BU Engineering & Construction

August 2011
I_P110801

Contents
Highlights
Business Units

Ownership and Financial Performance Business Model

Project Execution Centers, Fleet, Assets, Yards

Sustainability and Local Content HSEQ BU Engineering & Construction

Growth Strategy Major EP(I)C Projects Under Way Organization Key Achievements in the Oil & Gas Value Chain Innovation

BU Drilling

Saipem E&C

Saipem E&C Growth Strategy

(1/3)

1. Excel in all steps of the oil & gas value chain, onshore and offshore, as well as in selected diversified businesses
Oil & Gas Production and Processing
Upstream

Pipelines
Oil Refining

IGCC Integrated Gasification and Combined Cycle

Subsea Field Development Onshore Sonsub Remote Subsea Technologies

Gas Liquefaction

LNG Regasification

Oil Gas Offshore

Oil Gas Gas-to-Liquids Power

Offshore Fixed Facilities Gas-to-Solids Platform Inst. & Decom. Infrastructures Floaters Maintenance & Operations Offshore Wind Farms Maritime Works Environment & Renewables Petrochemicals

Saipem E&C Growth Strategy

(2/3)

2. Enhance investments in project execution capabilities close to project sites, in strategic markets
OGRESS WORK IN PR

Expand and upgrade regional

engineering and project execution centers c n rs

Sajer Iraq Company Bagdad, Iraq and Dubai, U.A.E.

Snamprogetti Canada, Calgary, Canada

Add.l Initiatives in Planning Stages

Karimun Island Indonesia

Dammam Saudi Arabia

Develop additional prefabrication

and construction support yards
WO R K OGR IN PR ESS

Add.l Initiatives in Planning Stages

Saipem E&C

Saipem E&C Growth Strategy

(3/3)

3. Continue to develop the most modern fleet and assets

De liv er y

Further upgrade of operational capabilities and productivity

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Castorone (Pipelayer)

Designed for most challenging future projects

(Undergoing Sea Trials)

Saipem FDS 2

Strengthening the position for large and deepwater Field Development markets

FDS 2

Saipem E&C

Highlights: Mega-projects Upstream and Downstream, Onshore

Under execution

Melchorita LNG Terminal Marine Infrastructure, Peru

Site Installation

Khurais Field Development - S. Arabia

Arzew - LNG GL3Z - Algeria

Modules for EGTL Nigeria

Just Completed

Manifa Central Processing Facilities

Sakhalin II Pipeline

Italian High Speed Train

CNRL - Canada

ENGRO CHEMICAL PAKISTAN Ltd. Daharki Pakistan

Saipem E&C

Major EPC Projects Under Way, Onshore

OMV Tag Gas Pipeline Austria Liquefied Gas Terminal Polish LNG Company Poland Gas Pipelines Snam Rete Gas Italy EST-Eni Slurry Technoloy Eni R&M Italy High Speed Railway RFI Italy Shah Gas Development Project Abu Dhabi Gas Devel. Co. Ltd. United Arab Emirates Qafco 5 and 6 Qatar Fertiliser Co SAQ Qatar Manifa Field Development Saudi Aramco Saudi Arabia Pearl C8 Qatar Shell Ltd. Qatar Jurassic Field Kharafi National Kuwait Booster Station BS-171 Kuwait Oil Company Kuwait Gas Gathering Centers GC 7, 8 and 21 Kuwait Oil Company Kuwait Unloading and Loading Jetty Sohar Port Oman Gas Booster Station BS 160 Kuwait Oil Co. Kuwait Central Processing Facility Dijla Petroleum Company Syria

Hydrotransport Slurry Pipeline Canadian Natural Resources Ltd. Canada

Central Processing Facilities Husky Oil Canada

Two Desulphurisation Units and Two Amine Regeneration Units PEMEX Mexico

Urea Project Matix Fertilizers and Chemicals Ltd India Ammonia and Urea complex Engro Fertilizers Ltd. Pakistan

Tout Lui Faut Refinery Staatsolie Suriname

Jetty in Mers EI Hadjadj Sonatrach Algeria OML 58 Upgrade TEPNG Nigeria

LNG GL3Z Sonatrach Algeria Escravos GTL Chevron Nigeria Nigeria

LZ2 HassiRM-Arzew Sonatrach Algeria OB/OB Revamp NAOC Nigeria

LPG treatment plant Sonatrach Algeria Power Plant Rivers State Gov. Nigeria

Menzel Ladjmet East Sonatrach and First Calgary Petroleum Algeria LNG and LPG Tanks Bechtel Overseas Angola

GK3 Hassi R Mel/EI K. Sonatrach Algeria Container Quay Port de Point Noire Congo

Tangier Med II port TMSA Morocco

LNG Loading Jetty Chevron Australia Australia Gas Pipeline Gladstone LNG Australia

Saipem E&C

Highlights: Mega-projects, Offshore

Under execution

Just awarded Usan Deepwater Subsea Field Development - Nigeria Al Wasit Gas Program Saudi Arabia

Under execution

Under execution

FPSO Gimboa - Angola

Nord Stream Gas Pipeline Baltic Sea

Sabratha Platform, Bahr Essalam Field Dev.- Libya

Kashagan Experimental Program Kazakhstan

Saipem E&C

Major EPIC and T&I Projects Under Way, Offshore

Castor Offshore Gas Pipeline ACS Cobra Spain Nord Stream Gas Pipeline Nord Stream AG Baltic Sea Various platform and pipeline installations North Sea Chirag Oil Project AIOC Azerbaijan Kashagan Experimental Programme Agip KCO Kazakhstan

Expansion of Export Terminal CPC Russia

Subsea De.t of West Delta Deep Marine Burullus Gas Co. Egypt Maintain Potential Facilities LTA Saudi Aramco Saudi Arabia Walker Ridge Export Pipeline Amberjack Pipeline LLC Gulf of Mexico Al Wasit Gas Program Saudi Aramco Saudi Arabia

P55 Steel Catenary Risers and Flowlines Petrobras Brazil FPSO Cidade de Vitoria Petrobras Brazil (Leased - in operation) Guara & Lula NE Export Pipelines Petrobras Brazil Critical Crude Pipeline Replacement Project Mobil Nigeria Nigeria Bonga NorthWest Flowlines Shell Nigeria FARM (Flare and Relief Modifications) Usan URF and Oil Loading Terminal Cabinda Gulf Oil Angola Elf Petroleum Nigeria Nigeria FPSO Gimboa Sonangol Angola (Leased - in operation) Kizomba Satellites EPC3 Tiebacks Esso Expl. Angola Angola

Liwan Field Deepwater EPCI Husky Oil China China

PNG LNG EPC2 Gas Pipeline ExxonMobil Papua New Guinea Gajah Baru Field Development Premier Oil Indonesia

Saipem E&C

Key Achievements in the Oil & Gas Value Chain

Saipem E&C

10

Mega Oil Projects Upstream

Saudi Aramco, K.S.A.
Flagship projects to bring huge new gas and oil production capacity on stream quickly Individual project values: > 2 bn $ each Last years total awards: >10 bn$ NewConvertible contract structures:
FEED (Cost-plus) EPC (Lump Sum)

With pre-agreed formulae

Source: Saudi Aramco (2007)

Khurais Oil Field: Saipem awarded 60% of total investment

Execution ongoing

Qatif Central Producing Facilities

Khursaniyah Processing Facilities S. Arabia

Khurais WIPS

Qurayyah Sea Water Treatment

Khurais Utilities Pakage

Manifa Central Processing Facilities

Saipem E&C

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Other Recent Large Oil Production Project Awards

Agip KCO, Kazakhstan
Just awarded

Husky Oil, Alberta, Canada

Kashagan Project Phase 1

Sunrise Oil Sands Projects Central Processing Facilities

Karachaganak Petroleum Op. B.V.,

Kazakhstan Karachaganak Field Development Project and Export Pipeline

Qatar Petroleum, Qatar

Dukhan Field Gas Lift Project

Dijla Petroleum Co., Syri

Just awarded

Central Processing Facilities

Sonatrach, Algeria

UTBS Crude Oil Treatment

Saipem E&C

12

Complex and Integrated Offshore Fixed Facilities

Just awarded

Completed more than 100 offshore EPCI projects over the last ten years, including several challenging large-scale integrated complexes EPCI flagship projects:
Bahr Essalam Full Field Development: Gathering sealines, export trunklines, subsea production system, production platform Al Wasit Field Development: Complete system, including 12 wellheads, 2 tie-in and 1 injection platforms, 200 km export trunkline offshore, 120 km onshore pipeline, service pipelines and sealines, marine works

Saudi Aramco, Saudi Arabia, Al Wasit Gas Program

Agip Gas B.V., Libya, Bahr Essalam Full Field Development

Saipem E&C
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Platform Installation

Saipem 7000 installing platform accomodation module

Sakhalin Island, Russia, integrated deck floatover installation

Contractor of excellence for both the floatover and heavy lift techniques Installed 2.5 million tons of offshore structures Heaviest lift record: 12,100 t integrated deck
Jacket launch

Saipem E&C

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Subsea Deepwater Field Development

Currently under execution

Designed and executed 11 major deepwater systems in the last ten years Numerous high technology proprietary solutions available for risers and flowlines

Elf Petroleum Nigeria, Usan, Nigeria EPCI of subsea system connecting 42 wellheads to FPSO, with export sealines

Total, Akpo, Nigeria

Total, Rosa, Angola Bundle Hybrid Offset Riser

Esso, Kizomba A, Angola Single Hybrid Riser

Saipem E&C

15

SONSUB Remote Subsea Technologies

Full service deepwater intervention capabilities:
Construction Services Diverless Tie-in and Pipeline Repair Systems Diving Operations Specialist Tooling & Engineering Survey & Positioning Services Dedicated fleet of 11 construction support vessels and several ROVs

More than 200 subsea inspection, maintenance, repair and support services completed worldwide in the last 20 years Deepest recovery operation of oil from tanker at 3,850 m water depth (Repsol Prestige)

Deepwater sealine repair system

Bar Protector Dive support and construction vessel

Innovator 250 Heavy duty ROV

Repsol, Spain, Prestige Deepwater oil recovery

Saipem E&C

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Refining and Heavy Oils Conversion

t Jus leted p for m Co EED II F ase Ph

World-wide track record

36 grass-roots refineries

In the last decade, emphasis on Bottoms-of-the -Barrel upgrading

30 hydrocrackers, H-Oil and LC Finers

Todays focus:
EST First Commercial Unit for ENI R&M Staatsolie, Suriname, refinery expansion 2 desulfurization and amine units for Pemex - Refinacion, Mexico Execution
ongoing

CNRL -Canada
Execution ongoing

Mohammedia Refinery Expansion - Morocco

Eni - Isocracker Sannazzaro deBurgondi

EST CDP Eni Taranto Refinery

STAATSOLIE Maatschappij Suriname N.V.

Saipem E&C

17

IGCC-Integrated Gasification with Combined Cycle

Designed and built the two world largest IGCC plants
Significant interrelationships EPC/Project Financing requirements
512 MWe

Very complex projects:

Integration of many technologies and proprietary equipment

ISAB, Priolo - Italy

550 MWe

GE (then Texaco) and Shell technologies

Sarlux, Sarroch - Italy

250 MWe

Contributed to technology optimization and development

Feed

E.g. Reactor redesign

Vapor Oxygen

Syngas Quench water Soot water

Eni R&M, Sannazzaro - Italy

Saipem E&C

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Gas to Market
Processing
tion Execu ing go on

20 Integrated Natural Gas Complexes

Designed and built > 200 process units

Abu Dhabi Gas Development Co. SHAH GAS DEVELOPMENT PROGRAM EPC Packages 2, 3, 5

Individual project values > 1bn $

Just Completed

Petronas, GPP- 5/6 Malaysia

QP, NGL4 Qatar

ExxonMobil, Al Khaleej Qatar

GASCO, NGL 3d Train U.A.E.

AGIP GAS BV, Mellitah Libya

Saipem E&C

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Gas to Market
Onshore Transportation Systems - Pipelines
Kuwait BS -160

Leading global E&C contractor for Oil and Gas Pipelines One of the clearest areas of Saipem/Snamprogetti synergy 50 years of cooperation Over 60,000 km of Gas Pipelines

Kuwait BS - 171

Saudi Arabia Hawiyah Gas Pipeline System

Execution Ongoing

> 90 Compressor Stations (~3,000 MW)

Alinta - Australia

40 Pumping Stations (~2,100 MW)

30,000 km of Oil & Product Pipelines

1,400 km of Water Pipelines

Kashagan - Caspian Sea

11 Pumping Stations (~130 MW)

NAOC GTS4 - Nigeria

Saipem E&C

20

Gas to Market Offshore Pipelines Systems

Currently under execution

March 25, 2010, Denmark Castoro 6 passing under the Great Belt Bridge

Nord Stream Gas Pipeline Baltic Sea Under Construction

Leader in deepwater and shallow water pipelaying: laid over 30,000 Km of sealines Designed and laid the most challenging offshore pipelines since the 70s

New Castorone Pipelaying Vessel

Saipem 7000 Medgaz laying Blue Stream Gas Trunkline System

Saipem E&C

21

Flagship Integrated Mega-project: Kashagan Experimental Program

Kashagan Field

Major offshore and onshore integrated project for the production of crude oil and associated gases:
Artificial offshore drilling and process facilities, pipelines and associated gas transport systems, onshore processing facilities Saipems scope:
EPCI of trunklines and production flowlines Transportation & installation of Piles & Flares Fabrication of structures Hook up and commissioning Drilling of multiple wells from artificial islands

Severe weather Very shallow waters Stringent environmental restrictions Lack of infrastructure

Saipem E&C

22

Flagship Pipeline Integrated Mega-project: Sakhalin II

Client: Sakhalin Energy Investment Co.(SEIC) Saipem main contractor-multibillion EPC contract Oil & gas twin 780 km pipeline system
Oil: 24 Gas: 48 >80MM construction man-hours Driven >150 MMkm

Offshore production platform, sealines to shore Very challenging logistics:

Remote and inhospitable terrain T <-45C, Frost Snow storms Mountains, Slopes >15
Shell CEO 2008 Safety Award

Built over 5000 km of temporary access roads

Start-up Dec. 2008

Saipem E&C

23

Gas to Market
LNG NG Liquefaction
1st multi-billion $ contract as Main Contractor to design and execute a world class 4.7 MTPA LNG project To date, designed and built 9 LNG trains, 35 MMTPA total capacity Major synergies with Saipems long-standing experience and capabilities in marine works and LNG tankage
Under Construction

Arzew - LNG GL3Z - Algeria

RasGas, Ras Laffan - Qatar EPC Trains 35

NLNG, Bonny Island Nigeria, Trains 16 EPC / Train 7 Plus

Saipem E&C

24

Gas to Market
LNG Import / Storage / Regasification
Leading international EPC contractor Extensive technology expertise Designed and built:
12 world scale LNG terminals More than 40 LNG tanks

Pioneer in new technologies for treatment, storage, handling of liquefied gas

CANAPORT LNG - Canada

Under Execution

LNG Import Terminal Zeebrugge - Belgium

LNG Import Terminal Chengtoujiao, Guandong - China

Fos Cavaou France/Total, Marseille - France

POLSKIE LNG Terminal Swinoujcie - Poland

Saipem E&C

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Floating Oil and Gas Production

Designed and completed :
8 new build floating production systems, including 3 large scale projects with storage capacity exceeding 2 million barrels of oil 5 converted FPSOs under Lease & Operate contracts (2 in operation)

One FPSO currently under construction Developed new concepts and top quality engineering services, including the design of more than 20 semisubmersible units.

Petrobras, FPSO Cidade de Vitoria, Brazil

Proposed

ExxonMobil, Erha FPSO, Nigeria

Sonangol, Gimboa, Leased FPSO, Angola

Total, Dalia FPSO, Angola

SDAG, Shtokman FPU

Saipem E&C

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Floating LNG Regasification and Liquefaction

Under construction

First FSRU worldwide to be positioned offshore (currently under completion) Applying combined onshore and offshore engineering and construction competencies and experience to the emerging conversion / new build Floating LNG market Several designs and studies developed for major National and International Oil Companies

Petrobras, LNG FPSO, FEED

OLT, FSRU Toscana, Italy Broadwater FSRU, USA, pre- FEED and ITT preparation

Azure, Deep-water LNG FPSO for mild environments, Joint Industry Project

Saipem E&C

27

Gas to Market
Gas-to-Liquids

Chevron Nigeria Ltd. - Escravos, Nigeria

One of three world scale GTL projects in execution (34,000 bpsd)

Sasol process to produce premium diesel from natural gas ATR - New Syngas production technology from Haldor Topsoe Multibillion $ contract, in JV with KBR
Modules Fabrication in Abu Dhabi
Oxygen

Natural Gas + Steam

Single module

Module loading

Modules shipment

GTL site-Nigeria

GTL site-Nigeria

Syngas

Saipem E&C

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Gas to Market
Ammonia Urea

Ammonia Urea Complexes

2,194 t/d 3,835 t/d
Just Completed

Snamprogetti Urea Technology: 121 licenses world-wide 22 Ammonia/Urea complexes World largest complex:
In operation (2 trains)

>5000 T/D 3850 T/D

World largest single train:

(5 projects in design, construction and start-up)

ENGRO CHEMICAL PAKISTAN Ltd. Daharki - Pakistan

Qafco 6 also awarded

Developed jumbo single train preliminary design: > 5000 T/D

Ammonia 2 x 2,300 t/d Urea 3,850 t/d

Ammonia Urea

2,050 t/d 3,600 t/d

Ammonia Urea

2 x 1,750 t/d 2 x 2,530 t/d

Qafco-5 - Qatar

Profertil, Bahia Blanca - Argentina

Omifco - Oman

Saipem E&C

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Petrochemicals
Ethylene (520,000 T/y) LLDPE (2x250,000 T/y)

Significant experience in engineering & construction of most advanced petrochemical plants

5 Ethylene plants 13 HD/LLDPE plants 10 LDPE plants 3 Styrene plants

Wide access to first class technologies

Univation Dow ExxonMobil
RIO POLIMEROS, Rio de Janeiro - Brazil

Polimeri Europa Lummus Global

Dushanzi China Ethylene

PE, Brindisi - Italy UNIPOL

Qatofin - Qatar LLDPE (450,000 t/y)

PETROCHINA Dushanzi Petrochemical Co. SSBR(100,000 t/y) SBS (80,000 t/y)

Saipem E&C

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Power Plants
Designed and built over 10,000 MW (EPC basis) Natural gas and syngas, combined and single cycle, combined heat and power, waste to energy Italy, France, Algeria, Nigeria
Ferrera Erbognone - Italy

Ansaldo, GE, Alstom, Siemens turbines

Under Construction

Berrouaghia - Algeria

Ravenna - Italy

Dombasle - France

Okpai - Nigeria

Afam - Nigeria

Saipem E&C

31

Infrastructure
Italian High Speed Railway System
Milan-Bologna 182 km Main Contractor for Design and Construction (Single Contract > 6B ) Inauguration: December 13, 2008

Milan-Verona 112 km Basic and Front End designs completed EPC started on Milan-Brescia stretch

Milan-Bologna Po river crossing

rlds f wo ne o railway O e est larg ed-cabl tay ges s brid

Calatrava road bridge

Piacenza Viaducts system

Somaglia railway tunnel

Saipem E&C

32

Environment & Renewables

Business Line with core team of dedicated specialists integrated into global Saipem organization Full Environmental Services Provider:
Contaminated sites remediation Water and waste treatment plants and management Ecology, monitoring and emissions abatement

Groundwater Treatment Plant Porto Torres - Italy

Development of new environmental and renewable technologies and systems

CCS programs

Site Remediation Priolo - Italy

Physical Barriers Electrochemical Remediaton Technology at Porto Marghera Italy

Saipem E&C

33

Marine Works
Innovative structures Optimization of overall facilities layout In-house specialist expertise:
Coastal Engineering Structural Design Hydraulic Testing Foundation Engineering Construction Methods

Shore-line facilities for onshore projects

Jetties & Berths Oil & Gas Marine Structures Ports & Container Terminals
Execution Ongoing

Breakwaters Waterfront developments

Recent awards:

Ammonia/Urea jetty, Arzew, Algeria (Sonatrach) LNG loading jetty, Barrow Island, Australia (Chevron) Bulk unloading and loading jetty, Sohar Port, Oman Tangier II Port Project, Morocco (TMSA) Pointe Noire Container Quay, Congo (Port A. of Pointe Noire)

Guangdong LNG - China

Callao Container Termina, Lima, Peru

Costa Azul, Mexico

Tangier Harbour, Morocco

Melchorita LNG, Peru

Saipem E&C

34

Offshore Decommissioning
Successfully completed 7 decommissioning projects in the last decade in the North Sea, Mediterranean and Gulf of Mexico

Flagship project example Frigg Field Decommissioning for Total E&P Norge:
Platforms (topsides and jackets) and related subsea facilities Project duration: 5 years up to 20 Scope: engineering, preparation, removal, transportation and disposal 340 days of offshore activities by Saipem 7000 85,000 tons of removed structures Over 2 million manhours without LTIs Developed innovations in seafastening techniques and substructure removal methods

Saipem E&C

35

Maintenance, Modifications & Operations

Global O&M Services
Maintenance Engineering Operations & Maintenance (long-term contracts) Turnarounds Modification Works

SONATRACH MTCE ENGINEERING ALGERIA TOTAL OML58 MAINTENANCE NIGERIA SONANGOL MTCE & MNGT SERVICES ANGOLA

MIDER LEUNA REFINERY GERMANY

CPC PIPELINES MTCE RUSSIA & KAZAKHSTAN

Leverage on continuing in-country

SONARA REFINERY CAMEROON PIPELINE MTCE & OPERATIONS CHAD / CAMEROON

MTCE ENGINEERING QATARGAS, QATAR YEMEN LNG, YEMEN PEARL GTL, QATAR TAWEELAH, UAE

local presence

Saipem E&C

36

Continuing attention towards in-house innovation programs and imported top-of-the-line technologies
Development and optimization of proprietary process technologies and systems Development of proprietary features and components to enhance offshore vessel performance: ultra-deep waters, ultra-shallow waters, Arctic environments, etc. Developing new complex integrated concepts Authorized contractor of most major technologies

Iso-Octane Synthesis replacing MTBE

EST Demo Unit for Eni Taranto Refinery

WellHead Barge (WHB): a dry-tree drilling and production unit for deepwater areas

LNG FPSO with tandem offloading system Multipipe: Gas / Liquid Separation and boosting systems for deep- and ultradeep water

Floating production facilities for Arctic Areas

3-Phase subsea separation module with produced water treatment

Saipem E&C
37