The Angolanisation Plan at Saipem companies in Angola

2,896
TOTAL PEOPLE EMPLOYED BY PETROMAR

2,197
LOCAL PEOPLE EMPLOYED BY PETROMAR

In general terms, Angolanisation is the replacement of an expatriate occupying a key technical, administrative or management position by an Angolan national with equivalent technical competencies, academic background and professional experience.

To ensure Saipem achieves its Angolanisation objectives, the Company has implemented several strategies to guarantee that the process occurs in conditions of safety, thus preventing any deviations from the business goals set. Each Saipem company operating in the country has started a training plan and a coaching plan for every Angolan hired, so as to ensure proper integration of employees into key positions according to the Company’s Competence Development Plan (CDP) and National Human Resources Policy objectives within the framework of the Angolanisation Plan.

The programme involves first of all mapping the knowledge and experience requirements for every position. Once validated, the map is followed by interviews and tests to determine the existing gaps between the competencies held by a specific person, and those required by the job he or she should fill. Training is then provided in order to fill those gaps. In this context, the expatriates are designated as mentors during the entire training stage, coaching and advising the Angolan in his/her new position.

Saipem Training Centre

Since its creation in May 2012, the core objective of Saipem Training Centre has always been to ensure strategic recruitment of local talents in order to train and develop their competencies for further integration into key administrative, technical and management positions within Saipem Angola Drilling Operations. This objective is also in response to Saipem’s commitment to cooperate with local authorities on its talent development framework. The courses offered are welding, mechanics, electrical, soft skills, drilling equipment and techniques, well control familiarisation, offshore safety induction (working at height and lifting operations), firefighting, risk safety analysis and languages (English and Portuguese). Depending on the complexity of the courses, the Training Centre, which is located in Luanda, organises them either internally or externally. As regards internal courses, the Centre has developed a strategic Competency Framework that includes a course catalogue targeted at training drilling personnel.

Language courses are also performed at the Centre. English, taught mainly to local employees, is considered essential for proper use of Corporate tools and effective communication within the Group. Portuguese lessons are also held for expatriates in order to facilitate know-how transfer to local employees.

In addition, the Training Centre has established protocols with locally accredited training centres to satisfy training needs not yet available, such as Electrical and Mechanical Maintenance, Electro-Hydraulics, Pneumatics, Programmable Logic Controls and Mechatronics.

Petromar’s approach

Petromar is one of Saipem’s operating companies in Angola. In 1984, only 20% of Petromar’s employees were Angolan. Currently the company employs 2,869 people (including agency personnel), of which 2,197 are nationals and 699 expatriates. But more needs to be done, and it is Petromar’s policy to assign qualified Angolan personnel to positions with as high a degree of technical responsibility as possible. The Petromar Nationalisation Development Programme envisages the transfer to Angolans of 51 positions currently occupied by expatriates within 5 years.

However, already in 2014 positive results were seen. The goal for the year was to Angolanise 11 positions from different departments and this was achieved 100% thanks above all to the efforts the company has been making in organising training plans over the years. In 2014, 18 training courses were held for 22 employees in the framework of the Angolanisation Programme.

Furthermore, through the incentive of recruitment to meet the company’s short-, medium- and long-term goals, Petromar offers internal scholarships to university students in the fields of Mechanical Engineering, Civil Engineering and Electronic Engineering.

Petromar’s programme in technical education

Soyo Municipality has been designated by the Government of Angola as one of six industrial growth centres in the country, and there are several Oil & Gas projects ongoing in the Kwanda base and the Angola LNG Project.

Industrial growth is the strong point of the region, yet there is no high level industrial school capable of training local staff who might then increase their chances of employment in the industrial sector.

Petromar launched an initiative with the MAPTESS Training Centre (MTC) in Soyo to provide welding students with new knowledge and operational training to high welding standards. The objective of this project is to provide skills and competencies to local students, thereby progressively increasing local social benefits in terms of development and possible employment on the Oil & Gas market.

In 2013, an agreement was signed between Petromar in Soyo and MTC to receive trainees in the Petromar Welder Training Centre. Since 2013, 14 students of MTC have attended a three-month course and undergone evaluation to test their new knowledge and evaluate their ability to meet Petromar’s needs. Another session for 15 students is planned for 2015.

Saipem provided logistic arrangements and subsidies for the students. The initiative will be continued in order to guarantee the availability of a local workforce and to remove barriers to the development of local student welders.

Saipem SA Angolan Branch’s approach

Saipem SA, through its Angolan branch, is committed to developing Angola’s human resources, as well as its economic capability and capacity, in order to benefit locals and sustain the long-term growth of the company’s business. Saipem SA boosted its Angolanisation programme and focused on the training of local staff with the help of its experienced and knowledgeable expatriates. The company also pursued partnerships with professional teaching institutions and set up an in-house training programme.

In 2012, the company had 44 positions filled by expatriates. As of year-end 2014, there were 29 expatriates and 109 Angolan workers. The deep knowledge and long experience of expatriate workers has been successfully conveyed to Angolan workers to enable the company to comply with the Angolanisation Plan effectively.

The development strategy in the Training Plan is based on technical training (provided by internal and external trainers along with locally accredited training centres), as well as managerial, HSE and language skills training. To improve the technical expertise of locals, in 2014 the Training & Development Area invested in the above courses, performing part of the technical training abroad (India, Italy and France) for the Kaombo Project and for yards.

Innovative approach to local community engagement: reinforcing a sense of ownership and involvement in Kazakhstan

In order to guarantee the strong involvement of local stakeholders and make them feel that they participate in and are responsible for any sustainability activities conducted, ER SAI Caspian Contractor Llc, in collaboration with several stakeholders from Kuryk village (heads of educational institutions, health sectors, schools, kindergartens, and so forth), appointed local people as ‘Project Sponsors’ to take charge of the successful implementation of projects (in terms of supervision and monitoring of the execution of activities, verification of results, etc.) and the diffusion of information in relation to each local community initiative launched with the support of Ersai.

Project Sponsors are also responsible for presenting the results of the projects during the annual public meeting organised by Ersai together with Kuryk village to discuss activities conducted, results achieved and opportunities for the following years. This has proven to be a successful approach to increasing local stakeholder engagement and a sense of ownership for the activities carried out in Kuryk village and realised in collaboration with Ersai.

Supporting the education system

The ‘School Education Development’ project has a three-year duration. It focuses on improving teacher qualifications, increasing student motivation through the development of leadership and communication skills and, finally, building strong partnerships among schools, parents and the community.

Action plan activities for the second year have been accomplished on time and with good results.

The teachers gained new skills and knowledge and improved their teaching processes. Parents expressed interest in school initiatives and took part in school competitions with their children. Students learned how to design and implement social projects, which helped them develop new skills and acquire new knowledge.

As a result of the innovative approaches to teaching, three students from the elementary school took home first prize for their knowledge of English, Russian, and Kazakh. This was the first time that students from Kuryk village had won a republican competition. Another student took part in the TV ‘Khabar’- XXI Century Leader competition and won second prize.

4
PROFESSIONAL TRAINING SESSIONS
AND MASTER CLASSES WERE CONDUCTED

105
TEACHERS FROM 4 SCHOOLS PARTICIPATED
IN THE TRAINING SESSIONS

Preschool education initiative

As part of the ‘Growing Together’ Preschool Education Initiative launched by Ersai in 2013 in cooperation with EFCA (Eurasia Foundation of Central Asia), in 2014, a tailored Montessori programme (a model of human development and an educational approach based on that model) was designed for Kuryk care-takers. In November, 8 care-takers participated in a study-tour to visit the ‘Montessori Class’ in Almaty. The programme included a seven-day introductory training course on Montessori methodology with theoretical and practical sessions. In 2015, 3 additional training sessions will be delivered in Kuryk focusing on the needs of different age groups. Thirty-seven care-takers and administrators participated in training to integrate the involvement of parents in education and provide them with instruments for effective parent-teacher partnership formation. In December, the administration of four of the kindergartens involved presented results achieved in 2014 in terms of professional development and improved parent engagement.

The Head of the Karakiya Department of Education declared that ‘Thanks to the Ersai/EFCA programme, Kuryk kindergartens are exemplary models for all kindergartens in the Mangistau region’.

Improving child well-being

In 2014, Ersai, in cooperation with the DARA Foundation, launched the ‘Ulaso’ project, the primary goal of which is to promote better education, healthcare and cultural services for Kuryk children through a transfer of new technologies, expert knowledge and methodologies.

The population of Kuryk is over 8,500, including approximately 3,000 children. According to a preliminary analysis (conducted in 2012 on Kuryk education system), there are areas of the village that require particular attention and that directly affect the quality of education and health services for children. These include the lack of doctors, certain specialists (paediatric neurologists, paediatric cardiologists, speech therapists, etc.) and a shortage of institutions for children’s development.

The project seeks to assist local educators, parents, administrators and medical staff in utilising modern and advanced approaches to address the various needs of children with specific attention to those with disabilities. It covers the whole spectrum of services for children, from healthcare and education to entertainment and community development. Activities were spread out through the calendar year and clustered around three main directions:

1. Education: through training and seminars for teachers on educational methodologies for disabled children; social adaptation and rehabilitation activities, such as crafting classes; and art-therapy for parents and teachers to improve communication with children with special needs.
2. Healthcare: through massage therapy for children with cerebral palsy; training of a local medical massage specialist in the basics of massage therapy for children with functional movement disorders; check-ups and diagnostics.
3. Culture: through the organisation of sports and cultural activities.

Entrepreneurship support programme

Ersai, in partnership with the Eurasia Foundation of Central Asia, finances the entrepreneurship support programme in Kuryk, a village surrounding the Ersai construction yard.

A capacity assessment held by EFCA revealed that unemployment is one of the most pressing social challenges in the community, particularly among young people and women.

Given the economic and social challenges faced in these regions, entrepreneurship development is an important strategy for empowering rural residents to create jobs outside the oil industry, contribute to the local economy, and take initiatives to improve the quality of life.

The project, launched in 2013 and continued in 2014, consisted of business start-up support and traditional crafts development. Ersai and EFCA analysed the local business environment, mobilised local residents interested in starting a business, developed a practical business training programme to build the capacity of residents in implementing their own business projects, provided post-training support and organised a grant competition and funding for the best business ideas.

To support women’s employment, Ersai and EFCA focused on the local crafts market, mobilising local craftswomen, and developing a training programme based on traditional regional crafts. This also included 9 two-day training sessions and post-training consultation, as well as craft fairs and study tours for the most active handicrafts workers.

(*) A taxi service, a quail farm, a beauty salon, a shoe repair shop and a felting workshop.

Project results

5
ACTIVE BUSINESS START-UPS* WERE CREATED

46
PEOPLE RECEIVED TRAINING (OF WHICH 30 KURYK WOMEN PARTICIPATED IN CRAFTS TRAINING)

22
NEW JOBS WERE CREATED

Saipem strengthens community relations in Artesian village (Russia)

Saipem’s community relations strategy of delivering mutually beneficial results is also deployed by all its subcontractors.

In August 2013, the subcontractor for the Saipem Filanovsky Development Project (Svarochno-Montajniy Trest - SMT) commenced construction of the temporary camp and pipe storage area for the concrete-coated pipes in the Artesian village of Chernozemelsky region in the Kalmykia Republic. The project, implemented under the scope of work for the construction of the subsea export Oil & Gas pipelines, was completed in the village at the end of 2014.

The temporary camp was constructed in a neighbourhood near Artesian village.

Before the commencement of construction works, SMT developed the Community Liaison Plan and the Community Grievance Mechanism in cooperation with Saipem. The Plan’s main objectives were to:

• strengthen relations between Saipem, SMT and the Artesian village community based on transparent and open communications;
• avoid any negative social impact during camp and pipe storage area construction and operations;
• monitor any grievances from the community regarding operations;
• respond to social impact, community and landholder concerns in a timely and efficient manner using a proactive rather than a reactive approach.

Stakeholder Engagement & Grievance Mechanism

Since the commencement of works, the community’s overall attitude to the planned camp construction and operations has been positive.

Several meetings with local stakeholders were held by Saipem and SMT management prior to project commencement. The community expects the project to generate a beneficial impact at local level as a result of job creation and local purchases. SMT management and the local authorities agreed to hold regular and on-demand meetings to discuss the project’s progress and effect on the community.

Additionally, Saipem meets with the administration on a monthly basis to follow up the subcontractor’s strategy, as well as community concerns.

The Community Liaison Plan also describes the strategy of the grievance management mechanism allowing individuals to make complaints about project activities and employees.

Saipem’s approach towards the community grievance procedure has been fully shared with subcontractors. As a result, all comments, questions, concerns, requests, suggestions and recommendations from community members are tracked from their original submission through to their resolution.

Socio-Economic Benefits: Job Creation and Local Procurement

The construction of the camp and pipe storage area generated 250 temporary jobs in Artesian village. Given the specialised and technical nature of the project and associated work, SMT provided its own skilled workforce from its headquarters in Moscow. Nevertheless, considering its Local Content development strategy, Saipem advised its subcontractor to employ local workers for certain positions, mainly unskilled and semi-skilled.

Even though the employment provided is envisioned as temporary, the project’s beneficial impact is greatly appreciated by the local community.

Commitment towards continuous improvement in subcontractor HSE standards

Saipem considers HSE related cooperation and engagement with its main subcontractors as a win-win strategy. It is therefore necessary to improve the focus and culture of subcontractors as regards HSE issues.

For example, Saipem Contracting (Nigeria) Ltd (SCNL) organises an annual interactive HSE forum targeted at subcontractors. The aim of the 2014 event, held on March 14, was to demonstrate Saipem’s commitment to continuous improvement in subcontractor HSE management and proper alignment with Corporate and SCNL requirements.

The forum, introduced by the Managing Director of SCNL, was attended by 74 people, representatives of 65 subcontractor companies, who play an active part in ensuring that their standards comply with SCNL’s safe work systems. The effectiveness of the event was demonstrated by the active participation and contributions made during the workshop. Top managers attended the meeting from beginning to end, showing the commitment of SCNL to subcontractor HSE topics.

The event provided an opportunity for all subcontractors working under the SCNL umbrella to speak candidly with SCNL’s top management team about challenges, equipment, performances and plans relating to HSE, as well as to promote collaboration and cross-learning, improve relationships and enhance understanding of applicable SCNL Safety Standards. SCNL believes this will bring about a regular and direct line of contact and communication between the subcontractors and the management team, without risking dilution through an unwieldy management structure.

In 2014, Snamprogetti Saudi Arabia Co Ltd Llc organised the first HSE workshop for the main subcontractors in Saudi Arabia. One of the principal goals of the workshop was to create a channel of communication with local subcontractors (the ones whom Saipem considers to be its own partners).

It served as a useful platform for dialogue with the top management of these partners where Saipem was able to clarify its expectations in terms of HSE. The workshop also provided the opportunity to verify the development of their HSE management systems.

The event took place on the weekend of November 17 and 18, and was attended by the top management of 9 subcontractors.

Despite the excellent results achieved in the country, there are definitely areas for improvement to ensure the safety of activities carried out in the yards. The presentation of HSE requirements was the first opportunity to share specific contractual obligations, but it was mainly an opportunity to explain the benefits of meeting the project standards to the full. Each company picked a theme and presented it to the other participants.

The presentations gave rise to several points for reflection and allowed a number of areas for improvement to be identified. Saipem will monitor the consistency and coherence of the commitments taken on by the participants throughout the year, and during the course of the projects in general. These will then be discussed in next year’s workshop, with a view to making the initiative a regular event in Saudi Arabia operations.

HSE workshop in Saudi Arabia

Malaria overview

It is common knowledge that malaria is a life threatening disease caused by parasites that are transmitted to people through the bites of infected mosquitoes.

Of the four types of plasmodia parasites known in the world for causing malaria in humans, the most important in Sub-Saharan Africa is the Plasmodium Falciparum Parasite.

Although malaria is preventable, controllable and curable, the mortality rate from it is still high.
According to the ‘World Malaria Report 2014’, published by the WHO (World Health Organisation), in 2013 malaria mortality rates decreased globally by an impressive 47% between 2000 and 2013 (reaching an estimated 584,000 deaths in 2013) and by 54% in the WHO African Region.
Out of 198 million cases of malaria worldwide, most of these (82%) were in the WHO African Region.

Saipem’s approach
Saipem is not exempt from the impact of malaria. Not only do many Oil & Gas operations take place in areas where malaria is endemic, presenting a risk for both local employees and expatriates.

In 2014, 48 sites located in endemic areas were all involved in the Saipem Malaria Control Programme. The number of personnel working in malaria risk areas eligible for awareness raising courses was 6,226 and consisted of both Saipem and subcontractor employees, mainly non-immune people.

All attended the awareness lecture about malarial disease, its prevention and prophylactic measures.
The overall Malaria Case Rate (MCR), defined as the incidence of stewardable malaria cases per 200,000 exposure-hours, was 0.13 in 2014 (0.09 in 2013). This figure is based on an increase in stewardable malaria cases for expatriates, whereas worked man-hours (WMH) for the same group decreased.
On the other hand, a clear improvement can be noted for subcontractor employees, for whom the same number of malaria cases are reported but in the context of increasing WMH per respective group: 0.08 MCR in 2013 (9.6 million WMH and 4 cases) versus 0.06 MCR in 2014 (15.8 million WMH and 5 cases).
All effective preventive measures, awareness campaigns and antimalarial chemoprophylaxis were reinforced and focused on expatriate employees, especially during the wet season.

The general pattern of MCR in high-risk malaria African countries (the most affected areas) shows cyclical improvements, with an accentuated downward trend over the past few years, followed by a slight increase in the second half of 2014.

Due to the possible risk of malaria infection during transit, employees working offshore in malaria endemic countries were also provided with malaria information courses. Distribution of repellents and antimalarial chemoprophylaxis were also carried out onboard all vessels located in or passing through malaria risk areas.

Saipem’s efforts in fighting malaria are rooted in the belief that healthy communities produce healthy employees, and that this in turn leads to improved economic circumstances in the places where the Company operates.

34

MALARIA CASES IN 2014

48
SITES LOCATED IN ENDEMIC AREAS MONITORED

100%
OF NON-IMMUNE EMPLOYEES (SAIPEM AND SUBCONTRACOR) ATTENDED MALARIA AWARENESS LECTURES

A snapshot of Saipem’s efforts on its sites located in malarial areas

Nigeria
As part of a global effort to eliminate the scourge of malaria, Saipem Nigeria joined the world to celebrate ‘World Malaria Day’ on April 25, 2014. It did so through the awareness programme ‘Invest in the future, defeat malaria’ and the topic ‘Protect yourself’. Doctors and nurses performed malaria awareness campaigns simultaneously on different projects. The main beneficiaries were local pregnant women and children, of whom over 1,000 attended. The programme fucused on the simple ABCD method of protecting oneself from malaria, with a display of the different bite prevention mechanisms (use of insecticide creams and sprays, mosquito treated nets and shirts, external fumigation, etc.) and a demonstration of their use to women. At the end of the programme, a total of 1,200 ITN (Insecticide Treated Nets) were distributed to community women and children, while an additional 200 were donated to the Obite Primary Health Care Centre for patients.

Angola
As part of its community initiative plan, Petromar started a malaria prevention programme in line with the Global Malaria Programme instructions. The programme was held in Soyo Municipality, with local health authorities as the main partners. Lectures were given on the Malaria Awareness Campaign, Indoor Residual Spraying (IRS) training was carried out, and insecticide-treated mosquito nets (ITN) were distributed. IRS training, which followed WHO instructions, was provided to 19 locals from May 26 to 28, 2014. Training took place in the Municipality Hospital of Soyo and was targeted at people from 4 different communities. The programme was divided into 2 days of theoretical and 1 day of practical work.

Congo
Malaria prevention initiatives continued in the Congo in 2014. The purpose was to boost technical capabilities in remote communities (Loango village) in order to improve the reliability of malaria diagnosis and provide appropriate treatment. The programme involved local health authorities, third party local community laboratories and local health workers. To achieve this goal, Boscongo plans to build a laboratory in the area of the Loango village health facility and train the local health personnel. Some essential equipment will be provided such as microscopes and other much needed consumables for blood testing. Boscongo has shouldered the cost of training of some health workers in the ‘Biomedical’ laboratory. This programme, approved by local health authorities, is still ongoing and focuses on the best methods for malaria diagnosis.

Peru
According to the epidemiological report from the Regional Health Direction of Loreto (Peru), up to September 2014, 44,782 cases of malaria were reported in this region, 80% of which were in the district of San Juan Bautista. Given this situation, and knowing the government’s lack of resources to raise awareness of the disease, Petrex decided to support the Iquitos community of Nina Rumi, in collaboration with the Health Post Zungarococha, through the promotion of malaria workshops. During November 2014, 150 families participated in a ‘Cleaning Journey’ and Sensitisation Workshops designed to impact their behaviour and promote the reduction of instances of malaria. Nine health community agents were trained in thick blood smear tests (to diagnose malaria) and management of self-sustained medical kits. Petrex, the regional health authority, municipal agents and Nina Rumi authorities worked together to develop these activities successfully.

MALARIAL COUNTRIES IN WHICH SAIPEM OPERATES

Number of employees who attended malaria awareness courses in 2014

In 2014, 48 sites where monitored by the Malaria Control Programme and 6,226 employees attended malaria awareness courses. The map shows the distribution by country.

Supporting employees’ families in Peru

5,599 
FAMILIES INVOLVED IN THE INITIATIVE TO FIGHT DENGUE

Petrex’s sustainability initiatives place special emphasis on ensuring the welfare of employees in the workplace through such activities as health training, medical counselling and medical emergency response plans. Activities to promote healthy lifestyles and improve wellbeing are therefore carried out. For example, during September and November 2014, 1,220 students from two of Talara Public Schools attended workshops on the prevention of Sexually Transmitted Diseases (STDs), HIV and Cervical Cancer. These were arranged by Petrex in partnership with 2 public health centres from Talara. Furthermore, 30 women from the human settlement El Progreso and 70 wives and daughters of Petrex employees in Iquitos did the Papanicolaou test after a workshop in which the causes and consequences of cervical cancer were explained in a way that promoted timely diagnosis. The Municipality gave its support through its itinerant care modules with which the tests were carried out in partnership with a local clinic (analysis and diagnosis).

Petrex joined the Ministry of Health to support the Campaign for Controlling and Preventing Dengue Fever in endemic areas of high risk in Talara. The town suffers from inadequate water services which becomes more acute in some areas, such as Northern Cone.

In order to mitigate this situation, which undermines the security and health of the residents, the Ministry of Health conducts an annual programme in Talara to prevent and fight dengue. Petrex SA Base Talara joined the campaign in 2014 and this has facilitated the extension of the programme’s scope to areas of greatest endemic risk. The Ministry of Health and Petrex conducted a health campaign from June 16 to 27, 2014. This was developed in two phases, diffusion (through posters placed in public places) and home inspections.

As a result of this strategic alliance between Petrex, the sub-region of Talara, the Ministry of Health and health inspectors of the Municipality of Talara, 5,599 families benefited from educational materials, health recommendations and home inspections.