Capital expenditure

Capital expenditure in 2011 amounted to €1,199 million (€1,545 million in 2010) and included:

  • in the Offshore Engineering & Construction sector, €509 million for the completion of the new deep water field development ship and an FPSO vesseli, the construction and preparation of a pipelayer and of a new fabrication yard in Indonesia, the purchase of a perpetual concession of an area in Brazil for the construction of a fabrication yard for subsea structures, as well as maintenance and upgrading of the existing asset base;
  • €59 million in the Onshore Engineering & Construction sector for the purchase of equipment and facilities for a base in Iraq as well as for maintenance of the existing asset base;
  • €509 million in the Offshore Drilling sector, mainly relating to the completion and fitting out of deepwater semi-submersible rigs Scarabeo 9 and Scarabeo 8, in addition to the maintenance and upgrading of the existing asset base;
  • €122 million in the Onshore Drilling sector mainly relating to the purchase of two new rigs due to operate in Saudi Arabia and South America, as well as the upgrading of the existing asset base.

The following table provides a breakdown of capital expenditure in 2011.

Investments (€ milion) 2010 2011
Saipem SpA
230 115
Other Group companies
1,315 1,084
Total
1,545 1,199
Offshore Engineering & Construction

713 509
Onshore Engineering & Construction

25 59
Offshore Drilling

553 509
Onshore Drilling
254 122
Total
1,545 1,199

Details of capital expenditure for the individual business units are provided in the paragraphs to follow.