AKSAI, Western Kazakhstan, 26 April, 2002 -- Karachaganak Integrated Organisation (KIO) announced today that its main work contractor CCC / Saipem Company achieved an outstanding milestone in safety performance - 10 million man hours worked without a lost-time incident.

As KIO Development Director Gerry Albers stated, "This achievement is significant not only within the local context but ranks as outstanding amongst large projects around the world. It also signifies KIO's and contractors' commitment to best health, safety and environmental practices and standards. We are pleased by our CCC / Saipem' exemplary safety performance. It also shows that we are moving closer to our vision of an incident-free workplace."

The outstanding safety record was made possible through a process of careful and diligent planning of works and KIO's ongoing investment in raising the awareness of safe working practices throughout all the project personnel.

The achievement of 10 million man-hours worked without a LTI involved more than 10,000 CCC / Saipem's employees, almost 80% of which are local, working through the winter period and is remarkable given the scale and complexity of the Karachaganak Development Project. KIO Development Project team and contractor partners have successfully worked through extremely challenging weather conditions and large scale engineering construction activities across a wide expanse of terrain. Projects of this magnitude are particularly challenging because of the diversity of the work which includes major civil construction, steel fabrication and welding, electrical and mechanical equipment installation, pipeline construction works, simultaneous operations within live operational facilities, extensive crane operations and material transportation.

Commenting on the event, KIO HSE Superintendent Murray Harrison said: "KIO actively promotes a culture where ownership of safety is shared across the organisation. Through continued close co-operation between the KIO development team, our main works contractor CCC/Saipem and numerous local contractors in setting clear and specific HSE standards, controlling and managing workplace risks and careful monitoring of our activities, we aim to improve performance still further".