Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations?...

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saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel

Transcript of Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations?...

Page 1: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

saipem

Naples, 24th October 2011

Drilling Contracts

Who has the last words in emergency situations?

Pietro Galizzi – Saipem S.p.A. General Counsel

Page 2: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

Drilling Contracts - Who has the last word in emergency situations

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2

Agenda

Few words on Saipem

Deepwater Horizon Case- Coast Guard Report

Italian Legislation

Saipem Internal Procedures

Conclusions

Page 3: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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• Oil & Gas Upstream

• Gas Processing, Liquefaction, GTL,

GTS

• LNG Import/Export Terminals

• Pipelines and Oil &Gas Transport

Systems

• Downstream – Chemical Plants,

Refineries, Heavy Oils Conversion

• Oil & Gas Upstream

• Gas Processing, Liquefaction, GTL,

GTS

• LNG Import/Export Terminals

• Pipelines and Oil &Gas Transport

Systems

• Downstream – Chemical Plants,

Refineries, Heavy Oils Conversion

Powerful EPC, Mega ProjectsPowerful EPC, Mega ProjectsEngineering and Project Engineering and Project Management ServicesManagement Services

• Pipelines

• Field Development

• Platforms

• FPSO

• Subsea works

• Pipelines

• Field Development

• Platforms

• FPSO

• Subsea works

Leader in Deepwater, Leader in Deepwater, Large EPIC ProjectsLarge EPIC Projects

Engineering and ConstructionEngineering and ConstructionEngineering and ConstructionEngineering and Construction

DrillingDrillingDrillingDrilling

Saipem Two Global Business

Units

Offshore DrillingOffshore Drilling Onshore DrillingOnshore Drilling

Offshore high quality niche player & Onshore frontier focusOffshore high quality niche player & Onshore frontier focus

Few words on Saipem

Page 4: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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Paris Milan

Project Execution Centres

Engineering Centres

Legal Departments

Other Main Areas and Rep. Offices

Singapore

Human Resources – Legal Departments

• 38,700 people *

@ August 31st, 2010

• 124 Nationalities

Few words on Saipem

Page 5: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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Few words on Saipem - Ten largest Italian companies (18th April 2011)

69

43

33

26 24

16 15 1410 10

0

10

20

30

40

50

60

70

Eni

Enel

Unicr

edit

Inte

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anpa

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Gener

ali

Saipe

m

Snam

Ret

e G

as

Tele

com

Ital

ia

Luxo

ttica

Atlant

ia

Eni

Enel

Unicredit

Intesa Sanpaolo

Generali

Saipem

Snam Rete Gas

Telecom Italia

Luxottica

Atlantia

By market capitalization - data in Billion € approx.

Page 6: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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FY 2010 Financial Results(Mln €)

6

OnshoreDrillingOffshore

OffshoreOnshore

Revenues EBITDA EBIT Net Profit Adjusted

44864486

688688

52365236

1116011160

2010201020092009

732732828828

20102010200920092010201020092009 2010201020092009

750750

832832

402402

409409

18361836 % on Revenues

(18.5%)

(53.6%)

(28.1%)

(7.8%)

193193

613613

258258

370370

13191319

(13.7%)

% on Revenues

(34.4%)

(7.1%)

7878 (11.3%)

43414341

554554

48314831

1029210292

566566

810810

287287

338338

15961596% on

Revenues

(18.7%)

(50.7%)

(29.1%)

(7.0%)

161161

615615

192192

290290

11561156

(14.2%)

% on Revenues

(33.9%)

(6.0%)

5959 (10.6%)

Few words on Saipem

Page 7: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

Drilling Contracts - Who has the last word in emergency situations

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Agenda

Few words on Saipem

Deepwater Horizon Case- Coast Guard Report

Italian Legislation

Saipem Internal Procedures

Conclusions

Page 8: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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Deepwater Horizon Case – Extract Coast Guard Report

Page 9: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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Deepwater Horizon Case

United States Coast Guard- Report of investigation into the Circumstances Surroundings the Explosion, Fire, Sinking and Loss of Eleven Crew Members Aboard the Mobile Offshore Drilling Unit – Deepwater Horizon in the Gulf of Mexico _April 20-22, 2010

the dual –command organizational structure as a “clerical error”

OIM authority when the vessel was latched on the well

Master authority when the unit is in navigation or in emergency situations

lack of transfer of authority from OIM to the Master during emergency situation

Master asked permission form OIM to activate the Vessel emergency procedure

Page 10: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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Agenda

Few words on Saipem

Deepwater Horizon Case- Coast Guard Report

Italian Legislation

Saipem Internal Procedures

Conclusions

Page 11: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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National Regulations: d.p.r. n.886 dated 24/05/1979 and d.P.R. 9 aprile 1959, n. 128 “Prevenzione degli infortuni sul lavoro - Lavoro nelle miniere e nelle cave”.

Art. 8 “Responsabilità del Capo Piattaforma” -Responsibility of the Offshore Installation Manager/Superintendent-OIM

Art. 9 “Responsabilità del Comandante”- Responsibility of the Master

Art. 74 “Emergenza”- Emergency

Italian Legislation

Page 12: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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The OIM- Offshore Installation Manager responsibilities when the platform/unit is moored

(almost full) authority during drilling activities;

compliance with the security regulations and training of the personnel on board;

inform the Master of any circumstance that may cause danger to the unit;

Implement all the necessary measures to face emergency situations;

The Master responsibilities: Full authority during navigation; Responsibility for maritime risks

damages to the platform/vessel and personnel on board during drilling operations when the unit is moored;

Implement all the necessary measures to face emergency situations;

Italian Legislation – OIM & Master Responsibilities

In case of conflicts between the OIM and the Master the final decision is on the Master

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Italian Legislation- Extracts

Art. 8-Responsabilità del capo piattaforma Art. 9 - Responsabilità del comandante

Sulle piattaforme fisse e sulle piattaforme mobili non semoventi il capo piattaforma è responsabile, in conformità delle norme del presente decreto, della sicurezza delle operazioni di abbassamento, sollevamento e galleggiamento dell'unità, dell'esecuzione dei lavori di perforazione, nonché della tenuta ed impiego dei dispositivi e dei mezzi di segnalazione, di salvataggio e antincendio.Il capo piattaforma deve curare, ai fini della sicurezza, l'addestramento del personale a bordo e le esercitazioni relative.Il capo piattaforma deve tenere il registro di piattaforma, sul quale sono annotati gli adempimenti prescritti dal presente decreto e il giornale di sonda previsto dall'art. 67 del decreto del Presidente della Repubblica 9 aprile 1959, n. 128.Il modello del registro di piattaforma è stabilito con decreto del Ministro dell'industria, del commercio e dell'artigianato da emanarsi entro tre mesi dall'entrata in vigore del presente decreto; fino a tre mesi dopo la pubblicazione nella Gazzetta Ufficiale del decreto ministeriale le annotazioni sono effettuate su registri liberamente scelti dal capo piattaforma.Sulle piattaforme non semoventi il capo piattaforma può avvalersi, per le manovre tecnico-nautiche indicate al comma primo, di un esperto di competenza specifica.Gli accertamenti dell'idoneità del capo piattaforma nonché degli esperti sopra menzionati in ordine alle manovre tecnico-nautiche indicate al comma primo sono devoluti al Ministero della marina mercantile.Per i capi piattaforma aventi cittadinanza diversa da quella italiana, il possesso delle capacità tecnico-nautiche deve essere attestato mediante la esibizione di titoli, ritenuti idonei dal Ministero della marina mercantile. Tali titoli devono essere dichiarati autentici dall'autorità consolare del Paese che li ha rilasciati.Sulle piattaforme di qualsiasi tipo il capo piattaforma deve disporre di un adeguato numero di persone esercitate nella messa a mare delle imbarcazioni di salvataggio, nella loro manovra e nell'uso degli accessori di bordo.Durante le fasi di rimorchio delle piattaforme di qualsiasi tipo devono essere osservate le relative norme vigenti.

Le piattaforme semoventi, durante la navigazione, sono assimilate alle navi e come tali sono sottoposte alle disposizioni del codice della navigazione e del relativo regolamento nonché alle altre leggi e regolamenti vigenti in materia di navigazione marittima.Il comandante è responsabile delle operazioni tecnico nautiche della piattaforma e di ogni altra operazione relativa alla navigazione. Egli è altresì responsabile per i danni da rischi marittimi ai quali sono esposte la piattaforma e le persone anche durante le operazioni al pozzo con piattaforma ormeggiata.Il capo piattaforma è responsabile, per la parte che gli compete, dell'esecuzione dei lavori di perforazione nonché dell'osservanza e dell'esatta applicazione a bordo delle norme di sicurezza oggetto della presente legge, in quanto applicabili alle piattaforme semoventi, durante le operazioni al pozzo con piattaforma ormeggiata. Egli deve immediatamente informare il comandante dell'insorgenza di situazioni al pozzo che possono costituire pericolo per l'unità.Parimenti il comandante deve informare il capo piattaforma dell'approssimarsi di condizioni meteorologiche pericolose.In entrambi i casi il comandante e il capo piattaforma, ciascuno per la parte di propria competenza, attuano i provvedimenti più idonei a fronteggiare la situazione di pericolo. In caso di contrasto le decisioni finali spettano al comandante.Le navi di perforazione sono sottoposte alla stessa disciplina per le specifiche operazioni e per gli adempimenti previsti dalla presente legge.Sulle piattaforme semoventi e sulle navi di perforazione, oltre ai normali libri di bordo, deve essere tenuto, a cura del comandante, il registro di piattaforma di cui all'articolo precedente.Deve essere altresì tenuto, a cura del capo piattaforma, il giornale di sonda previsto dall'art. 67 del D.P.R. 9 aprile 1959, n. 128.

Page 14: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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Agenda

Few words on Saipem

Deepwater Horizon Case- Coast Guard Report

Italian Legislation

Saipem Internal Procedures

Conclusions

Page 15: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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Saipem Internal Procedures

•The Master is all times ultimately responsible for the safety and integrity of the ship and all personnel on board and therefore in emergency situations the command chain rest with him in accordance with Maritime Laws and Regulations

•The Drilling Superintendent is in charge of all drilling and associated operations and reports directly to the Platform Manager (PLMR);

•The Drilling Superintendent (DRSU) has a reporting responsibility to the Master when emergency situations in drilling and associated operations arise that may affect the safety and the integrity of the Unit and of the Personnel on board.[Safety Management Manual Saipem 10000 Rev.02 dated 4.08.2011]

Irrespective of the hierarchical relation between the Master and the OIM, in case of emergency situation the last words are

on the Master

Page 16: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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Saipem Internal Procedures –Sample of Ship Organization Chart

Legenda:

PLMR: Platform Manager

DRSU: Drilling Superintendent

Page 17: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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Agenda

Few words on Saipem

Deepwater Horizon Case- Coast Guard Report

Italian Legislation

Saipem Internal Procedures

Conclusions

Page 18: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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Back to Deepwater Horizon Case – Extract Coast Guard Report

Page 19: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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Although a mobile offshore drilling unit (MODU) is generally classified as a vessel, when a MODU is drilling a well it is usually classified as something different, i.e. as an offshore facility. As a consequence, there generally are different perspective, the maritime perspective and the operational (organizational/hierarchical) perspective;

In our opinion, as a general rule, we deem correct the following approach:

In emergency situations either the OIM and the Master shall have the right to take initiatives in order to reduce the danger;

In all the cases, including in case of disagreement between the OIM and the Master (or if the OIM has not taken any action), the Master shall have the last words in emergency situations

Conclusions

Page 20: Saipem Naples, 24 th October 2011 Drilling Contracts Who has the last words in emergency situations? Pietro Galizzi – Saipem S.p.A. General Counsel.

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The end

Thank you for your attention!

Any question?

Pietro Galizzi – Saipem S.p.A. General Counsel

Naples, 24th October 2011