0.08
0.06
0.15
0.10
0.05
0.04
0.02
1
1997
1998
1999
2000
2001
1997
1998
1999
Frequency Rate
Frequency Rate
Severity Rate
Severity Rate
Onshore Constructions Business Unit

As already mentioned, Onshore Construction
activities mainly include the laying of
large-diameter oil and gas pipelines, as well as the
construction of industrial, oil, petrochemical plants,
pumping and compression stations.
The diagram attached shows the frequency and
severity trends for the last 5 years in this Business
Unit, with a considerable improvement in injury
indicators. This was due mainly to the efficient
awareness campaign conducted to reduce road
accidents which still represent a major factor in
onshore construction works.
Offshore Constructions Business Unit
The main activities of this Business Unit include
the design, construction and installation of offshore
platforms, floating production systems, structures
and subsea pipelines. The Saipem Group has an
effective system of specialist companies to assist it
2000
2001
during the most important operative stages.

The diagram attached shows the trend of frequency
and severity indexes for the last five years in the
Offshore Constructions sector.
Drilling Business Unit
The unit is involved in onshore drilling, using
traditional oil exploration systems and offshore
drilling with a fleet that can operate in all water
depths, from shallow zones to the most hostile
areas in terms of water depth and environmental
conditions, thanks to new technology.
The fleet includes jack-ups, semi-subs and drilling
vessels.
The diagram attached shows the trend of frequency
and severity indexes for the last five years which in
general recorded a steady improvement.
The monitoring system allows for the in-depth
analysis of the main causes of injuries, so that the
Type of injury
The cause of the accident

%
20
%
50
45
40
35
30
25
20
15
10
5
16
12
8
Not trained for a job
Overestimation of
own forces
Failure of
communication
Vehicle
breakdown
Im
mo prope
vem r
ent
ct eForeig
nte n b
ring ody
into or
Cau
eye
ja g
in o mme ht, cr
r be d or ush
twe pin ed,
en ch
Con objeced
tap tact w ts
-wa ith
ter/ ho
vap t
our
F
leveall fro
l to m on
ano e
Strik
the
r
ing
a
oth gains
er o t/by
St
pro ruck b bjects
ject y t
ed hrow
or f n,
Fall
all
fromon th
o ing
slip e sam bject
pin e le
g
Car and s, trippvel
in
t
in toccup umbli g
ran ant
n
spo inju g
rt a rie
ccid d
ent
Oth
er
obje
La
ck
o
Inc f att
orr ent
i
ec
t w on
pr ork
o i
Un ced ng
sa ure
fe
w
c ork
Ex ondi ing
t
ce
ss ion
ive
Cr spee
us
d
Un an hed
ex oth wi
pe er th
cte ca
dr r
ea
c
o tio
Ina f too n
de ls
qu
Wo po ate
rki siti
n on
in g pla
dis ce
ord
We er
co ath
nd er
itio
n
Ot
he
r
Effect of
toxic
substances
Contact with
knife and cut
machines
Exposure to
electric
transmission
lines/electrical
shock
Jumping
Balance
loosing
Lifting/shifting
21
Saipem
F.R.
7
Safety rates
Drilling Operations Business Unit
SAFETY
Safety rates
Offshore Construction Business Unit
ANALYSING INJURY STATISTICS

SAFETY
Saipem
right preventive actions can be identified to avoid

repeat events. The types, most exposed duties and
worksite areas most at risk of injury are also
identified and classified.
The histogram shows as widely stated by
published sources that the main causes of
injuries are related to human factors and so
Saipems future initiatives will be focussed on this
very aspect.
22
Analysis of workplace injury statistics pinpointed

an aspect worth considering in more detail, in order
to properly integrate the workers health and safety
training and prevention programme.
When discussing accidents in the community at
large, a curious yet significant piece of information
comes to light: the high frequency of accidents in
the home: in absolute terms the number of
accidents in the home is just below those in the
workplace and this is due to under estimating risks
in a familiar and known environment and to paying
less attention when performing tasks we can do
easily.
The same psychological mechanism partly explains
the injuries which occur during Sapiems activities
outside strictly operative phases. Data from the last

two years show a marked drop in the number of
accidents occurring during manoeuvres which may
even be complex but are always related to carrying
out operations, while the number of events related
to side or preparatory activities, where routine
aspects dominate, is a cause for concern.
Another type of injury falls into this category
caused while driving vehicles because of excess
speed, distraction and at times being too sure of
ones own abilities.
All the different situations do have a minimum
common denominator, i.e. the severity of the
consequences which require careful analysis of
causes and circumstances and taking special
measures to effectively reduce the risk, even during
these stages of work. As always, information and
collaboration can play a key role in the successful
outcome of every injury-prevention campaign: for
this reason in 2001 Saipems Chairman addressed
the opening part of this Report to all managers of
the Companys operating activities, placing this
problem at the right level of attention.
Response was forthcoming: managers interpreted
this move positively, seeing it as a sign of
managements awareness of and commitment to
safety issues.
Statistical analyses of Group data, even in view of

recent events, show injury statistics which must be
reduced. Data study has made us reflect on the nature
and origin of these incidents, giving us a useful tool to
prevent re-occurrence.
Data show that operative phases of projects are in fact
carried out with care and efficiency, while the attention
level is lowered during routine activities and in
preparations for operative activities, causing accidents
which would otherwise appear avoidable.
I urge therefore that everyone should take up a more
active role in emphasizing higher levels of

responsability, awareness and attention in all job
phases, and especially in those where there may seem,
at first appearance, no risk involved.
It is our duty to ensure that, in the commitment with
which we dedicate ourselves in undertaking the
assignments given to us, there always be an
ever-growing emphasis and attention towards Safety,
Health and respect for the Environment.
The resulting pooling of opinions and ideas further

boosted the training and prevention activities
scheduled by the HSE department: plans have been
made to expand the training centres at Saipems
logistic bases where training sessions are presently
held on safety awareness in the workplace,
induction for new recruits and instructions on
safety standards.
As for offshore activities, the training sessions
already held on board vessels will be intensified
and integrated with specific training programmes
created by the HSE department in association with
specialist centres. Besides technical aspects for
correctly handling emergency situations, these
courses will focus on workers correct risk
evaluation to prevent a lack of concentration or
being too sure of abilities in order to minimise risks
related to activities which are apparently risk-free.
Special mention should be made about preventing
road accidents; this cause is still high with often
serious results: different factors play a part,
including the fact that the average driver will often
ignore the rules. In this case too, good results can

be achieved with suitable safe-driving courses
which teach participants how to manage unexpected
and risky situations to the best of their abilities.
SAFETY
Saipems mission, which it embarked on several years ago, is a high value commitment
Pietro Franco Tali
ISM CERTIFICATION
Following the serious accidents at sea of many

shipping companies as well as oil tankers, with
causes mainly due to management mistakes, the
International Maritime Organisation (IMO) the
supervisory body of all maritime legislation has
adopted the International Safety Management (ISM)
Code which requires certification of the Safety
Management System of companies managing vessels.
This code is a general guideline for defining a
Safety System and includes some very specific
aspects: first and foremost the need to clearly and
univocally define roles and responsibilities at all
levels, for both the Company and offshore vessel.
Secondly the need to create strong links between
vessels and the Company, with an Emergency
23
Saipem
THE FULL RESPECT FOR HEALTH, SAFETY

AND THE ENVIRONMENT
2001 can be considered as the year of the Blue

Stream Project a development which can
transport 16 billion cubic metres of gas from
Russia to Turkey, connecting up the largest
natural gas field in the Russian Federation to
Turkish consumers, via the Black Sea.
SAFETY
Saipem
THE BLUE STREAM PROJECT
The offshore constructions part of the project,

with a planned lifespan of 36 years, includes the
Beregovaya compression station and two subsea
pipelines, each 380 km long, which will be laid in
a maximum water depth of 2,150 metres in the
Black Sea from the Beregovaya compression
station (Russia) to the town of Samsun (Turkey).
Det Norske Veritas (DNV) has been appointed as
the certification body for the project and will
certify compliance of the Blue Stream pipelaying
system with DNV 1996 subsea pipelaying system
standards. Health, safety and environmental
protection have been and will be a key factor
throughout the Project.
Risks were identified before the start of works
and during activities, so that technical design
aspects are continually reviewed during Blue
Stream pipelaying to ensure all safety aspects
have been considered.
24
More than 2,500,000 working hours, involving

around 1,000 people, were registered for onshore
and offshore activities at all the projects
worksites and only two accidents occurred, both
onboard vessels. Considering the project
dimensions, number of worksites and personnel
involved, this can be considered a positive result.
In Russia, where activities focussed on the laying
of two pipelines (subcontractors supervised by
Saipem) no accidents occurred.
Around 650 employees have worked and are still
working at Samsuns Base for Quadruple Joint
Construction in Turkey the worksite where the
single, coated joints arrive from Japan and the
United Kingdom to be welded to form a single,
quadruple joint. After the joints are coated by
EUPEC at its coating plant, the 48 metre-long
pipes are sent to the Saipem 7000 and then laid
using the J lay system in deep waters. The
Castoro 8 is used instead to install subsea lines in
shallow waters, using the S Lay system.
The Samsun Base, used for the first time as a new
facility, is a safe site where all heavy pipes are
handled by a roller-transfer system which is
entirely cordoned off and fitted with acoustic and
visual alarms, as well as manual/automatic stop
devices.
An analysis of
non-serious
injuries (first aid and alternative work cases,
medication of non-serious wounds), shows that the
most common types of injury were caused by:
foreign bodies in the eye, metal dust or sparks,
falls from heights and slipping.
Despite the fact that the safety culture of many
local personnel was not very strong and that many
different nationalities worked together, safety
training was constant and daily inspections
helped to significantly increase workers safety
awareness.
Another important aspect concerned safety
training, held at all sites by the Safety
Department. Safety videos and brochures on
safety regulations were used during training.
The local fire brigade held theoretical and
practical fire prevention courses which Saipem
requires for all its employees.
An agreement with local authorities was also
reached to check all heavy lifting equipment in
use at the base.
In compliance with Russian laws, the local
authorities held meetings to explain directives,
operative and training programmes for work
places and each type of activity. Training was
conducted on board vessels while in Russian
waters and at worksites.
New safety videos were prepared for the Saipem
vessels laying derrick and all workers and
visitors could see these while on board.
Safety managers and team leaders regularly

conducted training sessions on site, five days a
week.
Environmental Impact Assessment of the Blue
Stream Project was conducted by ENVY-Energy
and Environmental Investments Inc.
The results forecast that no permanent or
significant impact on the quality of water during
the Projects construction and operative stages
would occur.
The impact on air quality, due to the emission of
dust from excavation, transport and construction
works was minimum.
Noise, from construction and operative stages,
was acceptable both during the daytime and at
night.
As for waste management, Saipem contacted
various authorities in different regions of Turkey
and then organised its own collection, recycling
and/or separate waste disposal system, despite
Samsun already having this kind of system.
Saipem then consigned the waste produced
onshore and on board vessels to the relevant
authorities.
25
Saipem
Based on
previous
experience from
other projects
and Blue
Stream, an
incentive
programme to
promote safety
awareness and
improve
working
conditions was
introduced at
all onshore and
offshore sites involved in operating activities.
This was highly appreciated by personnel, who
were encouraged to identify potentially risky
events.
As a result, the number of safety meetings and
work safety analyses increased.
SAFETY
No significant
accidents were
recorded during
the project,
even though a
fatal accident
occurred at the
site of a
subcontractor
where support
work was taking
place.
2000 OFFSHORE SAFETY AWARD

gratifying, but being recognised for an
excellent safety performance is
particularly special.
In fact Saipem received the 2000
Offshore Safety Award from the
International Pipeline and Offshore
Contractors Association (IPLOCA).
Since its very foundation, one factor

has always made Saipem stand out
its utmost efforts for safety issues
and its great awareness of difficulties
related to this issue.
Its continual focus on improvement
has enabled it to achieve goals
receiving recognition of great
professional value.
Receiving an award for safety is certainly
This extraordinary achievement

is not a reason for us to be excessively
proud; it simply confirms
that safety must be considered
a key factor for all levels of
operating activities.
Response Team for managing emergencies at

Corporate level and a new company position
Designated Person/s Ashore (DPA) responsible for
continual safety monitoring, liaising between
various functions and Company departments. In
fact guaranteeing workers safety, protecting assets
from damage and protecting the environment from
all possible sources of pollution is acquiring an
increasingly global dimension, which goes beyond
the competencies of each specialist to become a
common Company goal.
The code underscores the following as key elements
to ensure a good level of safety: maintenance,
management of safety devices, personnel training,
document management, definition of Company
organisation and communication and responsibility
lines, the carrying out of key operations such as
drilling, pipeline laying, offshore installation etc.
based on Company criteria.
The integration of these disciplines is therefore

vital to an efficient management system.
The IMO has defined 1st July 2002 as the cut-off
data for obtaining certification of the management
of MODUs (Mobile Offshore Drilling Units) and
MOUs (Mobile Offshore Units).
Saipem has been committed to continually
improving its own management system for some
years now and has achieved excellent results in the
sector of technological innovation, as well as an
outstanding performance in the field of safety and
environmental protection. It is this very approach
which has led the Company to seek ISM
certification for all vessels with personnel on board,
and not just for self-propelled means, as required
by the code.
The ISM project for Saipem is involving a great
number of people at all levels and will certainly
contribute to improving and obtaining the
SAFETY
Saipem
Saipems steady commitment

to workers safety and training
has led to important recognition
during 2001.
Safety expenses
Safety current expenses - 2001
thousand euro
25,000
Safety training 12%

Safety publications 1%
20,000
Insurance 25%
Other actual
expenditures 3%
Safety plants
(not investment) 3%
15,000
10,000
Safety
equipment 8%
5,000
1996
Investments
1997
1998
1999
Currents
2000
Periodic
maintenance
& control 1%
2001
Total
Safety
consultancy 18%
Personal protective equipment (PPE) 29%
26
Safety investments - 2001

Welfare equipment/investments 12.5%
Rescue & evacuation
systems/equipment 2.6%
BOP 1.7%
Emergency communication
systems 2.5%
Equipment/plants' safety
improvements 29.6%
Other
investments 19.3%
Noise personnel
protection
systems 0.5%
Lifting equipment/
handling tools systems equipment 10.8%
Fire fighting systems 15.0%

Gas detection systems 5.1%
27
Saipem
Works carried out required approximately 30,000

man-hours at the worksite, in addition to work on
board the barge, which also directly supervised
some specific operations.
Upgrading works were very complex with a new
launch ramp being built, the mooring system
re-designed to better meet pipelaying requirements,
the structure of the transversal transporter
modified, a new stinger built and new
accommodation installed to increase the barges
capacity from 88 to 124 places.
During the design stage, special attention was paid
to safety and protecting health.
The use of space in work areas was optimised, for
example at the launch line: all piping and cables
are external so more space is left for operators to
carry out their work and possible causes of
accidents due to workers proximity can be
eliminated.
Personal protection devices were installed when
personnel were working below suspended loads, for
example on the floating platforms for installing the
stinger or on the walkways from bow to stern, below
the transeversal transporter.
Smoke extractors were installed throughout the
welding area, along with a anti-vapour fan on the
lining of the installation joints.
A 24 volt network powers nearly all electrically
operated power tools used for the launch line and
on the deck.
A new safety plan was drawn up to take account of
the high number of people on board and new
structures installed: safety equipment was
increased and new muster points and escape routes
identified.
Upgrading works were completed on 1st July to the
agreed schedule, budget and safety terms.
SAFETY
Saibos was involved during 2001 and early 2002 in

the project to install the Gasoducto Cruz Del Sur, a
gasline crossing the Rio de La Plata, between
Argentina and Uruguay.
A 24, 55 km pipeline had to be laid in very
shallow waters, with a minimum depth of less than
3 metres in the shore approach area of the two river
banks, and a maximum depth of 12 m crossing the
main shipping channel.
After being connected up to coastal sections,
the pipeline will transport gas from southern
Argentina to Uruguay, and then in a second stage
to Brazil.
The Saibos 230 lay barge was considered the best
vessel for the job, because of its limited draft
and so important upgrading work was carried out
to meet the specific needs of crossing the Rio De
La Plata.
An Argentine shipyard was chosen for the
upgrading works, conforming to Saiboss policy of
giving the contract value a local outlook.
Argentina also provided various industrial
infrastructures and a good level of technological
standards.
The Saibos 230 left Douala, in the Cameroon, for
Argentina in January 2001 and reached the
Astillero Rio Santiago shipyard at Ensenada in the
province of Buenos Aires in early February. The
vessel then underwent routine careening and
maintenance work.
There was no launch line on board the barge which
could handle and assemble pipes the size and
weight of those to lay across the Rio de La Plata.
Other main constraints to overcome concerned a
lack of space on the deck, the limited
accommodation and insufficiency of the power
system on board.
THE SAIBOS 230 UPGRADED IN COMPLETE SAFETY CONDITIONS

THE GASODUCTO CRUZ DEL SUR PROJECT
SAFETY EXPENSES
2001 registered a marked increase in safety

expenses which amounted to approximately euro 22
million, exceeding the figures of the last 6 years.
SONSUB LTD - AN INTEGRAL PART OF SAIPEM

SAFETY
Saipem
principles clearly defined in the Company policies.

Saipem aims to obtain certification for all vessels
which must be upgraded by the cut-off date of the
Code and then complete certification of the
Companys entire fleet by the end of 2003.
Sonsub is an integral part of Saipem. Its core

business is in the offshore oil and gas industry
and international telecommunications, while it
specialises in technologically advanced
engineering and construction and maintenance
services.
Its consolidated international network can provide
a wide range of services for international clients,
including Saipem, throughout the globe.
Health, safety and the environment are
fundamental factors for Sonsub and its
management is committed to achieving the
highest safety standards.
Recent studies on quality, safety and

environmental management have pinpointed
problems as often having the same origins and so
they can be solved using the same measures.
Sonsub believes that excellency can be achieved
by taking an integrated approach to managing the
business that shall include quality, safety and the
environment.
The advantages of having an integrated system

are, according to Sonsub, economic as well as
organisational efficiency and effectivenessrelated.
HSE issues are rightly considered by integrated

management systems as a critical component for
developing projects which meet customer
expectations, improve performance and comply
with applicable legislation.
HSE responsibilities are currently integrated with
Sonsubs entire management process and involve
all project development stages, i.e. planning,
technical design, procurement, construction and
commissioning.
HSE actions are aimed at preventing potential
risk situations which could lead to injuries for
Sonsub personnel, visitors and the public, or
damage its property.
To achieve integration, detailed planning and

execution are vital. Review of the BS EN ISO
9000 standard in 2000 took account of the greater
compatibility with other management standards
In its ambitious new approach, Sonsub has

adopted 8 principles which are recognised as
fundamental requirements of any reliable
management system.
In 2001 Sonsub gradually prepared an integral

management system conforming to the
BS EN ISO 9000, HS(G) standard and Group
standards with obvious benefits.
Moreover, the integral management system was
specifically designed to meet Sonsubs operative
needs, providing a detailed analysis of its main
and support activities.
28
which was essential in the lead-up to considering

and implementing integration.
Applying these principles will make it possible to

evaluate and control risks during project
development. Subsequently, operative project
managers can be responsible for complying with
HSE policy requirements and thus more
opportunities for developing methods, procedures,
systems and programmes with a view to achieving
continual improvement will be provided.
How can the Company continually improve?
Sonsub believes that essential values are
managerial ability, involvement and trust.
It also believes that developing independent
thinking, increasing an awareness of possible
risks and assigning responsibility for ones own
safety are fundamental.
Ordering someone to change the way they work
is not an efficient way to attain personal
involvement; this happens because people rarely
change their opinion without understanding the
reason behind the change.
By providing training Sonsub intends to
increase individual awareness and assign
personal responsibility.
Risky actions and behaviour are the cause behind
80-90% of injuries, as analysis confirms. Safety
programmes based on behaviour (BSS) recognise

and address the concept that the behaviour of an
employee represents a critical role in industrial
injuries. BSS programmes are practical and focus
on improving safety standards and risk awareness.
Organisations such as Sonsub, within the Saipem
Group, implementing controls and safety
programmes, reaching an excellent level of safety
performance, are the first candidates for these
programmes.
Sonsub intends to perform detailed studies
on workers risk awareness, safety behaviour and
commitment in terms of safety management and
three main objectives can be obtained
from this:
1) designing a questionnaire (for all Sonsub
personnel) which will assess workers attitude
to safety and the degree
of satisfaction and awareness concerning
safety issues within the context of their
own job;
2) interviewing first line supervisors to determine
roles in offshore safety management and
identify examples of best practices;
3) analysing injury reporting systems to identify
the codes used to indicate injuries caused by
human behaviour.
The results might identify a safety climate
within Sonsub, as well as the factors which help
to establish and maintain a good safety culture.
Moreover, the results may help to improve the
coding system for human and organisational
causes of injuries and pinpoint the actions to take
for better management of these factors.
29
Saipem
Commitment & managerial ability

Policies & goals
Organization & Resources
Subcontractors & management of suppliers
Risk management
Design & Planning
Implementation & monitoring
Evaluation & continual improvement
for safety issues, and insurance. In addition, the

entry includes costs for firefighting and gas
detection equipment, improvements to the
ergonomics of workstations, maintenance and
routine control, safety publications, etc.
SAFETY
Compared to 2000, investments and current expenses

increased maintaining more or less the same proportion,
that is 43% and 57% respectively of the total.
Current costs mainly refer to training, Personal
Protection Equipment (PPE), consultancy services
SAFETY
Saipem
PETREX SA - PERU
STORY OF AN EXTRAORDINARY SYSTEM
FOR SAFETY AT WORK
Petrex was founded on 7 February 1983
specifically to provide maintenance services for
Occidental Petroleum, an American company
operating in the Peruvian jungle.
In August 1986, after picking up the activities of
Rio Colorado International, Saipem acquired a
50% holding in Petrex and also took control of its
administration.
In July 1998, Saipem acquired the remaining
50% of Petrex SA, which became a holding of the
Saipem Group.
Petrex SA has its headquarters in Lima, the
capital of Peru and
bases in Iquitos
and Talara.
Iquitos is 3,500
km from the mouth
of the Amazon
river where
merchant ships
arrive directly from
the Atlantic.
From here supplies
are transported by
barge or goods
planes to operative
areas in the jungle.
Talara is in the
North-East of the
country, on the
Pacific coast.
The desert-like environment is the site of the
Petrex base which manages area operations.
In 1996, a Health, Safety and Environment
Department (SESMA) was set up.
The department, with its team of technicians and
doctors responsible for safety and medical
services, issued a preliminary industrial safety
and health programme.
In 1997, Petrex adopted Du Ponts Stop for
safety programme and was officially authorised
by the company to use it throughout its
organisation.
Since then, all personnel, including supervisors
and workers, have taken part in the risk
30
prevention programme with preventive

observation of conditions and risky actions.
In 1998 the SESMA department approved and
adopted DNV (Det Norske Veritas)s damage
control system.
It was also authorised to manage the SCIS, a
system which identifies the fundamental causes of
injuries, using different inspection, audit and
injury survey programmes and safety meetings to
ensure that production safety and management are
integrated in all operating activities.
In 1999, Saipem
SpAs health,
safety and
environment
department
applied a new
Group HSE
management
system in Peru,
introducing new
concepts and
methodologies.
This new system
has since been
used for all
operations, along
with Saipems HSE
and drilling
management
system an achievement helped by the HSE
policy being approved by Petrexs General
Manager.
A new age has arrived with greater commitment
shown by Top Management and control of the
operative lines with the aim of becoming a leader
in safety at work and quality whilst protecting the
health of personnel involved.
As for injury statistics, the drop in figures is quite
remarkable. At the end of 1999 an index of 7.18
was recorded against a figure of 3.32 for 2001.
This improvement was fundamentally due to the
efforts of all Petrex personnel who considered
prevention as a daily working condition. The
significant contribution made by Petrex to
improving safety on site was recognised at the end

of 2000 by the Saipem SpAs Director of drilling
and HSE Departmental Manager.
Another important result was achieved in 2001.

The client Perez Companc of Peru certified the
entire ISO 14001 and OSHAS 18001 management
system for Block X - Talara, for well workovers.
This led the Argentinean company Perez
Companc to highlight Petrexs commitment and
SAFETY
Four drilling rigs completed 254 transfer days

and 935 drilling days with no injuries.
The injury index decreased by 20%, recording a
value of 2.60 (against a figure of 3.32 of the
previous year).
During 2001, drilling was carried out for

Repsol-YPF at the Guineayacu X-1 well,
block 32, with the 5824 drilling rig.
In 168 working days using this rig, no injuries
occurred.
Petrex also completed the drilling of 16
horizontal, vertical and recovery wells in this
year, with a maximum drilling depth of 16,600
results so they could work together to obtain

further certification.
In addition, the international company MAPFRE,
the most important risk control firm in South
America, nominated Petrex SA, from many other
oil companies, as the best contractor of 2001.
Petrex SA received an exceptional safety award as
recognition of its excellent accident prevention
activities during an official, public ceremony held
on 13 February 2002 in Lima.
31
Saipem
feet. 1,066 maintenance and pull-out jobs were

also carried out, with 165 of these offshore.

SAFETY
Saipem
Current expenses do not include costs for full-time

personnel working for the HSE and Prevention
Department who comprise 150 persons operating
at headoffices and for various projects.
As concerns investments, the greatest costs refer to
improvements to existing plants and systems to
make them safer and more reliable; other major
items refer to the firefighting systems, plants for
32
lifting loads and people and all investments to

improve the wellbeing, even outside of working
hours, of people operating at the sites or on vessels.
Investments were also made for evacuation
equipment, gas sensors, well blow-out control
systems and other equipment (systems to reduce
noise, soundproofing, alarm systems, shut down
systems, etc.).
33
integrating international standards with basic

principles of Company policy;
seeking out and using best available
technologies which minimise the consumption of
resources and environmental impact;
achieving the best use of raw materials;
correctly running and maintaining plants;
restoring original conditions on land, after the
work has been developed in compliance with
contract conditions;
involving local communities so that the projects
social impact is limited, and operative skills are
developed.
Examples of this approach can be seen from the
projects being developed in Oman, Nigeria,
Kazakhstan and Peru where promoting policies of
integrating and developing local resources is a
fundamental part.
Saipem
Saipem is convinced that it can operate

safeguarding the environment and minimising the
consumption of natural resources.
The HSE management system requires each
Company and Operative site to systematically
control environmental aspects such as waste
produced, use of resources, noise, contamination of
the land and sea.
The goal of eliminating or minimising
environmental degradation and limiting the use of
resources is achieved by:
personnel training and awareness for
environmental issues;
identifying the environmental impact of activities
and developing the Environmental Management
Plan in the case of projects with a major impact
(see insert on the project in Oman);
complying with current applicable laws;
COMMITMENT TO ENVIRONMENTAL ISSUES
Composition of energy consumption

for different uses - 2001
Energy consumption
Energy sources - 2001
toe
250,000
150,000
100,000
50,000
Saipem
200,000
Boiler 6.3%
1996 1997 1998 1999 2000 2001
Electric power generator 57.0%
Gasoline 2.7%
Internal combustion engine 35.6%
Electric energy 3.3%
Other 1.0%
Fuel oil LSC 1.2%
Saipem has gone beyond the concept that

environmental protection equals greater
management costs (and greater investments);
indeed it steadfastedly believes and shares with the
most evolved countries that the environment and
Company profitability are not an antithesis.
Efforts geared to limiting environmental impact are
considered as useful investments for improving the
Companys competitiveness on the national and
above all international market.
Despite the difficulty of calculating values, which
cannot therefore be included in the general
accounting data, the benefits of an environmental
protection system are real and tangible: a growth in
market shares, fewer waste management costs,
lower insurance costs, easier access to credit, fewer
environmental and financial risks, higher turnover
and added value with an obvious decrease in the
liabilities related to reimbursement for
environmental damages, fines and penalties.
Saipem places the same level of attention on the
environment for all its operative projects, even in
countries where the specific economic and social
context mean that the requirements of local law are
more lenient.
ENERGY CONSUMPTION
Energy consumption is essential for evaluating the

extent of production activities and ensuing use of
natural resources.
34
Diesel 79.1%
Fuel oil HSC 13.7%
In 2001 overall energy consumption went up

from 158 thousand toe in 2000 to around
170 thousand.
This is due to an increase in both onshore and
offshore production.
It should also be noted that even if the increase of
14% and 39% for pipeline laying and the
installation of onshore production facilities,
the increase of 183% and 28% for pipeline laying
and installation of offshore production facilities,
and of 11% and 29% for onshore and offshore
drilling, energy consumption totals have
gone up only by 7.3%, indicating an overall
saving of energy sources used for production
activities.
The graphs on how energy resources were used
show that the highest quota is used to produce
electricity; at all onshore production sites
(and obviously on board all vessels), in fact
electricity is not supplied from the mains but
produced by generators powered by diesel.
Fuel oils (with a low sulphur content) are only
used, alongside diesel, for offshore installation
activities and only in cases when strictly necessary
and when the use of diesel cannot provide enough
power.
Mains-supply natural gas and electricity are only
used to a limited extent, as they are destined for
offices and logistic bases.
Another major part of energy resources is used for
powering vehicles and equipment (vehicles, lorries,
sidebooms etc.), which mainly run on diesel.
WATER CONSUMPTION
Water is also an important part to consider

in evaluating the consumption of natural
resources.
Different types of water are used to meet the needs
of production activities: natural water (taken from
surface water bodies or from groundwater), service
water (supplied from the mains) and sea water,
which may be desalted.
The graph shows the type of water used in 2001,
which highlights a balanced division of different
types. In addition to these figures, around 35
million m3 of seawater were used without being
desalted, for ballasting and cooling the motors of
Company offshore vessels.
The environmental impact of this use of non
desalted sea water varies depending on where
operations are carried out. As activities
are usually conducted at open sea, the water does
not undergo particular changes and so causes
negligible impact. Ballast water is used to create
stability for the vessel, and is loaded and unloaded
in a continual cycle without undergoing any
change; when used for cooling motors, the water is
subject to a slight change as it increases in
temperature by 5-6 C before being re-injected into
the sea.
Saipem aims to improve its monitoring of the
amount of bilge water, which is currently treated
for oil contamination in compliance with MARPOL
requirements.
Ship ballast 36%

Engine cooling system 57%
General service 3%
The figure shows overall uses of water. These

mainly concern cooling motors and ballasting,
because of the large volumes involved in these
operations.
ATMOSPHERIC EMISSIONS
In 2001, the environmental monitoring which began

in previous years continued, with its focus on
obtaining real measurements of atmospheric
emissions for an increasing number of operative
sites.
While this monitoring is being completed so that a
personalised calculation model can be
constructed, emissions from Saipem activities have
been estimated, as in previous years, starting from
the consumption of fossil fuels.
The reliability of this calculation model has been
confirmed at any rate by comparing the calculation
models of other companies in the same sector, as
mentioned at the start of the Report.
The results show a general increase in emissions;
this is not surprising as it is due to the increase in
production over 2000, and resulting great
consumption of fuels.
It is interesting to note that while the extent of CO,
CO2 and NOx emissions produced for each
operating activity is strongly linked to production
levels and overall consumption of various energy
35
Saipem
Hydrotesting 4%
Service water 35%
Natural water 32%
Desalinated sea water 33%
Structure of water consumption

Type of use of water - 2001
Types of consumed water - 2001
SO 2 emissions
for different Business Units - 2001
NO x emissions
SO 2 emissions
t
10,000
t
6,000
4,500
6,000
3,000
4,000
1,500
2,000
Saipem
8,000
Drilling 33%
1996 1997 1998 1999 2000 2001
1996 1997 1998 1999 2000 2001
Land constructions 1%
Logistic bases/Offices 1%
Offshore constructions 65%
sources (evaluated in toe - tonnes of oil equivalent),

emissions of SO2 are mainly produced by offshore
activities. This is due to the fact that the main
source of SO2 emissions derive from fuel oil (LSC
and even more HSC), used nearly entirely for the
propeller systems of offshore vessels which require
strong power.
This sector uses 33% overall energy (55,250 toe out
of around 170,000 toe), but accounts for 65% of
SO2 emissions.
WASTE PRODUCTION
Amounts of both hazardous and non-hazardous

waste produced in 2001 went up compared to last
year.
This is due to increased production in all sectors of
activity, leading inevitably to a greater consumption
of resources and higher waste levels.
The increase in both types of waste

(European regulations are defined by Directives
91/156/CEE and 91/689/CEE), i.e. hazardous
and non-hazardous, followed the same trend
as last year: 67% non-hazardous and 33%
hazardous waste, against 2000 figures of 66%
and 34%.
Hazardous waste mainly consisted of spent oils
from motors or hydraulic circuits; non-hazardous
waste mainly derived from metal scrap.
The above waste is disposed of according to the
type and operating context.
On vessels, the organic waste from cooking is
incinerated on board, at onshore sites it is handed
over to outsourced companies that incinerate or
dispose of it at sites, depending on the country.
Where possible, waste is recycled to save natural
resources.
CO emissions
t
9,000
CO 2 emissions
t
800,000
600,000
6,000
400,000
3,000
200,000
1996 1997 1998 1999 2000 2001
36
1996 1997 1998 1999 2000 2001
Disposal of produced waste - 2001
Composition of Hazardous Waste - 2001

Ashes & scoriae from boilers or
air treatment plants 0.7%
Waste (muds, etc.) from Waste

Water treatment plants 8.6%
Batteries &
accumulators 1.2%
Waste from the cleaning of tanks and

reservoir for transport &
stockage 10.7%
Exhausted oil
from engines 55.1%
Other hazardous waste 2.5% Exhausted oil from hydraulic circuits 12.2%
Spent oil is usually recycled, apart from when it is

contaminated by sludge or other greasy substances
which deteriorate its quality.
As for non-hazardous waste, ferrous metal is
recovered and because of the large amounts used in
Company activities, this significantly reduces
consumption of this resource.
Incinerated in Saipem plants 17.5%

Incinerated in external plants 0.34%
Disposed in external landfills 50.51%
Recycled in Saipem plants 1.17%
Recycled in external plants 30.48%
increasing dedication to environmental protection.

In particular investments more than doubled
compared to 2000, even exceeding current costs for
2001. In fact investments cover 53% of
environmental costs.
This clearly shows how the Company is committed
to acting upstream of environmental difficulties,
creating the structures and systems needed to
minimise impact on the environment where it
operates.
Main investments were for the treatment and
disposal of waste (38%), for procured water
processing plants (41%) and waste water (13%).
Current costs mainly refer to waste management
(40%) and waste water (34%); other items refer to
consultancy services, auditing, insurance, soil
protection, air analysis and procured water
management.
To evaluate the impact of activities on the

environment, the increase in waste produced must
not be considered in absolute rather but in relative
terms, i.e. in terms of the waste produced by
production unit, as follows.
ENVIRONMENTAL EXPENSES
The environmental costs borne by the Saipem

Group increased considerably in 2001 over last
year (+15%), indicating the Companys ever
Composition of Non-hazardous Waste - 2001

Produced waste
t
14,000
12,000
Wood 4.2%
Absorbents, filtering materials,

rags, protective clothing 0.6%
Waste (muds, etc.)

from Supplying Water
treatment plants
1.0%
Cooking organic waste 17.8%
Ferrous metal refuses/

waste 43.7%
10,000
8,000
6,000
4,000
Glass 0.2%
Used
tyres 0.8%
Plastic 1.7%
2,000
1997 1998 1999 2000 2001
Non-hazardous waste
Hazardous waste
Paper and cardboard 2.7%

Other non-hazardous waste 8.6%
Mixed urban waste 13,1%

Non-ferrous metal refuses/waste 5.4%
37
Saipem
Solvents 1.9%
Paints and
varnishes 1.8%
Other oils & greases
(except for exhausted oil from
hydraulic circuits and engines) 4.8%
Transformers & capacitors 0.2%
Electronic
apparatus 0.2%
Saipem
SAIPEMS SUPPORT FOR THE PIERO

AND LUCILLE CORTI FOUNDATION:
THE DREAM OF TWO DOCTORS AT THE FRONT LINE
Saipem has decided to continue its support for
associations and/or foundations which particularly
stand out for their work in the field of humanitarian
assistance and development of scientific research.
Support in 2001 went to the
Piero and Lucille Corti
Foundation, whose sole aim is to
provide finance and support for
the St. Marys Lacor Hospital in
Gulu, Uganda.
There was also the departure of their only daughter,

Dominique, sent to Europe to protect her from the
ravages of war and the lengthy illness of Lucille and
her death in 1996 from Aids, which she contracted
during her work as a surgeon.
It was at this hospital that Piero

Corti, an Italian from Besana
Brianza, and Lucille Teasdale, a
Canadian from Montreal arrived
in 1961, as a young married
couple who wanted to spend
their life helping others. It was here that they practised
their profession as doctors with such great enthusiasm,
running the hospital faced with thousands of
difficulties: plundering and kidnapping, superstition,
long periods of political instability and devastating
guerrilla warfare.
The small clinic St. Marys

Lacor was established 40 years
ago; it is the second hospital in
the country and a reference point
for more than 3 million people,
with over 450 beds and just as
many employees working on a full
time basis. The clinic can provide
a wide range of diagnostic and
therapeutic services, consolidated
basic health education and
prevention services for the area
and various teaching and research programmes. The
clinic is thoroughly committed to the fight against Aids,
which is so widespread in this African region and this
work is also being recognised at top scientific levels
worldwide as it will most probably take part in a
programme experimenting a new HIV vaccine.
As stated in the section on Safety, the costs of

full-time personnel working for safety and
environmental protection were not included in
current costs.
It should also be noted that criteria for identifying
environmental costs as part of technical
investments borne by the Company, especially in
the case of integrated investments, are highly

complex; moreover there are objective difficulties
to completely and thoroughly detecting some
current costs.
For this reason, only those costs borne for activities
whose main (direct or indirect) aim is
environmental management and protection, i.e.
Environmental current expenses - 2001

Environmental consultancy 2.0%
Environmental audit 1.3%
Water discharge
management 33.5%
Insurance 7.1%
Noise & vibration

(external) treatment
& control measure 1.2%
Other environmental
actual expenses 10.0%
Soil, subsoil
& groundwater
protection,
polluted sites
remediation 1.3%
Waste management & disposal 40.5%
38
Supplying water treatment

and management 2.4%
Acoustic pollution has actually been monitored

since the early 80s and as a result various
remedies and measures have been taken,
considerably reducing the sound pressure levels of
some operating contexts (e.g. onshore drilling and
constructions).
Microclimate monitoring involved assessing the

work environment, any humidity levels at risk, the
presence of viruses and bacteria, Legionnaires
disease, fungus, etc.
Atmospheric pollution monitoring measured
the NOx, SOx, CO, CO2 emissions, particle
substances and fall-out of particles outside
worksites.
Following the issue of the reference law (Italian

Legislative Decree 277/91) enacting the EEC
directive, which identifies three noise risk
brackets, based on daily and weekly noise levels
for each worker, remedial measures were taken to
significantly lower the daily noise pressure level
(Lep,d) for many jobs exposed to this risk, fully
benefiting workers health.
The monitoring, conducted in particular for plants,

went beyond legal requirements; some parameters
of atmospheric emissions are not even considered
by EEC regulations, but do represent some of the
most important environmental data, especially in
view of the Kyoto protocol on greenhouse effect gas
emissions.
Special attention was also paid to evaluating the

increase in the noise level towards external
environments, with particular focus on drilling rigs
used increasingly in areas close to urban centres.
In nearly all of the evaluations made, conditions
complied with reference law parameters.
In this case too, the monitoring conducted at Italian

plants was successful and complied at all times
with current legislation.
specifically striving to eliminate, reduce or at least

prevent and monitor environmental pollution and
degradation have been entered under environmental
costs.
RELATIVE INDICATORS
As in the case of last year, relative indicators were

calculated, i.e. numerical parameters obtained from
the ratio between absolute values of physical
parameters shown so far (energy and water
consumption, waste produced, emissions, etc.) and
Consequently, the data shown underestimate to a

certain extent overall environmental costs.
Environmental expenses
Environmental investments - 2001

Air pollution prevention plants 1%
Waste water treatment

plants 13%
Environmental monitoring has also been conducted

over the last 2 years in Italy (Drilling, Vessels,
Offices, etc.), assessing macro and microclimate
atmospheric pollution, i.e. assessing the
atmosphere in the strict sense of the word as well
as the general working environment.
Noise and vibration (external)

treatment and control systems 4%
Other environmental
investments 3%
thousand euro
3,500
3,000
2,500
2,000
1,500
1,000
500
1996
Waste treatment
& disposal plants 38%
Supplying water
treatment plants 41%
Investments
1997
1998
1999
Currents
2000
2001
Total
39
Saipem
There has been a marked increase in environmental

monitoring at Saipem over the last two years,
especially in the area usually most neglected by
industries, i.e. atmospheric and acoustic pollution.
ENVIRONMENTAL MONITORING AT SAIPEM
Saipem
CONSERVING AN ENVIRONMENTAL
AND ARCHAEOLOGICAL HERITAGE:
THE CASE OF THE FAHUD - SOHAR GASLINE
Saipem has
been in Oman
since the
early
seventies
where it
became the
leading
company in
the Oil and
Gas sector,
successfully
taking part in
the
development
of major projects to lay pipelines which are still
present in the country.
To develop the Fahud-sohar gasline, Saipem, in a
joint venture with C.C.C., is leading a consortium
which also comprises Snamprogetti France and
Mitsubishi Corporation.
After around one year of commercial negotiations,
the contract to install the pipeline which will
transport gas from the Fahud production centre,
inland Oman, to Sohar, which is along the coast
close to the Arab Emirates, was signed in August
2000.
The project is scheduled to last for 24 months,
starting from the 22nd of August.
As concerns construction details, pipeline laying in
the first 200 km section (starting from Fahud)
should not involve particular difficulties as the
route passes through flat, desert area; the second,
105 km long section is particularly difficult as it
crosses the mountain chain which lies between the
desert and the coast.
This last section of gasline requires special
effort and attention, not only because it crosses
many Wadis, Falajis and particular points,
but because environmental protection is
a major concern due to the many zones which
can be considered as the most representative
in terms of Omans archaeological and cultural
value.
In the months following the contract signing,
different inspections were made along with the
relevant local authorities to identify the most
critical points and find solutions so that work could
be carried out whilst minimising environmental
impact and preventing damage to areas of
archaeological and cultural interest.
40
This major
focus on the
projects
environmental
and
archaeological
problems led
to a series of
initiatives
being taken:
the JVs
environmental
policy
was to
comply
with all laws, regulations and rules of conduct
applicable to environmental protection and to
adopt the principles of best practices
applicable to the environment;
develop the Construction Environment
Management Plan which defines the plans and
goals of the JV relative to environmental
protection during all stages of construction.
This document defines the principles of
environmental management, procedures, and work
and control methods applicable to the Construction
Contract to minimise any harmful environmental
impact.
The main environmental goals of the project for the
construction stage are summarised below:
no damage to the natural environmental or
countrys cultural heritage;
maintain and if possible improve the
attractiveness of areas where the project is
located;
minimise any significant and permanent project
impact;
actively promote a conservation-oriented
approach with the entire workforce;
avoid or prevent all disturbance or
inconvenience to the local population and
natural environment;
minimise and control the production of waste
from construction activities;
minimise and control water consumption during
all project construction activities;
avoid disturbing traditional activities and the
life style of human settlements.
An important, environmental problem concerning
the protection of water resources was pinpointed
during the works stage, as the pipeline section
The same impact mitigating measures were taken

for protecting the Falajis, man-made water
distribution systems to carry water form natural
sources to villages, which crossed the pipeline
Right Of Way (ROW).
A further measure to protect the landscape was the
care used to collect the fine material used for
pipeline construction. To prepare the bottom of the
This approach will ensure that the project to

develop the industrial area of Sohar will be
completed whilst conserving the environmental and
archaeological heritage of the region.
41
From an
archaeological
point of view,
Oman has
many remains
which enhance
the countrys
cultural
heritage.
The northern area of the pipeline route was
identified as a significant archaeological area and
in fact specialist studies consider the Wadi Al Jizzi
and nearby valleys as one of the greatest copper
producing centres since ancient times.
Environmental and archaeological assessments
were therefore made by Saipems environmental
project manager and by the archaeologist of the
Omani Ministry for Cultural Heritage to ensure
that activities would conform to the criteria and
environmental specifications established:
pre-construction environmental assessment to
identify critical areas;
assessment and surface surveying of visible
sites in relation to ceramic fragments and stone
items/buildings in the area of the pipeline
route;
retracing of 12 sections of the line to avoid
impact in these areas;
identification and marking out of significant
archaeological finds and sites such as tombs,
excavations, dwellings and Falaj from the
Islamic and Pre-Islamic period;
archaeological Reports (along with
photographic documents) of finds and sites
along the pipeline route and issue to the
Company;
a presentation of the assessments and activities
by HSE personnel to the JV at the Companys
HQ in Muscat; meeting with the Archaeological
Department of the Ministry for Cultural
Heritage.
Saipem
trench and cover the pipeline, 600,000 m3 of

sieved sand were needed, and suitable areas for
removing the material were identified, along with
the relevant local authorities. The careful choice of
these areas
minimized
impact on the
landscape and
kept flora
intact.
crosses 13 major water deviation points in the

country and in particular Wadi Kitnah, Wadi Al
Wasit, Wadi Sahban, Wadi Hamad, Wadi Tahijah
and Wadi Al Jizzi, which all comprise a permanent
water reserve.
These Wadis,
which are
normally dry
rivers
abundant in
water when it
rains, include
gorges 50
metres deep
and 500
metres wide.
As Oman is
dry area with
little rainfall,
water is a
precious resource, to the extent that many
Royal Decrees and Ministerial Directives
have been issued to protect and optimize its
consumption.
The Joint Venture tried to minimise potential
environmental impact resulting from the large
amounts of earth removed from the Wadis during
pipeline construction. To achieve this, some
mitigating measures were taken:
the width of the pipeline corridor was
minimised;
all precautionary measures were taken in
handling terrain, to prevent any obstruction to
the water flow of the Wadis;
hydraulic oils, diesel etc. could not be stored
within the boundaries of the Wadi to prevent
the risk of accidental spills;
efficient earth-moving equipment was used;
maintenance and re-supplies of equipment were
carefully supervised, the generation of domestic
and production waste was monitored;
the territorys original conditions after the work
was completed, were restored;
all supervisors and operators received training
and environmental education;
local communities were involved before the
start of construction work.

Saipem
production from relative activities (kilometres of

pipeline laid, metres drilled, tonnes of structures
lifted).
These indicators are considered to be more
significant for evaluating the effects of activities on
the environment; in relative terms, we can see if
impact on the environment is reduced because of
the Companys proactive strategy or if it is solely
caused by a decrease in production activities.
Each operating context, i.e. pipeline laying, drilling
and installation of facilities are divided into
offshore and onshore, as the conditions and
environment are very different that separate
evaluation is required.
Overall analysis of the indicator values shows a
general decrease in waste produced, apart from the
Offshore Drilling and Onshore Facilities
Installation sectors, where a slight increase in
non-hazardous waste was recorded.
Water consumption decreased for each activity,
apart from the installation of onshore facilities.
42
Indicators for energy consumption, for each type of

fossil fuel, have decreased in all areas, apart from
Offshore Installations; atmospheric emissions
followed the same trade as those of fossil fuels.
The above shows a general decrease in the
environmental impact of Saipems activities, both in
terms of cutting down on natural resources (water,
fuels), and reducing emissions into the surrounding
environment (waste production and atmospheric
emissions).
As for the Offshore sector, the trend recorded
for 2000-2001 went against that of other
operating contexts, even in cases where
management, design or development
shortcomings/excellencies justifying this situation
could not be identified.
The phenomenon can be explained by the fact that
a company providing services, unlike one
producing goods, has a steady and highly
significant consumption rate for resources
compared to the variable rate related to volumes of
Moreover, analyses which try to relate the evolution

of a companys environmental impact to possible
causes must be based on a longer time frame, as
some environmental policies generate costs in a
specific year but become fully effective in
subsequent years, as they require long periods in
order to be fully implemented.
43

Saipem
services supplied.
As a result, a decrease in production (metres
drilled, km of pipeline laid, tonnes lifted), does not
proportionally correspond to a decrease in
water/energy consumption or waste/emission
production, so ultimately, the value of the relative
indicator can even increase.
Activities

Saipem
Total waste production

2000
2001
Offshore pipelaying (sealines)
ton/km
8.368
3.558
Offshore installation
ton/ton
0.041
0.052
Onshore pipelaying
ton/km
2.389
1.352
Onshore installation (plant construction)
ton/ton
0.001
0.012
Offshore drilling
ton/m
0.016
0.03
Onshore drilling
ton/m
0.012
0.007
2000
2001
Hazardous waste
Activities
ton/km
3.528
1.7953
ton/ton
0.019
0.028
Onshore pipelaying
ton/km
1.134
0.560
ton/ton
0.000
0.00
Offshore drilling
ton/m
0.004
0.0086
Onshore drilling
ton/m
0.005
0.002
2000
2001
Non hazardous waste

Activities
ton/km
4.840
1.76
ton/ton
0.021
0.024
Onshore pipelaying
ton/km
1.255
0.792
0.0079
ton/ton
0.001
Offshore drilling
ton/m
0.013
0.023
Onshore drilling
ton/m
0.008
0.0046
Water consumption
Activities
44
2000
2001
m3/km
1,866.918
206.6
m3/ton
6.939
1.438
Onshore pipelaying
m3/km
805.205
310.8
m3/ton
0.115
0.679
Offshore drilling
m3/m
1.727
1.481
Onshore drilling
m3/m
3.335
1.026
2001
toe/km
77.661
35.77
toe/ton
0.302
0.349
Onshore pipelaying
toe/km
59.399
25.4372
toe/ton
0.022
0.0364
Offshore drilling
toe/m
0.433
0.42
Onshore drilling
toe/m
0.230
0.2143
2000
2001
Fuel oil HSC

Activities
ton/km
8.62
ton/ton
0.048
0.2306
Onshore pipelaying
ton/km
ton/ton
Offshore drilling
ton/m
Onshore drilling
ton/m
0.0002
2000
2001
Fuel oil LSC

Activities
ton/km
47.04891
0.00
ton/ton
0.18207
0.0233
Onshore pipelaying
ton/km
ton/ton
Offshore drilling
ton/m
Onshore drilling
ton/m
0.00260
0.0017
Diesel
Activities
2000
2001
ton/km
30.933
25.82
ton/ton
0.062
0.0879
Onshore pipelaying
ton/km
42.562
22.654
ton/ton
0.0315
Offshore drilling
ton/m
0.420
0.4118
Onshore drilling
ton/m
0.200
0.2042
45
2000
Saipem
Activities
Energy account
Activities

Saipem
Gasoline
2000
2001
ton/km
0.00181
0.00
ton/ton
0.00015
0.0082
Onshore pipelaying
ton/km
14.771
2.2192
ton/ton
0.0041
Offshore drilling
ton/m
0.00415
Onshore drilling
ton/m
0.01112
0.0038
CO
Activities
2000
2001
ton/km
1.376
1.08
ton/ton
0.003
0.0041
Onshore pipelaying
ton/km
2.408
1.0691
ton/ton
0.001
0.0015
Offshore drilling
ton/m
0.018
0.0179
Onshore drilling
ton/m
0.009
0.009
CO2
Activities
2000
2001
253.176
106.02
ton/km
ton/ton
0.957
1.1263
Onshore pipelaying
ton/km
180.598
78.3505
ton/ton
0.112
Offshore drilling
ton/m
1.336
1.2971
Onshore drilling
ton/m
0.672
0.6615
2000
2001
NOX
Activities
46
ton/km
3.767
1.60
ton/ton
0.014
0.0163
Onshore pipelaying
ton/km
1.644
0.8274
ton/ton
0.0012
Offshore drilling
ton/m
0.020
0.0199
Onshore drilling
ton/m
0.007
0.0073
2001
ton/km
4.7161
1.40
ton/ton
0.0204
0.0231
Onshore pipelaying
ton/km
0.1691
0.0872
ton/ton
0.0001
Offshore drilling
ton/m
0.0120
0.0117
Onshore drilling
ton/m
0.0010
0.0009
47
2000
Activities
Saipem
SO2
V E R I F I C AT I O N O F T H E R E P O R T
Saipem
VERIFICATION OF THE REPORT
48
Printed on ecological paper

Splendorlux bilucido (cover) and Symbol Freelife gloss (text)
Prepared by:
Saipem SpA - Health, Safety and Environment Dept.
Cover:
On-Off - Milan
Cover photo:
Laura Ronchi
Graphics:
Angelini Design - Rome
Printed by:
Union Printing SpA - Viterbo
June 2002
For enquiries:
Saipem SpA
Via Martiri di Cefalonia, 67 - 20097 San Donato Milanese (Milan)
Tel. +39 02.520.54033
Fax +39 02.520.34617
www.saipem.eni.it
S A
V M C, - S D M (MI) - I
T. + . - F + .

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H S E

HEALTH SAFETY ENVIRONMENT - 2001 REPORT

Main HSE achievements in 2001

The integrated Quality, Health, Safety and Environment Policy

Management of HSE data

Analysing injury statistics

Commitment to environmental issues

Verification of the report

In 2001 Saipem promoted many initiatives for

The growing interest in environmental issues

HEALTH SAFETY ENVIRONMENT - 2001 REPORT

are now a key part of our approach to improve

The Health, Safety and Environment Report has

LETTER FROM THE CHAIRMAN

SAIPEM GROUP - STRUCTURE AND ACTIVITIES

HEALTH SAFETY ENVIRONMENT - 2001 REPORT

SAIPEM GROUP - STRUCTURE AND ACTIVITIES

The Groups fleet of state-of-the art vessels, at the

Offshore construction - Laid pipelines

pipeline laying using the J system and ability to

Offshore construction - Installed structures

Saipem Indonesia, Saipem Luxembourg, Saipem

After the good results achieved with its floating

HEALTH SAFETY ENVIRONMENT - 2001 REPORT

SAIPEM GROUP - STRUCTURE AND ACTIVITIES

SAIPEM GROUP - STRUCTURE AND ACTIVITIES

HEALTH SAFETY ENVIRONMENT - 2001 REPORT

Onshore construction - Laid pipelines

and the FPSO-Mystras II Produo de Petrleo

In the offshore drilling sector, the Group

Onshore construction - Installed structures

managed by Saipem SpA, are all active in this

In the onshore drilling sector, the Group operates in

In this sector, the Group has consolidated its presence

BARNETT & CASBARIAN

SAIPEM GROUP - STRUCTURE AND ACTIVITIES

HEALTH SAFETY ENVIRONMENT - 2001 REPORT

SAIPEM GROUP ORGANISATION

MAIN HSE ACHIEVEMENTS IN 2001

HEALTH SAFETY ENVIRONMENT - 2001 REPORT

MAIN HSE ACHIEVEMENTS IN 2001

In 2001 the entire Company structure was involved

of the Groups medical division;

The main objectives of the HSE system are therefore:

QHSE: INTEGRATING QUALITY FOR HSE ISSUES

changing from the functions based approach,

HEALTH SAFETY ENVIRONMENT - 2001 REPORT

respect of Health, Safety and the Environment is a

The Companys commitment to improve its own

THE INTEGRATED QUALITY, HEALTH, SAFETY

HEALTH SAFETY ENVIRONMENT - 2001 REPORT

THE THREE LEVELS OF THE HSE SYSTEM

limiting impact on the natural environment where

Each new project offers the chance to capitalise on

HSE 15 HSE Management

AUDIT CORRECTIVE ACTIONS

HSE 3 Human Resources

Based on ISO 14001 and BS 8800