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Capital expenditure

Capital expenditure in 2010 amounted to 1,545 million (1,615 million in 2009) and mainly related to:

  • € 713 million in the Offshore sector relating mainly to the construction and fitting out of a new pipelayer and a deepwater field development ship, the conversion of an oil tanker into an FPSO vesseli, the development of a new fabrication yard in Indonesia, and maintenance and upgrading of the existing asset base;
  • € 25 million in the Onshore sector for maintenance and upgrading of the existing asset base;
  • € 553 million in the Offshore Drilling sector relating mainly to completion works on a new ultra-deepwater drillship, the purchase of a jack-up currently under construction and final investments in the same, the fitting out of two semi-submersible rigs and maintenance and upgrading of the existing asset base;
  • € 254 million in the Onshore Drilling sector relating mainly to the construction of three rigs (one of which commenced operations during 2010 while another was mobilised for the start of operations) and to upgrading of the existing asset base.

The following table provides a breakdown of capital expenditure in 2010:

Capital expenditure
(€ million)
2009 2010
Saipem SpA  192 230
Other Group companies
  1,423 1,315
Total  1,615 1,545
Offshore  697 713
Onshore  28 25
Offshore Drilling  690 553
Onshore Drilling
  200 254
Total  1,615 1,545

Details of capital expenditure for the individual business units are provided in the following pages.