The best HSE management practices are considered those where risks are assessed and hazards are identified and controlled. Reducing risks to an acceptable level can be achieved only if a series of factors are working together in a homogenous and well controlled system. Some of these factors are process development, procedure implementation, new technologies, and investments that a company makes with the ultimate aim of eliminating human and system failures. According to Saipem standards, the behavior education programs start right from the moment the employee is arrives on site, when he receives HSE Induction Training. Specially designed programs tailored to match employees’ skills and activities are implemented at the level of each project for the staff, programs being based on a specific site Training Matrix. Recognizing the importance of training as one of first steps in hazard recognition, in 2005 extensive training programs have been implemented within all Saipem companies, the number of inhouse HSE training hours reported were over 500 thousand hours, equivalent of 3,72 hours of training per 1000 worked hours.
This value represents an increase of 100% compared to 1,86 training rate reported for 2004. Offshore Constructions
Business Unit gave the biggest input for this pro-active indicator, over 50% of HSE training hours were carried out for the personnel assigned to the offshore construction fleet, on projects and in fabrication yards.
Safety/Hazard Observation Cards, known also as Undesirable Events Reporting, reflect the attitude of all employees during work activities as well as their
interest in assuring a safe work environment. It is considered a pro-active indicator due to the positive influence given to the HSE Management System, and reflects employee involvement in observing the hazardous acts and conditions, giving the management the possibility to correct the hazards before they
turn into serious events. In 2005, a number of 166.431 safety hazard observation cards were issued, which represents a 66%
rise against the figures reported in 2004. This improvement comes from Offshore Construction Business unit, which reported 104.727 hazard observation cards, representing over 60% of cards issued in 2005. The Tool Box Talks Program plays an important part in the continuous effort to Corporate Level, as already mentioned in chapter "Safety Plan 2006/2007". In the table below are presented the accomplishments and failures of each business unit in reaching the targets established in 2005. Apart from these pro-active improvements, at the level of each business unit has been established safety performance targets which refer to reduction with 15% of the LTI Frequency Rate, 10% of Total Recordable Frequency Rate, and zero Fatal accidents, to be achieved in 2006.
Targets LTI Frequency rate & Total recordable Frequency rate
Business Units LTI Frequency Total Recordable Target established LTI Frequency Target 2006 and Activities Rate 2005 Frequency Rate established for LTI rate 2005 LTI Frequency Total
2005 Frequency rate vs. target Rate Recordable
2005 Frequency
Rate
Drilling Operations 2,93 8,55 2,84 + 3,2% 2,49 7,70
Offshore Constructions 0,66 4,31 1,39 - 52,7% 0,56 3,88
Leased FPSO 6,35 8,46 2,54 + 150% 5,40 7,62
LNG, Maritime 1,29 6,88 1,17 + 10,3% 1,10 6,20
Works and Floaters
Onshore Constructions 0,62 2,90 0,5 + 24,6% 0,53 2,61
Maintenance 3,37 7,79 3,47 - 2,9% 2,86 7,01
Modification Operations
Integrated Projects 0,48 1,78 1,39 - 65,2% 0,41 1,60
Logistic Bases & 0,99 2,31 1,4 - 29,3% 0,84 2,08
Head Offices
Saipem Group 1,21 4,70 1,33 - 9,2% 1,03 4,23
In 2005 extensive training programs have been
implemented within all Saipem companies: the number of inhouse HSE training hours reported were over 500 thousand hours, equivalent of 3,72 hours of training at 1000 worked hours.
This value represents an increase of 100% compared to 1,86 training rate reported for 2004.
create an increased awareness of hazards present in the workplace environment and precautions which must be taken to eliminate or control them. In 2005 a number of 1,18 Tool Box Talks per 1000 hours worked were reported, which represents a progress of 46% from the values registered in 2004.
Leadership at all levels within the Company is responsible for leading and engaging the employees in reaching the HSE objectives and goals.
Company management is establishing a direct two-way communication with employees, contractors and others on HSE issues during meetings and regular visits to workplaces.
Leadership is promoted throughout distribution and assimilation of experience gained as a result of HSE lessons
learned, both inside and outside project and company boundaries.
Offshore Construction Business Unit
This year important offshore construction projects have been developed, some of which are worth noting:
Majorca Subsea Aqueduct installed by Crawler in Spain, Rhum Field Development in the North Atlantic, which is considered to be the most complex pipeline construction, Sabratha Platform installation which is an offshore platform expected to produce ten billion cubic meters of natural gas per annum, successful installation of the BP Clair Platform by Saipem 7000 in the difficult weather conditions of Scotland offshore, the successful lifting of the Yoho Topsides in Nigeria, which was recognized by the client as being the heaviest lift ever made in West African waters. Besides projects performance, the recognition received by
Saipem 7000 from Shell’s Brent RFD Team for good work performed during the removal of the Brent Remote Flare and Brent Spar Anchor Blocks must also be mentioned.
The number of worked man-hours increased by 6% compared to the values recorded in last year, but the biggest improvement has been registered in the number of accidents with days lost, which decreased by 55% against the number of cases reported in 2004. This positive trend had a positive impact on the LTI Frequency Rate which decreased by 57% from 1,54 calculated in 2004 to 0,66 calculated in 2005.
The same improvement was reported also at the level of the number of leading indicators which increased by 44% against the values reported in 2004, but most significant in terms of number of Safety Hazard Observation Cards issued (85%) and In 2005 a number of 1,18 Tool Box
Talks per 1000 hours worked were reported, representing a progress of 46% from the values registered in 2004.
3,50 4,00
Leading indicators rate
3,00
SHOC Rate TBT Rate HSE Meetings
JSA Rate Inhouse HSE Training Rate
HSE Inspections
2004 2005
During 2005 a number of 166.431 safety hazard observation cards were issued: thus represents 66%
raise against the figures reported in 2004.
Leading indicators rate
Business Units Safety/Hazard Tool Box HSE Meetings Job Safety HSE Training HSE
& Activities Observation Talks Rate Rate Analysis Rate Hours Rate Inspections
Cards Rate Rate
Drilling Operations 3,23 3,14 0,42 2,59 5,84 1,41
Offshore Constructions 2,55 1,50 0,39 0,21 6,64 0,24
Leased FPSOs 0,17 0,12 0,18 0,12 0,41 0,24
LNG, Maritime 0,17 0,36 0,09 0,32 1,87 0,14
Works and Floaters
Onshore Constructions 0,36 0,87 0,13 0,22 1,51 0,47
Maintenance 0,09 1,07 0,17 0,03 2,79 0,34
Modification Operations
Integrated Projects 0,09 1,32 0,07 0,20 4,47 0,18
Other 0,21 0,55 0,19 0,15 2,25 0,14
(Logistic Bases & Head Offices)
SAIPEM GROUP 1,18 1,18 0,23 0,43 3,72 0,38
number of HSE Training Hours performed (223%).
Management commitment is the successful key in implementing and developing HSE MS. Starting from this approach SaiBos organized in 2005 several sessions of training in Accidents Investigation and Risk management for vessel staff management (masters, chief officers, superintendents, etc). The purpose was to raise awareness among the vessels’ management regarding the importance of investigation of all events occurring on board, the correct approach of investigation and analysis of events, the importance of team work and communication in incident investigation, identification of root causes and establishment of the required corrective actions. As from 2005, Saipem Jakarta has implemented a procedure of safety performance analysis. This system is meant to analyze HSE performance throughout the information provided by the Pro-active indicators vs. Recordable Incidents.
Moreover, special attention is given to pro-active indicators reported for each project/vessel/office indicating the weaknesses and strong points of the HSE Management System and its implementation on the Company’s managed sites.
Onshore Construction Business Unit
In 2005 a series of construction projects have been marked by completion in Cameroon, Algeria, and Saudi Arabia, therefore the worked manhours continued the downward trend which started two years ago, in 2003.
Comparing the number of worked manhours reported in 2005 with those recorded in 2004, there was a decrease with 11%, and measured against the values reported in 2003, this trend arrived at a 45% reduction. Special distinction and recognition of HSE performances was received by MINA Al Fahal - Sohar Pipeline Construction in Oman for 3 million manhours worked LTI free.
Sakhalin Onshore Construction Project remains one of the most challenging projects with more than 6000
people working in difficult environmental conditions.
Most of the accidents reported on this project are caused by harsh winter conditions (snow, ice, temperatures below 20 degrees), creating the hazards of slipping and tripping. In 2005 the number of
accidents decreased with 34%
which is reflected also in LTI Frequency Rate, this one dropped by 26% compared to values reported in 2004.
However the severity rate
increased on the one hand due to the seriousness of some accidents, whereas, on the other, it was influenced by the work legislation of the country where the accident occurred, leading to a negative trend from 0,015 to 0,023 days lost measured at one thousand worked hours.
Drilling Business Unit
The 2005 safety performance of drilling activities measured against the figures reported for 2004 show a slight downward trend of LTI frequency rate of 7%, from 3,16 reported in 2004 to 2,93 in 2005
In onshore drilling activities, which represents 68% of the total drilling business unit worked hours, an improvement has been recorded in terms of accidents with days lost, a value which corresponds to an increase of 16% of worked manhours leads to a 34% decrease of the LTI frequency rate against the performance measured in 2004. However, it must be remembered that in oshore drilling activities, one accident had a tragic outcome, the employee fell from a height and consequently suffered fatal injuries to the head.
For this serious accident a series of corrective measures have been implemented not only at the level of the rig where the event took place but the lessons learned have been disseminated among all companies and activities.
In offshore drilling activities a couple of accidents occurred with more than one outcome related to explosion Offshore Construction Business Unit
12,00
2001 2002 2003 2004 2005
Frequency Rate Severity Rate
0.08
LTI Frequency Rate Severity Rate Total Recordable Frequency Rate
Onshore construction Business Unit
3,00
2001 2002 2003 2004 2005
Frequency Rate Severity Rate
0.025
0.02
0.015
0.01
0.005
LTI Frequency Rate Severity Rate Total Recordable Frequency Rate MINA Al Fahal - Sohar Pipeline Construction in Oman received a Special distinction and
recognition of HSE performances for 3 million manhours worked LTI free.
hazards. These serious accidents negatively influenced the trend of LTI frequency rate which increased by 68% against the performance measured in 2004. Several rigs reached the outstanding safety performance of more than one year LTI free. These rigs are: in Saudi Arabia Saipem: AZ 5895, Rig 101, Rig 201; in Saipem Algeria:
AZ 5893; in SaiPar Rig 2, each of which has two years LTI free. The Rig AZ 5893 from Saudi Arabia reached three years LTI free and the Rig 216 from SaiPar, four years LTI free. In offshore drilling activities one-year LTI-free safety performance was reached by Scarabeo 5, Scarabeo 3 and AZ 5820. Special safety recognition was given to Scarabeo 7, which reached two years LTI-free.
Maintenance Modification Operation Business Unit The safety performance for maintenance activities carried out on gas extraction and production facilities from Italy, France, and Angola had a slight variation in terms of LTI Frequency Rate, which, measured against the values registered in 2004, decreased by 13%. Even though the
number of accidents with days lost was constant, the number of days lost due to injuries decreased by 25%. This reduction in number of days lost positively influenced the severity rate which had registered a decreasing trend with 36% against the values calculated in 2004.
LNG, Maritime Works and Floaters Business Unit
The completion of this important project influenced the overall number of worked hours reported in 2005, which registered a reduction of 38% against the values reported in 2004. The number of lost time injuries diminished by 39%, but these two factors correlated, the number of hours worked and the number of LTI resulted in no variation of LTI frequency rate. In 2005, the Erha Project received an award for outstanding safety performance, reaching 17 million worked hours LTI free. The Client, Exxon Mobile congratulated the safe and successful performance of the ERHA FPSO project The Guangdong LNG project has been awarded for achieving 1 million worked manhours LTI free.
Leased FPSO Business Unit
In September a new contract was awarded for an FPSO unit which is developing the Golfinho field in Brazil. The FPSO unit is obtained by converting the Margaux oil tanker. This new project received the name of Cidad de Vitoria and it is in Dubai Dry Docks for conversion works.
In June 2005, a serious accident took place on board FPSO Firenze. An explosion of a boiler produced 7 casualties which needed medical treatment in hospital due to contact with hot vapors from the boiler. All seven subcontractor personnel recovered well and returned to work. The relative chart shows the increasing trend of severity rate due high number of days lost by the injured persons, while the LTI frequency rate trend variation was not so significant. The LTI frequency rate increased by In offshore drilling activities
Scarabeo 5, Scarabeo 3 and AZ 5820 reached safety performance of one year LTI free. Special safety recognition was given to Scarabeo 7 which reached at two years LTI free.
Drilling Businss Unit
2001 2002 2003 2004 2005
Frequency Rate Severity Rate
0.21
LTI Frequency Rate Severity Rate Total Recordable Frequency Rate
Maintenance modification operations Business Unit
30,00
Frequency Rate Severity Rate
0.05
LTI Frequency Rate Severity Rate Total Recordable Frequency Rate
LNG, Maritime Works and Floaters Business Unit
Frequency Rate Severity Rate
LTI Frequency Rate Severity Rate Total Recordable Frequency Rate
only 4% compared to the 2004 figures due to the fact that worked manhours and number of accidents had more or less the same evolution compared to values for 2004, evolution caused in the case of worked manhours by the two new projects (+116%) and in the case of LTI caused by the “boiler explosion accident” (+125%).
Integrated Projects
Following the contracts award in 2004, at the beginning of 2005 Saipem started the development of Kashagan projects placed in Kazakh waters of the Caspian Sea.
There are currently three important contracts.
The first offshore contract called Kashagan Trunk and Flow Lines comprises engineering, procurement, coating, lying and commissioning of pipes, fiber-optic and control cables. The second contract, called Kashagan Piles and Flares involves the construction, assembly, transport and installation of 45 piles and two flares as well as the installation of the 16 barge modules which will house the facilities. The third contract concerns drilling to be carried out in block D of the reservoir.
The base in Kuryk assures the logistic support for operational activities mentioned above and also the construction of offshore structures. After a difficult start, the Kuryk Base implemented an efficient HSE management system which yielded a result of 500.000 worked manhours without LTI. Being treated as a separate entity among the other business units, the performance of the projects included in this section can not be assessed against values for the previous years. The safety performance calculated in 2005 for Integrated Projects was of 0,48 LTI frequency rate calculated at 6,196 million worked hours.