BU Engineering & ConstructionBU Engineering & Construction

August 2011I_P110801

2Saipem E&C

Contents

HighlightsBusiness Units

Ownership and Financial Performance

Business ModelProject Execution Centers, Fleet, Assets, Yards

Sustainability and Local Content

HSEQ

BU Engineering & Construction Growth StrategyMajor EP(I)C Projects Under WayOrganizationKey Achievements in the Oil & Gas Value ChainInnovation

BU Drilling

Oil RefiningIGCC Integrated Gasification and Combined Cycle

Oil & Gas Production and Processing Pipelines

Petrochemicals

Gas-to-Liquids

LNG Regasification

Power

Gas-to-Solids

Gas Liquefaction

Environment & Renewables

Maintenance & Operations

Infrastructures Maritime Works

Offshore Wind Farms

Upstream

SubseaField Development

Platform Inst. & Decom.

Floaters

SonsubRemote Subsea Technologies

Offshore Fixed Facilities

Onshore

OffshoreOil Oil

Gas Gas

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

Saipem E&C Growth Strategy (1/3)

4Saipem E&C

2. Enhance investments in project execution capabilities close to project sites, in strategic markets

Develop additional prefabricationprefabricationand and constructionconstruction supportsupport yardsyards

Expand and upgrade regionalregionalengineeringengineering and project and project executionexecutionc n rscenters

Saipem E&C Growth Strategy (2/3)

WORK IN PROGRESS

Sajer Iraq CompanyBagdad, Iraqand Dubai, U.A.E. Snamprogetti

Canada,

Calgary, Canada

WORK IN PROGRESS

Karimun Island -

Indonesia

Dammam – Saudi

Arabia

Add.’l Initiatives in Planning Stages

Add.’l Initiatives in Planning Stages

5Saipem E&C

Saipem E&C Growth Strategy (3/3)

3. Continue to develop the most modern fleet and assets

Further upgrade of operationalcapabilities and productivity

Designed for most challengingfuture projects

Strengthening the position for large and deepwaterField Development markets

Castorone(Pipelayer)

Delivery 2012

Saipem FDS 2

FDS 2

(Undergoing Sea Trials)

6Saipem E&C

Arzew - LNG GL3Z - Algeria Modules for EGTL Nigeria

CNRL - Canada

Melchorita LNG TerminalMarine Infrastructure, Peru

Manifa Central Processing Facilities

ENGRO CHEMICAL PAKISTAN Ltd.Daharki – Pakistan

Sakhalin II Pipeline Italian High Speed Train

Khurais Field Development - S. Arabia

Highlights: Mega-projects Upstream and Downstream, Onshore

Under execution

SiteInstallation

JustCompleted

7Saipem E&C

Shah

Gas Development

ProjectAbu Dhabi Gas Devel. Co. Ltd.United

Arab

Emirates

Manifa

Field

DevelopmentSaudi

AramcoSaudi

Arabia

Qafco

5 and 6 Qatar Fertiliser

Co SAQQatar

Pearl C8 Qatar Shell

Ltd.Qatar

Gas Booster Station BS 160Kuwait Oil Co.Kuwait

Gas Gathering

CentersGC 7, 8 and 21Kuwait Oil CompanyKuwait

Booster Station BS-171Kuwait Oil CompanyKuwait

Central

Processing FacilityDijla

Petroleum

CompanySyria

Jurassic

FieldKharafi

NationalKuwait

Ammonia

and Urea complexEngro

Fertilizers

Ltd.Pakistan

Tout Lui Faut

RefineryStaatsolieSuriname

Two

Desulphurisation

Units

andTwo

Amine Regeneration

UnitsPEMEXMexico

LZ2 HassiR’M-ArzewSonatrachAlgeria

LPG treatment plantSonatrachAlgeria

Jetty

in Mers

EI HadjadjSonatrachAlgeria

Menzel

Ladjmet

EastSonatrach

andFirst Calgary PetroleumAlgeria

LNG GL3ZSonatrachAlgeria

Urea ProjectMatix

Fertilizers

and Chemicals

LtdIndia

LNG and LPG TanksBechtel

OverseasAngola

Container QuayPort

de Point NoireCongo

OML 58 UpgradeTEPNGNigeria

OB/OB

RevampNAOCNigeria

LNG Loading

JettyChevron AustraliaAustralia

Unloading

and Loading

JettySohar

PortOman

Escravos

GTLChevron NigeriaNigeria

Power PlantRivers

State Gov.Nigeria

Central

Processing FacilitiesHusky OilCanada

Tangier

Med

II portTMSAMorocco

Liquefied

Gas TerminalPolish

LNG CompanyPoland

EST-Eni

Slurry

TechnoloyEni R&MItaly

OMVTag

Gas PipelineAustria

Gas PipelinesSnam Rete GasItaly

GK3 Hassi

R’

Mel/EI K.SonatrachAlgeria

Hydrotransport

Slurry

PipelineCanadian Natural

Resources

Ltd.Canada

Gas PipelineGladstone

LNGAustralia

Major EPC Projects Under Way, OnshoreHigh Speed

RailwayRFIItaly

8Saipem E&C

Kashagan Experimental Program – Kazakhstan

Usan Deepwater Subsea Field Development - Nigeria

Highlights: Mega-projects, Offshore

Nord Stream Gas Pipeline – Baltic SeaFPSO Gimboa - Angola

Al Wasit Gas Program – Saudi Arabia

Sabratha Platform, Bahr Essalam Field Dev.- Libya

Justawarded

Justawarded

Under execution

Under execution

Under execution

9Saipem E&C

P55 SteelCatenary

Risers and FlowlinesPetrobrasBrazil

Maintain Potential Facilities LTASaudi AramcoSaudi Arabia

PNG LNG EPC2 Gas PipelineExxonMobilPapua New Guinea

Bonga

NorthWestFlowlinesShellNigeria

Gajah Baru

Field DevelopmentPremier OilIndonesia

Kizomba

Satellites EPC3 TiebacksEsso

Expl. AngolaAngola

Kashagan

Experimental ProgrammeAgip

KCOKazakhstan

Usan

URFand Oil Loading TerminalElf Petroleum NigeriaNigeria

FARM (Flare and Relief Modifications)Cabinda Gulf OilAngola

Nord Stream

Gas PipelineNord Stream

AGBaltic

Sea Chirag

Oil ProjectAIOCAzerbaijan

FPSO GimboaSonangolAngola(Leased -

in operation)

FPSO Cidade

de VitoriaPetrobrasBrazil(Leased -

in operation)

Major EPIC and T&I Projects Under Way, Offshore

Al Wasit

Gas ProgramSaudi AramcoSaudi Arabia

Castor Offshore Gas PipelineACS CobraSpain

Critical Crude PipelineReplacement ProjectMobil NigeriaNigeria

Walker Ridge Export PipelineAmberjack Pipeline LLCGulf of Mexico

Liwan

Field

Deepwater

EPCI Husky Oil ChinaChina

Subsea

De.t

of West Delta Deep

Marine Burullus

Gas Co.Egypt

Expansion

of Export TerminalCPCRussia

Various

platform

and pipeline installationsNorth

Sea

Guara

& Lula

NE Export Pipelines

PetrobrasBrazil

10Saipem E&C

Key Achievementsin

the Oil & Gas Value Chain

11Saipem E&C

Saudi Aramco, K.S.A.Mega Oil Projects Upstream

Individual project values: > 2 bn $ eachLast years total awards: >10 bn$

FEED(Cost-plus)

EPC(Lump Sum)

With pre-agreed formulae

Flagship projects to bring huge new gas and oil production capacity on streamquickly

New“Convertible” contract structures:

Khurais Oil Field: Saipem awarded 60% of total investment

Source: Saudi Aramco (2007)

Qurayyah Sea Water Treatment

Khurais WIPS Khurais Utilities Pakage

QatifCentral Producing Facilities

KhursaniyahProcessing Facilities S. Arabia

Manifa Central Processing Facilities

Execution ongoing

12Saipem E&C

•Agip KCO, KazakhstanKashagan Project Phase 1

•Qatar Petroleum, QatarDukhan Field Gas Lift Project

Other Recent Large Oil Production Project Awards

•Karachaganak Petroleum Op. B.V., Kazakhstan Karachaganak Field Development Project and Export Pipeline

• Sonatrach, AlgeriaUTBS – Crude Oil Treatment

•Dijla Petroleum Co., SyriCentral Processing Facilities

Justawarded

• Husky Oil, Alberta, CanadaSunrise Oil Sands ProjectsCentral Processing Facilities Just

awarded

13Saipem E&C

Complex and Integrated Offshore Fixed Facilities

Saudi Aramco, Saudi Arabia, Al Wasit Gas Program

Justawarded

EPCI flagship projects:

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

Completed more than 100 offshore EPCI projects over the last ten years, including several challenging large-scale integrated complexes

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

14Saipem E&C

Platform Installation

Saipem 7000 installing platform accomodation module

Contractor of excellence for both the floatoverand heavy lift techniques

Installed 2.5 million tons of offshore structures

Heaviest lift record: 12,100 t integrated deck

Sakhalin Island, Russia, integrated deck floatover installation

Jacket launch

15Saipem E&C

Subsea Deepwater Field Development

Elf Petroleum Nigeria, Usan, NigeriaEPCI of subsea system connecting42 wellheads to FPSO, with export sealines

Currentlyunder

execution

Total, Akpo, Nigeria Total, Rosa, AngolaBundle Hybrid Offset Riser

Esso, Kizomba A, AngolaSingle Hybrid Riser

Designed and executed 11 major deepwater systems in the last ten years

Numerous high technology proprietary solutions availablefor risers and flowlines

16Saipem E&C

SONSUB Remote Subsea Technologies

Repsol, Spain, PrestigeDeepwater oil recovery

Construction ServicesDiverless Tie-in and Pipeline Repair SystemsDiving OperationsSpecialist Tooling & EngineeringSurvey & Positioning ServicesDedicated fleet of 11 construction support vessels and several ROVs

Bar ProtectorDive support and construction vessel

Innovator 250Heavy duty ROV

Deepwater sealine repair system

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)

Full service deepwater intervention capabilities:

17Saipem E&C

Refining and Heavy Oils Conversion

CNRL -Canada

Eni - Isocracker Sannazzaro de’Burgondi

STAATSOLIE Maatschappij Suriname N.V.

EST CDPEni Taranto Refinery

Mohammedia Refinery Expansion - Morocco

Just

Completed

FEED for

Phase II36 grass-roots refineries

World-wide track record

30 hydrocrackers, H-Oil and LC Finers

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

Today’s focus:

Staatsolie, Suriname, refinery expansion

EST First Commercial Unit for ENI R&M

2 desulfurization and amine units forPemex - Refinacion, Mexico Execution

ongoing

Executionongoing

18Saipem E&C

IGCC-Integrated Gasification with Combined Cycle

Significant interrelationships EPC/Project Financing requirements

Designed and built the two world largest IGCC plants

GE (then Texaco) and Shell technologies

Integration of many technologies and proprietary equipment

Very complex projects:ISAB, Priolo - Italy

512 512 MWeMWe

Sarlux, Sarroch - Italy

550 550 MWeMWe

Contributed to technology optimization and development

E.g. Reactor redesign Eni R&M, Sannazzaro - Italy

250 250 MWeMWe

Feed

Quenchwater

Syngas

Soot water

VaporOxygen

Feed

Quenchwater

Syngas

Soot water

VaporOxygen

19Saipem E&C

ProcessingGas to Market

20 Integrated Natural Gas Complexes

Individual project values > 1bn $

Designed and built > 200 process units

ExxonMobil, Al KhaleejQatar

AGIP GAS BV, MellitahLibya

GASCO, NGL 3d TrainU.A.E.

Petronas, GPP- 5/6 Malaysia

QP, NGL4Qatar

JustCompleted

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

Execution

ongoing

20Saipem E&C

Onshore Transportation Systems - PipelinesGas to Market

Saudi Arabia – HawiyahGas Pipeline System

Kashagan - Caspian Sea NAOC GTS4 - Nigeria

Leading global E&C contractorfor Oil and Gas Pipelines

30,000 km of Oil & Product Pipelines40 Pumping Stations (~2,100 MW)

Over 60,000 km of Gas Pipelines> 90 Compressor Stations (~3,000 MW)

One of the clearest areas ofSaipem/Snamprogetti synergy -50 years of cooperation

1,400 km of Water Pipelines11 Pumping Stations (~130 MW)

Alinta - Australia

Kuwait BS -160

Kuwait BS - 171 ExecutionOngoing

21Saipem E&C

Gas to Market Offshore Pipelines Systems

Nord Stream Gas Pipeline – Baltic Sea

Currentlyunder

execution

Saipem 7000laying Blue StreamGas Trunkline System

Leader in deepwater and shallow water pipelaying: laid over 30,000 Km of sealines

Designed and laid the most challenging offshore pipelines since the 70’s

March 25, 2010, DenmarkCastoro 6 passing under the Great Belt Bridge

New CastoronePipelaying Vessel

Under Construction

Medgaz

22Saipem E&C

Flagship Integrated Mega-project: Kashagan Experimental Program

Major offshore and onshore integrated project for the production of crude oil and associated gases:

Kashagan Field

Artificial offshore drilling and process facilities, pipelines and associated gas transport systems, onshore processing facilities

Saipem’s 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

23Saipem E&C

Flagship Pipeline Integrated Mega-project: Sakhalin II

Oil & gas twin 780 km pipeline system

Saipem main contractor-multibillion EPC contract

Client: Sakhalin Energy Investment Co.(SEIC)

Very challenging logistics:Remote and inhospitable terrainT <-45°C, FrostSnow stormsMountains, Slopes >15°

Built over 5000 km of temporary access roads

Start-up Dec. 2008

Shell CEO 2008Safety Award

Oil: 24” Gas: 48”>80MM construction man-hoursDriven >150 MMkm

Offshore production platform,sealines to shore

24Saipem E&C

LNG – NG LiquefactionGas to Market

1st multi-billion $ contract asMain Contractor to design and execute a world class 4.7 MTPA LNG project

Arzew - LNG GL3Z - Algeria

NLNG, Bonny Island – Nigeria, Trains 1÷6 EPC / Train 7 PlusRasGas, Ras Laffan - Qatar EPC Trains 3÷5

To date, designed and built 9 LNG trains, 35 MMTPA total capacity

Major synergies with Saipem’s long-standing experience and capabilities in marine worksand LNG tankage

Under Construction

25Saipem E&C

LNG Import / Storage / Regasification

LNG Import TerminalChengtoujiao, Guandong - China

LNG Import TerminalZeebrugge - Belgium

CANAPORT LNG - Canada

Fos CavaouFrance/Total, Marseille - France

POLSKIE LNG TerminalSwinoujcie - Poland

UnderExecution

Leading international EPCcontractor

Extensive technology expertise

Designed and built:

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

12 world scale LNG terminalsMore than 40 LNG tanks

Gas to Market

26Saipem E&C

Floating Oil and Gas Production

Petrobras, FPSO Cidade de Vitoria, Brazil

ExxonMobil, Erha FPSO, Nigeria Sonangol, Gimboa, Leased FPSO, Angola

Total, Dalia FPSO, Angola SDAG, Shtokman FPU

Proposed

Designed and completed :

5 converted FPSOs under Lease & Operate contracts (2 in operation)

Developed new conceptsand top qualityengineering services,including the designof morethan 20 semisubmersible units.

8 new build floating production systems, including 3 large scale projects with storage capacity exceeding 2 million barrels of oil

One FPSO currently under construction

27Saipem E&C

Floating LNG – Regasification and Liquefaction

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

Broadwater FSRU, USA, pre- FEED and ITT preparation

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

Petrobras, LNG FPSO, FEED

OLT, FSRU Toscana, Italy

Under construction

28Saipem E&C

Gas-to-Liquids

Chevron Nigeria Ltd. - Escravos, Nigeria

Sasol process to produce premium diesel from natural gas

ATR - New Syngas production technology from Haldor Topsoe

Multibillion $ contract, in JV with KBR

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

Modules Fabrication in Abu Dhabi

Natural Gas + Steam

Oxygen

Syngas

Natural Gas + Steam

Oxygen

Syngas

Oxygen

SyngasGTL site-Nigeria GTL site-NigeriaModules shipmentSingle module Module loading

Gas to Market

29Saipem E&C

Profertil, Bahia Blanca - Argentina

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

Omifco - Oman

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

Ammonia 2,194 t/dUrea 3,835 t/d

ENGRO CHEMICAL PAKISTAN Ltd.Daharki - Pakistan

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

Qafco-5 - Qatar

Qafco 6 alsoawarded

Snamprogetti ™ Urea Technology:121 licenses world-wide

22 Ammonia/Urea complexes

World largest single train: 3850 T/D(5 projects in design, construction and start-up)

Developed ‘jumbo’ single trainpreliminary design: > 5000 T/D

Ammonia – Urea Complexes

World largest complex: >5000 T/DIn operation (2 trains)

Gas to Market

JustCompleted

30Saipem E&C

Petrochemicals

Dushanzi - China Ethylene

5 Ethylene plants13 HD/LLDPE plants

UnivationDowExxonMobil

Polimeri EuropaLummus Global

Significant experience in engineering& construction of most advanced petrochemical plants

Wide access to first class technologies

10 LDPE plants3 Styrene plants

RIO POLIMEROS, Rio de Janeiro - Brazil

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

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

PE, Brindisi - Italy UNIPOL™

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

31Saipem E&C

Power Plants

Designed and built over 10,000 MW (EPC basis)

Italy, France, Algeria, Nigeria

Ansaldo, GE, Alstom, Siemens turbines

Natural gas and syngas, combined and single cycle, combined heat and power,waste to energy

Ferrera Erbognone - Italy

Berrouaghia - Algeria Dombasle - FranceRavenna - Italy Afam - Nigeria

Under Construction

Okpai - Nigeria

32Saipem E&C

Milan-BolognaPo river crossing

InfrastructureItalian High Speed Railway System

Milan-Verona 112 km

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

Milan-Bologna 182 km

Main Contractor forDesign and Construction(Single Contract > 6B €)

Inauguration: December 13, 2008

Calatrava road bridge “Piacenza” Viaducts system Somaglia railway tunnel

One of world’s

largest railway

stayed-cable

bridges

33Saipem E&C

Environment & Renewables

Business Line with core team of dedicatedspecialists integrated into global Saipem organization

Site RemediationPriolo - Italy

Full Environmental Services Provider:Contaminated sites remediation

Water and waste treatment plants and management

Ecology, monitoring and emissions abatement

Development of new environmental and renewable technologies and systems

CCS programs ElectrochemicalRemediaton Technology

Groundwater Treatment PlantPorto Torres - Italy

Physical Barriersat Porto Marghera Italy

34Saipem E&C

ExecutionOngoing

Marine Works

Shore-line facilities for onshore projectsInnovative structures

Optimization of overall facilities layout

In-house specialist expertise:

Ports & Container Terminals

Waterfront developments

Jetties & Berths BreakwatersOil & Gas Marine Structures

Recent awards:

Tangier Harbour,Morocco

Costa Azul, Mexico

Guangdong LNG - China Callao ContainerTermina, Lima, Peru

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

Coastal EngineeringStructural DesignHydraulic TestingFoundation EngineeringConstruction Methods

Melchorita LNG,Peru

35Saipem E&C

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 relatedsubsea 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 seafasteningtechniques and substructure removal methods

36Saipem E&C

Maintenance, Modifications & Operations

Leverage on

continuing in-country

local presence

CPC PIPELINES MTCE

RUSSIA & KAZAKHSTAN

PIPELINE MTCE & OPERATIONS

CHAD / CAMEROON

MTCE ENGINEERINGQATARGAS, QATARYEMEN LNG, YEMENPEARL GTL, QATARTAWEELAH, UAE

SONATRACH MTCE ENGINEERING

ALGERIA

TOTAL OML58 MAINTENANCE

NIGERIA

SONANGOL MTCE & MNGT SERVICES

ANGOLA

SONARA REFINERYCAMEROON

MIDER LEUNA REFINERY

GERMANY

Global O&M ServicesMaintenance EngineeringOperations & Maintenance (long-term contracts)TurnaroundsModification Works

37Saipem E&C

Continuing attention towards in-house innovation programs and imported top-of-the-line technologies

EST Demo Unit for Eni Taranto Refinery

Iso-Octane Synthesis replacing MTBE

Multipipe: Gas / Liquid Separation and boosting systems for deep- and ultra- deep water

3-Phase subsea separation module with produced water treatment

Floating production facilities for Arctic Areas

LNG FPSO with tandem offloading system

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

Developing new complex integrated concepts

Authorized contractor of most major technologies

Development and optimization of proprietary processtechnologies and systems

Development of proprietary features andcomponents to enhance offshore vessel performance:ultra-deep waters, ultra-shallow waters, Arctic environments, etc.