COMPANY

Onshore

Onshore construction
Saipem operates in the construction of plants for hydrocarbon production (extraction, separation, stabilization, collection of hydrocarbons, water injection) and treatment (removal and recovery of sulphur dioxide and carbon dioxide, fractioning of gaseous liquids, recovery of condensates) and in the installation of large onshore transport systems (pipelines, compression stations, terminals). Saipem intends to capture opportunities arising from the market, both in the plants and pipeline segment, by leveraging on its solid competitive position in the strategic areas of Middle East/Caspian Area, North and West Africa and Russia.
In 2008, leveraging on its distinctive know-how in the gas monetization segment, Saipem has been awarded for the first time the role of main contractor for the construction of a large gas liquefaction plant in Algeria, asserting its reputation as an integrated player, capable of managing large and complex turnkey projects in the high tech market of LNG.

2008 Activities
Onshore drilling

In 2008, revenues of the onshore construction segment were €4,462 million accounting for 49% of total revenues. Contribution from operations increased by €16 million to €341 million from a year earlier mainly related to better contractual conditions and improved operating performance.

Main orders acquired in 2008 related to:

an EPC contract for Sonatrach for the construction of a single-train gas liquefaction plant, with a capacity of 4.7 mmtonnes/y of LNG near the Algerian city of Arzew;
an EPC contract for Saudi Aramco for the construction of three gas/oil separation trains (GOSP, Gas Oil Separation Process) as part of the Manifa Field Development Program to increase the production capacity of Saudi Arabia by 900 kbbl/d;
an EPC contract for Sonatrach for the construction of three LPG production trains with a total capacity of 8 mmcm/d as part of the development of the Hassi Messaoud field in Algeria;
an EPC contract for Total Exploration and Production Nigeria Limited for the upgrade of OML 58 Block through the revamping of the existing Flow Station and the construction of a new gas treatment train in order to increase gas production to 17.5 mmcm/d

Saipem operates in this area as main contractor for the major international oil companies and NOCs executing its activity mainly in South America, Saudi Arabia, North Africa and, at a lower extent, in Europe. In this areas Saipem can leverage on its knowledge of the market, long-term relations with customers and synergies and integration with other business areas.
Saipem boasts a solid track record in remote areas (in particular in the Caspian Sea), leveraging on its own operational skills and its ability to operate in complex environments.
In 2008, revenues of the onshore drilling segment were €424 million, accounting for 4% of total revenues. Contribution from operations came in at €86 million, up €22 million compared to 2007, reflecting higher levels of activity in particular in South America.