COUNTRY S USTAINABILITY R EPORT ANGOLA ABOUT THIS NDEX COUNTRY REPORT I 1 Message from the CEO This report is part of a series of Local Sustainability 2 Letter from the Management Reports that Saipem began publishing in 2003 as ‘Sustainability Case Studies’ with the purpose of Part 1 underlining the importance the Company ascribes to 4 Introduction to Saipem local business sustainability. 5 Saipem Sustainability Approach These Reports are also submitted to the relevant 6 Saipem at a Glance stakeholders, so that they can assess the sustainability approach Saipem adopts in their respective areas. 8 Saipem in the World A Country Report describes the principles, activities Part 2 and performance of Saipem in relation to sustainable 10 Angola development in the country. It is designed to provide easy access to key indicators and information and is 10 Country Overview divided into two parts: the first provides an overview 10 Social Overview of Saipem and its business around the world, while the 11 Economy and Energy Overview second introduces the country, and discusses Saipem’s 12 Environmental Aspects presence, sustainability approach and sustainability 14 Saipem’s Presence in Angola performance within it. 16 Main Projects Along with the annual Sustainability Reports and the Project Sustainability Reports, the Country 18 Company Organisation and Management System Sustainability Reports represent the main tools adopted by Saipem to communicate to all stakeholders 19 The Approach to Sustainability the Company’s commitment and performance with in Angola regard to sustainability. 22 Assessing the socio-economic value of Saipem’s Local Content strategy This Report has been drafted in line with the principles in Angola of materiality, stakeholder inclusiveness, sustainability context and completeness as defined in the Global 24 Sustainability Performance Reporting Initiative (GRI) version G3.0. 24 People The document aims to describe Saipem’s performance 24 People Management and its engagement with stakeholders in the Country. 24 Training A set of Key Performance Indicators (KPIs) was selected 28 Safety to bolster the information provided to stakeholders. 30 Health The consolidation perimeter is based on the 31 Internal Communication principles adopted for financial reporting and 31 Environment annual sustainability reporting and refers to all 31 Environmental Policy projects conducted by Saipem SpA and its Operating 32 Environmental Impact Assessment Companies in Angola. Data are calculated according to of Ambriz the operational criterion, meaning that operations in 33 Environmental awareness campaign which Saipem SpA or one of its subsidiaries in Angola exercises operational control are reported 100%. 34 Environmental Performance Data for the company’s performance reported in the 34 Prevention of pollution onboard document have been drawn from the management 35 Customers and reporting systems used by the various Company 36 Suppliers functions involved in the reporting process. Data 37 Local Communities are reported for the 2012 financial year and, when appropriate, also for the previous years. 39 Future Challenges 40 Glossary & Acronyms

Published in 2013

M which weoperate. sustainable developmentforourcompanyandthe communitiesin We entrustourcompetentandmulti-localteamstoprovide tackle eachchallengewithsafe,reliableandinnovative solutions. Pursuing thesatisfactionofourclientsinenergy industry, we M agreeing onspecificinitiatives. locally, byidentifyingcommongoalsand value forallourstakeholders,especially Our commitmentistocreate long-term to beanintegralpartofourstrategy. We considerbusinesssustainability it operates. development ofthecountriesinwhich substantially totheeconomic its marketsectorandcontributes Saipem playsasignificantrole in 50 countries. employees andoperationsinmore than contractor withapproximately 48,000 Oil&Gas Saipem isaninternational ESSAGE ISSION

FROM Pietro FrancoTaliUmbertoVergine

THE manner. all timesinanincreasingly sustainable helping ustoensure thatweoperateat the developmentoflocalrelationships, to favouropendialogueandenhance Local BusinessSustainabilityinorder We publishtheseReportsonour developed. that adistinctivelocalapproach be these activitiesare performeddemand the differences betweencountrieswhere the varietyofprojects undertakenand approach tosustainability. Furthermore, stakeholders requires acomprehensive our activities,engagementwithlocal Given thewiderangeandcomplexityof CEO 1

SAIPEM SUSTAINABILITY COUNTRY REPORT L 2 Saipem isalsoactivelyworkingtogetherwiththelocalauthoritiesto buildamutuallybeneficialdialogue ETTER Saipem hassetupDWET(DeepWater EngineeringTechnology) jointlyownedbyanAngolanPartnerand for projectmanagement,engineeringandprocurementassociatedwith theperformanceofEPICprojects Our businessmodelisfoundedonthepromotionoflocalcontent,whichacritical have madesignificantlong-terminvestmentsinthecountrythroughSoyoYard has beendesignedforeachAngolanresourcedeemedcapableofbecoming amanagerandsubstituting commitment andisamilestoneintermsofboostinglocalskillstransferring highqualitytechnology dedicated investmentsinthetraininganddevelopmentoflocalSaipempersonnel the SaipemGroup.ThisnewAngolanEngineeringandManagement Companyrepresentsaverystrong Petromar’s NationalisationDevelopmentProgrammeinparticular isamajorinvestmentfordeveloping and strengtheningcompetencythetransferofknowledgetoour Angolanemployeessothatthey presence hasbeenanimportantaspectintheevolutionofwaywework.We and alonglastingconstructiverelationshipwiththehostcommunities tosupporttheirlong-term can covermanagerialroleswithintheCompany. Indeed,aspecificdevelopmentandtrainingprocess component ofthesuccessCompanyoperationsincountry. Furthermore, our Saipem hasbeenpresentinAngolasincetheearly1980s.Today weundertake are oftheuttermostsignificancewherewestriveforcontinualimprovement. activities invariousareasacrossthecountry. Ourlong-termand deep-rooted socio-economic development,whileatthesametimecontributingto thebroadersocio-economic

FROM and morerecentlythoughtherehabilitationofAmbrizYard.

THE Engineering &ConstructionBUCountry ManagerAngola M ANAGEMENT in Angola,bothdeepandshallowwater. development ofthecountry. enten nt international personnel. Daniele Menna fo rdr eve lop o ing n joint venturesinordertobeginanddeveloponshoredrillingactivities. edge offshore drillingunitsintothisdynamicmarket.We arealsoevaluatingpossiblepartnershipsand presence asadrillingoperatorinthecountrybystrengtheningourfleet withtheintroductionofcutting Angolan oil&gasindustry. Inkeepingwiththeseaspirations,weareplanningtoconsolidatefurtherour We believeinthecontinuousgrowthofAngola,andaimtobeparticipantsadvocates local productsasmuchpossible. positions, aswelltheongoingsearchonAngolanmarketforopportunities tobuylocallyanduse Saipem’s objectivesinAngolaincludedevelopmentofour nationaltalentsandtheirintegrationintokey centre, theexecutionofcurrentactivitiesandpotentialprojectsin thearea. personnel onitsdrillingprojectsandweexpectthistrendtoincrease steadilythankstothenewtraining Over thelastfewyears,Saipemhasmadesignificantprogressintraining andpromotingAngolan centre. today, 0.2%oftotaldrillingrevenuesinthecountryarechannelledintomanagingandimprovingthis tod d ay 0 2% % of tot al l drd tht this end,theSaipemDrillingBUrecentlyopenedatrainingcentreinLuanda.Asof crc creating andreinforcingthetechnicalcapabilitiesoflocaldrillingpersonnel.To ThT This iswhythedevelopmentoflocalcontenthasadedicatedstrategyfocusedon D Drilling isanextremelyspecialisedactivityrequiringhighlyqualifiedpersonnel. Sc Scarabeo 7and9. u units initsfleet:thedrillshipSaipem12000andsemisubmersibledrilling Sa Saipem 10000.Itcurrentlyoperateswiththreeofthemostprestigiousoffshore co commencing workinthecountry’s drillingindustryin2005withthedrillship The SaipemDrillingBusinessUnithasaconsolidatedpresenceinAngola,T o Drilling BUAreaManagerEastand West Africa Jobs createdinAngola(2011) (including direct,indirectandinduced) Economic output(2011) Turnover (2012) Saipem inAngola-Keyfigures (including direct,indirectandinduced) 472 622 million USD million USD Franco Pandolfi 10,230 3

SAIPEM SUSTAINABILITY COUNTRY REPORT Saipem workforce distributionbynationality(2012) 4 Kazakhstan Italy United Kingdom Morocco Philippines 2% 2% 3% 6% 4% and EngineeringHubs Operating 23% 4% I NTRODUCTION 3% deepwater areas. TheCompanybegan 4% Saipem is an international groupSaipem isaninternational with Saudi Arabia Angola France Algeria India operations inthe1950sandisnowa a strong inclinationtowards oiland gas related activitiesinremote and 5% Centres Engineering 15% 5% 6% 11% 7% Peru Nigeria Other Countries Indonesia Venezuela Logistic Bases Yards and Main

TO EPIC/EPC servicestotheoilindustryboth is atrulyglobalcontractor, withastrong areas suchasWest Africa,theAmericas, local presence instrategicandemerging waters anddifficult oilfields.TheGroup procurement, project managementand capabilities inthedesignandexecution approximately 124nationalities(2012). namely, activitiesinremote areas, deep onshore andoffshore, withaparticular competitive positionintheprovision of S leader intheprovision ofengineering, Saipem isorganisedintotwoBusiness construction serviceswithdistinctive employing over48,000peoplefrom technologically challengingprojects, Central Asia,theMiddleEast,North Saipem is an international company Saipem isaninternational of large-scaleoffshore andonshore resources (77%in2012)are locally The majorityoftheGroup’s human Units: Engineering&Construction and Drilling.Itenjoysasignificant focus onthetoughestandmost AIPEM Africa andSouthEastAsia. and RepresentativeOffices Other MainArea employed. projects.

finally, contributingtoinfrastructures creating economicandsocialvalueand, with localsuppliersandsubcontractors, personnel training,workingeffectively offering employmentopportunitiesand an activerole inlocalcommunitiesby Wherever itworks,theCompanyplays requirements. respond tolocalneedsandsustainability decentralised organisationinorder to around theworldandoperateswitha Saipem ispresent inmanylocations each project. stakeholders isvitalforthesuccessof and cooperativerelationship withall Saipem believesthatacorrect, open S A AIPEM PPROACH S USTAINABILITY customer satisfaction. conjunction withthepursuitof and continuouslymonitored in environmental impactsare evaluated For eachproject, social,economicand respected. diversity andidentityare atalltimes values, localcustomsandtraditions, with dignityandtheirrights,cultural sustainability: allpersonnelare treated workforce isanotherfacetof The breadth ofSaipem’s international generators, etc.). with facilitiessuchashospitals,power (e.g. accessroads, constructioncamps

5

SAIPEM SUSTAINABILITY COUNTRY REPORT 6 S & C E heart ofmajorOil&Gasprovinces such The E&CBusinessUnitistheoutcome Onshore andOffshore BusinessUnits. NGINEERING multi-phase products from depthsin Offshore activitiesincludeplatforms, bundles, tie-insandrisersystemsfor AIPEM PIPELAYING VESSEL mooring systemswithconventional SEMISUBMERSIBLE marine terminals,pipelinesandthe All ofthisisbolstered bysignificant Saipem hasworldclassengineeringand fabrication capabilitiesbasedinthe with astrong, technologicallyadvanced project managementexpertisetogether and highlyversatilefleet.TheCompany Drilling, whichoftenoperateinsynergy trunklines, exportpipelines,infield of amergerbetweentheprevious development ofdeepwaterfields. construction ofmarineterminals, the transportationofoil,gasand (Floating Production Storageand ONSTRUCTION Construction) projects hingeson Experience inEPIC(Engineering, CRANE AND is organisedintotwoBusinessUnits: buoys, wharfs,jettiesandFPSO flowlines, pipe-in-pipesystems, Procurement, Installationand Saipem isalsoinvolvedinthe for onshore andoffshore projects. Engineering &Constructionand excess of2,000metres.

Offloading) units.

AT

PIPELAYING VESSEL SEMISUBMERSIBLE A G LANCE number ofdiversifiedindustrialmarkets Company hascompletedmore than90 contractual basis,forcomplexOil&Gas services, from feasibilityandfront-end with more than30,000kmofsealines such asinfrastructures (i.e.highspeed terminals) andenvironment (especially remediation ofsoil,ground waterand J-LAYING VESSEL major EPICprojects, includingseveral in-house fabricationcapacityofover procurement andfieldconstruction, most oftenonanEPC(Engineering, Congo, Kazakhstan,Nigeria,United With afleetofover40construction With Oil&Gas segments,therefining and as Angola,Canada,Republicofthe pipelaying andplatforminstallation petrochemical markets,aswella of offshore structures installed.The Saipem offers acompleterangeof Onshore, Saipemmainlyservesthe railways, portfacilitiesandmarine Arab Emirates,theMediterranean challenging large-scaleintegrated and more than2.5milliontonnes construction), withanaggregate in deepwaterandshallowwater vessels, theCompanyisaleader Sea, IndonesiaandBrazil(under Procurement andConstruction) and LSTK(LumpSumTurn Key) studies todesign,engineering, 250,000 tonnesperyear. contaminated sites). complexes. DRILL SHIP SEMISUBMERSIBLE DRILLING RIG 550 MWeach). world’s largest(poweroutputofabout Cycle plants,twoofwhichare the four IntegratedGasificationCombined 40 powerplants(over10,000MW)and designed andconstructedmore than In recent years,theCompanyhas of waterpipelinesonfivecontinents. of oil&product pipelinesand1,400km 60,000 kmofgaspipelines,30,000 The Companyhaslaidarecord ofover of themainstaysSaipem’s business. construction hashistoricallybeenone In particular, landpipelinedesignand largest ammonia/urea complexes. from naturalgas,includingtheworld’s plants worldwidetoproduce chemicals process units,aswellmore than400 more than500individualrefining facilities, 36grass-roots refineries and numerous ‘mega’Oil&Gasproduction Saipem hasdesignedandbuilt areas. most difficult environments andremote bias towards challengingprojects inthe project management,withastrong terms ofengineering,technologyand with ahighdegree ofcomplexityin design andexecutionoflargeprojects Saipem’s expertisefocuses onthe stations andterminals. as pipelines,pumpingandcompression Oil&Gas transportationsystems,such petrochemical plants,aswellfor treatment, liquefaction,refining and facilities, includingproduction, DRILLING RIG JACK-UP DRILLING RIG hundreds ofwells. has beeninvolvedintheworkoverof of about18.5millionmetres, and offshore, totallinganoveralldepth more than7,300wells,1,800of which Over manydecades,Saipemhasdrilled workover rigs. Saipem ownsabout100drilland feet, respectively. Intheonshore sector, at depthsofupto10,000and12,000 the Saipem12000)whichcanoperate two drillships(theSaipem10000and seven semisubmersibledrillingrigsand ups, aTender AssistedDrillingBarge, fact boastsarichfleetwithsevenjack- In offshore drilling,theCompanyin develop. allowed theCompany’s capabilitiesto technological andoperationallevelhas drilling activitieswithanadequate Saipem’s vastexperienceinmanaging and theAmericas. West Africa,theMiddleandFar East Independent States(CIS),Northand in Europe, theCommonwealthof out importantdrillingprogrammes Oil&Gas major oilcompaniesinmanyofthe Saipem ispresently contractedto onshore andoffshore environments, operating insomeoftheharshest drillingcontractor As aninternational D RILLING REGASIFICATION PLANT industry’s ‘hotspots’,carrying

PIPELAYING POWER PLANT 7

SAIPEM SUSTAINABILITY COUNTRY REPORT Further investmentsnotallocatedto aspecificAreaamountedto(in€million)995in2010,7382011and 717in2012. Additional dataforinvestments Revenues CENTRAL &SOUTHAFRICA HSE Training Energy consumption Local Workforce Workforce Investments Revenues AMERICAS HSE Training Energy consumption Local Workforce Workforce Investments Revenues EUROPE HSE Training Energy consumption Local Workforce Workforce Investments 8 20102011 2012 201020112012 S (% oftotal) (% oftotal) (% oftotal) (€ million) (€ million) (€ million) (€ million) (€ million) (€ million) AIPEM (hours) (hours) (hours) (units) (units) (units) (ktoe) (ktoe) (ktoe) 7 2 101 82 136 72 225,351 204,199 125,221 7,825 158 6,665 1,808 5,122 9587 49 88 1,009 719 86,465 129,309 220,360 7872 98 8081 75 10,56310,410 11,133 31 78 122 1,9311,938 1,781 7 0 84 107 8 75 146,551 170,316 172,701 16 7,586 8,462 9,487 6462 38 2,482 64 2,692 2,678 2010 20112012

IN

THE W ORLD Revenues NORTH AFRICA HSE Training Energy consumption Local Workforce Workforce Investments

(% oftotal) (€ million) (€ million) (hours) (units) (ktoe)

106,323 155,568 ,0 453 4,379 4,523 3,107 1,494 2,531 2,546 2010 2011 2012 5 3 66 73 50 74 83 85 9 1 3 11 9 123,113 HSE Training Energy consumption Local Workforce Workforce Investments Revenues REST OFASIA&OCEANIA Revenues CIS HSE Training Energy consumption Local Workforce Workforce Investments Revenues MIDDLE EAST HSE Training Energy consumption Local Workforce Workforce Investments 20102011 2012 201020112012 (% oftotal) (% oftotal) (% oftotal) (€ million) (€ million) (€ million) (€ million) (€ million) (€ million) (hours) (hours) (hours) (units) (units) (units) (ktoe) (ktoe) (ktoe) 3 3 37 43 101,054 38 121,081 84,671 3,491 4,653 5,115 7468 62 13 27 216 1,2321,709 1,352 7 2 168 - 129 70 856,456 - 383,856 177,109 7,342 5,508 6 4,706 3,211 8378 82 2,047 1,672 6,699 29 4,011 3,074 7774 78 22 39 110 382 171 107 667 1,241 37,661 68,335 105,424 68,335 37,661

22010 20112012 0 1 0

2 0 1 1

2 0 1 9 2

SAIPEM SUSTAINABILITY COUNTRY REPORT Distribution ofthepopulation(2010) Population (est.2012) Social indicators HDI-Human developmentindex (2011) Life expectancy(est.2012) Median age(est.2012) Rural 41 (b) UNDP http://hdrstats.undp.org/en/countries/profiles/AGO.html CIA-TheWorld Factbook,Angola (https://www.cia.gov/library/publications/the-world-factbook/geos/ao.html). (a) 10 C A The key sectors of action for The keysectorsofactionfor poverty reduction laid down poverty reductionlaiddown a peaceful environment has a peacefulenvironmenthas are socialreintegration,de- internally displaced people. internally displacedpeople. mining, foodsecurity, rural been madeinthecountry, Gradual progress towards Gradual progresstowards OUNTRY 27-year civil war in 2002. 27-year civilwarin2002. in the government plans in thegovernmentplans development, HIV/AIDS, development, HIV/AIDS, millions of refugees and millions ofrefugeesand NGOLA including the return of including thereturnof following the end of a following theendofa Angola is rebuilding Angola isrebuilding S increase inemployment,thereintegration fallen from 40percentin2002to26 tended toraiseincomesandreduce food unemployment rate is estimated to have unemployment rateisestimatedtohave cent in2011.Growing employmenthas OCIAL Technical andvocationaleducation insecurity and malnutrition. But human insecurity andmalnutrition.Buthuman and arenascent agriculturalsector. The of displacedpeopleintotheworkforce (a) (a)

O The living conditions of the Angolan The livingconditionsoftheAngolan

resources remain akeyconstraintin (a) people haveimproved duetothe

VERVIEW O VERVIEW limited functioning of railways limited functioningofrailways In fact, despite the impressive In fact,despitetheimpressive damaged roads and bridges, damaged roadsandbridges, education, and health and education, andhealth education andhealth. suffered extensive damage. suffered extensivedamage. (a) infrastructures, which have infrastructures, whichhave rehabilitating the country’s rehabilitating thecountry’s constraints persist, such as constraints persist,suchas (b) made in road and railway made inroadandrailway

ongoing progress being ongoing progressbeing still facing the challenge still facingthechallenge

rehabilitation, logistical rehabilitation, logistical However, thenationis of reconstructing and of reconstructingand basic infrastructure. (%) (years) (years) (million) 55 17.7 18.0 and the presence of landmines. and thepresenceoflandmines. These infrastructural challenges These infrastructuralchallenges Urban 59 infrastructure rehabilitation, infrastructure rehabilitation, Angola to return to pre-civil Angola toreturnpre-civil as high94percentamongthe15-19 million former displaced people, 450,000 million formerdisplacedpeople,450,000 sustainable livelihoods for the population sustainable livelihoodsforthepopulation war levelsofproduction. generation hasbeenexcludedfrom any the totallabourforce isestimatedtobe depend upon it – particularly for the 3.8 depend uponit–particularlyforthe3.8 but it is still going to be but itisstillgoingtobe a long-term process for a long-termprocessfor Agricultural production Agricultural production movement of goods and movement ofgoodsand continue to limit the free continue tolimitthefree people andinhibitsocio- age cohort,74percentamongthose The percentage ofunskilledlabourin is gradually improving is graduallyimproving form offormaleducationortraining. training (TVET) is especially important training (TVET)isespeciallyimportant in parallel with road in parallelwithroad 0.486 economic recovery. in post-conflict Angola. Economic in post-conflictAngola.Economic As aresult ofthewar, anentire refugees and280,000veterans. reintegration andrestoration of Sources: [1][2][3]. from 2012. it isexpectedtoexpandagainstarting of 3.4%in2010and3.5%2011, but contraction inGDPgrowth witharate recession andlowerpricesledtoa oilprices.Theglobal international was drivenbytheoilsectorandhigh years (20%in2007and13%2008) Angola’s highgrowth rateinprevious AND E decreased from 21%to16%. Sources: [2][4]. and theunder5infantmortalityrate revised upwards to55from 46in2000 areas. Lifeexpectancyatbirthhasbeen progress overthelast10yearsinseveral facilities. Recentdatashowsgood health has accesstogovernment Currently, only30%ofthepopulation of womenunskilled. highly gender-biased, with88percent 25-29 yearolds.Thesituationisalso aged 20-24and68percentamong CONOMY E NERGY

O VERVIEW country’s foodmuststillbeimported. for mostofthepeople,buthalf ofthe Sources: [1][3]. agriculture provides themainlivelihood mines inthecountryside.Subsistence and thecontinuedpresence ofland import intermediaryproduction goods to infrastructure constraints,theneedto production andtransportationcoststied lack ofqualifiedhumanresources, high production remains constrainedbya reduction. However, agricultural in employmentcreation andpoverty irrigation, owingtoitsimportance public investment,particularlyin Agriculture isaprioritysectorfor in 2006. the countryGDPin2011,from 0.9% manufacturing sectorgrew to6.4%of a contractionin2011(6.8%).The increased by16%in2010butwith Construction isreported tohave agriculture aswell. construction, manufacturingand has ledtohighratesofgrowth in and resettlement ofdisplacedpersons The post-warreconstruction boom View ofLuanda 11

SAIPEM SUSTAINABILITY COUNTRY REPORT Labour force-est.2012 Inflation (averageconsumerprices)-est.2012 GDP percapita(currentprices)-est.2012 Gross DomesticProduct(GDP)(currentprices)-est.2012 Economic indicators Energy production Energy data2010 Electric powerconsumptionper capita Electric powerconsumption Energy usepercapita Energy use Electricity production b CIAtheWorld Factbook (https://www.cia.gov/library/publications/the-world-factbook/geos/ao.html). (b) weo/2010/01/weodata/index.aspx). MonetaryFund,World International EconomicOutlookDatabase,April2010(http://www.imf.org/external/pubs/ft/ (a) Source: World Bank(http://data.worldbank.org/country/angola). Labour force bysector(2007) GDP bysector(2011) 12 Social sector Agriculture education, health Public Administration, Construction Agriculture 0.3% 16.6% 8.1% 0.7% 6.4% 4.4% 1.2% 7.4% (b) 4.1%

& retailtrade Wholesale and quarrying Mining sectors Institutional Oil 2.3% 10.1% (kWhpercapita) (a) 91.4% 46.9%

Manufacturing Manufacturing Others & communication Transport (a)

(ktoe percapita) (GWh) (GWh) (a) (ktoe) (ktoe) (million units)

(billion $) 248 4,730 716 13,672 5,256 98,915 (%) A E ($) Africa. Oilplaysanimportantrole inthe increased engagementwithregional and developed comprehensive environmental the State.TheEnvironmental Framework prevention andcombatofpollution, Angolan economy, accountingforover The nationaloilcompany, Sonangol,is the soleconcessionaire forexploration NVIRONMENTAL Petroleum ExportingCountries(OPEC) constitutionally recognised asadutyof 8.5 8.7 5,847 110.6 SPECTS Law provides guidingprinciplesforthe in January2007and2009heldthe largest crudeoilproducing countryin standards toprotect theenvironment. can participateviajointventures and Angola is,togetherwithNigeria,the legislation regarding waterresources, production sharingagreements with environment andnaturalresources is petroleum, mines,andland,has and production. Foreign companies Angola joinedtheOrganisationof Over thelastdecadeAngolahas 95 percentofexportrevenues. In Angola,protection ofthe Organisation’s presidency.

Sources: [4][5]. Sonangol. Sources: [1][6]. water. finally, inadequate suppliesofpotable and siltationofriversdamsand, erosion contributingtowaterpollution resulting inlossofbiodiversity, soil deforestation oftropical rainforest, subsequent soilerosion, desertification, country includeoveruseofpastures and Main environmental issuesinthe bodiesandpartners. international Terrestrial andmarineprotected areas(2010) Threatened species(2012) CO CO Freshwater withdrawalpersector(2011) Agriculture Industrial 33 29 Freshwater withdrawal(2011) Environmental indicators Source: TheWorld BankData(http://data.worldbank.org/). 2 2 emissionspercapita(2009) emissions(2009) ao.undp.org/Energy%20Environment.htm). [6] UnitedNationsDevelopmentProgramme (http://www. www.eia.doe.gov/EMEU/cabs/Angola/pdf.pdf). Statistics andAnalysis-Oil,Gas,Electricity, Coal(http:// [5] EnergyInformationAdministration,AngolaData, (http://www.oecd.org/dataoecd/3/49/40568599.pdf). [4] AfricanEconomicOutlook,Angola-AfDB/OECD2008 Angola%20Full%20PDF%20Country%20Note.pdf). africaneconomicoutlook.org/fileadmin/uploads/aeo/PDF/ [3] AfricanEconomicOutlookAngola(2012)(http://www. (http://www.wfp.org/countries/angola). [2] World FoodProgrammeme -CountryoverviewAngola library/publications/the-world-factbook/geos/ao.html). [1] CIAWorld Factbook,Angola(https://www.cia.gov/ References: (% oftotalterritorialareas) (thousand tonnesCO (tonnes CO (billion m (No.) (%) 2 eq 2 eq 3 /y) ) ) Dmsi 38 12 112 1.4 26,655 Domestic 0.64 communities in Traditional Angola fishing 13

SAIPEM SUSTAINABILITY COUNTRY REPORT 14 S AIPEM Units: Engineering & Construction (E&C) Units: Engineering&Construction(E&C) years. Itoperatesinthecountrythrough contracting sector in Angola for over 30 contracting sectorinAngolaforover30 Saipem Group isgeographicallylocated offshore drillingprojects andmanaging Atlantic significant investments in the Oil&Gas significant investmentsintheOil&Gas branches organised into two Business branches organisedintotwoBusiness Ocean South in Malongo (located near Cabinda to in Malongo(locatednearCabindato projects, performingultradeepwater executing offshore andonshore EPIC and Drilling.TheGroup iscapableof The SaipemGroup hasbeenmaking for all the major oil companies. The for allthemajoroilcompanies.The Ambriz (twofabricationyards) and fabrication and operation activities fabrication andoperationactivities joint venture companiesandlocal in Luanda(headoffice), Soyoand Cabinda ’ Soyo S Ambriz LUANDA P RESENCE Angola Namibia operates inthree businesslines:offshore, Bouygues Offshore) andSonangolE.P. It support Cabinda Gulf Oil Co (CABGOC) support CabindaGulfOilCo(CABGOC) Modification andOperations).Petromar for theE&CBU,aswellSaipemSpA Petromar Lda,KwandaSagio DWET andSaipemsaAngolanBranch an Angolanregistered companywith It ispresent inthecountrythrough Petromar Lda onshore andMMO(Maintenance,

in Angola since the early 1980s as in Angolasincetheearly1980sas shareholders Saipemsa(formerly IN of theCongo Branch fortheDrillingBU. Democratic A Republic Lda activitiesfocuson: has been operating hasbeenoperating NGOLA Zambia operations). in bothdeepandshallowwaters. execution ofEPICprojectsinAngola procurement, associatedwiththe management, engineeringand technological know-howforproject and transferringhigh-quality in termsofboostinglocalcapabilities This companyrepresentsamilestone Group. Angolan partnersandtheSaipem Technology), jointlyownedby DWET (DeepWater Engineering Management company, called has setupanewEngineeringand experience, theSaipemGroup in whichSaipemhaslong-standing challenges ofdeepwateractivities, In ordertomeettheincreasing Introduction toDWET(DeepWater EngineeringTechnology) and project managementactivitiesfor focuses onengineering,procurement Talatona, Luanda,and insouthern This newSaipementityisbasedin (Deep Water EngineeringTechnology). created anewcompanycallDWET Sonangol andotherAngolanpartners, In 2012,Saipem,togetherwith support ofCABGOCoperations. Malongo (locatednearCabinda)in within thefabricationyard andin in theKwandalogisticbase,Ambriz activities mainlyconcentratedinSoyo Luanda, withfabricationandmaintenance The Petromar Ldaheadoffice islocatedin constructionofOil&Gasonshore • constructionofdeepwaterequipment • constructionofoffshore platforms • - offshore hook-up. onshore andoffshore Oil&Gas - facilities: and structures; and subseastructures; platform maintenance; KeySubseaTechnologies (Hybrid - SubseaSystems& - FieldArchitectureDesign; - Development: Deepwater SubseaField Its sectorsofactivityare: Highprocesstechnologyonshore - LiquefiedNaturalGasPlant - - Floaters; SubseaFielddevelopment; - - Offshore platforms; following: DWET’s productlinesarethe Risers Design,Global&Dynamic Risers, FlexibleandSteelCatenary Processing; facilities. (Onshore -Floating); accommodation, cateringandmedical • logisticand fabricationservices • portservices (3quays,accesschannel, • provides include: surface of160ha,themainservicesit atotal and theCongoBasin.With operating throughout Angola(Cabinda) provide supporttoOil&Gascompanies base inSoyo.Itisideallysituatedto for managingandoperatingthelogistic established in1982andisresponsible Angolan partners.KwandaLdawas sa), SonangolE.P., Songemetaland wholly ownedsubsidiaryofSaipem between DelongHersentLda(a Kwanda Lda the offshore oilandgasmarket. assistance. workshop, heliportandstoragearea); quay-side stabilisedwarehousing and (industrial area of70hectares of from theUS,SouthAfricaandEurope; Luanda, anddirect seafreights to/ bulk plants),withdailyflightsto/from isajointventure drivers. Transportation andinstallation Fabrication driversandsequences; & LayoutDesign); Platform Configuration(Structures Technologies). Analyses andMaterial&Welding Fabrication yard in Ambriz 15

SAIPEM SUSTAINABILITY COUNTRY REPORT xotPpln) ExportPipeline) Pipelineinstallationandgasinjectionfacilitiesto Block17GEP(Gas Total AngolaE&P 2008-2011 eta ltom CentralPlatform) Block2injectionPlatformandassociatedconductor Block2SCP(Single Total AngolaE&P 2008-2010 0921 P EMSbe GERM Subsea 2009-2010 BP 0921 EXN iob aelt Fabricationof1225QJ(17,000t)+2Foundations(340t KizombaSatellite Tieback EXXON 2009-2012 0021 BCTL LGTns EPCIproject:Fabricationof2LNGTanks (159kbbl)+1 ALNGTanks Block31SPS Construction BECHTEL 2010-2011 BP 2010-2012 rsig(R) and19Spools(169t). Pre-FabricationPiping:329t. Crossing(CRX) Block31Spools subseawellsonBlock3. EPCI4Onshore Abandonment EPCI: Fabricationof4Valves/Sled SkidAssemblies(848t) Works totheProductionProcessingPlatform.Structures: 27 t. EPCI3Modification Decommissioning(pluggingandabandonment)of8 CongoRiver (UnderSonangol EPCI:Onshorepipelineof18”for0.6miles. CanukuWells BP 2010-2012 Project MafumeiraSul Pipeline Subcontract) EPCI:NorteWellhead platformmodifiedandtiedback Destin Trading Inc 2012-2013 (149t). MafumeiraSul CABGOC EPCI2Offshore 2012-2013 Pipelines EPCI:Fabricationof2Tie-In Skids(89t)and48spools CABGOC 2012-2014 CoLtd(CABGOC) MafumeiraSul CABGOC 2012-2014 Cabinda GulfOil 2013-2015 erCin ae Description EPCI-FPSO/Modules:IntegrationofaTop Lifting Module GirriFPSO2 Total AngolaE&P 2013-2014 Name Year Client 16 M Lda startedoperationsin2010 with the FPSO GimboafortheAngolanoffshore of FPSOunitsandtechnicalconsulting operational andmanagementservices Sagio Lda AIN services onFPSOmaintenance. Sagio between SGPSSA(SaipemPortugal) and Angolanpartners.Itprovides P ROJECTS isajointventure company Engineering &Construction ( Block 4/5. LAST 5 into Block2. transport associatedgasfromBlock17forreinjection (TUB). oil depletedreservoirs:LomboEast(LOE)andTubarao pipes thatwillallowgasinjectioninthecapsoftwo PLEM +associatedMSSandPiles. Fabrication of1GasExportRegulationManifold+2 Jumpers (12teach). each) +2BT(160t18FLETS(30 kbbl) +1CondensateTank (108kbbl)+5Fields. LPG PropaneTank (88kbbl)+1LPGButaneTank (59 Suction Pile).67t/MM;28.6t/MSS;109t/Foundation. 7 FoundationPiles(Extensionof1Manifold+MSS Fabrication of5Manifolds2slotproduction+6MSS (525 t). including fabricationandinsulationof9fatiguedwelds Fabrication of21FlowlineSpools+9Riser piping spoolsandseafastening. Module (140t)andprefabricationofstructuralsteels, YEARS and installationofonshore andoffshore head office isinLuandaandoperations operates intheoffshore andonshore focused onthedesign,construction are carriedoutinSoyo,Ambrizand facilities fortheO&Gindustry. The Established in2007,thecompany business segmentswithservices ) Saipem saAngolanBranch • This yardisequippedwith: Double orQuadsJoints. of structuresandasecondonefor for theprefabricationandassembly month. Ithastwoworkshops:one providing 100,000man-hoursper subsea structures,etc.),capableof riser towers,manifolds,jumpers, to deepwaterfacilities(bundles, this isafabricationyarddedicated Located insideKwandabasefacilities, Soyo Yard Saipem’s FabricationYards inAngola • • 2-off pipingspoolworkshops cranes; m²) equippedwithoverhead 1-off assemblyworkshop(5,200 80,000 m²; a fabricationandassemblyarea: Steel, oneforExoticSteel(also Cranes –oneforCarbon Gantry (1,440 m²),fullyequippedwith 0521 TtlAgl & Bok1 DrillingoperationswithSaipem10000-35wellsdrilled. Block17 locations Total E&PAngola,Sonagas, DrillingoperationswithPerroNegro6-9wellsdrilled. Sonangol,Angola LNG, Total AngolaE&P 2005-2010 Various Block Petrobras Consortium between 2009-2012 0921 EiAgl Bok1/6 Block15/06 Eni Angola 2009-2013 0221 Cern lc DrillingoperationswithPerroNegro6. Block0 Block17,32 Total AngolaE&P 2010-2017 Chevron 2012-2013 erCin ae Description Block15/06 EniAngola 2013-2015 Name Year Client Saipem AngolanBrancheshavethe and activitiesare carriedoutoffshore. blocks. Theirheadoffice isinLuanda production ofAngolanoffshore and supportthedevelopment in theoffshore drillingbusiness Saipem AngolanBranches blocks. Malongo andintheAngolanoffshore • • The yardisequippedwith: productive man-hoursperyear. is nowabletoprovide3,100,000 re-opened attheendof2010.It The AmbrizYard wasupgradedand Ambriz Yard • • • • • 1-off prefabricationworkshop a fabricationandassembly open Load-out Quay:usefullengthof Welding &pipefittingschool; Main equipmentonsite:pipeand 1-off QuadorDoublejoint 1-off Warehouse (700m²); area of70,000m²; 200 metres. machines,cranes, Multi-wheels; welding equipment,platerolling sheet cuttingmachine,automatic assembly area(900m²); suitable formanifoldfabrication); operate a fleetwhichincludesdeep-water6 to 3,650m.TheBranchescurrently have capable ofoperatinginwaterdepthsup blocks usingadeep-waterdrillships ability tooperateinultra-deepwater (Scarabeo 7andScarabeo9). and twosemisubmersibledrillingrigs generation drillship(Saipem12000) Drilling drilled. operating inwaterdepthsupto1,500m)-22wells Drilling operationswithScarabeo7(capableof drilled. operating inwaterdepthsupto12,000ft)-25wells Drilling operationswithSaipem12000(capableof operating inwaterdepthsupto12,000ft). Drilling operationswithScarabeo9(capableof • • • • • • Access channel:lengthof900 Load-out Quay:usefullengthof 350 msheet-pilebreakwater; Welding school(forAmbriz Main equipmentonsite: 1-off Warehouse (900m²)+ turning basin. width of100mand280inthe m dredgedat-7.5WDLAT/ cap-beam; 180 metres/-6mWDLAT/concrete residents); crawler heavyliftcranes; machines, hydraulicwheelcranes, machine, multiprocesswelding Oxy-acetylene plate/pipecutting maintenance activities; 1-off mechanicalworkshopfor overhead-cranes; (6,000 m²),equippedwith th

17

SAIPEM SUSTAINABILITY COUNTRY REPORT 18 Our LocalManagementapproach sustain anddeveloptheOil&Gas that in1976Iwasselectedfora sole experiencegainedinthose At thetimeofindependencein very proud tohaveparticipated Mr. António BravoNeto, train youngAngolanpeopleto industry in1981whenIjoined long-term academicformation recognised theurgentneedto Angola. Inviewofthegrowth an averageof100,000barrels massive exodusofPortuguese almost 30yearsentitlesmeto of thissectortheeconomy, contribution ofSaipemtothe of thehistoryourindustry, actively inthischallenge.The 1975, Angolawasproducing achievement andtodayIfeel testify tothesignificantfacts The Oil&Gassectorhasbeen development ofthecountry. Angola hadgrown tonearly decades after, production in sector. Itwasinthiscontext Sonangol/Fina. Aboutthree in Algeriaandgraduated the government ofAngola the government I startedworkingintheoil workers from thecountry, day. Thishasbeenagreat economic developmentin particularly asregards the 2 millionbarrels ofoilper of oilperday. Duetothe the maindriverofsocio- General Manager Petromar Deputy S AND C Petromar, Kwanda,DWETandSagioare Interview with the responsibility oftheSaipemAngola YSTEM OMPANY Saipem activitiesinAngolaare under managed bytheirrespective General Mechanicals. M ANAGEMENT O RGANISATION to supportoffshore andonshore 306 millionUSD.Thissignificant Petromar of achievedaturnover Country Manager. Sonangol withtheobjectiveof terms offacilitiesconstruction, its creation andtodayenjoys a Petromar wascreated in1984 developing localcompetences Petromar hasmadeimportant leading positionasanational To achievethisleadingstatus installation andmaintenance worksites Petromar hasbeen 2000, the company turnover 2000, thecompanyturnover operating continuouslysince was 34millionUSD.In2012 of operationsandnumerous investments intheSoyoand facilities. With awiderange facilities. With Ambriz fabricationyards, as by BouyguesOffshore (now Saipem) inpartnershipwith among itslocalworkforce. When IjoinedPetromar in well asinthetrainingand development ofexpertise growth wassustainedby oil andgasoperationsin

Oil&Gas contractor. t i t

i Corporate. LikewiseSaipemsaAngola reporting directly totheDrillingBUat to SaipemsaChiefOperatingOfficer a BranchManagerreporting directly l Branch activitiesare coordinated by coordinated byaBranchManager i Republic ofAngolawithcapable by expatriateswillbetakenover approximately 20%ofPetromar Considering thatthetrainingof our Angolanemployeessothat they cancover the totalworkforce isAngolan. our sites,today, about97%of achieved by2015whenabout the trainingoflocalresources. Saipem SpAAngolaBranchis Angolan resources constitutes 51 positionscurrently covered Petromar), theNationalisation technicians nowoperatingon Development Programme has national resources (goalsthat given theneedtoendow focus onimproving skills and transferring ofknowledgeto All companiesandBranches Government’s priorities,and under theframeworkof recently beenredesigned to nationalisation programme, placing strong emphasison have alsobeenapriorityof positive results withalarge in thecompany. Thiswillbe employees were Angolans. number ofskilledAngolan But thankstotheongoing Just forreference, in1984 R by Angolansfollowingaspecific professional workersand which hasproduced very C consequently totheprogress of development ofthepeopleand one ofthetasksthatfall development process designed In thisway, Saipemhasbeen for eachresource identified. contributing activelytothe managerial roles Managers. Offshore. the country. local communityrelations. management, industrialrelations, and Angolanisation Plan,humanresources satisfaction, theimplementation ofthe protection oftheenvironment, Client assuring employeehealthandsafety, all CompanyDepartmentsaimedat competent managementdisplayedby in Angolaistheresult ofthe The Saipemsustainabilityapproach by theCorporateSustainabilityteam. nominated andistrainedsupported a SustainabilityFacilitatorhasbeen Sustainability objectiveswithinAngola, and tosupporttheimplementationof Corporate levelandwithinSaipemsa, Angola andtheSustainabilityteamat between socio-economicactivitiesin In order toestablishadirect link Corporate andPetromar functions. working incooperationwiththerelevant a uniformapproach atcountrylevel, to assure anoverallglobalvisionand Corporate Representative inAngola Country Coordinator, whoactsas 2010 sawthecreation ofaQHSE with ISO14001:2004. Petromar isstrivingtowards alignment OHSAS 18001:2007.Atthesametime and complieswiththerequirements of certified toISO9001:2008since2008, Quality AssuranceManagementSystem Guidelines. Petromar Ldahashada based onCorporateStandards and Saipem CompaniesinAngolais and SustainabilityManagementof Quality, Health,Safety, Environment and QHSESdepartments). Finance &Control, Procurement, Assets, (Human Resources, Administration, organisational structure inAngola are supportedbythePetromar execution. and monitoringtheProgramme andits Manager, withthescopeofdefining and theLocalContentDevelopment Shareholder, CompanyManagement designated involving3levels:main A SteeringCommitteehasbeen of DepartmentsandSupervisors. Top Managementdowntoheads involvement ofallkeypersons,from (Angolanisation Programme) withthe Development Programme Petromar haslaunchedaNationalisation Development Programme Petromar Nationalisation identified Angolanstaff. know-how from expatriatepersonnelto it mustcompriseagradualtransferof this transfersuccessfulandsustainable, positions toAngolans.Inorder tomake established totransferexpatriatejob The NationalisationPlanisaprocess Programme The Angolanisation are describedbrieflybelow. Local ContentEvaluation,bothofwhich Programme andtheAngolaExternalities through thePetromar Angolanisation and training.Thisisnotablyevinced and commitmenttoknowledgetransfer through astrong localcontentfocus development withinthecountry the socio-economicandsustainable in Angola,Saipemhascontributedto Since theoutsetofGroup’s activities IN TO T HE A S A NGOLA USTAINABILITY PPROACH

training centre Welders and pipe fitters in Ambriz 19

SAIPEM SUSTAINABILITY COUNTRY REPORT 20 have theresponsibilityofmanaging Saipem Training CentreforDrilling areas. LuandaTraining Department objectives withintheframeworkof staff areinchargeoforganisingall supervisory staffatalllevels.These supervisory There arefifteencoursesproposed electrical), drilling(equipmentand techniques, IWCFfamiliarisation), National HumanResourcesPolicy Training Centrehasdevelopedthree resources. Itspriorityistoensure proper integrationofemployees fighting, risksafetyanalysis,H The SaipemTraining Centrewas primarily toofferdifferenttypes prevention) andlanguages(English Development Plan(CDP)andits technical (welding,mechanical, of trainingcoursestocompany The coursesyllabusisdesigned the CDPwithintheirrespective set upinMay2012todevelop to thecompany’s Competence on thesyllabus,amongwhich are performedeitherin-houseor and Portuguese).Dependingon safety (BOSIET, advancedfire personnel asfloormen,derrick the complexityofcourses,they into keypositionsaccording modules ondrillingequipment and techniquestotraindrilling men andassistantdrillers.The via outsourcing.Internally, the the technicalskillsoflocal the AngolanisationPlan. training activities. The AngolanisationProgramme isbased Programme foresees theAngolanisation transfer ofknow-how. Theprogramme points toimprove competenceandthe training action and formal internal on- training actionandformalinternal recruitment forthespecificjobprofile. employees while7willrequire adhoc of 51positionspresently occupiedby the-job trainingandcoaching,askey positions, 44willbecovered bylocal training plan,includingconventional on aCompetenceAssuranceSystem expatriates within5years.Forthese (CAS) andconsistsofanenhanced Launched in2010,Petromar’s Nationalisation Development 2 S Work (Anti-FallDevicesandWork at videos andphotostakenonSaipem Module 01,CasingandCementing, Mud, MudCharacteristicsandSafe considered essentialforproperuse Testing andAccidentPreventionat Module 01 communication withintheGroup. Well Head,Accumulator Pressure, Portuguese coursesarealsogiven Manifold, MudTank System,Well first course,BasicDrilling,hasthe Blow OutPreventer(BOP),Choke understanding ofequipmentand Drill PipeEquipmentandDrilling Module 02 Module 03 booklets oftechnicalterms,and Offshore PlatformClassification, of Corporatetoolsandeffective Module 02,DrillingFluids,Mud drilling platformstogiveareal Language coursesareanother in-house activityperformedat Losses, SolidControl,Types of for localemployees,Englishis All studentsreceivemanuals, working conditionsonsites. Fluids andtheirApplication. the Centre.Providedmainly (5 days):Onshoreand (4days):Revisionof (4days):Revisionof Chemical Handling. following modules. Heights). the Angolaninhis/hernewposition.The then setuptofillthegapswithtraining. training stageforcoachingandadvising designated asmentorsduringtheentire the administrationarea completedthe and experiencerequirements forevery CAS allowsbothparties(Angolanand involves firstmappingtheknowledge determine theexistinggapsbetween person andthoserequired bythejob he orsheshouldfill.Aprogramme is position. Oncevalidated,themapis At theendof2011,4employeesin followed byinterviewsandteststo the competencesheldbyaspecific In thiscontext,theexpatriatesare expatriate) tomonitorprogress. mainly fortechnicalcourseslocal budget toincreasetheactivityup training andimplementationofthe 25 coursesisthereforeplannedfor A newtrainingcentrehasbeenset scholarships withlocalUniversities. up inLuandaatthe‘ReiKatyavala’ for expatriatesinordertofacilitate Africa (CapeTown University),Italy employees. Forspecialisedtraining Saipem offshoreunitstoreinforce development intermsoftechnical In addition,ateamofpermanent Administration, Employmentand (Eni University)andBrazil(Maplo English teachersresidesonboard the centrehasidentifiedsixlocal educational institutesaccredited certification thecompanyenrols Angolanisation Plan.Aseparate courses andSTCW95Maritime Social Security).Theseareused The Training Centreplaysakey 258 workersandestablished2 building. Thisachieved10,008 its employeesabroadinSouth training hours(89%in-house) by MAPESS (Ministry ofPublic by MAPESS(Ministry role inensuringlocalcontent For specifictrainingsessions, in lessthanoneyear, trained its continuingimprovement. know-how transfertolocal the trainingactivity. Training Centre). employees. Managing competence development: • • Recruiting process: Plan covering: established aCompetenceDevelopment To achievethistarget,thecompanyhas its NationalHumanResources Policy. adequate Planimplementationthrough Saipem isactivelyworkingtoachieve be onlocalresource development. five-year challengeandemphasismust The AngolanisationPlanisthenext in theDrillingBusinessUnit of theAngolanisationPlan Implementation Specificprocess forfasttrackers: • Developingandimplementingthe - Personnelevaluationandyearly - - General process; - Recruitment procedure; Requestforstaff; - - Hiring plan; Identificationoffasttrackers - yearly trainingplan; appraisal process; (potential employees); employees bytheendof2012. are expectedtobecovered bylocal as planned.Anadditional9positions process andoccupiedtheposition, five-year milestone. strongly committedtoachievingthis Saipem managementatalllevels is Together withthenationalworkforce, 48 are inprocess ofachievingthisgoal. covering expatpositionsandtheother Angolan workers,109are already Angolanisation Plan.Ofthese157 whom hadbeenintegratedintothe had 204localworkers,157(76%)of In December2012,theDrillingBU currently covered byexpatriates. target dateoftransfertojobpositions within theAngolanisationPlanand qualification, trainingprogress, status are recorded, suchasinitialposition, follow allindividualcases.Allspecificities monitored planhasbeendevelopedto substitution ofexpatriates.Afive-year candidates shouldleadtothefuture professional developmentofpotential an increase inpersonnelskills.The training offshore. Theaimistoensure syllabus reinforced byon-the-job an energetictheoretical classroom The Training Centre hasimplemented Personnelintegration operational - committee. Training centre in Luanda 21

SAIPEM SUSTAINABILITY COUNTRY REPORT 22 (2) Calculatedovera5 (1) Includeslocalmanpowersuppliedby agencies. Note: Local ContentstrategyinAngola Assessing thesocio-economicvalueofSaipem’s a LocalContentStrategyisthekey measuring thetangiblebenefitsof its LocalContentStrategy. Infact, business approachandimproving Prize forEconomics)‘Externalities Economic output Value drivers entrepreneurial capacitycreated, to demonstratingasustainability stakeholder relationshipsatlocal To supportandprovideevidence Human Capital its commitmenttosustainability of thevaluegeneratedthrough economic andsocialimpactsof Development Saipem SustainabilityTeam has Employment is notpaid(incaseofnegative As definedbyJ.Stiglitz(Nobel are actionsofanindividualor which thelatterdoesnotpay (mln USD) (mln USD) (in caseofpositiveimpact)or jobs (No.) implemented amethodology another individualorfirmfor a firmthathaveaneffecton in termsofwealth,skillsand impact)’. To thiseffect,the Saipem hasquantifiedthe y ear timeframe. Direct impacts level. 3,311 359 2.2 (1) economic andsocialdevelopment in Angola.Thescopeofthestudy comprehensive assessmentofthe and SaipemSpAAngolanBranch and humancapitaldevelopment. Saipem appliedtheSELCEModel (referred tobelowastheSaipem included PetromarLda,Kwanda Quantitative Results Lda, SaipemsaAngolanBranch Saipem Group’s impactsonthe were identifiedandmeasured: activities inanarea(theSELCE three keycategoriesofimpact Saipem Groupinthecountry. economic value,employment The studyaimedtoprovidea For thepurposeofstudy, in Angolatounderstandand Content Evaluation-Model). to measuretheexternalities quantify theimpactsof - SaipemExternalitiesLocal produced asaresultofits Group). Multipliers 2.80x 3.10x 1.32x contribution oftheSaipemGroup system andthefundamentalrole played bySaipemincontributing and theRepublicofAngola.The each impactwasgeographically The studyclearlydemonstrates, to theAngolansocio-economic of Zaire(whereSoyoislocated) Moreover, thequantificationof to thedevelopmentofSoyoin and multipliers,theimportant administrative areas:Province reference yearofthestudyis in termsofabsolutefigures Methodology split, andattributedtothe Local ContentStrategyhavebeen are EconomicValue: thefinancial Three socio-economiccategories of impactrelatedtotheSaipem identified andquantified.They Total impacts particular. 10,230 25.4 2011. 472 (2) used tocalculatethemultiplierfor resources, training,etc.)were procurement, QHSE,human accounting system(e.g.finance, data fromtheSaipemGroup andthe the quantitativesurvey were conducted.Theresultsof qualitative stakeholdersurveys a process),quantitativeand magnitude ofanimpactor (the numberthatgivesthe To definethemultipliers employability. earnings expectancyandincreased terms ofadditionallifetime and skillsofitsemployeesin increase intheusableknowledge Saipem Groupcontributestothe Human capitaldevelopment:the induced jobs. creation ofdirect,indirectand local employmentthroughthe contribution totheincreasein Group makesanimportant Employment: theSaipem impacts. of direct,indirectandinduced taxes. Itismeasuredasthesum andtopay products andservices Saipem Groupforlocally-sourced impact ofpaymentsmadebythe Angolan GDPin2011. contributed 0.34%tothe Overall, theSaipemGroup industrial structure. the currentweaknessofAngola’s the supplychainisaffectedby The strengthofthemultiplierin generated bytheSaipemGroup. of thetotaleconomicoutput benefits fromapproximately29% the Soyologisticbaseislocated, The ProvinceofZaire,where (61%) andhouseholds(22%). contribution arelocalbusinesses USD. Thelargestrecipientsofthis economy equivalentto472million a totalimpactwithintheAngolan purchasing, salariesandtaxes,for direct expenditureintermsoflocal economy isabout1.32timesthe Group’s contributiontoAngola’s The resultsshowthattheSaipem Economic output year 2011. of SaipemGroupactivitiesforthe consolidated quantitativeimpacts The figuresbelowrepresentthe Quantitative results each oftheidentifiedimpacts. million USD. gainsisintheorderof25 salary frame duetolocalemployee generated overafive-yeartime the expectedeconomicvalue Group activitiesinAngola, Hence, asaresultofSaipem direct expenditureintraining. about 2.80timestheGroup’s human capitaldevelopmentis Group’s contributiontoAngola’s The resultsshowthattheSaipem development results Human capital catering andaccommodation. and (mainly securityservices) sectors suchasgeneralservices the supplychainmostlybenefit of Zaire.Jobscreatedalong currently resideintheProvince of whichareheldbypeoplethat 10,230 jobsarecreated,42% Angola in2011,approximately of SaipemGroupactivitiesin employment. Intotal,asaresult about 3.1timesthelocaldirect in termsoftotalemploymentis Group’s contributiontoAngola The resultsshowthattheSaipem Employment results 23

SAIPEM SUSTAINABILITY COUNTRY REPORT oasfo mlyetAec 220 ,6 183 1,637 1,893 1,969 4,6845,1795,0594,319 2,260 1,3001,5111,4181,380 1,1241,6991,7481,302 2009201020112012 Total Locals from EmploymentAgency International Local Category Total Workforce Training Hoursbytypeoftraining Employees distributionbycategory 24 IT &Languages behaviour andskills Managerial Managers 49% 39.1% People Management P S operations andsupportprocesses forits the optimumpersonnelrequired forits EOPLE The peoplemanagementobjectiveis USTAINABILITY designed toassure thatSaipemhas HSE &Quality professional skills Technical White Collars 0.5% 24.9% 4% activities inAngola. 22.1% professional skills Other 13.4% Blue Collars 47% required skillsfortheirdesignatedprofile varies considerablybasedonthenumber content componentremains aconstant. P in 2012,28amongSaipem’s Managers identifying individualswhopossessthe multiple levelswithintheorganisation; The totalSaipemworkforce inAngola the potentialtoalignthemselveswith of employeesmayvary, astrong local and sizeofprojects undertakenfrom the Company’s values, principlesand Training and whoare already alignedorhave year toyear. Whilethetotalnumber training provided isdesignedto improve national workforce isrepresented at Recruitment andselectionfocuson It isimportanttohighlightthatthe training were delivered mainlytoblue activities required withinthecontracts capabilities. In2012,79,899hoursof of theAngolanisationProgramme. All by twodrivers,onebeingthetraining of localcontentdevelopmentaspart Saipem Group withintheframework of signedprojects, andtheother the were Angolan(23%ofthetotal ERFORMANCE Know-how transferactivitiesare led training activitiesidentifiedbythe Technical andvocationaltraining the competenciesofallPetromar activities forlocalemployeesare collar andwhiteworkers. intended todevelopboththeir Managers intheCountry). organisational andmanagerial technical know-howandtheir corporate culture. employees. developtechnicalskillsinterms • developknowledgeand • developpersonalskillsrelatedto • programme areto: training. Thespecificaimsofthe through completeonthejob all thephasesofanFPSOproject business andinparticularwith with allaspectsoftheFPSO Angolan engineeringgraduates Project istofamiliariseyoung programme fortheWest Hub The objectiveofthetraining of Know-howprogramme West HubProject:Transfer Training initiatives construction projectsincluding: constructability andforoffshore transfer knowledgeofmethodsfor Angola, since2008,inorderto including area ofintervention, which ithasdeployedacrossits invested inatrainingprogramme, Department (CEN)ofSaipemsahas the ConstructabilityEngineering fabrication yardsinparticular, young methodengineers,within To supportthedevelopmentof Engineers Training PlanforMethod programmes. and participatedinformaltraining qualified seniorintheirdiscipline the projectteams,coachedbya have beenintegratedwithin Paris wheretheAngolanengineers training programmesbasedin to 18monthsinfullandpart-time training tofourengineersforup requirement andhasprovided and beyondthatcontractual phase. Theprojecthasgoneabove during thedetailedengineering to twoAngolanprojectengineers commitment toprovidetraining Satellite Project,Saipemmadea thecontextofKizomba Within Kizomba Satellite project engineers. employed onFPSOprojectsas in ordertobeready of engineeringandconstruction Environment issues;and awareness ofHealth,Safetyand within aninternationalframe; management andteamworking and quad-joints. flares, sub-seapackages,bundles jackets, decks,modules,bridges, Programmes: Scholarship complimentary Petromar hassetuptwo Scholarship forstudents delivered inAngola. that suchtraininghadbeen ofbothAWShistory andSaipem This wasthefirsttimeeverin hour questionsandanswers. The examconsistedof3separate2 Welding Inspector’(CAWI). (CWI) and/or‘CertifiedAssociated as ‘CertifiedWelding Inspector’ objective ofachievingqualification department participatedwiththe workers fromtheQualityControl AWS. FifteenselectedAngolan Angola andconductedby facilitated byMoodyInternational The 10daytrainingcoursewas standards. welding inspectorsfollowingAWS a trainingcourseforQualityControl In 2011,PetromarorganisedinSoyo Quality team (AWS) trainingforPetromar American Welding Society Departments. Commercial andFinancial Human Resources,Procurement, Asset management,LegalAffairs, such asOffshoreOperations, working inarangeoffunctions 19 areemployedinPetromar, students whoreceivedscholarships, attending. Fromthetotalof while another12arestillcurrently 16 havefinishedtheirstudies, have receivedscholarships,ofwhich As of2011,atotal29students Petromar. with theactivitiesperformedby various universitycoursesassociated skills orknowledgebyattending are interestedinimprovingspecific involves Petromaremployeeswho 2. thesecond‘internalscholarship’, on-the-job training; a minimumoftwoyearsandreceive commit toworkingforPetromar they havecompletedtheirstudies, These scholarshipstudents,once interest inworkingwithPetromar. shown arealcommitmentand from variousuniversitieswhohave incentive’ offeredtostudents 1. thefirstisaformof‘recruitment 25

SAIPEM SUSTAINABILITY COUNTRY REPORT 26 Training fornewengineers young graduateswasrequired. (vi) carryouttechnicalworkon In order tomeettheincreasing suitable skillsfortheutilisation The firstprogramme started at roles ofresponsibility tolocals. the beginningof2012,when, has long-standingexperience, ultimate goalofhandingover Luanda usingmainlyAngolan above alltotrainandtransfer in Luandaandstaffing itwith of engineeringandcomputer training periodattheSaipem know-how tothem,withthe Saipem Corporatestandards; In theperspectiveofcreating & offshore products/systems; English course,40graduates and technologies;(v)acquire investment schemetocreate aimed toenableparticipants engineering workprocesses, projects (through on-the-job training fornewlyemployed the newEngineeringCentre The aimisnotjusttorecruit base engineeringdisciplines the companystartedanew an engineeringcompanyin Engineering Centre inFano after apreliminary full-time people capableofbringing to: (i)becomealignedwith (iv) developcompetencein deliverables; (iii)familiarise activities, inwhichSaipem (ii) understandtheoverall fruition, specifictechnical personnel inallkeyroles. interfaces andassociated challenges ofdeepwater The trainingprogramme themselves withsubsea aided designtools;and engineering projects to Angolan personnelbut began athree-month training). (Italy). for onshore activities,the areas well asthetraditionalspecialist H&S at work in every corner of H&S atworkineverycorner design ofpipelinesandsubsea systems andelectricalsystems. level descriptionofSaipem,its disciplines wasprovided, since to thechoiceofmaterials, activities, emphasiswasgiven structures, andtosubsea and all ofitsproject management activities includingstructures, general aspectsandprovided everyone, atalllevels,should and care thatSaipempaysto disciplines attended,covered context inwhichtheywillbe umbilical control systems. As the globe.Asimplebuthigh The secondpartwasamore organisational structure and first, whichtraineesfrom all Macaia -32yearsold Interview withSergio disciplines thatwillbecome machines andprocesses, as in HealthandSafety(LiHS), dealt withwere keydesign underscoring theattention was devotedtoLeadership their area ofspecialisation, small groups basedonthe have aglobalvisionofthe chart. Intermsofoffshore Trainees were dividedinto work withSaipemAngola? disciplines suchaspiping, working forSaipemandIstill company. Thefirstlesson as pertheorganisational had twomainparts.The The trainingprogramme a globaloverviewofthe specific trainingsession. control instrumentsand What madeyouapplyto I hadalwaysdreamedof working. when theytoldmeIwasgoing time heretolearn.Iwanted When IarrivedinFanomyaim to beableimprovemyskills my knowledge increases every my knowledgeincreasesevery have learnedmanythingsand set. I’m very happy!Mydesire set. I’mvery this is very importantforme.I this isvery day. InFanoIreceivedrespect use thisopportunitytoobtain help makeourjourneyeasier. to becomingFanodoa progress withmyEnglishand that passes.Iamalsomaking to learngrowswitheachday memory orimpressionyou all the necessary information all thenecessary was tomakethemostofmy When yougottoItaly, did to teachus.AlsoVenice, the will takebackwithyouto you haveanyideaofhow training course!Iwillalways can’t believethatmydream has cometrue!You cannot thank Godforallowingme all ofthepeople!Next, and affection.Respect willingness ofourteachers this opportunityinmylife! to takebackwithme.First I willhavemanymemories imagine howhappyIwas of allSaipem:thatmeans I wanttogivemybest the trainingmightbe? What willbethebest n’ t beli ev e th Luanda? Saipem. at m y dr ea m that Iwillbeabletoteachmy in Angola;thisistheonlyway personal growthwillcontinue long waytogoandmyown knowledge. Thereisstilla gained alotofhigh-level professional becauseIhave I feelhavegrownasa in Italy? over thelastthreemonths What haveyouachieved 29 yearsold Barbosa Matiashenriques- Interview withAndre Pedro that momenton! was goingtochangefrom diploma, becauseIfeltmylife world. Andfinally, gettingmy most beautifulplaceinthe will learninthefuture. I I havelearnedandeverything to putintopracticeeverything experiences tome.Ican’twait here whohavepassedontheir highly competentprofessionals my knowledgethankstothe happy tobeableincrease my oldjobandIamreally tohaveleft I amnotsorry profession toothercolleagues. so oohrcolleagues other to ssion course. over thethreemonthsof how muchwehavelearned presentations toshowcase colleagues thechancetomake be abletogivesomeofour productive andpositiveto I alsofeelithasbeenvery with suchexcellenttraining. has workedtoprovideus for itselfjusthowhardSaipem the companywasabletosee When SonangolcametoFano company andasindividuals. important forallofus,asa Saipem hasearnedisvery The imageofcredibilitywhich impression ofourcountry. It isimportanttogiveagood you? Sonangol toFanomeant What hasthevisitof 27

SAIPEM SUSTAINABILITY COUNTRY REPORT 2009201020112012 4,1732,479 4,4824,351 2,564 2,4682,2831,619 16,943 30,35752,23739,285 HSE Job 32,76932,415 19,390 16,008 30,69639,90546,063 33,379 HSE 2009201020112012 Inspections Tool Safety SHOC meetings HSE 34,21558,57863,64227,988 Box Analysis Cards Leading indicators training 17,493,43415,155,26314,059,20511,000,963 Talks TRI hours LTI Man 1.77 1.721.561.27 hours Frequency 0.170.260.36 Safety statistics Frequency worked Rate Rate 28 Safety the HSEManagementSystemiscurrently understanding ofalltherisksrelated to maintain ahighlevelofawareness and the Companyandtoensure continuous programmes andprocedures toensure improvement initsSafetyperformance, among theworkforce toestablishand to meetingtheever-changing needsof with theCompanyHSEPolicy, Saipem and middlemanagement;rather, the and Clientrequirements. aview With on alloperationalsites.Multi-lingual first safetyplayerintheorganisation maximisation ofaccidentprevention implementation ofsafetystandards. undergoing acomprehensive review. Standard, aswelllocalregulations operational sitesare intermsofthe is themanagement.Management’s The CompanySafetyManagement commitment ismonitored through aimed exclusivelyattheworkforce System measures notonlyreactive In order toguaranteecompliance The measure ofpro-activity isnot bulletins are draftedanddiffused indicators butalsohowproactive internal standards, internal OHSAS18001 Safety Campaignsandperiodical Saipem in Angola bases its Safety Saipem inAngolabasesitsSafety has developedandimplemented Management System on Saipem Management SystemonSaipem Company activities. causes andimplementcorrective actions meetings focused on particular HSE issues meetings focusedonparticularHSEissues investigated inorder toidentifytheroot and are trainedonspecificthemessuch important proactive toolthatsetsmore Environment isreflected inthetraining All newworkersreceive HSEinduction offshore drillingworkersare trainedin The importanceofHealth,Safetyand as PPE,workpermits,scaffolding and Tool BoxTalks are brief(10-15minutes) annual HSEtrainingprogramme isan system, allincidentsare reported and Some specialisedtrainingcoursesare to strengthen HSEskillsofCompany hours dedicatedtothesetopics.The OPITO, H In 2012,almost28,000hoursofHSE measurable targetsestablishedona employees, sothattheywillalways fire fighting,according tojobtype. ambitious goalseveryyearinorder designed toprevent re-occurrence. performed externally: forexample, performed externally: be aware oftheirownandothers’ Under theaccidentmanagement training were provided inAngola. 2 S, fastrescue craft,andso Tool BoxTalks yearly basis. HSE training well-being. forth. Phase2:Managerspresent the • Phase1:LiHSworkshopsfor • phases: The LiHSProgramme isdividedintofour health andsafetyculture withinSaipem. far-reaching aimofcreating astrong interactive trainingprogramme withthe programme, aninnovativeandhighly the LeadershipinHealth&Safety(LiHS) Department beganthedevelopmentof In 2007,theSaipemCorporateHSE Leadership inHealth&Safety completion ofthejob. which mayaffect thesafeandefficient understanding ofallthepotentialhazards is giventopromote awareness and assure thattheappropriate information by asupervisorwhoseresponsibility isto and conductedpriortoworkcommencing and preparing themforPhase3. building interest withintheworkforce focus beyondtheworkshop,whilealso andsustainingtheLiHS Safety Vision disseminating theSaipemHealthand throughout theentire workforce, organisation’s priorities and intentions events. Thisalsopromotes the by designinghighimpact/influential health andsafetytoeveryemployee senior leaderstobringleadershipin Phase 2provides anopportunityfor commitment tohealthandsafety. speech asevidenceoftheir workforce withahighlycharged company. the healthandsafetyculture ofthe produce andconsolidateachangein management andsupervisionstaff, to Negro 6andSaipem12000. carried outonboard Scarabeo7,Perro In addition,6cascadingsessionswere conducting activitieswithintheyard. 662 participantsfrom variousprojects and inAmbriz2011withatotalof was cascadedinSoyoMay2010 As regards Phase2:theLiHSprogramme 2008, with236participants. managers andsupervisorssinceJanuary workshops havebeenconductedwith In Angolaatotalof15Phase1 Phase4:LeadingBehaviours • Phase3:Deliveryofthe‘Five • Challenge, andShare. Recognise, Intervene, for thefuture: Start, part ofSaipem’s DNA every leveltobecome actions ofemployeesat be embeddedintothe non-negotiable andwhichare to on fiveleadingbehavioursthatare programme withinSaipem,focusing of thenextphaseLiHS campaign. 2011markedthelaunch everyone withtheLiHSprocess. employees, andinvolvespractically 3 sustainstheLiHSfocusamongall implementation ofPhase2, Saipem Angola.Followingthe standardising interventionwithin and toreinforce safebehaviourby intervene intheeventofunsafeacts provide asimplystructured wayto tool isimplementedinorder to throughout theorganisation.This Stars’ Interventiontrainingtool Safety insidethe Promoting 29 yard

SAIPEM SUSTAINABILITY COUNTRY REPORT 12000 drillship The newSaipem 30 Health including doctorsandnurses.In Kwanda Challenge andShare stageswere carried variety ofinformationcampaignsaimed Employee healthisapriorityforSaipem carries outpreventive activitiesthrough fitness examinations,vaccinationanda and onboard thedrillshipswhereas the in Soyo,AmbrizandLuanda,achieving well-being andreducing medicalcosts were qualifiedinAngolatodeliverthe programme were trainedandcertified 12 FiveStarssessionsand138people LiHS cascadingandFiveStarstraining of 23people(17whomare local), with 2,822peopletrainedinLeading assistance, theSaipemmedicalteam trained. Furthermore, twofacilitators conducted in2011,Soyo,Ambriz The medicalteamcomprisesatotal the contextofGEP-SCPproject, Twelve facilitators ofthe‘FiveStars’ project managerandHSEmanager. at promoting employeehealthand Beginning November2008,within delivered aspartofPhase3bythe out in2012,achieving32sessions additional ‘FiveStars’trainingwas in Angola.Inadditiontomedical Phase 4,thefirst3stages(Start, Recognise andIntervene)were to aminimum. programme. Behaviours. Luanda, there are 2localdoctors, on aid andtransportation.InAmbriz,there foreign doctors,and9localnurses.The medical licensefortheprovision offirst Kwanda BaseinSoyohasaclinicand is 1foreign doctor, 1localdoctorand 2 localnurses,aswellanindustrial provision ofprimarymedicalcare. In clinic equippedwithfacilitiesforthe department uponarrivaltoensure they basis, allsitescompileacomprehensive this seriousmedicalriskSaipemhas mosquito repellent creams andsprays. contracting thedisease.Onamonthly launched acomprehensive malaria transmitted totheCorporateMedical Treatment formalariaisalso available Clinic, there are 3localdoctors, awareness campaign.TheMalaria Angola issituatedinanarea with report ontheimplementationof going activityandallnewpersonnel available atallsiteclinicsalongwith are aware oftherisksandmeasures endemic malaria.Inresponse to Control Programme (MCP)isan MCP Programme, whichislikewise Department. Chemo-prophylaxis is receive inductionfrom themedical Sexually Transmitted Disease(STD) to betakenreduce theriskof nurses and1foreign doctor. induction ontheprevention of Project personnelalsoreceive at siteclinics. etc.). (EKG, Glycaemia,Total LipidProfile, of regular medicaltestsandchecks patients are alsosubjectedtoavariety of theirindividualmedicalhistory, well asbeingassessedonthebasis and enrolled intotheprogramme. As cardio-vascular diseasesare identified are atincreased riskofcontracting in Angola.Project personnelwho implemented onallSaipem’s sites Prevention Programme (CVDPP)is Every year, aCardio Vascular Disease workforce. sessions onSTDprevention forthe Day), sitemedicalpersonnelconduct On specificoccasions(e.g.World AIDS its implementationonamonthlybasis. such, sitemedicalpersonnelmonitor Again, itisanongoingactivityand,as Department prescribed standard. and aspertheCorporateMedical as stipulatedintheHealthPlan and socialsportingevents. information, aswellQHSEinitiatives, newsletter containsgeneraland project sites where Petromar operates.The Petromar’, whichisdistributedtoall newsletter,an internal ‘Mukandada Every twomonths,Petromar publishes Communication Internal output from HRAs. as areference guidetoensure standard Corporate MedicalDepartment,isused procedure onHRA,draftedbythe through adedicatedwebsite.A Medical Department,whichisaccessible software developedbytheCorporate have beenrecorded utilisingdedicated professionals. ThefindingsofHRA out inclosecoordination withsiteHSE risk assessmentshavebeencarried Across thevariousGroup sites,health Angola andthetrainingisongoing. Programme hasbeenimplementedin A HealthRiskAssessment(HRA) take todecrease thatrisk. are advisedonthemeasures theymay increased riskofcardio-vascular diseases CVDPP. Thosewhoare foundtohavean has alsobeenincludedaspartofthe Ananti-smokingcampaign effectively toallpersonnel. future importanceare communicated In thisway, alltopicsofpresent and puttingtheoil/chemicalspillresponse • performinginspectionsand • keepingareas clearandpracticing • promoting proper wastesegregation • reducing environmental impact • through: environmental conservation,mainly to theprevention ofpollutionandto Policy, SaipeminAngolaiscommitted In accordance withitsEnvironmental Environmental Policy E drills. plan intopracticethrough periodic identified non-conformities; implementing remedial actionsfor chemicals ormud; contamination withlubricatingoil, good housekeepingtoprevent the clientorlocalauthorities; and disposalinfacilitiesasdefinedby energy andnaturalresources; through aneffective useofmaterials, NVIRONMENT 31

SAIPEM SUSTAINABILITY COUNTRY REPORT Ambriz Yard 32 Assessment ofAmbriz Environmental Impact international standardinternational methodologiesin Assessment (EIA)foryard rehabilitation. order todefinebothsignificantaspects Since therehabilitation project consists proper managementofenvironmental The EIAwasconductedincompliance yard facilitiessothatfabricationwork can berestarted, yard refurbishment, reorganisation ofthebasecampand Ambriz yard redevelopment, Saipem conducted anEnvironmental Impact of thecompleterefurbishment and and mitigationmeasures toensure In 2008,withinthecontextof with Angolanregulations and and socio-economicissues. associated withtherehabilitation ofthe Waste andemissionsfrom theactivities operational area constructionandbase global Health,SafetyandEnvironment guarantee andimprove environmental camp refurbishment andconstruction yard were likewiseassessedaspartof (EMP) were developedfortheAmbriz (HSE) system.Specifically, inorder to standards, thefollowingsetofplans were allincludedinthescopeof and procedures wasdeveloped:an performances basedonISO14001 Environmental ManagementPlans yard withintheframeworkof As aresult oftheEIA,various the EIAprocess. Ambriz EIA. events). prevent andrespond topollution Chemical ManagementPlan(toavoid, Waste ManagementPlan(WMP);a a monitoringandauditingsystem; including atrainingprogramme, and Environmental ManagementPlan(EMP) to useitsownproduced gasinsteadofotherfueltypes. public gridcompletedin2011.Moreover, in2010,FPSO Gimboa,themainHSCfueloilandnaturalgasconsumerin2009,started Note: Theincrease intheuseofelectricity2010ismainlydue totheFARM (Flare andReliefModifications) project which u IncludesbothIntermediateFuelOilandLightasclassifiedinthe new Environmental Reporting Standard defined in (2) IncludesDieselandMarineOil according tothenewEnvironmental Reporting Standard definedin2010. (1) • energysaving; underline theimportanceof: environmental awareness campaignto launch oftheCorporate-sponsored Environment Dayinitiativesandthe includes participationintheWorld issues across allsitesandprojects. This general awareness ofenvironmental focused inparticularonincreasing protection, SaipeminAngolahas increase awareness ofenvironmental To supporttheCorporate campaignto campaign Environmental awareness HSC Fueloil 2009201020112012 Natural gas(methane) LSC FuelOil Gasoline Electric Energy Diesel Energy Consumption 2010. (tonnes) (tonnes) (tonnes) (tonnes) (kWh) (m 3 ) 3,0 3880 591 - 25,901 308,800 2.3 33,304 36 734 - 335 11,558 12,493 - -5930 0.06 290 - 20,866 32,095 celebration. involved intheEnvironment Day2012 More than700employeeswere employees foreachtheme. tool boxtalksinvolvingmore than500 Base), Cabinda,SoyoandAmbriz,with period 2011-2012inLuanda(industrial The campaignwasconductedinthe awareness. to helpemployeesincrease their environmental drillsandpresentations special toolboxtalksaswellvarious diffused through worksitemeetings, material inEnglishandPortuguese accompanied withdedicatedsupport themes, launchedinsequence,is Each oneoftheaforementioned • reduction oftheecologicalfootprintto • watersavingandreuse; • wastesegregation andreduction; • oilspillprevention; a minimum. (2) (1) 3 41,289 Landscape near (2) (1) 4.8 40,771 ses the

Ambriz 33 (1)

SAIPEM SUSTAINABILITY COUNTRY REPORT 34 Greenhouse gases(GHG) due toinclusionoftheKwandaactivitiesinenvironmental reporting system. Note: Theincrease innon-hazardous wastegenerationin2010and2011is Waste generation Water consumption Saipem 12000.Nondesalinatedseawaternotincluded. the startofactivities2offshore drillingunitsPerro Negro 6and the Kwandaactivitiesinenvironmental reporting systemtogetherwith Note: Theincrease inwaterconsumptionsince2010isduetoinclusionof 120 150 100 150 200 12 18 24 30 30 60 90 50 6 Hazardous 0921 2012 2011 2009 0921 2012 2011 2009 0921 2012 2011 2009 2010 2010 2010 Non-hazardous (ktonnes CO (thousand m (ktonnes) 2 eq) 3 ) onboard Prevention ofpollution Environmental Performance environmental performancefigures. For significant increase inthegenerationof Kwanda inthereporting process sawa Kwanda baseandthestartofactivities water inparticular, theinclusionof environmental maritimestandards. All non-hazardous waste(about26,866t The fleetworkinginoffshore projects Negro 6andSaipem12000ledtoan In 2010,theenvironmental reporting discharges through onboard systems vessels are equippedtoachievezero oily waterseparatorforbilesystem, of the2offshore drillingunitsPerro reason behindtheincrease insome Similarly forwaste,theinclusionof is in compliance with international is incompliancewithinternational such asasewagetreatment plant, a segregated drainagesystem,an for KwandaLda.Thisisthemain monitoring and several internal monitoring andseveralinternal system wasalsoimplemented increase inconsumption. procedures. in 2010). nc Environmental campaign in e awareness Soyo yard overall promotion oftheprogramme. an advantageforclientsintermsofthe with itsactivitiesare therefore seenas improve thelocalcontentassociated considerations, andSaipem’s efforts to subject tothesameAngolanContent security issues.Oil&Gascompaniesare localcontent,HSEand/or concerning continual feedbackonspecificissues customers iscloseyetconstructive,with The relationship betweenSaipemandits venture agreements withSonangol. registered branches,through joint and produce inAngolathrough locally Chevron, Shell,BP, etc.,whichoperate industry, suchasEni,ExxonMobil,Total, working forcustomersintheOil&Gas since 1982(Kwandalogisticbase) Saipem hasbeenpresent inAngola C USTOMERS Memorandum ofUnderstanding(MoU). communities through thesigningofa the commitmentstowards local defining thelocalcontentplanand also cooperateswiththeClientin During newproject acquisition,Saipem contractual requirements. with eachClientandmonitored asper Content ofeachproject are shared approach. Targets fortheAngolan strategic andsustainablelocalcontent associated withthedevelopmentofa andpeopleofAngola, the government Saipem, itsClients,Sonangol,aswell advantage forallstakeholders,including The studydemonstratesthelong-term considerable interest toSaipemClients. operations inAngolaislikewiseof quantify theimpactsofGroup undertaken bySaipeminorder to The evaluationofeconomicexternalities Gimboa FPSO 35

SAIPEM SUSTAINABILITY COUNTRY REPORT fishing activities Traditional 36 Qualified localvendorsbydurationof relationship Total amountsordered bylocal andglobalvendors Relationship: 100 200 300 400 100 500 20 40 60 80 Global vendors < 1year 002012 2010 002012 2010 from 1to5years 2011 2011 Local vendors > 5years (units) (%) S term ondevelopingcollaborative efforts to localcontentdevelopmentconsistsof considerably influencedbythestrength local purchasing expenditure associated focusing efforts inthemediumtolong backward linkagesinthesupplychain, made bytheGroup forthepurchasing One ofthepillarsSaipem’s approach of theindustrialsectorAngolan market. Thisbeingthecase,Saipem is account forasignificantportionofthe Group’s direct contributiontothelocal contributing tolocaleconomicgrowth UPPLIERS economy asaresult ofthevolumes in particular, requires highlytechnical economy. TheOil&Gas servicesector, through theactivepromotion oflocal bought bysuppliersfortheirsalesto are notalwaysavailableonthelocal Furthermore, theinitialexpenditure goods andintermediateinputs that within thesupplychain,asevinced expenditure forgoodsandservices Petromar andKwandainparticular Saipem (primaryandintermediate in termsofsubsequentrounds of inputs). Theextentofthelinkage within the Externalities Study,within theExternalities is of goodsandservicestriggers suppliers andsubcontractors. with theiractivities. their capacityandcompetitiveness. with localsuppliersinorder toimprove insecticide-treated mosquitonets. malaria prevention through theuseof the LocalAdministrationtosupport an initiativeincooperationwith in February2011Saipemlaunched basic healthcare facilitiesinAmbriz, malaria andtheexistenceofonly Given theproblem ofendemic and World HealthDay. food handling,malaria,HIVprevention covering basichealthcare precautions, campaigns atAmbrizlocalhospital include, forexample,awareness Local communityhealthinitiatives Health environment andculture. care, education,socialdevelopment, community initiativesfocusingonhealth populations through variouslocal of thestandard oflivinglocal also contributestotheimprovement a strong localcontentfocus,Saipem longstanding presence. Inparallelwith the regions where Saipemhasa socio-economic developmentin strategy isthepromotion oflong-term A keytenetofasustainablebusiness L OCAL C OMMUNITIES pipefitting schoolhasbeenoperating As ofMarch 2008aweldingand training mechanical maintenancework shop. Skills acquisitionandprofessional necessary withintheAmbrizyard the mechanicalmaintenancewhen 4 wheeldriveambulance,andprovides health system,Petromar alsosupplieda As partofempowermentthepublic around 3,000and5,600,respectively. Ambriz town,havepopulationsof located approximately 50-80kmfrom The communitiesofBelavistaandTabi, jurisdiction ofAmbrizmunicipality. peripheral communitieswithinthe distribute mosquitonetstotwo Administration, hasplannedto Petromar, togetherwiththeAmbriz For thesecondphaseofproject, national levels. control programme atbothlocaland planning andimplementationofmalaria representative tosupportthestrategic were provided totheMinistryofHealth females wasconducted.Relevantstatistics vaccination campaignforpregnant the seconddayofdistributionatetanus optimal useofthetreated bednets.On families withguidanceandinstructionsfor distributed toapproximately 1,300 Over 2days,atotalof2,800netswere 37

SAIPEM SUSTAINABILITY COUNTRY REPORT communities for local initiative Prevention Malaria 38 Infrastructure Situated atabout13kmfrom theyard, safe drinkingwaterare fundamental. water through apipeline.Petromar the RioLogepumpstationsupplies Social infrastructures andaccessto welding trainingthatincludesmethods the townandyard withfresh has performedmaintenanceand 50 residents are currently undergoing such asrod, semi-automaticandTIG and professional training.Atotalof in order topromote skillacquisition welding. and watertreatment systemtoensure a base camppowerstationtotheAmbriz support tothemunicipalityasrequired. continuous fresh watersupplyforboth cable supply, installation andelectrical required tosupplyelectricityfrom the the townandyard.The Company connection ofthemaincablefeeder including thepumpstation,pipeline continues tooffer thismaintenance Petromar provided thetrenching, refurbishment oftheinstallation School. F development aswellthe‘Alegria skills acquisitionandprofessional the trainingcentre atAmbrizfor programme. Theseinitiatives,including of acomprehensive sustainability with localstakeholdersaspart challenging initiativesinpartnership has developedseveralinnovativeand the fabricationyard inAmbriz,Saipem In parallelwiththerehabilitation of Saipem’s localemployees inAngola. of know-how, expertiseandcapacityto in order toassure thecontinualtransfer and seniormanagersinalldepartments development planforAngolanmiddle is tocontinuewiththetraining key future opportunitiesandchallenges Angolanisation Programmes, oneofthe theobjectivessetoutin Within UTURE C HALLENGES country. the existingfacilitiesavailablewithin generated duringproject activitiesgiven to separationanddisposalofwaste its yards, inparticularwithrespect environmental performancewithin challenge incontinuingtoimprove Likewise, Saipemhasidentifiedafuture a challengeofutmostimportance. workforce inAngolathusremains safety culture intheentire Saipem Group operations.Creating astrong fundamental prioritiesacross allSaipem Health, SafetyandEnvironment are sustainable developmentwithinAngola. long-term commitmenttobusinessand are afundamentalpartofSaipem’s community agriculturalproductivity do Ambriz’project forsupporting Petromar’s main camp inAmbriz 39

SAIPEM SUSTAINABILITY COUNTRY REPORT 40 Accident onthePerroNegro6 operations, thejackupdrillingrig Perro Negro6suddenlytiltedand tilting oftherig,itwasdiscovered the seabedunderoneofrig’s Congo River, inapproximately40 suffered hulldamage,leadingto positioning manoeuvrespriorto one wasmissingandanothersix After thesuddenandsignificant injured. Whentherigeventually that, ofthe103crewmembers, was causedbythesubsidingof water intake.Theevent,which Congo, nearthemouthof the commencementofdrilling three legs,occurredbetween the coastsofAngolaand Democratic Republicofthe On July1,2013,duringrig measured bylifeexpectancyat standard ofliving.Healthis knowledge, andadecent human development:health, in three basicaspectsof average achievements that measures acountry’s A summarycompositeindex Index HDI -HumanDevelopment Construction. Engineering, Procurement and EPC Installation andConstruction. Engineering, Procurement, EPIC System. Environmental Management EMS Plan. Environmental Management EMP G metres ofwater. LOSSARY &A capsized andsankat10:30a.m. CEST, therewasnolongerany personnel on-board,sincethe CRONYMS counted whencalculating The dayoftheaccidentisnot weekend day, andholiday. day’ includesrest day, occurred. Inthiscase‘any the dayonwhichinjury work onanyday/shiftafter any regular joborrestricted temporarily unabletoperform renders theinjured person work-related injurywhich Injury.Lost Time Any LTI Environment. Health, Safetyand HSE UNDP) per capita(PPPUS$). and standard oflivingby GDP tertiary gross enrolment ratio; primary, secondary, and literacy rateandthecombined by acombinationoftheadult birth; knowledgeismeasured (from emergency procedureshadbeen promptly activatedtoensurefull evacuation beforehand. mobilised andhasbeen the Angolanauthorities Total workedmanhours TRIFR Frequency Rate. Total Recordable Incidents TRIFR treatment cases. restricted casesandmedical disability cases),work fatalities andpermanent Injuries(including of LostTime Term usedtodefinethesum Total workedmanhours Total Recordable Incidents. TRI LTIFR Rate. InjuryFrequency Lost Time LTIFR Injuries. Lost Time of thetotalnumber are includedinthecalculation permanent totaldisabilities lost workdays.Fatalitiesand working closelywith measures havebeen Response Team was is nowunderwayto happened andwhy. Saipem Emergency A fullinvestigation implemented. The = and allprevention No environmental operational team. = understand what No.LTI x1,000,000 No.TRIx1,000,000 and theClient’s been reported impacts have Headquarters: San Donato Milanese (Milan), Italy Via Martiri di Cefalonia, 67 Branches: Cortemaggiore (PC) - Via Enrico Mattei, 20

SAIPEM Società per Azioni Capital stock: €441,410,900 fully paid Tax identification number and Milan Companies’ Register No. 00825790157

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