spm_OTSre_part01_esecutivo:Layout 1 3-10-2013 18:12 Pagina 17 ONSHORE OIL AND GAS TRANSPORTATION SYSTEMS spm_OTSre_part01_esecutivo:Layout 1 3-10-2013 18:11 Pagina 2 spm_OTSre_part01_esecutivo:Layout 1 3-10-2013 18:11 Pagina 3 INDEX SAIPEM TODAY 4 SAIPEM ENGINEERING & CONSTRUCTION 6 ONSHORE OIL AND GAS TRANSPORTATION SYSTEMS (OTS) 8 OTS CENTRE OF EXCELLENCE IN FANO, ITALY 14 OTS - ONSHORE TRANSPORTATION SYSTEMS PROJECT REFERENCES 16 SAIPEM - A LEADER IN ADVANCED TECHNOLOGY DEVELOPMENT AND APPLICATIONS 66 PIPELINE LAND REINSTATEMENTS 72 DEVELOPING THE ITALIAN GAS SUPPLY AND DISTRIBUTION NETWORK 74 THE GAS DISTRIBUTION SYSTEM IN ITALY 78 DEVELOPMENT OF THE ITALIAN GAS SUPPLY SYSTEM 80 PROJECT REFERENCES 3 spm_OTSre_part01_esecutivo:Layout 1 3-10-2013 18:12 Pagina 4 SAIPEM TODAY SAIPEM TODAY IS A WORLD LEADER IN THE GLOBAL SUPPLY OF ENGINEERING, PROCUREMENT, PROJECT MANAGEMENT, CONSTRUCTION AND DRILLING SERVICES WITH DISTINCTIVE CAPABILITIES IN THE DESIGN AND EXECUTION OF LARGE-SCALE OFFSHORE AND ONSHORE PROJECTS. Saipem has a strong bias towards oil and gas frontiers, namely activities in harsh and remote areas, in deep waters as well as in extremely cold and hot environments, applying significant technological competences in many diverse fields such as gas monetization and heavy oil exploitation. Saipem is organized in two Business Units: Engineering & Construction and Drilling. 4 spm_OTSre_part01_esecutivo:Layout 1 3-10-2013 18:12 Pagina 5 5 spm_OTSre_part01_esecutivo:Layout 1 3-10-2013 18:12 Pagina 6 SAIPEM ENGINEERING & CONSTRUCTION FOLLOWING AN AGGRESSIVE GROWTH STRATEGY, WHICH INCLUDED IN THE LAST DECADE THE ACQUISITION OF MANY CONSTRUCTION, TECHNOLOGY AND ENGINEERING COMPANIES, MOST PROMINENTLY OF SNAMPROGETTI, BOUYGUES OFFSHORE, SOFRESID AND MOSS MARITIME, SAIPEM HAS BECOME ONE OF THE WORLD LARGEST AND MOST COMPLETE ENGINEERING AND CONSTRUCTION COMPANIES IN THE GLOBAL OIL AND GAS MARKETS, ONSHORE AND OFFSHORE. 6 spm_OTSre_part01_esecutivo:Layout 1 3-10-2013 18:12 Pagina 7 Ever since its initial steps in the fifties and numerous project execution centres installation; also revamps, upgradings, as the construction division of Snam, around the globe, and with yearly maintenance, decommissionings, the pipeline company of the Eni Group revenues exceeding 10 billion €/y; reclamations and decontaminations. in Italy, Saipem has pursued all held together by outstanding project a systematic growth strategy, based management skills. Saipem today operates in virtually every on the development of internal assets, world market, often in remote locations expertise and skilled resources, as well Through the involvement of our global with harsh environmental conditions as on the acquisition of other players EP(I)C hubs in Milan, Rome and Fano and challenging logistics, leveraging with their own asset bases, such as (Italy), Paris (France) and Chennai on its proven experience across the Micoperi in late eighties, and many (India), which operate in connection most significant product lines in the oil others. with a growing number of medium size and gas production onshore, offshore, and smaller regional engineering in deepwater; gas and oil In the last decade, Saipem has and project execution centres transportation via offshore and onshore continued its growth by acquiring employing altogether over 7,000 pipeline systems; midstream, refining, Bouygues Offshore and Sofresid in engineers, Saipem balances high chemicals, power generation from fossil France, Moss Maritime in Norway, IDPE project execution quality with a as well as from renewable sources; in India and Snamprogetti in Italy, competitive cost and - most importantly environmental industries, maritime and by carrying out a multibillion - with a major emphasis on local works and infrastructure. investment program into the expansion know-how and content. of its offshore construction and drilling This new series, therefore, outlines fleets. Since the year 2000, Saipem’s This well-integrated multicentre Saipem’s integrated references market capitalization has grown more approach provides a consistent design in engineering and construction than sixfold and its revenues tenfold.(*) and robust execution philosophy markets offshore and onshore, on all our projects worldwide. according to individual business The organizational integration of Top priority is provided throughout and technology lines. this considerable asset base, namely to all HSE and Quality aspects. the network of engineering centres, fabrication and support yards in several Saipem therefore offers a complete continents as well as the offshore range of project definition construction fleet, has been completed and execution services, offshore gradually over the years - most recently and onshore, particularly for with the creation of a unified Business the complex “mega-projects” required Unit Engineering & Construction, by the market today: from feasibility an entity with over 30,000 employees and conceptual studies to complex (excluding corporate and BU Drilling integrated solutions combining design, staff) from over 100 nationalities, engineering, procurement, field with over 60 permanent establishments construction, fabrication and offshore (*) Until Dec. 31, 2010 7 spm_OTSre_part01_esecutivo:Layout 1 3-10-2013 18:12 Pagina 8 ONSHORE OIL AND GAS TRANSPORTATION SYSTEMS (OTS) WITH THE ACQUISITION OF SNAMPROGETTI AND BOUYGUES OFFSHORE, SAIPEM HAS CONSOLIDATED ITS PREEMINENT POSITION AS A WORLD LEADER IN THE DESIGN AND CONSTRUCTION OF ONSHORE OIL AND GAS TRANSPORTATION SYSTEMS. Both Snamprogetti and Saipem draw Saipem’s primary focus was on in certain key markets, extensive their roots more than fifty years ago construction and related technologies references as well as some ongoing from the design and laying of complex (such as welding, etc.), whereas flagship projects in new markets. oil and gas transportation systems. Snamprogetti’s was on engineering Born at the time as divisions of Snam and procurement services. For years, Today, following the full integration S.p.A. (today Snam Rete Gas S.p.A.), therefore, Saipem and Snamprogetti of these constituent companies, following their rapid growth also combined forces on the largest world Saipem is one of the leading full- outside of Snam’s mission, they were oil and gas transportation systems, service engineering and construction shortly thereafter spun off in order to under a variety of EPC contractual general contractors, world-wide, in become major independent players. forms, mostly with Saipem as the pipeline systems as well as in many The oil and gas transportation systems leader. other oil and gas market segments. business, however, remained one of Saipem can develop advanced design their core activities and one of the In addition, the acquisition in 2002 by solutions and build complex foundations of their subsequent Saipem of Bouygues Offshore s.a., integrated oil and gas transportation expansion. who at that time also owned the systems, based on advanced engineering subsidiary Sofresid, had technologies, in the harshest and In oil and gas pipelines both brought to the new Group numerous most remote environments. companies had full EPC capabilities, active engineering resources, although to a different degree: specialized know-how, local presence 8 spm_OTSre_part01_esecutivo:Layout 1 3-10-2013 18:12 Pagina 9 9 spm_OTSre_part01_esecutivo:Layout 1 3-10-2013 18:12 Pagina 10 To date, Saipem has designed A world-wide track record, from Far examples, the Sakhalin II Onshore over 60,000 km and laid almost Eastern Russia and Australia all the Pipeline System. 100,000 km of land pipeline way to Latin America, with systems, utilizing its own equipment numerous completed projects in Major pipeline rehabilitation and and assets, in almost every corner Asia, Europe, Middle East and upgrading undertakings, including of the world: Africa. de-commissioning and This has been made possible re-commissioning. The Italian oil and primarily gas in particular by Saipem’s emphasis transportation and distribution on developing permanent local network (see separate story) - in establishments in most markets. itself almost 40,000 km of pipelines. Complex integrated oil and gas transportation systems, which The gas supply system into Italy - include not only pipelines but also trunklines to bring in gas from Algeria, the full design and construction of Libya, Russia and the North Sea. compression and pumping stations, including receiving terminals and Major oil, gas, water and chemicals upstream facilities for treatment pipelines in every possible and reinjection. physical environment: deserts, frost lands, swamps, prairies, virgin Multibillion mega-projects often forests as well as densely inhabited executed on an EPC/LSTK areas. contractual basis: among many 10 spm_OTSre_part01_esecutivo:Layout 1 3-10-2013 18:12 Pagina 11 11 spm_OTSre_part01_esecutivo:Layout 1 3-10-2013 18:12 Pagina 12 Over the years, Saipem has been at the forefront of technology development and utilization of the most modern design, diagnostic and construction tools; for example: Applications of the continuously evolving high strength steels: e.g. X45 in the earlier decades, then X60, now in some applications X80, demo units on X100. The development of proprietary tools and methodologies, such as welding machines, monitoring systems, topographic techniques, etc. The development - on behalf of Eni - of TAP, an advanced Gas Transportation technology for high throughput pipelines at high pressures, based on the application