Health Safety Environment
Report 2005
Health Safety Environment
Report 2005
MISSION STATEMENT
"Pursuing satisfaction of our clients in the energy industry, we tackle each challenge with safe, reliable
and innovative solutions. We entrust our competent and multi-local teams to provide sustainable
development for our company and for the communities where we operate".
Core Values
Commitment to Safety, Integrity, Openness, Flexibility, Integration Commitment, Innovation, Quality,
Competitiveness, Teamwork, Humility, Internationalisation.
Countries of activity
EUROPE
Italy, France, Belgium, Croatia, Germany, Ireland, Luxembourg, Netherlands, Norway, Portugal, Romania, Spain, Switzerland, Turkey, United Kingdom
CSI
Astrakan, Azerbaijan, Georgia, Kazakhstan, Russia
SOUTH EAST ASIA AND OCEANIA
Australia, China, Indonesia, Malaysia, Singapore, Thailand
AMERICAS
Argentina, Brazil, Canada, Ecuador, Mexico, Peru, United States, Venezuela
AFRICA
Algeria, Angola, Cameroon, Congo, Egypt, Gabon, Libya, Morocco, Nigeria, Sudan
MIDDLE EAST
Abu Dhabi, Dubai, Iran, Kuwait, Oman, Qatar, Saudi Arabia, Sharjah, United Arab Emirates
CENTRAL ASIA
4 6 12 16 16 18 18 19 21 21 22 23 23 25 29 32 33 35 35 37 39 44 44 45 45 47 47 51 52 52 54 61 61 65 67 70 71 74 Health Targets Safety Targets Environment Targets Sustainability Targets Health Safety Plan 2006 / 2007 Environment Sustainability Program 2006
Building Common Accountability Framework
Health Reporting System and Expenditures Medical Services Rendered in 2005 Health Main Activities
Commitment to Safety Safety performance analysis Accidents analysis
Accomplishments and Failures Pro-active indicators
Safety Expenses
Commitment to environment Environmental Performance Data
Dolphin project: respect for the sea
Kizomba B project: Saibos in angolan deep water ERHA Project: a huge challenge called FPSO Letter from the Chairman
The methodology
About us: SAIPEM Group – Structure and Activities
Performance Overview
Priorities and Plans
HSE Management System
HSE Training year 2005 for Saipem
Corporate Responsibility
Health
Safety
Environment
Main focus on
Saipem at a glance: 2005 results
Definition of Terms
Once again I have the pleasure of presenting the Health, Safety and Environmental (HSE) report by the Saipem Group on our 2005 HSE performance covering all operations worldwide. This report reflects a desire by Saipem to remain open and accountable to the community for its HSE performance. It provides an overview of our achievements, considers challenges and establishes goals for the future. Although progress was made progress during 2005, with statistically the safest year in terms of Lost Time Injury frequency rate since records began, and considerable improvements in the environmental area have been achieved, we are in no position to celebrate these successes. Indeed, in 2005 six of our colleagues died as a result of our activities. Our thoughts should be with their families and our efforts must increase to ensure that these tragic events never occur. The loss of life as a result of our work is simply unacceptable and our targets cannot be anything but Zero Fatalities. I expect all our personnel to keep this in mind by ensuring that we take safety very
seriously in every task we undertake in our activities. Everybody needs to be a leader in safety, therefore personally accountable for it. Our focus in 2006 will be on developing these leadership themes and cascading specific training programs at various levels of our organization. Our QHSE Department has a key function in supporting all our managers and operatives in the fulfillment of their HSE responsibilities and the various tools and initiatives launched by the company shall be fully embraced by everybody. The protection of the health and safety of personnel and the environment is not only a top priority for the Group. It is a core value of the company and needs to be a personal value and commitment of each employee. These expectations are also demanded by our key clients who hold us to the highest HSE standards as well as to developing a positive safety culture. In line with the industry culture of continuously seeking opportunities to improve, the company’s performance in 2005 saw improvements in a number of important areas which
Letter From The Chairman
included risk and incident analysis, emergency management, environmental protection and sustainable development. Saipem has implemented several methods to determine root causes, improve management systems and share lessons learnt from each incident. Precautions have been taken to limit risks by appropriate analyses and by adapting our assets to technological progress. Besides the continuously monitoring of our plants and processes and complying with internal and external regulations, we have an incident management of and an emergency organization with detailed alert and hazard control plans. In 2005 Saipem took steps to improve the quality of our reporting, and a new software, the Environmental Web Report, was created. Further improvement has been achieved in the air emission factors methodology based on fuel consumption reports. Saipem has also focused its attention and efforts on improving and developing its Environmental Management System aimed at managing the potential environmental impacts connected to
construction activities. Sustainability has once again been a central part of Saipem’s way of doing business.
I do not want to go into more details, but I invite you to read the in-depth analysis on the various topics offered in this comprehensive Annual HSE Report which I welcome, and which presents a very good overview of our commitment, performance and challenges for the future. Our Corporate QHSE Department, who prepared this analysis, and all our worldwide HSE network have, as I said before, an important role in supporting, advising and facilitating the effective fulfillment of the HSE responsibilities which each of you holds as a Company employee. I wish to extend this concept to all Saipem stakeholders who are reading this report and are directly or indirectly involved with our operation. I sincerely believe that only our joint efforts and commitment can make this journey to safety the most effective possible and will lead us to the achievement of our vision of zero fatalities. I look forward to your feedback.
The aim of the Annual HSE Report is to describe our own major HSE performances by means of statistical data and parameters. The present HSE Report analyses all the main activities over which Saipem had exercised its operative control during the twelve-month period from 1 January to 31 December 2005.
This document, drawn up yearly and distributed to the public (shareholders, financiers, public opinion, environmental groups, national and local authorities, clients, etc.), tends to provide a comprehensive overview of the following principles:
• Saipem's Health, Safety and Environmental policy; • Importance that the Company assigns to these issues; • How Saipem has structured its HSE system to implement
the policies and achieve the set objectives;
• Way the Company operated in 2005 to assure workers' health and safety and to preserve the environment in the Countries where it operated;
• HSE Performance in 2005;
• Particular initiatives undertaken in the HSE area during the year. The Report contains both a qualitative description of the above principles and quantitative HSE data, such as consumption of natural resources, production of waste, atmospheric emissions, safety related indicators, expenses incurred for actions in favour of workers' health, safety and environmental protection.
In order to collect and process these data, Saipem uses an IT system introduced in 2002 which is improved year by year. The major innovation introduced in 2005 is the specific software (i.e. ‘Environmental Web Report’) custom made for Environmental data collection and available on intranet by the majority of Saipem’s sites, projects and companies. This new software has been introduced in order
to improve the monitoring and the evaluation of the environmental performance and results, as well as to identify the aspects that can be better dealt with.
The continuous improvement of our system has enhanced the accounting methodology in terms both of the comprehensiveness of the area of consolidation and accuracy of measurements. Whenever necessary, the historical sequences are updated using the same methods for the purposes of data comparison.
In particular, the present report contains a revision of the emission factor for atmospheric pollutants: for this reason the data concerning the previous years has been recalculated on the basis of the new coefficients. Generally, the evaluation of atmospheric emission can be determined following two methods: the direct one, by continuous measuring of pollutant concentration at the points of emission; and the indirect one, by estimates based on emission coefficients which consider both combustion systems as well as the quality of fuels’ used. Because of the numerous and diverse sources of emissions related to Saipem’s activity, the only reasonable way that can be to obtain a reliable quantification of the atmospheric emissions is the indirect estimation based on fuel consumption. The introduction of a new methodology, based on evaluation models and criteria set up by international organizations, leads to an improvement of the accuracy and reliability of the emissions quantification and, at the same time, allows Saipem to align with the International Standards for the calculation of the air emissions such as CORINAIR (methodology issued by the United Nations Economic Commission), UKOOA (methodology issued by United Kingdom Offshore Operators Association) and IES (methodology developed by ENI).
The methodology generally used for the indirect estimation of atmospheric emissions is based on "successive approximation" starting from the resources available: recalculations should result in an improvement of the accuracy and completeness of the inventory and ensure the consistency of the historical series.
Moreover, as from this year, in addition to the usually monitored pollutants (i.e. CO, CO2, SO2 e NOX), CH4, NMVOC and PM are also considered.
The environmental indicators used in this report can be divided into two main groups (i.e. absolute indicators and relative indicators). The former refer to objective physical parameters (such as tons of consumed fuel, m3 of consumed water, expenditure in euros, etc) while the latter are obtained from the ratio between the absolute indicator and the production of the relevant activity (for example tons of consumed fuel / km of pipeline laid, m3of consumed water / tonnes of structure lifted, etc). The relative indicators attempt to eliminate the ‘natural' variation of the absolute ones caused by production changes: the relative indicator thus measures only genuine changes in efficiency and can be profitably used to evaluate the improvement of an activity from an environmental point of view, offering the possibility of a comparative analysis through the years. In view of the considerable diversification of Saipem's business, it was considered appropriate to continue the usual practice of presenting quantitative data aggregated by type of activity (offshore constructions, onshore constructions, logistic bases / offices, etc.).
A further innovation, specific to environmental/safety expenses and investment accounting, was introduced in 2005. The required data are now extracted directly from the SAP or SPSPC database, thus providing a more accurate
expenditure recording method. Such software is used extensively in most process-based companies, and currently involves about 80% of Saipem’s structure. An important part of the self-improving process mentioned above is represented by a new revision of the Corporate Standard for the Annual HSE Report, whose target is improving our reporting system in order to present ever more useful and accurate information.
As for the past years, also in 2005 we have decide to check the reliability of the information contained in the present Report by a third part audit conducted by an external verification company. Moreover this check provides us some valuable indications and suggestions for the continuous improvement of data clarity and Report readability. The list provided with the following map includes all the Sites/Projects involved in the collection of the HSE data.
Projects
Offshore Construction B.U.
Saipem Projects and Sites of activities
• AIOC Transport & Installation • Sabratha Platform • SaiWoo - Sable Tier II
Canada
• Saipem SpA - Bahr Essalam • Saipem America - BP projects • Sonsub Ltd Worksites • Sonsub A.S. • Sonsub PTY • Peciko IV • Bayu Darwin • Bongkot • TTM Project • Lamma project • TL Offshore Project • BP Tangguh • TTP project
• Sakhalin Pipelines & Cables
• Sakhalin Topsides • East Area EPC 2 • Yoho
• Amenam AMP 2 Project
• Kizomba B Project • West Espoir • Rosa- Lirio • Marimba • AKPO
• DP4 AGIP Bour RIG remooval • PS1 Persian Gulf • Dolphin project • Baltim North • Engineering projects • BP Rhum • Conocophilips • Ormen Lange • Tullow Oil • Maersk Dan 949020 • Nexen Buzzard pipelines
& subsea structures 949290
• Nexen Buzzard transport & Installation 949310 • Shell BRFD • Frigg Cessation 949480 • Langeled 949330 Vessels • Saipem 355 • Bar Protector • Castoro 2 • Castoro 6 • Castoro 8 • Castoro 10 • Crawler • FDS • Saipem 3000 • Saipem 7000 • Semac 1 • SB 230 • Polar Prince • Grampian Surveyor • HOS Innovator • HOS Dominator • Normand Cutter • Highland Navigator • Maersk Reliance • DP Reel • Maersk Explorer • Far Sovereign
Onshore Construction B.U.
• Oil & Gas Upstream • EWRB Pipeline Project • EWG-1 Pipeline
Conversion To Sales Gas • Okpai Power Plant • NLNG Phase3 Gas Supply • Soku Gas Debottlenecking • GTS-4 Gas Suply Pipeline • GTS-2/4 Slug Catcher • Karachaganak Main
Works
• MAF - Sohar Crude Oil Pipeline Project • ROD Project Algeria • TCHAD Cameroun
• SOFRESID FRANCE • BOS Sofresid Algerie • OSBL - Offsite Battery
Limits - Total Gonfreville • OCP -Office Cherifien de
Phosphates Morroco • Rosa Lirio E&P -
Adaptation of FPSO for Girassol
• Berroughia Power Plant Algeria
• Sakhalin II Onshore pipeline
• Transporto Gas ad Alta Pressione -Italy Gela
LNG, Maritime Works
& Floaters B.U.
• Hazira Port and LNG Terminal Project • Huelva IV LNG Tank - • Cartagene LNG tank -• Guangdong LNG
Receiving Terminal • Fos de Cavou LNG tank • Freeport
• Zeebrugge Extension LNG tank
• Tanger Port
• Soyo Angola Quay Side Expansion
• Caucedo Puerto Mtce • Monaco II - maritime
works • Gela Italy
• Costa Azul - Mexic • ERHA - EPC & Towing for
FPSO
• Dalia EPC for FPSO
Fabrication Yard
• Intermare Sarda - Arbatax
• Rumoulumeni • DLH Kwanda & Exxon • Petromar Malongo
• Petromar Soyo • Boscongo
• Saipem Mediteraneean Services- BOS Shelf
Offshore Drilling
Maintenance Modification
Operations B.U.
• CAMOM • Techoprojecto Internacional • CPC Maintenance - Russia Office• Petromar MMO projects • Cameroun Maintenance • Tchad Maintenance • Energy Maintenance Services
Integrated Projects
• Katran-K Beregovaya Compression Station • Kashagan Trunk andProduction Flow Lines
• Kashagan Piles & Flares • Kashagan Drilling • ERSAI Kuryk Fabrication
yard
Drilling B.U.
• Saipem 10000 • Scarabeo 3 • Scarabeo 4 • Scarabeo 5 • Scarabeo 6 • Scarabeo 7 • Perro Negro 2 • Perro Negro 3 • Perro Negro 4 • Perro Negro 5 • AZ 5820 Onshore Drilling • AZ 5825 • AZ 5889 • AZ 5892 • AZ 5893 • AZ 5894 • AZ 5832 • AZ 5898 • Rig 101 • Rig 102 • Rig 201 • Rig 202 • AZ 5829 • AZ 5846 • AZ 5891 • AZ 5895 • Rig 2 • Rig 216 • Petrex Peru • Petrex Venezuela • Az 5843 • Rig G 125 • AZ 5863 • AZ 5870 • AZ 5827Logistic Bases
• Saipem Jakarta - Sitiwan • PT Ninda - Batam • SanVitale Ravenna - Italy • Saipem Spa Sharjah
Branch - UAE • SCNL - Nisco & Onne
Nigeria
• Saipem Algeria - Hassi
Messaud - Algeria • Saudi Arabia Saipem -
Dammam Base • Cortemaggiore Italy • SaiPar - Drilling Camp -
Kazakhstan • ERS Schiedam Base
Head Offices
• San Donato • San Giuliano • Saipem Energy
International • Saipem Aktau Office • Sonsub Aberdeen Facility
Office
• SonSub AS Stavanger - onshore
• SaiBos Onshore • Saipem Malaysia - Kuala
Lumpur office
• Saipem - Perth Office - Australia
• Saipem Jakarta Office • Global Petroprojects
Services - Zurich • Saipem Portugal
Comercio Maritimo
• Saipem Mediterranean Services (office & workshop Rijeka) • Moss Maritime A.S.-
Norway
• SaiPar Aksai Office • Base Pointe Noire • Saipem America Inc • Saipem FPSO Marghera
(office & workshop) • CEM Sandouville • Saipem SA Head Office • Petromar Office - Luanda
& Kwanda
• Saipem India (SIPS) • Saipem UK Office • Saipem Egypt - Cairo
Office
Leased FPSO
• Firenze • Mystras
• FPSO Magdelaine - Dubai • FPSO Vitoria
Yards & Main Logistic Bases/Offices
Main Areas of Activities
Engineering Centers
Drilling Activity
About us: SAIPEM Group
Structure and Activities
Saipem Group operates as a global contractor in the oil industry services market, in the onshore and offshore Constructions and Drilling sectors. It is also involved in the field of Infrastructures and Floating Production. Saipem Group operates nationally and internationally through a structured and integrated network of operating structures. The Group is organized into six business units, three of which – Onshore Constructions, Maintenance Modification & Operation (M.M.O.), and Liquefied Natural Gas (L.N.G.) – are based in Paris, where there is also the knowledge centre for engineering, procurement, and project management, and three – Offshore Constructions, Offshore and Onshore Drilling, and Leased FPSO are in Milan, where the technical services and special projects task force are based as well.
Offshore Construction
Saipem Group possesses a strong, technologically advanced and high versatile fleet in addition to a comprehensive spread of sector-leading engineering and project management expertise.
These unique capabilities and competences, together with a long-standing presence in strategic frontier markets comprise an industrial model that is particularly well suited to EPIC (Engineering, Procurement, Installation and Construction) projects. Amongst the semi-submersible fleet equipped with the most advanced state-of-the-art technologies, the most noteworthy vessel is Saipem 7000 thanks to its dynamic positioning system, 14,000-tonne lifting capacity and its capability to lay subsea pipelines in ultra deep waters using the “J-lay” system, which can handle a suspended load of up to 4,500 tons during pipelay operations. Other vessels include Castoro Sei, capable of laying large diameter subsea pipelines; the Field Development Ship (FDS), a special purpose vessel used in the development of deep water fields, equipped with a dynamic positioning system and a 600-tonne lifting capacity crane, in addition to a vertical pipelaying system able to work in water depths of up to 2,000 metres; the vessel Saipem 3000, is capable of laying flexible pipelines and installing umbilicals and mooring systems in deep
waters and installing subsea structures of up to 2,200 tons. Saipem also boasts a strong position in the subsea market, operating highly sophisticated and technologically advanced vehicles, such as subsea ROVs (Remotely Operated Vehicles), i.e. purpose-equipped robots, able to carry out complex deep-water pipeline interventions. Group companies operating in the Offshore Construction sector, in addition to the parent company, are: Saipem s.a., its directly controlled companies SaiBos Construções Maritimas, Bos Congo, Petromar, PT Sofresid Engineering and its associated company Offshore Design Engineering. Also: Saipem UK, Saipem America., Saipem (Malaysia), Saipem Asia, PT Saipem Indonesia, Saipem Luxembourg, Saipem (Portugal) Comércio Marítimo, Sonsub Ltd, Sonsub A/S, Intermare Sarda, Saipem Contracting (Nigeria), Saipem Energy International, Saipem FPSO, ERS Equipment Rental & Services, Saipem Mediterranean Services, StarGulf, ER SAI Caspian Contractor, Bos Shelf Moss Maritime.
Offshore drilling
In 2005, the Group operated in the Offshore Drilling sector in West and North Africa, the Persian Gulf, Norway, Peru and India. Amongst the Group’s fleet, the following vessels are of particular interest: Saipem 10000, capable of working at depths of up to 3,000 metres using its dynamic positioning system; Scarabeo 7, a semi-submersible vessel capable of operating at depths of up to 1,500 metres and Scarabeo 5, a fourth generation semi-submersible vessel, capable of working at depths of over 1,800 metres and drilling to a depth of 9,000 metres. Besides the parent company, other Group companies operating in this sector are: Saipem Nigeria, with headquarters in Lagos, presiding over the strategic area of West Africa; Petrex, operating in South America; Saudi Arabian Saipem, operating in the Persian Gulf; and Saipem (Portugal) Comércio Marítimo, which manages all drillships, apart from Scarabeo 5, managed by Saipem SpA, Sonsub Ltd also operates in this Sector, supporting operations with its remotely operated vehicles (ROVs).
Leased FPSO
Significantly strength in design expertise in the floating production sector and ability to manage turnkey projects, have led Saipem Group to won the first contract on a standalone basis in the high growth leased FPSO market. The fleet comprises: FPSO Firenze, and FPSO vessel, Mystras. All initiatives of the year have being developed in joint venture with Single Buoy Moorings. In addition to Saipem SpA, companies operating in the Leased FPSO sector are: FPSO - Firenze Produção De Petróleo Lda, FPSO - Mystras Produção De Petróleo Lda. Furthermore, the following companies provide support in respect of engineering, procurement and project management: Moss Maritime,
Saipem s.a., Saipem Energy International SpA, Saipem Fpso SpA and Saipem Luxembourg SA.
Onshore Construction
The Group’s strengths in the Onshore Construction sector are its construction capabilities allied to its engineering and project management competencies, which allow the Group to focus on challenging projects such as the laying of large diameter pipelines and the construction of upstream plants in difficult areas.
The regions in which the Group has a long-term presence and operates consistently are the Arabian Peninsula, Nigeria, Russia and Algeria. The Group is also still engaged in Kazakhstan, where it operates in joint venture with another international contractor. Moreover, the Group operates in Oman and Franca. In addition to the parent company (individually or in association with other international operators), the following subsidiaries carry out onshore construction activities: Saipem s.a. and its subsidiaries Saipem Contracting Algeria, Sofresid Engineering, SIPS, and associated companies Starstroi and Lipardiz Construçao de Estruturas Maritimas Lda. Furthermore, Saipem Contracting Nigeria, Saudi Arabian Saipem and Katran K also operate in this sector.
Onshore Drilling
In the Onshore Drilling sector, the Group operates in Italy, Algeria, Egypt, Nigeria, Saudi Arabia, Kazakhstan, Russia, Peru and Venezuela through the parent company as well as Saipem Nigeria, Petrex, Saudi Arabian Saipem, Sadco (an Indian company jointly owned and managed with Aban Drilling Co.) and SaiPar (jointly owned and managed with Parker Drilling Co and operating in Kazakhstan).
Liquefied Natural Gas (LNG)
In the last few years, the Saipem Group has developed a strong presence in this sector. Operations are mostly carried out by Saipem s.a., which operates in this sector through its controlled companies: Technigaz, world leader in EPC projects, Guangdon Contractor, Hazira Cryogenic Engineering and Costruction Management and Hazira Marine Engineering and Construction Management; and through its associated companies GTT (Gaz Transport et Technigaz), leader, with Moss Maritime, in the LNG transport segment thanks to innovative and highly advanced technology, Societé pour la realisation du Port de Tanger Méditerranée and Servicios De Construcciones Caucedo, Saimexicana and Saigut. Furthermore, Saipem SpA and Saipem America also operate in this sector. Operational activities are focused mainly in the Mediterranean area in addition to two particularly challenging and demanding projects currently underway in India and China. Two new projects have just started in United States and Mexico.
Maintenance modification and operation (MMO)
The Saipem Group has only recently started operating in this sector, which completes the range of services offered to oil companies. In this sector, Saipem s.a. currently provides services mainly in Western Europe and Russia, in petrochemical plants and refineries, and in West Africa in upstream oil infrastructure. Operations are carried out
through the companies Camom, Tecnoprojecto Internacional Projectos e Realizacoes Industriais and Petromar. Also operating in this sector is Energy Maintenance Services SpA a company jointly owned and managed with Eni Exploration & Production, which focuses on maintenance activities for all industrial plants of Eni E&P’s industrial plants in Italy.
Offshore Construction - Laid pipelines
2000 Km 1750 1500 1250 1000 750 500 250 2001 2002 2003 2004 2005
Onshore Construction - Laid pipelines
Km 1400 1200 1000 800 600 400 200 2001 2002 2003 2004 2005
Offshore Drilling - drilled meters
m 14000 12000 10000 8000 6000 4000 2000 2001 2002 2003 2004 2005
Offshore Construction - Installed structures 200000 ton 175000 150000 125000 100000 75000 50000 25000 2001 2002 2003 2004 2005
Onshore Construction - Industrial palnts
ton 35000 30000 25000 20000 15000 10000 5000 2001 2002 2003 2004 2005
Onshore Drilling - drilled meters
m 700000 600000 500000 400000 300000 200000 100000 2001 2002 2003 2004 2005
Health Performance Indicators(HPI-s) are for the Medical Department not only a control tool but also a means by which to assess the way that specific medical activities are carried out in peripheral units and Companies as well as at corporate level. HPI-s reflect the current state-of-art, as they highlight points needing to be improved, indicating the areas where, by concentrating efforts and resources, results can be obtained.
Each year the indicators are adjusted in order to cover as completely as possible all health issues. In 2005, for instance, ten indicators were used. Seven indicators were used in peripheral units and Companies. Six of them are: pro-active indicators which monitor exposure, or other factors, which may influence health before an illness occurs: accomplishment of the Medical Fitness Examination system for expatriate and local personnel within the Saipem group of Companies; the number of vaccinations provided to expatriate employees, linked to work-related biological risks; the number of personnel involved in STD (sexually transmitted disease) prevention training and information
courses; the number of medical personnel attending specific training courses; the number of performed medevac drills recorded on the standard format and sent to the medical coordinator and the number of health/hygiene inspections carried out. One of them is a reactive indicator, which monitors the consequences of exposure (incidents): the frequency of repatriations due to sickness per million manhours.
Corporate indicators used were: number of News&Updates issued, development of health risk assessment software and completion of the Saipem Med Sheet Summary. Total number of Saipem employees included in HPI database is 17802 in 77 working sites.
Medical Fitness Examination system for expatriate and local personnel.
As part of the preventive activities for workers, the medical certification of expatriate employees, conducted as pre-employment and periodical medical fitness examination, reached the percentage of 94% of employees (against the
Performance Overview
target of 90%).
The medical fitness for local personnel reached the percentage of 91% (the target being of 80%). Both targets established for the number of medical fitness certificates for expatriate and local personnel were accomplished.
Vaccination campaign against communicable diseases
Vaccination campaigns were always considered to be a key factor in the prevention of communicable diseases that can be acquired in and out of industrial premises.
According to local peculiarities, project/site clinics had different inoculation programs. A number analysis shows that 82% of all expatriate employees are vaccinated against the communicable diseases considered a risk for a certain area. The target for 2005 was set at 75%.
Accomplishment of repatriation system
The target for frequency rate of cases repatriated for health reasons from Saipem operating sites in 2005 was set at a value of below 0.7. The target has not been achieved by the deadline,
with 1.29 repatriations per 1 million MWH. The main cause for not reaching the target is that in 2005 14 new Doctors have been employed by Saipem mainly on offshore sites. At the beginning, they didn’t have much experience of Saipem, its structures and operating procedures, therefore, in some cases they repatriated personnel without having used all the facilities and support that Saipem makes available.
Training courses and information on the sexually transmitted diseases
First aid induction courses, educational programs for sexually transmitted diseases and awareness courses about the health risks present in certain areas are programs deemed to increase the level of health education of our employees and to encourage them to adopt the correct behavior and lifestyles that will improve and safeguard their health. The target for the number of employees attending the educational courses on STD prevention was 75%. The percentage of employees who attended the STD courses was 51%. The objective has almost been achieved, if we consider that the target takes into
Description of the indicator Target Result on december 2005 Note
PROACTIVE HPI
Percentage of employees with valid A) Expatriates 90% 94%
medical fitness examination B) Locals 80% 91%
Percentage of expatriates vaccinated against diseases >75% 82% Not interfering with considered to be at risk in the working geographical region national vaccination programs for local employees Percentage of personnel (expatriates and locals) >75% 51% Percentage of the
who attended training in the prevention of Sexual employees on the
Transmitted Disease (STD) working sites who
attended the STD course Medical personnel who attended Advanced Trauma Life 25% 38% The validity of the
Support (ATLS) and/or Advanced Cardiac Life Support ATLS and ACLS
(ACLS) training courses this year course is 4 years
Conducted MEDEVAC (Medical Evacuation) drills at operating 1/month/site 0,62/month/site Reflecting
sites/projects the emergency
preparedness Number of conducted hygiene inspection 1/month/site 1,64/month/site Prevention of the communicable disorders
REACTIVE HPI
Frequency of case repatriated for health reasons from <0.7 1,29 Number of case
Saipem’ operating sites repatriated per million
man workhours
CORPORATE INDICATORS
Issuying News&Updates 100% 100% Quartely issuying
Development of Health risk assesments software 100% 100% Full development of the software
Saipem Med Sheet Summary 100% 75% Editing and distribution
process of Saipem Medical Departments
consideration only employees that were involved in courses in 2005, not those who did them previously, and has thus been inaccurately defined.
Training courses for medical personnel
In order to maintain emergency preparedness levels and to keep medical personnel working for Saipem worldwide up-to-date with latest theoretical and practical information regarding Emergency Medicine, the Head Office Medical Department has organized, and will continue to organize, specific refresher courses. The training follows international guidelines for emergency medicine and is structured around two main thematic groups: ATLS (AdvancedTrauma Life Support) and ACLS (Advanced Cardiovascular Life Support). According to the HPI summary report for 2005, the percentage of medical personnel who attended these courses this year reached 38%, surpassing the set target of 25%.
Performed medevac drills recorded on the standard format and sent to the medical coordinator
Emergency drills should be conducted on every site once a month. Drills simulate actual emergencies where practicable, and confirm response and action times. The drills are an essential part of the overall safety program and ensure that everyone fully understands their role in case of emergency. The target for 2005 was of 1 medevac drill per site (100%). The target has not been achieved with the final score of 0,62/month/site (62,33%). One of the main goals for 2006 will be to improve performance in the achievement of this target.
Conducted health/hygiene inspections
The health/hygiene inspections should be conducted as a prevention measure for communicable disorders. The target was 1/month/site (100%), meaning that in every site should have at least 1 health/hygiene inspection per month. The target was fully achieved with the result of 1,64/month/site (100%).
Safety Targets
In 2004, we recorded safety improvements achieving a reduction of more than 22% in our Lost Time Injury Frequency (LTIF). A LTI is recorded when an injury causes a worker to miss a day or more of work. Since 2001, our LTIF has declined from around 4.7 cases per 1 million man-hours to 1.21 in 2005. This is a considerable achievement which, added to the about 10% reduction of our Total Recordable Injury Frequency (TRIF), fulfills the overall target for the Group. However some of the single Business Units did not accomplish their individual goal, with Onshore Construction, Drilling Operations, Leased FPSO
and LNG business units not achieving an improvement in their LTIF rates. A breakdown of safety statistics for each Business Unit can be found in Chapter on safety Despite the progress made in reducing injury rates, serious incidents continue to occur. In 2005, there were 6 fatalities, compared with 8 in 2004. The 6 consisted of four employees and two contractors. As underlined by our Chairman in his opening letter to this report, these figures are simply unacceptable and all our efforts must be directed to achieving the target of Zero fatalities. However, we keep working on the development of positive safety culture across the organization and our Pro-active Indicators, fully shown in Chapter on safety, are a clear demonstration of this focus.
With reference to the target to increase the number of internal and external HSE training hours, in 2005 we have managed to achieve an impressive 92% increase. Further analysis of this data can also be found in Chapter on safety.
Environment Targets
Saipem’s strong commitment to environmental protection in 2005 can only be fully appreciated by looking at the day-to-day environmental management of each and every project in progress around the world. If it were possible to illustrate sites and projects comparing relative environmental performances now with those of some years ago, such commitment would be clearly perceived immediately . The signals would be improved waste management, the controlled use of water resources and fuels, spill prevention practices and planning, environmental training carried out among the entire workforce, and the awareness, in a word, of the importance of performing daily activities aimed at minimizing and preventing potential negative impact to the environment. It is therefore difficult to focus on any single initiative to illustrate environmental management for 2005. The first real witness of the development of environmental awareness in all Saipem projects and Companies is the issuing of the Corporate Environmental Policy. It expresses the commitment undersigned by Saipem Top Management to the protection of the environment, and the will of the entire Group to strive to apply criteria and sound practices aimed at ensuring that the projects are realized with a view to preventing or minimizing the disturbance to the environment. An important initiative is the program of air emission reduction on Saipem fleet vessels. Following the Marpol requirement on air pollution prevention, which came into force in 2005, Saipem has taken the opportunity not only to plan action aimed at ensuring compliance with such requirements, but also to identify action aimed at air emission reduction also in those cases which were not
covered by the regulation (e.g. on engines, incinerators, etc.) Also related to air emissions is the other important environmental initiative of 2005. It consists in a study that has been carried out in order to compare the emission factors being used by Saipem to estimate air emissions due to fuel consumption, with the most internationally recognized air emission modeling, i.e. Corinair, Ukooa, and IPCC. This study led to the identification of the best set of air emission parameters most properly resembling Saipem activities, and also to the widening of the range of air pollutants considered. Not only CO, CO2, NOxand SO2are estimated, but also CH4, non-methan organic volatile compounds and particulate matter. Finally, the other important environmental initiative carried out during 2005 is the creation of a new Software (i.e. ‘Environmental Web Report’), a specific software that has been developed and implemented in order to obtain a reliable and effective instrument for monitoring and evaluating environmental performance and achievements. The time required to create this new data reporting method underlines once more the importance attributed by Saipem to the
environmental aspects of its activity: through the analysis of the collected data, it is in fact possible to evaluate the effectiveness of the investments and the measures adopted, and to point out the aspects that can be improved. Moreover, as the Environmental Web Report is run on intranet, it allows real-time transmission of the environmental data from the peripheries to the Corporate, wider distribution of the Software to the Sites projects/Companies, and easier communication of updates and changes from the Corporate to the Sites/projects/Companies.
Sustainability Targets
Following the publication of the Sustainability Case Studies on Saipem activities in Azerbaijan, Kazakhstan, Nigeria and Peru in 2005, the sustainability team focused its efforts on the analysis of other countries in the Asia Pacific Region and Angola. The target was to develop also in these areas an assessment of social, environmental and economic factors in order to understand and evaluate
Objective 2005 Target Result
Health
Employees’ medical fitness certificates 90% of international personnel
☺
80% of local personnel
Vaccination campaign for expatriate personnel >75% of expatriated personnel exposed to risks
☺
Reduction for the total frequency rateof repatriation in respect to the previous year 10% reduction = <0,7 /million WMH Focus on health education and training activities
for Medical Personnel: ACLS/ATLS (Advanced Cardiac
Life Support/Advanced Trauma Life Support) 25%
☺
Training programs and prevention courses >75% of total workforce on Sexually Transmitted Diseases (STD) and HIV (local & expatriates) at project sites
Safety
Zero fatalities Zero fatalities
Reduction of all types of accidents 10% reduction for Drilling Operations, Offshore Constructions, LNG, Maritime Works & Floaters, Head Offices, Logistic Bases & MMO. Achievement of 2004 target
for Onshore Constructions & Leased FPSO
☺
Increase of internal and external HSE training +10% vs 2004
☺
Environment
Significant Environmental incidents Zero significant incidents
☺
Environmental prosecutions and fines Zero fines and prosecutions
☺
ISO 14001 certification for Group’s companies Development of ISO14001 compliant Environmental Management System for Saipem Nigeria
Sustanibility
Key Studies on Sustainability Two Key Study on Indonesia and Angola
☺
Saipem’s operational impact within the local context. Information collected during the assessment exercises makes up the case studies of the previous year’s experience which were produced following the same methodologies. Moreover, in 2005 also Saipem’s operation in Oman was
taken into consideration and represents the third case study produced in the year. This unexpected result was achieved thanks to strong project management commitment and the valuable collaboration of HSE staff on-site.
Saipem’s second time QHSE award has been announced at all its sites around the world. As part of the ongoing process of integration between HSE and quality, from 2005 the award also includes the evaluation of the quality performance of companies, sites and projects, thus becoming the QHSE award.
Saipem QHSE performance evaluation is avhieved by means of analysis of specific parameters identified in the four issues. Regarding quality, parameters were related to: QHSE Management System and specific quality performance indicators, such as internal audit plan, process and target indicators, quality training, client satisfaction information etc. Health parameters considered in the evaluation of companies and projects
were: the development of health programs, the development of Health care documentation system, alcohol & drug policy, health certificates, Vaccinations, MEDEVAC Procedures, health training and information courses, medical reporting. Safety performance was evaluated through the training programs on safety, risk management, client satisfaction, safety reporting & communication, sub-contractor management, safety campaign and quantitative parameters such as LTI Frequency Rate.
Finally, environmental performance evaluation was based on parameters such as the implementation of an environmental management system, monitoring / measuring campaigns / survey, environmental audit,
environmental reporting, training and the obtainment of the ISO 14001 Certification.
Evaluation methodology included individually weighted QHSE themes;
Saipem 10000came first, Saudi
Arabian Saipem Ltdsecond and
Saipem Norway, Scarabeo 5 and Saipem Contracting Nigeria Ltd.joint third.
The QHSE awards ceremony was held in May 2005 at the head office in San Donato Milanese and was an opportunity for Saipem’s Top Management to express and exchange views on QHSE during operations. After showing the methods used to evaluate candidates, trophies were awarded to the managements of the winning organizations.
Priorities and Plans
Health Performance has been positive and the objectives defined in 2005 have been confirmed in 2006.
In some cases, the need has arisen to modify objective measurement in order to allow improved monitoring. In other cases, more restrictive targets have been defined to continually improve process efficiency. For instance, targets set to measure the objective of the accomplishment of medical fitness examination certificates for all local and expatriate personnel, which was achieved in 2005, will be confirmed in 2006 with more restrictive targets, respectively 92 % and 90%. The vaccination campaign objective for expatriate personnel, which has been satisfactorily achieved, will also be reinforced in 2006, with a more challenging target of more than 78 % of expatriate personnel exposed to risks being vaccinated. On the other hand, the 10% reduction of the total repatriation frequency rate has not been achieved, with a final score of 1.29. This performance indicator represents the repatriation frequency per million work man-hours. The main cause for not reaching this objective can be linked to the
employment of 14 new Doctors in 2005, mainly assigned to Saipem offshore sites. On taking up their duties within our organization they did not have much experience of Saipem’s operating procedures, which resulted in some personnel being repatriated without full use having been made of all facilities and support that Saipem makes available to them.
However, the Medical Personnel’s Health Education and Training Activities objective was achieved, with specific ACLS/ATLS (Advanced Cardiac Life Support/Advanced Trauma Life Support) training offered to 37% of medical personnel. However, in 2006 the measure will be better defined to Number of Medical personnel trained with a specific training course at least once during the past four years. With these measures, the target will be 100%. The objective to enhance training programs on Sexually Transmitted Diseases, inclusive of AIDS prevention courses, has been nearly achieved.
We should admit that the target has not been correctly defined, because it takes into consideration only employees
Health
that have been involved in courses in 2005, not counting employees that previously received the training. In fact the objective has as its main goal the monitoring of employees who have been involved in the courses at least once in their Saipem working life. This objective has been confirmed in 2006, but the measure will be changed to the ratio of the number of employees involved in STD prevention courses (AIDS-inclusive prevention courses) at least once in their Saipem working life and the total number of the work force present in Project sites. The target will be >70%.
Safety Plan 2006 / 2007
At the beginning of the year the Saipem Corporate Overseas Safety & Environment Co-ordination team formulated the Safety Plan for 2006 identifying the key areas which deserved particular focus and intervention. Past performance was taken into consideration and the need for a change in safety culture was identified.
A two-year plan was developed and presented to the Company Top Management. The Top Level Saipem safety objectives can be summarized as follows:
• Zero Fatalities
• Enhance Group Safety Culture
• Reduce the number of Total Recordable Injuries In order to achieve the above objectives a detailed management program inclusive of six key supporting objectives was developed.
Before entering into details, it is important to review some key facts (better explained in the relative chapter on safety performance analysis) which supported the identification of the abovementioned key areas.
• Over the past three years no substantial improvement on accidents frequency rates has been achieved. Instead, safety statistics show a plateau, as in line with overall industry performance.
• Accident investigations revealed that about 80% of all injuries are due to unsafe actions, with incorrect behavior and poor attitude as main causes.
• Almost half of all major injuries, including fatalities, involve subcontractor personnel.
• Over the past years all our major clients have increased their focus on Leadership in Safety and launched various related programs and initiatives.
It is a key expectation of all major operators that their subcontractors implement similar programs. A pro-active approach towards these themes does not only help Saipem enhance safety culture and performance, but can also bring a competitive advantage.
Having identified and analyzed these facts, it was decided to pay particular attention to the following key supporting safety objectives, which constitute the heart of Saipem
Safety Plan 2006 / 2007, and only the implementation of which can contribute to the achievement of the Top level Objectives earlier identified.
Each Business Unit is expected to work towards the Corporate Top Level Objectives and Targets and develop safety management programs in line with, but not limited to, the following key supporting objectives:
1. Enhance Leadership in Safety
Management at all levels in the Group is responsible for leading and engaging the workforce in safety and demonstrating visible commitment to the safety initiative. A Leadership in Safety Workshop program will:
- enhance senior and line management awareness on safety responsibilities
- help them demonstrate how they can pro-actively lead safety
- promote leadership and safe behavior at all levels within the Group
A Saipem key client has confirmed full support to share with us their experience and their ‘Leadership in Safety Program’, and to facilitate the development and execution of a tailored Saipem Workshop.
2. Enhance Field HSE Training
Employees need to be competent to perform tasks that may impact on safety in the workplace. Training helps people acquire the skills, knowledge and attitudes to make them competent in the HSE aspects of their work.
Focus on this area will help raise the level of safety competency and training in the most hazardous of Saipem’s environments.
3. Re-energize Sites / Units Safety Auditing Program Auditing is a key element of the safety management system as it constitutes the feedback loop which enables Saipem to reinforce, maintain and develop its ability to reduce risks and to ensure the continued effectiveness of the HSE management system.
The purpose is to formalize an auditing program with the aim of ensuring that appropriate management arrangements are in place, adequate risk control system exits and compliance with Saipem SMS and regulatory standards (i.e. ISM) are assured.
4. Work with Key Subcontractors to improve their HSE Performance
Around of 50% of Saipem’s major injuries (including Fatalities) involve subcontractors. Comprehensive and systematic subcontractor safety programs can improve the HSE performance of both Saipem and subcontractors. Saipem subcontractors need to work towards the overall objective of “No harm to people or the environment as
result of their activities” and manage HSE through a continuous improvement approach.
Saipem should make a pro-active contribution to improved subcontractor HSE performance.
5. Implement Program for Improved Risk Assessment Management
Risk Assessment is the foundation of an effective Safety Management system as it provides the necessary information to reduce risks and mitigate the impact of Saipem’s operations on HSE.
The purpose of this objective is to standardize the expectations and techniques to be used for an effective and adequate risk assessment process across the Group, and ensure they are systematically used for the identification of hazards, assessment of risks, and identification of appropriate mitigation activities.
6. Improve Group safety Network Communication The sharing of safety experience, lessons learnt and best practice is recognised as a modern and effective way to achieve improvements on safety performance.
A repeat of the Group QHSE Managers meeting event organised in 2002 is planned with the aim of facilitate the sharing of Operating Companies HSE experiences and re-affirming Corporate HSE expectations with the involvement and contribution of key clients (i.e. ENI, Exxon, Total). Saipem’s vision of safety, commitment to the above summarized 2006 / 2007 Safety Plan, and our continuous striving towards an incident and injury free workplace is illustrated by the picture below and may be summed up with the motto: Climb to Succeed.
Environment
Following the Commitment expressed in the Saipem Environmental Policy, issued in August 2005, improvement in environmental protection and management is to be pursued and has to be the ultimate objective to strive for in 2006. Such improvement will be sought by means of various activities. First of all, it will be important to carry on the program of air emission reduction on Saipem fleet vessels. Following the Marpol requirement on air pollution prevention, Saipem has started planning a series of actions that will continue in 2006, aimed at reducing emissions produced by engines and incinerators. Moreover, besides actions deriving from the Marpol requirement, Saipem’s intention is to make measurements of air emissions and water discharge emissions on board some of the vessels of the fleet. These analyses have the scope of knowledge of the real impact generated by the vessels and will be also
used to validate the new air emission factors developed in 2005. Another target activity for 2006 consists in
monitoring the level of use and clear understanding of the Environmental Web Report by all peripheral Companies/Branches/Sites and Projects throughout the Saipem Group. On the basis of the results thus obtained, the need for a training program will be evaluated and implemented should it prove necessary. Finally, the focus will have to remain on the continuation of activities of environmental protection on all projects and particularly for those taking place in sensitive areas and with the presence of endangered species, such as the Sakhalin projects and the Dolphin project in Qatar.
Sustainability program 2006
The Sustainability program for 2006 will focus both on the internal management of improvement rates for Corporate Sustainability and on the external communication of analysis of the impact of Saipem operations on social, environmental and economic factors.
An internal multifunctional team will be formed according to the definition of a new sustainability data accounting methodology. The possibility of collecting at Saipem Corporate all available and pertinent information from the operational sites is the first attempt to complete the analysis of Saipem operations from the point of view Sustainability in all Saipem contexts. Saipem will try to define at site level specific programs to be implemented in order to monitor and manage the positive and negative impact of the operations in relation to the country in which the work is taking place.
New countries within the Saipem sphere will be involved in the development of specific analyses at a local level that will lead to the publication of new case studies on sustainability. A more defined procedure for the Social Impact Assessment will be another target for the sustainability team aimed at satisfying Saipem clients and monitoring from the outset of main projects the possibility of embracing these issues. All related activities,such as the Monthly Sustainability Newsletter, the internal training and updating according to the new international literature, will be maintained and improved in 2006.
Target 2006 Health
Accomplishment of the medical fitness examination Number of expatriates with valid medical fitness 92% system for the personnel within the group companies Number of local personnel with valid medical fitness 90% Vaccination campaign for expatriate personnel Number of expatriates vaccinated employees >78% Reduction for the total frequency rate of repatriation Number of Saipem employees repatriated due to diseases in respect to the previous year <0.7 per MWH
Focus on health education and training activities Number of medical personnel with a specific training course at last for Medical Personnel (ACLS/ATLS -Advanced Cardiac once during the past year 100%
Life Support/Advanced Trauma Life Support)
Training programs and prevention courses Number of employees involved in sexually transmitted disease Lon Sexually Transmitted Diseases (STD) and HIV prevention course >70%
Safety
Fatalities Zero
Lost Time Injuries (LTI) Frequency Rate 15% less than 2005 Total Recordable Injuries (TRI) Frequency Rate 10% less than 2005
Environment
Significant Environmental incidents Zero significant incidents Zero fines and prosecutions
ISO 14001 certification for Group’s companies Development of ISO14001 compliant Environmental Management System for Saipem Nigeria
Sustainability
Accounting system & corporate standard Develop a Saipem group sustainability accounting system Emission of a corporate standard for Social Impact Assessment
HSE Management System
For the last few years, Saipem Corporate’s main issue has been to reach a high level of implementation and integration of Health, Safety and Environment
Management System (HSE MS)across the Group. The international approach which characterizes Saipem’s activities and the ever increasing complexity and risks involved in modern projects is at the basis of our continuous motivation for developing an effective management system aimed to continuous improvement. Due to the complex and varied nature of Saipem’s activities, the Corporate HSE Department rely on the Operating Companies and the Project Managers to achieve the established objectives, with the full support of the local / project HSE Managers. The relationships between Operating Companies / Projects Managers and the Corporate is based on a clear and mutual understanding of Missions, Policies and Objectives.
The HSE MS is mainly organized at three levels, to assure a consistent performance level throughout its operations: • Corporate Level: defining policy, guidelines and standards
for all Saipem Operating Companies
• Operating Company Level: defining policy, objective, organization, procedures and work instructions to be adopted in each Operating Company
• Project Level: defining specific plans and procedures for each specific project
The documents which form the HSE MS at the various levels, and their interaction, are shown on the flow chart below. The diagram illustrates the hierarchy of HSE documentation which exists to provide clear understanding of precedence and priorities of the documents which comprise the HSE Management System. This structure enables alignment of Operating Companies to the Corporate management system and allows Companies HSE Management Systems to integrate with those of customers at local/project level as well as the flexibility to accommodate any variation in local legislation. Saipem is committed to achieving the highest standards of Health, Safety and Environment within all its business
activities. The HSE Mission and commitment can be summarised as follows:
• Developing a culture that achieves excellence in HSE performance through the active participation and support of all management, employees, customers and suppliers. • Promoting a culture which believes in all accidents being
avoidable, unnecessary and morally unacceptable. • Providing our employees with the training and tools to
ensure that they have the knowledge and skills needed to implement the Company HSE Policies and perform their work competently.
• Providing advice and support to the Project Management Teams to ensure compliance with Company standards and all applicable legal, regulatory and contractual requirements. The Saipem HSE Policy which sets the HSE values and direction for the entire group is supported by the following primary objectives:
• Identification of all hazards and management of all relevant risks
• Systematic and accurate management of all methods and activities for safeguarding health, safety at work and protecting the environment
• Performance of operating projects in line with current laws, best available technologies and practices
• Continual reduction of the number of undesirable events with the ultimate aim of achieving zero accidents and occupational diseases by adapting suitable measures for preventing or reducing professional risk exposures • Limiting impact on the natural environment where
projects take place
The above objectives are achieved by pursuing a
continuous pro-active approach to the HSE issues aimed at influencing attitudes and promoting safe and healthy behavior. Pro-active involvement of both management and workforce is reinforced and praised through the implementation of rewarding schemes and awards at both corporate and project levels. Specific awareness campaigns and training programs are also conducted with the intent to help people acquire the skills, knowledge and attitudes to make them competent in the HSE aspects of their work. An open and effective communication system is maintained and continuously promoted. The sharing of safety experience, lessons learnt and best practice is in fact recognized to be an effective way of achieving improvements on safety performance. Saipem Corporate HSE MS is formed around the following 15 HSE
Management Principles which define the basic requirements of the HSE management systems in all Saipem Operating Companies.
1. MANAGEMENT COMMITMENT
Senior Management will provide visible, strong and pro-active leadership and commitment to develop, implement, audit and maintain the HSE Management System and the relevant culture.
2. RISK MANAGEMENT
All hazardous operations and conditions will be identified, the risks assessed and the relevant actions implemented throughout the activities in order to prevent all accidents.
3. HUMAN RESOURCES
All personnel will have adequate physical fitness, competency, training and attitude to carry out their duties in safe manner.
Hierarchy of HSE Documentation
CORPORATE COMPANY PROJECT/SITE
POLICY HSE POLICY HSE GUIDELINES PROJECT HSE PLANS, PROCEDURES HSE STANDARDS OBJECTIVES ORGANISATION PROCEDURES
4. COMMUNICATION
An effective and open communication system on HSE matters shall be established and maintained for internal and external interested parties.
5. ENVIRONMENTAL PROTECTION
All potential environmental impacts will be assessed, evaluated and actions shall be taken to avoid any damage to the environment and to restore original conditions.
6. COMMERCIAL
Basic processes shall be adopted in order to guarantee that all cost factors and other commitments are assessed to carry out the activities in accordance with Company HSE Management System.
7. ENGINEERING
All facilities, plants and equipment will be engineered in compliance with the best international HSE requirements and statutory legislation.
8. PURCHASING
Suppliers will be selected, inspected and assessed in order to guarantee the compliance with HSE requirements and so that only safe material and equipment are purchased and used within all Saipem activities.
9. OPERATIONS MANAGEMENT
Safe systems of work will be implemented by carrying out all operations in compliance with Company HSE Procedures, client requirements and statutory legislation.
10. SUBCONTRACTORS & SERVICES
Sub-contractor and Services Companies will be selected in full compliance with Saipem HSE requirements. Their activities shall be audited and evaluated in order to ensure that safe conditions are maintained at the working sites.
11. ASSETS MANAGEMENT
All assets will be maintained, examined and inspected in compliance with the statutory requirements,company and international safety standards.
HSE Responsabilities Lines
HSE FUNCTION HSE ORGANISATION
LINE MANAGEMENT RESPONSABILITY
CORPORATE
OPERATING COMPANY
PROJECTS/SITES
VESSEL
Supporting, Advising, Coordinating, Facilitating Training, Auditing, Reviewing, Recommending
QHSE SENIOR VICE PRESIDENT
OPERATING COMPANY HSE MANAGER
PROJECT HSE MANAGER
HSE ENGINEERS/MEDICS
HSE ENGINEERS/OFFICER
OPERATING COMPANY MANAGING DIRECTOR
BU/DEP MANAGER PROJECTS/SITE MANAGER SUPERINTENDENT CONST./DRILLING ORGANISATION EMPLOYESS VESSEL MASTER MARINE/TECH. ORGANISATION EMPLOYESS SUPERVISORS TEAM LEADERS
EMPLOYESS
SUPERVISORS TEAM LEADERS
ASSET MANAGER EMPLOYESS
CHAIRMAN and CEO MANAG. DIRECTOR CHIEF OP OFFICIER BU SENIOR VP HEALTH, SAFETY & ENV MANAGERS
12. EMERGENCY PLANS AND PREPAREDNESS
Emergency plans, consistent with identified hazardous conditions, shall be prepared and maintained and periodical emergency drills shall be performed.
13. INCIDENT & ACCIDENT MANAGEMENT
All incidents and accidents will be duly investigated to identify the causes and to prevent re-occurrences. A reporting system shall be settled and implemented.
14. AUDIT
An independent audits system shall be implemented to determine whether activities and related results conform to planned arrangements and are suitable to achieve the HSE Policy and objectives.
15. HSE MANAGEMENT SYSTEM REVIEW
The HSE Management System shall be reviewed yearly by the Senior Management to guarantee a continuous improvement as well as to meet new requirements and to update the system with more experienced operations. The above HSE Principles and their embedded requirements are implemented and integrated into all Group processes.
The HSE MS is continuously subject to monitoring and
reviewof the Corporate HSE Department, and the results and analysis of this process are periodically shared with the Company’s Senior Management.
A key element of the HSE MS which deserves particular focus is Management Commitment and Leadership in Safety. Management at all levels in the Group are responsible for
leading and engaging the workforce in safety.
Managers need to demonstrate visible commitment to the safety initiative and to provide the necessary resources to ensure that an active HSE MS is implemented.
The further enhancement of Senior and Line Management awareness on safety responsibilities and pro-active
leadership towards HSE is currently a key supporting objective of the Saipem Corporate two-year Safety Plan (2006/2007).
All employees are also individually responsible and accountable for all HSE issues relating to themselves and those with whom they associate.
A HSE function network is in place at all levels to support the HSE role and responsibilities of Corporate / Operating Company / Project / Site Management
This principle and organization can be represented in the following flow chart:
The diagram above illustrates HSE as a Line Management Responsibility. The HSE Organization provides for an unbroken delegation of duties through the line management to the workforce who operate where the hazards arise. The diagram also shows the HSE function network from the support role at the project/site level with a functional reporting line to the operating company HSE Manager, which is in turn supported by the Corporate HSE function, to deliver the appropriate level of HSE competence and resources according to the business needs. On the vessel, the HSE Engineer / Officers support both the Master or Superintendent and ensures a direct link between the vessel and the Corporate HSE Department / Project Management Team.
In accordance with both international and Company safety management principles, all Group entities have programs and procedures in place for
auditing the HSE Management System. Audits are periodically conducted to determine whether activities and related results conform to planned arrangements and are suitable for achieving HSE Policy and objectives. Results of the audits are presented to local and corporate management so that continued relevance of the HSE Management System and overall HSE performance can be evaluated.
In other words, as part of this auditing process Saipem verifies that it is doing what it said it was going to do. Operating Companies and Project Teams have the freedom to schedule and organize HSE Management System audits. Moreover, Saipem Corporate performs worldwide audits in accordance with a schedule issued on a yearly basis.
An exercise to collect all QHSE Group auditing activities in 2005 was conducted at the beginning of the year and resulted in the following data.
• Saipem Group companies / sites / projects were subject to 781 audits, of which 586 were Internal Audits and 195 by Third Parties such as Clients and Certifiers
• As a result, 2,418 Corrective Action Requests were raised, 49% of which were satisfactorily addressed and closed-out at the end of 2005 • 140 external audits to Subcontractor
activities were performed
• Saipem counts 111 qualified QHSE auditors within its organization
HSE Training year 2005 for Saipem
Today, there will not be any project, vessel, rig or site in the Saipem Group conducting their activity without an adequate training program for all Saipem project personnel, regardless of nationality and job position. HSE training is not only a legal or a client requirement set forth in the most important regulation worldwide, but represents also an effective instrument for transferring and sharing HSE “know-how” and awareness throughout the personnel within the Company. It is also an irreplaceable and invaluable tool for keeping Supervisors and Operators up-to-date with current HSE technology and best practices. The massive increase in hours dedicated to training, so-called “In-house” training (that means a job related formation), bears witness to the importance of these statements: Saipem passed from 273.146 training hours for the year 2004 to 523.354 training hours for the year 2005. Saipem has increased by about 90% the time dedicated to personnel training. The relative table also shows that Saipem has increased by more than 100% the “in-house” training rate (calculated for an employee for 1000 hours
worked) passing from 1.86 to 3.73 hours. This rate means that each employee for every 1000 hours worked underwent almost 4 hours of in-house training, whereas in 2004 the hours of in-house training were only 2. The relative chart shows that the overall Saipem Group average training rate is 4.18, with both offshore business units well over of the average rate. Instead, the Onshore Construction and Leased FPSO Business Units are well below the average rate, even if the worked man hours for onshore construction are more important and, therefore, the resulting training rate is more significant. Consideration must be given to the Offshore Construction Business Unit, which has improved by more than 200% its training performance. Only Leased FPSO has worsened its in-house training performance, but that could be due to the reduced activity of 2005.
In 2005 Saipem developed a Corporate Standard to set out minimum requirements for the implementation of HSE training activities for all personnel. This Standard refers to training on HSE-related matters, and for each one a course
