Corporate Social Responsibility Report 2008 SBM Offshore · companies. SBM Offshore manages all...
Transcript of Corporate Social Responsibility Report 2008 SBM Offshore · companies. SBM Offshore manages all...
SBM Offshore
Corporate Social Responsibility Report 2008
Sharing our future
www.sbmoffshore.com
SBM Offshore N.V.
Postal address
P.O. Box 31
3100 AA Schiedam
The Netherlands
Street address
Karel Doormanweg 66
3115 JD Schiedam
The Netherlands
Telephone +31 10 232 0900
Telefax +31 10 232 0999
E-mail: [email protected]
Full information regarding
SBM Offshore is available
on the Company’s website
at www.sbmoffshore.com
The Netherlands
P.O. Box 11, 3100 AA Schiedam
Karel Doormanweg 66
3115 JD Schiedam
The Netherlands
Telephone +31 (0) 10 2320 000
Telefax +31 (0) 10 2320 101
Malaysia
Block 2B – Level 9
Plaza Sentral
Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur – Malaysia
Telephone +60 (3) 2773 53 00
Telefax +60 (3) 2773 5399
Monaco
24 avenue de Fontvieille
P.O. Box 199
MC 98007 Monaco CEDEX
Principality of Monaco
Telephone +(377) 92 05 15 00
Telefax +(377) 92 05 85 00
USA
1255 Enclave Parkway, suite 400
Houston, TX 77077
USA
Telephone +1 (281) 848 6000
Telefax +1 (281) 848 6100
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SBM Offshore Corporate Social Responsibility Report 2008
Who We Are
SBM Offshore is a multinational group of companies servingthe oil and gas industry through the sale, lease, and/or theoperation of offshore production facilities, as well as relatedservices. The Company has been publicly listed on theEuronext Amsterdam Stock Exchange since October 11th 1965, originally under the name IHC Holland and afterwardslisted as IHC Caland. On May 1st 2005, IHC Caland N.V. was renamed SBM Offshore N.V.; and the shares weresubsequently listed under this name. The Company’s clients are mainly international oil and gas corporations, bothprivate and public sector organisations, including national oilcompanies. SBM Offshore manages all business, project, and engineering activities through four key execution centres.
In addition to these main centres, there are permanentestablishments in 15 countries for regional marketing and sales, local management of offshore operations andconstruction activities.
SBM Offshore Corporate Social Responsibility Report 2008
Appendices
GRI Index Level C+
GRI Index Report Page
Vision and Strategy Sustainability, Vision and Strategy 1.1 6, 7
Oganisational Profile Name of Organisation 2.1 2, 3, 8, 11
Primary Products 2.2 2, 5
Operational Structure 2.3 2 – 4, 10 – 14
Location of HQ 2.4 2, 3, 11, 27
Countries of Operation 2.5 2, 3, 27
Nature of Ownership 2.6 2, 3, 11
Market Served 2.7 2, 3, 5, 16
Scale of Reporting Organisation 2.8 2, 3, 16
Significant Changes 2.9 11
Awards Received 2.10 Not reported
Report Parametres Reporting Period 3.1, 3.2, 3.3 4, 6, 9, 16, 17
Contact point for questions regarding 3.4 49
the report or its contents
Reporting Boundaries 3.5, 3.6, 3.7, 3.8 16, 17
Basis for Reporting Including JV 3.8 9, 16
Re-Statements 3.10 13, 16, 42
Significant Changes 3.11 16
PI tables 3.12 40 – 45
Governance, Commitments and Engagement Governance 4.1, 4.2, 4.3, 4.4 10 – 15
Stakeholder Engagement 4.14, 4.15 6, 12, 17
Employees benefit plans EC3 32
Environmental Performance Indicators Direct Energy and Indirect Energy EN3, EN4 16, 17, 24
Energy Saved EN5 24
Emissions, Discharges and Waste E20, E23 24, 25, 41, 42
Number and Volume of Spills E23 17, 22, 23, 41
Labour Practices and Decent Work Employment LA1, LA2 12, 16, 26 – 33
Labour/Management Relations LA3 12
Health and Safety LA7 7, 12, 14, 16, 18, 19, 40, 41
Diversity and Opportunity LA10 6 – 8, 26, 29, 33
Training and Education LA13 14, 17, 19 – 22, 30 – 33,
36 – 37, 45
Security Practices HR1 – HR9 7, 17, 19, 21
Social Society SO1 – SO8 7, 12, 34 – 37
Product Responsibility PR1 – PR9 Not reported
SATIMAT GREEN / MAINE GLOSS GREEN
Satimat Green is manufactured by Arjowiggins one of Europe’s leading makers of recycled coated
papers, who have a reputation for making products which meet the latest environmental standards.
Satimat Green contains a minimum of 60% recycled fibre and 40% FSC virgin fibre. The recycled fibre
content being mainly taken from office waste. The mills are ISO 9001, ISO 14001 and FSC mixed
source certified. Satimat Green is an FSC mixed source product. A full copy of the mill’s environmental
statement is available on request.
Disclaimer
Some of the statements contained in this report that are not historical facts are statements of future
expectations and other forward-looking statements based on management’s current views and
assumptions and involve known and unknown risks and uncertainties that could cause actual results,
performance, or events to differ materially from those in such statements. Such forward-looking
statements are subject to various risks and uncertainties, which may cause actual results and
performance of the Company’s business to differ materially and adversely from the forward-looking
statements. Should one or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those described in this
presentation as anticipated, believed, or expected. SBM Offshore NV does not intend, and does not
assume any obligation, to update any industry information or forward-looking statements set forth in
this presentation to reflect subsequent events or circumstances.
Photography: SBM Offshore N.V.
Photo Serge-Henri, Valbonne, France (CEO Photo)
Lithography and printing: B.V. Drukkerij De Eendracht, Schiedam
Binding: Boekbinderij van Wijk B.V. Utrecht
� www.sbmoffshore.com
The CSR Report can be downloaded at www.sbmoffshore.com, whose
Corporate Social Responsibility section provides additional information.
Contacts
To let us know what you think of the report and the issues covered in it.
Please send your comments to [email protected]
This report has been issued by the Corporate Communications Department
at SBM Offshore.
Designed and produced by Radley Yeldar (London) www.ry.com
Contents
01SBM Offshore Corporate Social Responsibility Report 2008Who We Are
Who We Are 02A Closer LookCorporate Activities 022008 Activities Worldwide 04CEO Message 06
Corporate Profile 2008 08Corporate Responsibilities 08Corporate Business Strategy 07Joint Ventures 08After Sales Services and Offshore Contracting 08Reported Lease and Operate Fleet for 2008 09
Principles and Corporate Governance 10Corporate Governance and Management Systems 11Stakeholders 11Compliancy Management Status 12CSR Commitments and Performance 14
CSR Reporting Scope 16Reporting Segments 16Occupational Health and Safety Reporting 16Environmental Management Systems 17Employees 17Social and Community 17Stakeholder Engagement 17
Health, Safety, Security and Environment (H.S.S.E.) 18SBM Group Health and Safety Performance 20Health and Safety – Onshore Operations 21Health and Safety – Offshore Operations 21Security 21Environmental Management 22
Responsibilities Towards Employees 26Total Global Workforce 27Developing Capabilities 30Performance and Career Development 31Employee Benefits 32
Local Communities 34Tamatakaw Village Project, Myanmar 35Community Engagement 36
Renewable Energy Services 38Green Power Generation 39Reducing the Ecological Impact 39Research and Long-Term Development 39
Performance Indicators 40Economic 40Health Safety, Security and Environment (H.S.S.E.) 40Human Resources 43Community 45Suppliers 45
Appendices 46Glossary 46PricewaterhouseCoopersAssurance Report 48GRI Index Level C+ ibc
In 1965, a number of Dutch shipyards, eachfounded in the course of the 19th century,established under the name N.V. IndustrieeleHandels Combinatie Holland a limited liabilityCompany listed on the Amsterdam stockexchange. The main yards in the Companywere at that time Gusto in Schiedam, Smit in Kinderdijk and Verschure in Amsterdam.Prior to the creation of IHC Holland, the Gusto yard had already made a first move into offshore oil and gas related activities in the1950’s. In 1959, the Gusto yard constructedthe first Single Point Mooring (SPM) facilityunder a license agreement with Shell.
The decision was taken in 1969 to create a separate Company for the marketing and further development of SPM systems. Single Buoy Moorings Inc. (SBM) was foundedas a wholly-owned subsidiary of IHC Holland N.V.On May 1st 2005, IHC Caland N.V. wasrenamed SBM Offshore N.V.; and hereafterlisted as SBM Offshore N.V. on the EuronextStock Exchange, Amsterdam.
Short History of SBM Offshore N.V.
02
A Closer Look
Execution/Corporate Centres
Shore Bases
Lease Units
Future Lease Units
Laid-up Units
SBM Offshore Corporate Social Responsibility Report 2008
Who We Are
SBM Offshore’s activities integrate engineering, supply, offshore installation,and operation of offshore facilities for the production, storage, and export of crude oil and gas. The offshore facilities consist of the following systems:Floating Production Storage and Offloading systems (FPSOs), FloatingStorage and Offloading systems (FSOs), Tension Leg Platforms (TLPs),Monohull and Semi-submersible Floating Production Units (FPUs), self-elevating Mobile Offshore Production Units (MOPUs) and systems based on the weathervaning or fixed heading principle used for the permanent,disconnectable or temporary mooring of ships.
In addition to the supply of these systems on a turnkey basis, the Company is also in the business of owning and operating offshore production units.These units are, as a rule, contracted as long-term charters on alease/operate basis to clients worldwide.
� www.sbmoffshore.com
For more information please visit our website
13073_SBM_2008CR 13/5/09 13:00 Page 02
03
es
SBM Offshore has four Main Execution Centres
Malaysia Monaco The Netherlands USA
SBM Offshore Corporate Social Responsibility Report 2008
Who We Are
SBM Offshore Group companies
SBM Offshore N.V
Management:
D.H. Keller, Managing Director and CEO until May 15th 2008
A. J. Mace, Managing Director and CEO from May 15th 2008
M.A.S. Miles, Managing Director from May 15th 2008 and CFO
D.J. van der Zee, Director, CTO and President SBM PC
F. Blanchelande, Director, COO
�www.sbmoffshore.com
Single Buoy Moorings Inc (SBM)
Marly (Switzerland) and Monaco
Management: A Mace, D J van der Zee, F Blanchelande
Activities: SBM Systems: mooring technology, process
engineering, project management, construction supervision,
technology development; SBM Production Contractors
management of the lease fleet; SBM Services: offshore
contracting, spare parts, after-sales services; SBM Gas
and Power: offshore technology applications in the LPG
and LNG industry.
�www.singlebuoy.com
SBM Atlantia
Houston (USA)
Management: B van Leggelo, President
Activities: mooring technology, process engineering, project
management, after-sales services, design and supply of
deepwater production systems (TLPs, semi-submersibles),
design and supply of semi-submersible drilling units.
�www.sbmatlantia.com
SBM Malaysia
Kuala Lumpur (Malaysia)
Management: I Replumaz, Director
Activities: mooring technology, process engineering,
project management.
�www.sbmmalaysia.com
Marine Structure Consultants (MSC) BV
Schiedam (The Netherlands)
Management: C J Mommaas, Managing Director
Activities: offshore design, engineering and consultancy
services, naval architecture, process engineering.
�www.gustomsc.nl
GustoMSC
Schiedam (The Netherlands)
Management: S A W Janse, Managing Director
Activities: offshore design, engineering and consultancy
services, naval architecture, process engineering.
�www.gustomsc.nl
SBM Offshore highlights
5,151Total Employees WorldwideAs per December 31st, 2008(including part-time and temporary staff)
4Main Execution CentresKuala Lumpur, Malaysia;Fontvieille, Monaco;Schiedam, The Netherlands;Houston, USA
5.7Total man hours (Million)Onshore OperationsGroup Worldwide(excluding Subcontractors)
11Main ClientsLease and Operate Mostly Major IOCs and NOCs
$228mNet Profit (US$ Million)Compared to US$ 267m in 2007
$3.060mTurnover (US$ Million)Compared to US$ 2.871m in 2007
13073_SBM_2008CR 13/5/09 13:00 Page 03
04
2008 Worldwide Activities
SBM Offshore Corporate Social Responsibility Report 2008
Who We Are
The Company has been very busy in 2008 with many
contracts and turnover increased to a record level and
was 7% higher than the prior year. All operating units
contributed positively to the results of the Company in
2008. The execution of many of the contracts has benefited
from the synergy between the operating units and from
the complementary nature of the different disciplines and
specialisations available in the respective Group companies.
The Company’s execution capacity has stabilised after
several years of substantial growth. Risk and cost control
systems have been further improved in all operating units
during the year to increase control on project costs and
delivery schedules.
Selected Financial Results 2008
2008 2007 2006
US$m US$m US$m
Net profit 227.9 266.8 216.3
Operating profit (EBIT)* 275.1 302.0 254.3
EBITDA 530.1 548.3 477.5
Capital expenditure 999.8 551.0 309.0
Total equity at December 31st 2009 1,240.9 1.337.7 1,119.0
Turnover 3,060.3 2,871.2 1,989.7
Total assets at December 31st 2009 4,344.9 3,634.6 2,940.4
Shareprice (€) December 31st 2008 9.35 21.60 26.05
AEX-Index at December 31st 2009 245.9 515.8 495.3
Market capitalisation US$
at December 31st 2009 1,902.4 4,557.6 4,830.6
* 76% of EBIT is generated from lease and operate activities (60% in 2007)
� www.sbmoffshore.com
For further information please see the SBM Offshore Annual Report
2008 published on our Company website
Financial and Sales Highlights for 2008
• New orders totalled US$4,355 million (US$3,822 million in 2007)
• Turnover up to US$3,060 million (US$2,871 million in 2007)
• Investment in fixed assets of US$1,000 million (US$551 million in 2007)
• New 12 year lease contract from Petrobras for the existing FPSO
Capixaba on the Cachalote field in Brazil
• Turnkey supply contract for FPSO P-57 with Petrobras for Brazil
• Turnkey supply contract for FPSO OKHA with Woodside Energy Ltd
for Australia
• A call off frame contract for the supply of FPSOs for Angola with BP Angola.
Corporate Developments
In 2008, the Company focused on several initiatives:
• Higher safety performance with aim for zero accident and incidents;
• Continued improvement of the SIRS (Single Incident Reporting System)
for H.S.S.E. statistics both for offshore production and land-based
operations including our subcontractors’ construction yards;
• Accomplish our nationalisation programmes wherever we operate;
• Progress the renewable energy development programme.
Lease/Operate Fleet 2008
At the end of 2008 the Company’s fleet of production units operating under
lease and operate contracts, fully or partially owned and fully or partially
managed by the Company consisted of 15 Floating Production Storage
and Offloading Systems (FPSO), three Floating, Storage and Offloading
Systems (FSO) and one Mobile Offshore Production Unit (MOPU).
New additions to offshore production fleet in 2008
• In January, start of operation of the FPSO Mondo in the Kizomba ‘C’ field
offshore Angola under the 15 year lease contract with Exxon Mobil;
• In July, start of operation of the FPSO Saxi-Batuque in the Kizomba ‘C’
field offshore Angola under the 15 year lease contract with Exxon Mobil;
Lease/operate Contracts ending in 2008
Four vessels ended lease operations in 2008:
• The FPSO Mystras was purchased by our client AENR in July.
• FPSO Tantawan Explorer in Thailand was purchased by our client;
Chevron Offshore Thailand Ltd in July.
• FPSO Rang Dong I was redelivered to the Company by our client Japan
Vietnam Petroleum Company Ltd (JVPC) in October at the end of the
confirmed lease period, including a short extension. The unit has been
disconnected and decommissioned and is currently laid up.
• FSO OKHA was decommissioned at the end of October and will be
converted in 2009 for Woodside’s FPSO at the Cossack Field in Australia.
13073_SBM_2008CR 13/5/09 13:00 Page 04
SBM Offshore activities
Turnkey SupplySBM Offshore has been involved in the supply of a great number of
tanker loading and offloading mooring points. SBM Offshore provided
the first system to permanently moor a tanker based Floating Storage
and Offloading System (FPSO). We also supply seabed pre-tensioned
Tension Leg Production (TLP) units, Semi-submersible Production
Units and seabed fixed Mobile Offshore Production Units (MOPU)
on a turnkey basis. � www.sbmoffshore.com
Lease and Operate SBM Offshore provides the offshore oil and gas industry with
high quality production services through the leasing and operation
of Floating Production Storage Offloading (FPSO) units, Floating
Storage and Offloading (FSO) units, Mobile Production Units
(MOPU) and Semi-Submersible Production units (Semi-sub).
� www.sbmoffshore.com
Equipment SupplySBM Offshore supplies critical components in different types of
offshore terminals. The above mentioned critical components have
all been engineered in house using SBM Offshore specifications
and know-how.
� www.sbmoffshore.com
Technology Development New Technology forms an essential element in SBM Offshore’s
growth for the specific offshore needs of our clients. The Product and
Technology Development group is equipped with powerful analytical
tools to simulate and predict the behaviour of very complex systems
in an offshore environment, providing assistance at the conceptual
stage of an offshore field development or other developments.
� www.sbmoffshore.com
Our ServicesSBM Offshore provides three types of services:
– Product Services
– Offshore Contracting
– Fabrication Services
� www.sbmoffshore.com
05SBM Offshore Corporate Social Responsibility Report 2008
Who We Are
5.3mTotal man hours (Millions)Offshore Production Units19 offshore systems for Offshore Production
19Offshore Production FleetTotal Lease and Operate FleetAsia, Brazil, West Africa, Russia and the Caspian
156.4mHydrocarbons Throughput MMbbls (Million barrels of oil) Reported Lease and Operate Fleet – 15 UnitsAsia, Brazil, West Africa, Russia and the Caspian
Design and EngineeringThe company offers design, engineering, procurement, project
management and consultancy services primarily to the offshore oil
and gas sector, covering the: exploration, construction and production
markets. In addition, it has designed some systems in the civil
construction sector. GustoMSC is the specialist of all types of mobile
offshore units: jack-ups, semi-submersibles, ship and barges, heavy
lifting cranes and a range of deck-mounted and associated equipment.
� www.sbmoffshore.com
13073_SBM_2008CR 13/5/09 13:00 Page 05
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CEO Message
SBM Offshore Corporate Social Responsibility Report 2008
Who We Are
Tony Mace
This is SBM Offshore’s second separate CSR report
for non-financial activities during the year of 2008.
The products we develop and the systems we sell or lease
are used to provide a means for the world’s oil and gas
companies to generate the energy for the modern world,
thus helping economies grow and nations prosper. In SBM
Offshore we believe that our Company fills an important
place in the development of energy needed for the world’s
growth. We do this by designing efficient, robust, fit for
purpose, safe to operate and environmentally conceived
systems utilised offshore for the transportation and production
of oil and gas products. All the Company’s personnel are
aware of this mission and are aware of our place in the
energy chain. The Company continually strives to develop
the technology and systems that our Clients will require in
the future to continue to supply the world’s energy needs.
Our commitment to responsible business management is
stated in our Code of Conduct, in which our responsibilities
towards all stakeholders are declared. This code forms
the basis for the operational performance of our business
activities. We strongly support and enforce equal opportunity
principles and the company does not differentiate between
nationality, gender, race or religion.
SBM Offshore is committed to perform our business
in a responsible, reliable and sustainable manner.
SBM Offshore places high importance on long-term
relationships for sustainable business with our clients,
suppliers and other business partners. We aim to do this
by providing reliable, quality service to our clients and
by developing responsible equitable relationships with
our suppliers and partners.
13073_SBM_2008CR 13/5/09 13:00 Page 06
07SBM Offshore Corporate Social Responsibility Report 2008
Who We Are
The Company has been developing technology for the
evolving gas and liquid natural gas or ‘LNG’ energy market
in order to sustain the company in the future. Gas is a more
acceptable form of fossil fuel and also environmentally more
acceptable. Wind and wave energy solutions are being
developed in-house leveraging on SBM Offshore’s extensive
knowledge and experience in providing systems in the
offshore environment.
Looking back, 2008 has been a year with both positives and
negatives. Input costs on certain of SBM Offshore’s major
projects exceeded the provisions required to deliver the
facilities. Risk and cost control systems have been further
improved in all operating units during the year to increase
control on project costs and delivery schedules.
Nevertheless, despite these setbacks, we also can report
progress. In January, the successful start-up and operation
of the FPSO Mondo in the Kizomba ‘C’ field offshore Angola.
In July, the start of operation of the FPSO Saxi Batuque
also in the Kizomba ‘C’ field; and the end of December
hook up of the FPSO Espirito Santo in the BC-10 field
offshore Brazil. In 2008 the offshore production fleet
achieved good environmental performance by means
of stringent environmental management systems, legal
compliance and through responsible operations. ISO 14001
certification of the entire offshore production fleet is an
important future goal. The Brazilian fleet, consisting of
four offshore production systems, all obtained external
certification in the course of 2008.
We place a continuous high focus on industrial safety.
Safety awareness is continually enhanced at our
constructions sites and on our offshore production units and
we can report improved safety performance results in 2008.
Security is always on the agenda. In the course of the
last three years a joint-venture offshore production facility,
located in Nigerian waters, has been a concern for us and
our JV partner. This installation has endured severe security
problems due to frequent terrorist attacks, however, the
unit was purchased by our client in 2008. The security issue
also impacts the safe operation of the company’s DSV
construction vessel often deployed in the Niger delta where
the militants are constantly active. This has required a
heightened safety plan for continued operations.
In May 2008 cyclone Nargis struck Myanmar and caused
catastrophic destruction in the Ayeyarwady Delta area
and Yangon division. As we have an offshore operation in
the country, SBM Offshore purchased emergency supplies
and also donated emergency funds to the Marie Stopes
International Cyclone Nargis Relief Support. The cyclone
aid was focused on providing basic health needs to the
affected communities in the delta.
This report provides details on our Social Responsibility
initiatives and we hope you find it interesting and helpful.
Tony Mace
May, 2009
US$600kDonations to Local Communities
13073_SBM_2008CR 13/5/09 13:01 Page 07
08 SBM Offshore Corporate Social Responsibility Report 2008
Corporate Profile 2008
Corporate Profile 2008
Corporate Responsibilities SBM Offshore recognises its corporate responsibility as a
valid and legitimate challenge in a changing world where
both private and public companies have control and
influence over their ‘impact’ on society at large. For SBM
Offshore, Corporate Social Responsibility means good
corporate governance practices; a sound Code of Conduct
incorporating an anti-corruption guiding principle, equal
opportunities and sustainable business development in
the locations where we operate.
Corporate Business StrategyThe Company has the integrated competence to manage,
design, supply, install, and operate complete, complex
offshore oil and gas production facilities. The strategy of
SBM Offshore is to place the development of technology
at a high priority level with the objective to generate
and develop cost-effective solutions for ultra-deepwater
developments, the growing gas industry and future green
energy production.
The strategy necessitates the creation and maintenance
of a comprehensive pool of engineering resources available
within the Group companies covering all aspects of the
company’s products. It is the opinion of SBM Offshore
management that one of the main risk-control principles
is to avoid having to subcontract competence when
promoting state-of-the-art or innovative ideas.
Joint VenturesSBM Offshore considers a Joint Venture (JV) partnership in certain
circumstances to be an efficient way of developing sustainable business.
In the lease/operate sector of our business, our partners are in general
responsible for a pre-defined part of the project. SBM Offshore only engages
in a JV when it both enhances the opportunity to secure business and
ultimately adds value to the Company’s performance.
Joint Ventures are those entities over whose activities the Company has
joint control, established by contractual agreement. Several of our Offshore
Floating Production Units under lease/operate contracts are Joint Ventures
and the offshore production and/or storage units are wholly or partially
operated by SBM Offshore.
This report will account for those Joint Ventures where SBM Offshore
controls 50% or more of the shares.
After Sales Services and Offshore ContractingThe Company owns and operates two dynamic positioning offshore
construction vessels, the older smaller vessel 100 percent owned by the
Company and the newer larger vessel owned by a 50/50 JV SBM Offshore
and Solstad. The larger vessel was designed for and has been engaged in the
installation of the Company’s deepwater moorings, whilst the smaller vessel
has been engaged in many different types of offshore construction work.
The supply of spare parts and engineering and inspection services for the
Company’s existing 400 plus terminals has also been a very important activity.
Business Policy
To support the Mission Statement and the achievement of the
objectives, the SBM Offshore NV Companies, collectively referred
to as the Group, have formulated and are committed to a Business
Policy in which all employees will endeavour to:
• Maintain and enhance the position of the Group as one of the global
leaders in the offshore oilfield service industry by supplying innovative
technical solutions for engineering, engineered products, vessels,
systems, offshore installations, after-sales services and oil and gas
production services
• Execute projects and operational activities in conformity with
contractual and Group requirements
• Continually satisfy Clients by creating and producing high quality
and reliable products and services
• Continually improve Group business processes within their own
functional area and within supporting functions utilising the
Management System as the means of process definition
• Individually and collectively ensure the Group is an industry leader
in the implementation of health, safety, environmental and security
protection requirements integral to all areas of operation
• Efficiently utilise Group resources to achieve the most effective
business solutions for our Clients and the Group.
Quality Charter
To support the Mission Statement, and in the pursuit of excellence,
the SBM Offshore NV Companies have formulated and are committed
to a Quality Charter in which all employees will endeavor to:
• Execute projects and operational activities in conformity
with contractual and Group requirements
• Continually satisfy Clients by creating, producing and supplying
high quality, reliable products and services, within time and budget
and according to client specifications
• Continually improve Group business processes within their
own functional area and within supporting functions utilizing the
Management System as the means of process definition
• Individually and collectively utilize Group resources to efficiently create
the most effective business solutions for our Clients and the Group
• Define and implement quality objectives based on this policy
statement at appropriate levels of the organization.
13073_SBM_2008CR 13/5/09 13:01 Page 08
09SBM Offshore Corporate Social Responsibility Report 2008
Corporate Profile 2008
Reported Lease and Operate Fleet for 2008Ownership and Joint Ventures Partnerships – Offshore Production
The following table lists the lease units in which SBM Offshore holds a 50% or greater ownership and is therefore included in the reporting scope.
Unit name in Operationaloperation 2008 J.V. Partner and ownership level J.V. ownership title management Client
Angola
1 FPSO Kuito SBM Offshore 50% Sonangol 50% Sonasing Kuito SBM Offshore Chevron
2 FPSO LPG Sanha SBM Offshore 50% Sonangol 50% Sonasing Sanha LTD SBM Offshore Chevron
3 FPSO Xikomba SBM Offshore 50% Sonangol 50% Sonasing Xikomba LTD SBM Offshore Exxonmobil
4 FPSO Mondo SBM Offshore 50% Sonangol 50% Sonasing Sanha LTD SBM Offshore Exxonmobil
5 FPSO Saxi Batuque SBM Offshore 50% Sonangol 50% Sonasing Saxi Batuque LTD SBM Offshore Exxonmobil
Brazil
6 FPSO Espadarte SBM Offshore 100% N/A SBM Offshore Petrobras
7 FPSO Brasil SBM Offshore 51% Misc Berhad 49% FPSO Brasil Venture S.A. SBM Offshore Petrobras
8 FPSO Marlim Sul SBM Offshore 100% N/A SBM Offshore Petrobras
9 FPSO Capixaba SBM Offshore 80% Star 20% FPSO Capixaba Venture S.A SBM Offshore Petrobras
Thailand
10 FPSO Tantawan** SBM Offshore 100% N/A SBM Offshore Chevron
Vietnam
11 FPSO Rang Dong** SBM Offshore 70% Mitsubishi 30% SBM Diamond Venture S.A. SBM Offshore J.V.P.C.
Myanmar
13 FSO Yetagun SBM Offshore 75% Mitsubishi 25% South East Shipping Co. Ltd SBM Offshore Petronas
Russia
14 FSO Okha** SBM Offshore 100% N/A SBM Offshore SEIC Sakhalin Energy
Investment Co. Ltd
Turkmenistan
14 FSO Oguzhan SBM Offshore 100% N/A SBM Offshore Petronas
15 MOPU Turkmenbasy SBM Offshore 100% N/A SBM Offshore Petronas
**Lease/ operate contracts which expired in 2008.
NOTE: The financial statements in the Annual Report 2008 generally include the Company’s proportionate share of the Joint Venture entities’ assets, liabilities, revenue, and expenses, with items of a similar
nature on a line-by-line basis, from the date that joint control commences until the date that joint control ceases.
The following joint Ventures Partnerships 2008 are excluded from the report.
SBM Offshore does not exercise operational management and where SBM Offshore does not hold JV majority ownership.
Unit name in Operationaloperation 2008 J.V. Partners J.V. ownership title management Client
Congo (D.R.)
1 FSO LPG Nkossa II Maersk Limited 51% Anchor Storage Limited Gas Management Total (Congo) LTD
Nigeria
2 FPSO Mystras Saipem 50% FPSO Mystras – Saipem Agip
Produção de Petroleo LTDA
Malaysia
3 FPSO Kikeh Misc Berhad 51% Malaysia Deepwater Floating Malaysia Deepwater Murphy
Terminal (kikeh) Limited Production Contractors
SDN BHD
13073_SBM_2008CR 13/5/09 13:01 Page 09
10
Corporate Principles and Practices
Our commitment to responsible business management isexpressed in our Code of Conduct. Here our responsibilitiestowards all stakeholders are declared. The Code of Conduct is the basis for the daily performance of our business activitiesand all employees are actively accountable for compliance with this Code.
SBM Offshore realises that it is essential to work in asustainable way. The Company is very concerned about theconsequences of our actions either in the form of positive or negative impact on society at large and is committed tooperate our business openly and honestly, guided by theprinciples laid down in the Company Code of Conduct.
SBM Offshore Corporate Social Responsibility Report 2008
Corporate Principles and Practices
� www.sbmoffshore.com
The Code of Conduct is available on the Company website, the Corporate
Governance Section in addition to the Corporate Intranet Site
13073_SBM_2008CR 13/5/09 13:01 Page 10
11SBM Offshore Corporate Social Responsibility Report 2008
Corporate Principles and Practices
Corporate Governance and Management SystemsCorporate Governance Structure
SBM Offshore is a Naamloze Vennootschap (Public Limited Company)
incorporated under Dutch law with its statutory seat in Rotterdam, the
Netherlands. The Management Board consists of two statutory directors,
the CEO and the CFO. The statutory directors and non-statutory directors
form together the Board of Management.
Duties of the Board of Management
The Company is managed by the Board of Management, under the
supervision of a Supervisory Board. Each year the Board of Management
presents to the Supervisory Board, the operational and financial objectives
of the Company, the strategy designed to achieve the objectives and the
parameters applicable in relation to the strategy. The operational Plan
2009 has been discussed and approved in the Supervisory Board Meeting
of December 9th 2008.
Supervisory Board
The Supervisory Board consists of six members. The Supervisory Board
has established an Audit Committee, a Remuneration Committee and a
Selection and Appointment Committee.
Duties of the Supervisory Board
The Supervisory Board supervises the effectiveness and integrity of the
internal control and risk management systems and procedures implemented
by the Board of Management and the general conduct of affairs of
SBM Offshore and its businesses. The Supervisory Board assists the
Management Board with advice in accordance with the best practices of
the Dutch Corporate Governance Code. In the performance of their duties
the Supervisory Board is guided by the interests of the Company, and
the enterprises connected therewith.
Dutch Corporate Governance Code
SBM Offshore is obliged to comply (or explain any non-compliance) with
the Dutch Corporate Governance Code, also known as Code ‘Tabaksblat’.
The Corporate Governance Monitoring Committee has published the
amended Dutch Corporate Governance Code on December 10th 2008
(hereafter; Amended Code). SBM Offshore is currently studying the Amended
Code. In the Annual Report 2009, SBM Offshore will report on its compliance
with the principles and best practices of the Amended Code or explain why
principles and best practices are not applied. For the Annual Report 2008,
the principles and best practices of the Corporate Governance Code 2003
(hereafter: Code) are applicable, including best practice provisions of the
Corporate Governance Monitoring Committees until December 2008.
� www.sbmoffshore.com
For further information please see the SBM Offshore Annual Report 2008
published on the Company website
The Rules of Conduct relating to Suspected Irregularities or better known as
the ‘Whistleblowing’ rules are an example of this. The Code Tabaksblat states
that a company must establish a set of rules which indicate to employees
how they should report internally any suspected irregularities of a general,
operational, or financial nature. The Whistleblowing rules have been
developed to observe the Tabaksblat requirements. They are there to protect
the interest of the whistleblower and to formalise a reporting process.
� www.sbmoffshore.com
The ‘Whistleblowing’ rules are available on the Company website,
the Corporate Governance Section, in addition to the Corporate
Intranet Site, CIS (available only for employees).
SBM Offshore CSR Reference Documents and Monitoring
SBM Offshore has Policies and Rules in place which govern its activities
in the various business segments that are ISO 9001:2000 certified.
� www.sbmoffshore.com
All Rules and Policies are available on the Corporate website,
the Corporate Governance Section, in addition to the Corporate
Intranet Site, CIS (available only for employees).
Corporate MissionTowards Clients
• To provide superior products and services through innovative, fit-for-
purpose and competitive solutions for the offshore oil and gas industry
• To design, construct, install, maintain and operate such facilities in a
safe and environmentally sound manner.
Towards Employees
• To generate an attitude of enthusiasm and pride throughout the Company,
through promoting high-technology products and providing a most
favourable environment for professional and personal development,
and to highly reward it.
Towards Shareholders
• To constantly improve our know-how and efficiency, with the objective
to generate returns well above cost of capital
• To maintain a high degree of transparency and reliability
• To provide double digit yearly EPS growth.
StakeholdersShareholders – Attendance and Voting Rights
With reference to the articles of association, all Shareholders are entitled to
attend the General Meetings, to address the General Meeting and to vote.
At the General Meeting each Ordinary Share shall confer the right to cast
one vote. Each Protective Preference Share shall confer the right to cast four
votes, when issued. Unless otherwise required by the law and articles of
association, all resolutions shall be adopted by an absolute majority of votes.
The Company maintains active communications with its shareholders on
several different occasions, events or meetings in order to keep them
informed on the general and specifically financial aspects of the business.
The information is communicated in writing in the Annual Report, in the
minutes of meeting of the annual general meeting of shareholders
(AGM), in press releases and in presentations for financial analysts and
distributed electronically on the website, via email and in hardcopy format.
The Company also addresses shareholders verbally during the AGM,
at investor meetings, investor presentations (which are webcast), and
conference calls.
The Annual Report consists of several sections in which the Company
presents its financial results among other information on its activities,
developments in general and strategy for the future. The report is audited
by an external accounting firm. The Annual report is printed in hardcopy
for distribution and can also be downloaded from the SBM Offshore
website electronically.
At the AGM the Management Board with consent of the Supervisory Board
present the annual report to the shareholders for adoption. The meeting is
an annual event and a large percentage of shareholders are either present
or represented.
From Left to right
1. M.A.S. Miles, Managing Director from May 15th 2008 and CFO
2. D.J. van der Zee, Director, CTO and President of SBM Production Contractors
3. A. J. Mace, Managing Director and CEO from May 15th 2008
4. D.H. Keller, Managing Director and CEO until May 15th 2008
5. F. Blanchelande, Director, COO
13073_SBM_2008CR 13/5/09 13:01 Page 11
SBM Offshore Group Stakeholders
12
2,500SuppliersPurchase oreders placed US$ 1.7 Billion
Investor Relations
The Company has an active investor relations program which consists
of providing information to the market by press release followed by direct
dialogue with the investor community via a teleconference for the preliminary
full year results analyst presentation and webcast of full and half-year results
as well as meetings with individual investors at conferences or at the
investor’s premises. In 2008, the Company also organized a visit for financial
analysts to ongoing construction projects in the United Arab Emirates.
In January 2008, preliminary full year results for 2007 were released,
followed by a teleconference for financial analysts with a question
and answer session following the introduction of the CEO.
Approximately 58 people participated in the call.
In March 2008, audited full year results were released, followed by a
presentation from the CEO and CFO to the analysts in Amsterdam.
The presentation and following Questions and Answers (Q and A) have been
webcast and made available on the Company’s website. The presentation
was attended by approximately 25 participants and around 100 people
logged on to the live webcast.
The period after the full year results is dedicated to visits to investors
in so called ‘road shows’ in which the Company visits investors at their
premises and conferences where investors gather and meet the Company
representatives on that location.
On July 14th 2008 a special conference call by the CEO and CFO was
held to explain the information released on July 11th, in which the Company
guided lower net profit for 2008. The call was attended by 196 people.
In August the mid-year results were released, followed by a presentation
from the CEO and CFO to the analysts in Amsterdam. The presentation
and following Q and A have been webcast and made available on the
Company’s website. The presentation was attended by approximately
25 participants and 100 people logged on to the live webcast.
In September, the Company organised a two day visit for analysts to
construction works in Abu Dhabi and Dubai. A total of 20 analysts participated
in the event.
The Company also meets with investors in Monaco and Schiedam offices,
but this is more limited and does not exceed 10 meetings on a yearly basis.
Telephone calls with investors and analysts are held on a regular basis.
A total of 20 road shows took place in the course of 2008.
Other
SBM participated in the Carbon Disclosure Project for the Netherlands
50 in 2008 and intends to participate again in 2009.
Compliancy Management StatusCorporate Management Systems are built on the basis of the following
internationally recognised standards:
• Quality Management System Standard ISO 9001:2000;
• Environment Management System Standard, ISO 14001;
• Occupational Health and Safety Management System Standard,
OHSAS 18001;
• SBM Offshore Social Accountability Manual (compatible with SA 8000
Standard);
• MARPOL Regulations 2002;
• ISM/ISPS Codes (International Safety Management/ International
Ship and Port Facility Security)
In 2006 SBM Offshore planned to achieve a fleet-wide accreditation of the
Social Accountability Standard ‘SA 8000’.
Whilst the implementation of SA 8000 was being planned, Social
Accountability International [SAI] directed the SA 8000 Advisory Board that
verification of the standard was disallowed in Myanmar, until the International
Labour Organisation (ILO) lifted its sanctions Therefore, the decision was
taken to continue the implementation for an in-house Social Accountability
standard manual, based on the precedent set by the SA 8000 Framework.
The Company seeks to give all our employees the best employment
standards as possible as per our Company Code of Conduct and Social
Accountability Policy. SBM Offshore operates with standards that in most
cases exceed international human rights and international labour guidelines.
This commitment implies in particular the continuous and traceable checking
in Myanmar of the Company’s suppliers and sub suppliers in relation to forced
labour and child labour in compliance with Social Accountability standards
set-out in the Company’s Social Accountability manual. SBM Offshore further
audits all suppliers and agencies against these internal procedures. It is
important to note that SBM Offshore cannot be audited against the actual
SA8000 Social Accountability standard due to the owners of the standard
(SAI Inc. of New York) prohibiting its use in Myanmar. Therefore the Company
and its suppliers in Myanmar are measured against SBM Offshore’s own
internal Social Accountability standards and procedures – which also meets
the requirements of SA8000.
Human Rights and Labour Standards
The Company engages all senior and national staff for the offshore fleet
operations under direct employment. The complement of the crews is
currently employed through approved manning agencies with the objective to
gradually fill these positions with national staff. In order to ensure compliance
with the UN Universal Declaration of Human Rights, the ILO Conventions,
and the OECD Guidelines for multinational enterprises (as addressed in the
Code of Conduct), the Company is in the process of certifying all operations
outside OECD countries in accordance with the standards issued in our Social
Accountability manual. The Company does not support or work with companies
that sustain forced and compulsory labour. Child labour and forced labour is
not tolerated by SBM Offshore and the Company actively implements the
Social Accountability norms as best it can into administrative practices.
This framework applies worldwide, wherever SBM Offshore operates.
The reason why SA 8000 cannot be applied offshore onboard the units, is
because its principles require each person to be given at least one day off
work in every seven days, which is not practical for an offshore operation.
The SA standard does not take into account aggregate days off work earned
after four weeks offshore, which is essentially what SBM Offshore does.
Extension of the implementation and certification of management systems
are presented in the updated Compliancy management systems table.
ISO 14001 accreditation in Angola: This is a voluntary implementation which
was piloted in Brazil in 2008, taking until the end of the year to accomplish.
In accordance with the implementation programme the targets for Angola
were therefore readjusted in to 2009.
SBM Offshore Corporate Social Responsibility Report 2008
Corporate Principles and Practices
SBMOffshore
Society andCommunities
Public Sector
Environment
Shareholders
Clients
Suppliers
Employees
Corporate Principles and Practices continued
13073_SBM_2008CR 13/5/09 13:01 Page 12
Status Mandatory Voluntary Social
December 31st 2008 ISM Code ISPS code ISO 9001 ISO 14001 OHSAS 18001 Accountability
Execution centres
GustoMSC – Schiedam, The Netherlands N/A
SBM Atlantia – Houston, USA N/A
SBM Malaysia – Kuala Lumpur, Malaysia N/A
Single Buoy Moorings – Monaco
Shorebases
Angola 1
Brazil 1
Malaysia 1
Myanmar 1
Nigeria 1
Thailand (Shorebase closed August 2008) 1 N/A N/A
Turkmenistan 1
Vietnam (closed) 1 1 1
Lease Operate Offshore Production Fleet
Angola
FPSO Kuito
FPSO Xikomba
EPSO Sanha
FPSO Mondo
FPSO Saxi Batuque
Brazil
FPSO Expadarte
FPSO Brasil
FPSO Marlim Sul
FPSO Capixaba
FPSO Espirito Santo
Myanmar
FSO Yetagun
Russia
FSO Okha
Contact completed December 2008
Thailand
FPSO Tantawan Explorer N/A N/A
Contract completed in August 2008
Turkmenistan
FSO Oguzhan
MOPU Saparmyrat Turkmenbasy
Vietnam
FPSO Rang Dong 1 N/A N/A
Contract completed November 2008
(Unit currently laid-up)
13SBM Offshore Corporate Social Responsibility Report 2008
Corporate Principles and Practices
Key
Compliant according to external audits
Target for 2008 met
Target for 2009
Target for 2010
Not currently operated by SBM Offshore
1 Management standard not applicable to the offices
Note: Due to an inconsistency, the version of this matrix in the 2007 CSR Report contained a
misstatement with regard to OHSAS 18001 compliance. This has been rectified in the above
matrix for 2008.
Based upon the successful audit carried out by ABS Quality Evaluations against BS OHSAS 18001
in the Macae Shorebase in Brazil and also one of our Brazilian FPSOs in 2008, the Company
is confident that compliance in all areas will be established – however ABS have signalled that they
intend to audit all the Company’s shorebases and FPSO’s worldwide and this audit schedule will
take some time to conclude.
The intention is to expand this accreditation throughout all regions in 2009 and 2010.
• Quality Management System Standard ISO 9001:2000;
• Environment Management System Standard, ISO 14001;
• Occupational Health and Safety Management System Standard, OHSAS 18001;
• SBM Offshore Social Accountability Manual (compatible with SA 8000 Standard);
• MARPOL Regulations 2002;
• ISM/ISPS Codes (International Safety Management/ International Ship and Port Facility Security)
Management System Compliance Table
13073_SBM_2008CR 13/5/09 13:01 Page 13
CSR Commitments and Performance
Priorities Commitments Accomplishments Future targets 2009 +
Recycling programs Recycling of office waste • Recycling is performed but
not monitored
• Commence a systematic approach
to manage office waste and
implement recycling procedures
Health at Work Ensure better health of employees • Implementation of anti-smoking
workshops
• Implementation of two ‘sports’
physical education training
centres for employees
• Encourage employees to get
fit by offering a very low
subscription fee to join
company training facilities
Health, Malaria and Aids Policies Available to all SBM offshore
personnel and contractors
• Health and Safety Policy on
Corporate Intranet site
• Publish Policy on company
website 2009
Reduce accidents where
we have control and direct
influence
Keep track of all incidents –
both for our own people and
our subcontractors
• New reporting system in
place SIRS
• Improved consolidated database,
improved reporting statistics
Single Incident Reporting
System (SIRS)
Implement SIRS wherever
SBM Offshore is present
• Already implemented on
80% of Offshore Floating
Production Units
• Two New Conversion projects
to have SIRS
Environment
Strengthen the Environmental
Management System
ISO 14001 EMS system
progressively in place for
full fleet
• Brazil fleet certified by ABS • Due to major workload
implementing the standard in Brazil,
the preparations for the ISO 14001
certification were delayed. West
African Fleet is targeted for 2009
Familiarise all employees,
contractors, and temporary
staff with our principles
and practices
Ensure the proper application
of the Code of Conduct
• Expanded Code of Conduct
revised in May 2007
• Whistleblower Policy published
on CIS and website
• To create further awareness of
the revised Code of Conduct to
be made to all our employees
• Establish an internal contact
for reporting on moral issues
Safety
14 SBM Offshore Corporate Social Responsibility Report 2008
Corporate Principles and Practices
Health
OHSAS 18000 A formal Health and Safety
Manual, inclusive of policies
and procedures
• To date compatible with OHSAS
18001, but not yet externally
certified according to OHSAS
standard
• Target to become certified in
accordance with OHSAS 18001.
• Four operating production units in
Brazil to obtain external verification
for the OHSAS 18001 standard
in 2009
Emissions monitoring
for offshore production
CO2 registers to be kept for all
Floating Offshore Production Units
• Brazilian fleet report to Client
annual emissions
• Two New FPSOs installed 2008
in Angola commenced monitoring
of air emissions
Keep Lost Time Accident
(LTA) to a zero
Zero accidents • Good performance result • Maintain our progress and
target on zero accidents
Code of Conduct
Principles and Corporate Governance
Health, Safety, Security and Environment H.S.S.E.
Corporate Principles and Practices continued
13073_SBM_2008CR 13/5/09 13:01 Page 14
15SBM Offshore Corporate Social Responsibility Report 2008
Corporate Principles and Practices
Priorities Commitments Accomplishments Future targets 2009 +
Brazilian Offshore Units
Nationalisation program
75% staff onboard all four of our
FPSOs are Brazilian nationals
• Four out of four FPSOs now
employ 75% nationals offshore
• Target for remaining of fleet was
met in 2008. Target for the FPSO
that will be located in the Cachalote
Field in 2010
Paenal Fabrication Yard,
Porto Amboim, Angola
Development of a Fabrication
yard that can boost local
Angolese community
• Phase one implemented • Due to a delay of future FPSO
contract awards in this region;
this community project has
been slowed down until contract
awards are obtained
Social Accountability
Implementation
Protect the interests of our
employees and those of our
subcontractors working in
non-OECD countries and
socially unstable communities
• Social Accountability Manual
implementation and certification
• Myanmar still ongoing with
implementation due to cyclone
catastrophe in May 08, target
for 2009. The Brazilian Macae
shorebase has Social
Accountability implemented
and passed compliance audits.
Angola is target for 2009+
Community Involvement
Human Resources
Responsibilities Towards Employees
Local Communities
13073_SBM_2008CR 13/5/09 13:02 Page 15
CSR Reporting Scope
This is the second separate CSR report issued by SBM
Offshore based on Global Reporting Initiative (GRI) G3
on a C+ level. In this report, SBM Offshore will present
the Company’s performance during the full calendar
year of 2008 from January 1st to December 31st.
The reported performance indicators are in line with
the GRI Guidelines and form part of the non-financial
reporting scope. Our first separate CSR report was
issued in 2008 for our 2007 activities.
SBM Offshore recognises the critical importance of providing factual
sustainability performance data and has sought external assurance
from PricewaterhouseCoopers. Our CSR reporting is under continuous
development. SBM Offshore is increasingly aware of best practices and
the practical implications of truly living up to the GRI reporting principles.
As a result, we have carried out a few modifications in this report which
also influence our past 2007 reporting:
• A change in methodology for calculating the carbon footprint of the
electricity consumption in the execution centres and corporate offices;
• Some delayed targets in the compliance management status table –
as not all of our ambitions stated in last year's report have proven to
be realistic with respect to timing – and a restatement with regard to
OHSAS 18001 compliance;
• Exclusion from the reporting scope of all air emissions resulting
from flaring.
Reporting SegmentsThe reporting scope for 2008 will be the same as for 2007 and is divided
into two core business segments;
Onshore Operations and Offshore Production
• Health and Safety: Workforce and Employee reporting will report on all
activities from both Onshore and Offshore segments
• Environmental performance is limited to Offshore Production activities only
(Construction yards’ environmental management systems are controlled
by our subcontractors)
Occupational Health and Safety ReportingPerformance Indicators cover the entire SBM Offshore Group for Onshore
Operations and Offshore Production. Indicators take into account all
permanent employees, part-time employees, local employment staff from
agencies and lastly the crew onboard the Offshore Production fleet for the
entire year of 2008.
Total manhours are published at Group-level as a whole and for each
segment separately. Each site submits its reporting to the relevant business
through the in-house corporate database Single Incident Reporting
System ‘SIRS’.
In 2008, the Group safety reporting scope covered 11 million hours to
generated by around 5,000 employees.
Onshore Operations reports on the performance of the four execution
centres and corporate functions offices.
Construction sites that report on Occupational Health and Safety
(OHSA) activities are reported separately from the SBM Offshore Group
performance indicators.
The safety statistics are reported as ‘The Lost Time Incident Frequency
(LTIF)’ and based on the U.S. Department of Labor’s Occupational Safety
and Health Administration (OHSA) International Industry Standards.
All statistical data for all incidents reporting on H.S.S.E. is registered and
managed through the SIRS database.
16 SBM Offshore Corporate Social Responsibility Report 2008
CSR Reporting Scope
Offshore productionOnshore operations
H.S.S.E. reporting
Employee reporting
Community
H.S.S.E. reporting
Employee reporting
Production and Storage units
Environmental
Community
13073_SBM_2008CR 13/5/09 13:02 Page 16
Environmental Management Offshore Production reports on the performance from the 15 production
and/or storage systems that were partially or fully active during 2008.
The environmental performance data reports on the units that fall within the
following boundary settings:
• SBM Offshore’s leased fleet producing and/or storing hydrocarbons under
lease and operate contracts during 2008;
• SBM Offshore exercises full operational management control; and
• SBM Offshore has full ownership or participates in a Joint Venture (JV)1
partnership, where the Company controls 50% or more of the shares.
Offshore Production activities cover environmental statistics resulting from
offshore production according to the chosen performance indicators relative
to GRI. This includes greenhouse gases referred to as GHG, which are:
N2O, CH4 and CO2, in addition other non GHG air emissions; such as
CO, NOX, SOX and VOC. The air emissions calculation from the offshore
production units is performed using as the basis for the calculation the
method from the UK Offshore Operators Association limited (UKOOA).
All air emissions are reported in accordance to the GRI. The environmental
spills are also recorded, even if they are insignificant volumes. All reported
air emissions exclude flaring, as this factor is reported by our Clients.
Contained and/or accidental spills to the environment are also included,
although the volumes are far below the International IPIECA2 /API Standard
for Oil and Gas Industry Guidance on Voluntary Sustainability Reporting.
The chosen performance indicators covering economic, H.S.S.E., workplace
and community are also consolidated in the appendices at the end of
the report.
1 Please see table: Overview of 2008 Offshore Production/Storage Units, including Joint Venture
Ownerships in 2008. See Page 9.2 IPIECA core indicator ENV-1: Hydrocarbon Spills to the Environment: Number and volume of
hydrocarbon liquid spills greater than 1 barrel (159 litres) that reach the environment.
EmployeesThe Corporate Human Resources data covers 100% of the SBM Offshore
group workforce worldwide in order to produce a breakdown of the workforce
by gender, age category and nationality for the entire year 2008.
It includes all our staff who are assigned on permanent and fixed-term
contracts, employee hires and departures, total locally employed staff from
agencies and all crew working onboard the offshore production units.
SBM Offshore’s subcontractors’ performance executed at the construction
yards is also reported.
As for the CSR report of 2007, the CSR 2008 reporting for the Human
Resources section is once more divided in two categories: White Collar
and Blue Collar.
White Collar is defined as: Employees working at our corporate and
engineering offices and four execution centres. The H.R. reporting indicators
includes our permanent and part-time workforce ratio, broken down into
workforce ratio of female versus male.
Blue Collar is defined as: Employees working in project execution and
construction activities, including the personnel of our subcontractors and
offshore personnel employed onboard the offshore production units.
Performance Reviews and Training
Every year, SBM Offshore conducts annual performance reviews for
employees. Globally, the Company utilises the Hay system to grade and
evaluate all permanent staff.
Total training hours for all Company staff, both Blue Collar and White
Collar, are included in the report.
Employee Benefits
SBM Offshore has an attractive pension benefit system for all employees.
As a multi-national company, SBM Offshore operates various pension
schemes dependent on the country in which operations take place.
The schemes are funded through payments to insurance companies or
are defined as multi-employer plans.
The Company has both defined benefit and defined contribution plans.
Social and CommunityThe Social and Community section reports on 2008 relations between
SBM Offshore and the local communities where we operate.
Social and community reporting includes issues such as human rights and
active contribution to community well-being, creating interdependency
and scrutinising the impacts we have as a company on the environment;
and endeavouring to improve these impacts by use of the Company’s
in-house expertise.
Stakeholder EngagementTo date, SBM Offshore has not yet engaged in any stakeholder dialogue
specifically related to its overall CSR performance and reporting.
The Company has throughout its growth at all times encouraged an open
and respectful engagement with all our stakeholders. This takes place at
annual shareholders meetings; with our Company Employee delegates,
with our Clients and lastly with NGOs.
Main stakeholder groups identified in this report are our employees, client
and business partners, capital providers, shareholders, suppliers and
NGOs, local authorities and local host communities in the countries where
we have a presence.
17SBM Offshore Corporate Social Responsibility Report 2008
CSR Reporting Scope
13073_SBM_2008CR 13/5/09 13:02 Page 17
Health, Safety, Security and Environment (H.S.S.E.)
SBM Offshore Corporate Social Responsibility Report 2008
Health, Safety, Security and Environment (H.S.S.E.)18
The SBM Offshore NV Group of Companies, are committed to supporting, implementing and continually improving the Health, Safety, Security and Environment (H.S.S.E.)requirements within the Group’s business activities set out in the H.S.S.E. charter.
13073_SBM_2008CR 13/5/09 13:02 Page 18
On the 1st of July 2008, the SBM Offshore H.S.S.E.
(Health, Safety, Security, and Environment) organisation was
restructured to reflect the expanding growth of the company
operations within the construction yards and offshore in the
fleet of FPSOs. The new position of Corporate Head of
H.S.S.E. was introduced.
The Corporate Head of H.S.S.E. has the overall responsibility
for ensuring that a high level of H.S.S.E. excellence is
developed, promoted and achieved within the Group
Companies and all business activities. He is responsible for
all health, safety, security and environmental support within
the SBM Offshore Group, covering fleet operations as well
as worldwide construction and installation activities, and
has a direct reporting line to the Group CEO.
The Group H.S.S.E. managers in the execution centers are
responsible to their own line management for an effective
H.S.S.E. support. They also have a reporting line to the
Corporate Head of H.S.S.E. that ensures he is aware of the
current key H.S.S.E. issues, and if necessary he can advise,
or take any remedial actions that may become necessary.
The new Corporate H.S.S.E. reporting structure ensures that
an enhanced fit for purpose Group H.S.S.E. management
system is in place, and complements the direct responsibility
of line management to ensure an effective and high standard
of H.S.S.E. excellence throughout the SBM Offshore Group.
The Corporate H.S.S.E. strategy is to continually enhance,
develop and nurture the Group H.S.S.E. management
system, so that the Company continues to be a world leader
in H.S.S.E. performance.
The SBM Offshore NV Charter is very specific in the intent
to ensure a safe place of work driven by top level procedures
under the management and implementation of competent
personnel. There are five key essentials for the safe operation,
i.e. Competency, Effective Procedures, Commitment from
management, from the work force, and a proactive approach
all within an effective management culture.
19SBM Offshore Corporate Social Responsibility Report 2008
Health, Safety, Security and Environment (H.S.S.E.)
H.S.S.E Charter
The SBM Offshore NV Group of Companies, are committed to
supporting, implementing and continually improving the Health, Safety,
Security and Environmental (H.S.S.E.) requirements within the Group’s
business activities by ensuring the following:
• All Group personnel will safeguard persons and assets associated
with our business activities by identifying all known hazards and
enacting measures to eliminate the risk that they occur
• H.S.S.E. will never be compromised in order to achieve any other
business objective
• The active participation and input from Group Personnel in H.S.S.E.
matters will be encouraged by Group Management
• All Managers within the Group have the responsibility to promote and
provide training to personnel on H.S.S.E. and to verify the compliance
of the Group to the H.S.S.E. Requirements
• All Personnel within the Group must strive to thoroughly understand
implement the H.S.S.E. requirements pertaining to their work
• H.S.S.E. Regulations applicable to all Group operations will be
understood and met
• The responsibility for ensuring that a high level of H.S.S.E. excellence
is provided to the Board of Management, and to the Company line
management, rests with the Corporate Head of H.S.S.E.
13073_SBM_2008CR 13/5/09 13:02 Page 19
20
Heath and SafetySBM Group Heath and Safety Performance
The Health and Safety section is split into two parts for
reporting purposes. These are the engineering design and
construction phase of a product (referred to as Onshore
Operations), including installation services and the fleet of
offshore production units that are leased and operated on
long-term contracts (referred to as Offshore Production).
The reporting scope will cover Onshore Operations and Offshore Production.
Health and Safety awareness relative to both parts of SBM Offshore’s
activities has always been a key element of the Company’s Management
System. The system is continuously driven and enhanced by line
supervision, both onshore and offshore. The Company endeavours to
continuously improve the quality of the implemented Health and Safety
procedures and to mitigate all Health and Safety risks. SBM Offshore sees
this as a duty of care to protect all personnel within each and every type
of operation from potential health hazards. Our goal is for no harm to come
to any of the workforce, either to SBM Offshore employees or the personnel
belonging to our contractors and sub-contractors working on our projects.
The most important target is zero accidents and zero incidents and the
highest standards of environmental protection.
The Health and Safety performance of SBM Offshore was better in 2008
than the industry average as reported by IMCA (International Marine
Contractors Association) survey of 100 peer company statistical records.
The key parameter, i.e. the TRIFR (Total Recordable Incident Frequency
Rate) for SBM Offshore being below the average TRIFR as recorded in
the IMCA records for our colleagues in the industry, i.e. SBM Offshore is
experiencing on average less injurious accidents to the workforce per
number of hours worked, than our peers. Table 2 illustrates the Onshore
Operations manhours and frequency rates during 2008. Table 1 reflects
23 construction yards covering the Far East, Middle East, USA, Africa,
and Europe covering an average of 36 projects during 2008. Table 3
shows the results from the Offshore Production fleet.
SIRS (Single Incident Reporting System)
The SIRS application has continued to expand within the Group activities
covering the construction yards, shore bases, and offshore in the fleet. SIRS
training sessions have been held and this has resulted in a professional and
effective use of the system. The regular Monaco office SIRS meetings have
ensured a continuing development and enhancement of the system based
on the experiences of those using the application.
* H.S.S.E. performance in this section includes all 19 offshore systems
TASK (Total Application of Safety Knowledge)
The TASK system was established at the Singapore Keppel construction
yard, in the first instance for the Shell Espirito Santo FPSO project and it has
been well received. The TASK initiative commences in the construction yards
and continues through the operating life cycle of the FPSO. TASK initiative
implementation has also commenced in the Abu Dhabi construction yards.
TASK essentially concentrates upon key H.S.S.E. elements that must be
effectively established for the generation of the safe working environment.
To ensure that this objective is satisfied, H.S.S.E. subjects are discussed in
safety meetings; audits of working procedures are established; with further
support by the implementation of TASK safety posters.
Onshore Operations
The SBM Offshore Group hours are calculated from the main execution
centres and the corporate functions offices. These include manhours worked,
incidents and frequency rates and are calculated from all hours recorded
on TREG (Time REGistration) and any incidents recorded at SBM Offshore
Offices and premises are shown.
Regional Subcontractors 2008 Performance
Yard fabrication – Construction Operations Total Manhours
Asia 13,093,944
Middle East 19,345,350
Americas 1,094,799
Africa 619,024
Europe 175,730
TOTAL 34,328,847
Exposure Hours and Incidents Frequency Rates
Onshore Production Subcontractors
January 1st – December 31st 2008 (All Group Offices) (Conversion Yards)
Total Manhours 5,766,269 34,328,847
Fatalities 0 0
Lost Time Incidents (LTI) 4 20
Restricted Work Cases (RWC) 0 38
Medical Treatment Case (MTC) 2 18
Total Recordable Incidents (TRI) 6 76
*International Marine Contractors
Association IMCA TRIFR 0.61
Total Recordable Incident Frequency Rate (TRIFR) 0.21 0.44
Near Miss Incidents (NMI) 2 86
Days Lost (LTIs) 28 348
LTI Frequency Rate (LTIFR) 0.13 0.11
TRIFR calculation
F + LTI + RWC + MTC x 200,000 :– Manhours Worked
IMCA Statistics based on the International Marnine Contractors Association
Safety Statistics for 2007 Report: IMCA SEL 09/08
11mTotal ManhoursSBM Offshore GroupGroup Offices and Offshore Production Fleet
Health, Safety and Security
SBM Offshore Corporate Social Responsibility Report 2008
Health, Safety, Security and Environment (H.S.S.E.)
Exposure hours and Incidents frequency rates
SBM Group All Group offices
Onshore Operations Offshore Prodcution
IMCA
SBM Offshore Group
5,766,269 0.21
0.44
0.60
Offshore Prodcution
5,320,943
SubcontractorsConversion yards
34,328,847
13073_SBM_2008CR 13/5/09 13:02 Page 20
21
5.7mTotal Manhours
Onshore Operations (All Group Offices)
5,766,269 (2007: 4,912,362)
SBM Offshore Corporate Social Responsibility Report 2008
Health, Safety, Security and Environment (H.S.S.E.)
5.3mTotal Manhours
Offshore Production (Offshore Production Fleet)
5,320,943 (2007: 3,557,995)
34mTotal Manhours
Main subcontractors
Yard Fabrication Construction Operations
34,328,847 (2007: 44,153,500)
Offshore Production
This section covers the Health and Safety performance of the Company’s
Offshore Production Units where SBM Offshore has operational
management of production as well as the responsibility for onboard
personnel (SBM Offshore’s management personnel, ship-crew, and
short-term visitors onboard; such as sub-contractors for maintenance).
The TREG system is not utilised for the Offshore Production Fleet.
Exceptional Health and Safety performance is recognised as an indicator
of the effective overall management of SBM Offshore.
Exposure Hours and Incidents Frequency Rates
January 1st – December 31st 2008 Offshore Production
(Offshore Production Fleet)
Total Manhours 5,320,943
Fatalities 0
Lost Time Incidents (LTI) 1
Restricted Work Cases (RWC) 5
Medical Treatment Case (MTC) 10
Total Recordable Incidents (TRI) 16
*International Marine Contractors
Association IMCATRIFR 0.94
Total Recordable Incident Frequency Rate (TRIFR) 0.60
Near Miss Incidents (NMI) 81
Days Lost (LTIs) 5
LTI Frequency Rate (LTIFR) 0.04
TRIFR calculation
F + LTI + RWC + MTC x 200,000 :– Manhours Worked
SecuritySecurity remains a high priority item within the SBM Offshore
Group both onshore and offshore.
The threat to the Group activities is countered by well proven procedures that
are based on good practice risk assessments. The ISPS (International Ship
and Port Facility Security) Code is implemented for the offshore fleet activities.
This Code is now well implemented and effective. Journey management
procedures are also well established covering the safety of SBM staff and
subcontractors when travelling in the Company areas of operation worldwide.
SBM Offshore hosted a security forum in Monaco during 2008 attended
by representatives from the industry. This forum was organised following
the First Security Forum held by Technip in October 2007.
This resulted in a good dialogue and transfer of ideas and procedures for the
enhancement of security. It was agreed that an annual event should be held
covering security issues both onshore and offshore. The conclusion was that
this forum added value and knowledge to our offshore locations that could
face heightened levels of security risk.
SBM Offshore operates in some of the more hazardous regions of the world,
which necessitates a more rigorous approach to the safety and security of
people and assets in those countries. A specialist security advisor was
engaged at the beginning of 2007 to address these specific security concerns.
Security has been enhanced by the introduction of more appropriate security
procedures and training for personnel who work in or visit the more hostile
environments and by improved internal auditing and management of security.
Related training is being provided to local staff, including guards and drivers,
in these regions.
13073_SBM_2008CR 13/5/09 13:02 Page 21
22
Environmental Management
Environmental ManagementResponsible Offshore Production Operations
Our Clients are increasingly concerned that the activities
carried out by SBM Offshore on their behalf are conducted in
the most environmentally friendly manner and do not result
in damage to any of the fragile local ecological systems.
SBM Offshore Production Operations
SBM Offshore is aware of the potential environmental impacts associated
with the handling of hydrocarbons offshore and is fully committed to safe
operations and protection of the environment. Within the broad scope of
environmental aspects related to its operations, special attention is paid
to avoidance of oil leakages, to the prevention of unnecessary flaring or
emissions to water and air, and to minimising the use of energy.
Our Company standards and code of practice tailored for each production
unit provides detailed requirements for the control of the work and
integrity management onboard the vessel:
• To comply with local environmental laws;
• To comply with MARPOL, the international marine environmental
convention to minimise pollution of the seas;
• To ensure high standard Environmental Management Systems (EMS),
meeting the requirements of ISO 14001;
• To control and reduce pollution emissions and to minimise waste
production;
• To comply with Company procedures for the safe handling, storage,
and disposal of hazardous waste;
• To raise environmental awareness through training and instruction.
Offshore Production Activities and the Environment (ISO 14001)
The Environmental Management Systems (E.M.S) for the fleet of offshore
production units comply with international ISO 14001 requirements.
Environmental Management Systems and stringent codes of practices
are in place onboard each of SBM Offshore’s production units where SBM
Offshore controls the operational management for the offshore production.
The offshore production sites, including their respective shore-bases, are
all operating under SBM Offshore Management Systems.
Emissions Reporting
We report on environmental performance indicators where the Company
is in charge of the operational management for the offshore production.
SBM Offshore is not the owner of the well stream fluids and gas forming the
product that is produced offshore and all emissions stated are for the direct
energy consumption of the 15 offshore production/storage units’ to keep the
systems operating. Emissions from flaring are excluded as this subject is
normally reported on by Clients.
SBM Offshore is not only committed to record emissions which have a
direct impact on the environment, but to also consolidate its preventative
measures and identify emission points which may increase the possibility
of an environmental release. SBM Offshore has planned the integration
of new environmental reporting criteria within SIRS in order to provide
more accurate and detailed environmental reports on any released
effluents whenever technically achievable, together with the location of
the environmental loss, the identification of the affected media, as well as
contained or not. The Company is engaged in achieving more sustainable
objectives and in complying with international oil industry commitments.
This is illustrated by the plan to certify the Angolan Fleet with the ISO 14001
standard by the end of 2009, following on from the certification obtained for
the Brazilian Fleet in 2008.
Fleet Environmental Loss Statistics
SBM Offshore measures all unintentional and intentional emissions to
land, sea, and air on a regular basis, with registration being implemented
in the SIRS database. In 2008 the offshore production fleet experienced
26 recordable environmental events, of which 22 were contained within
the marine unit spaces, without any release to the sea, however there were
four minor releases to the sea. The discharges to sea were all reported as
‘sheen’ as per visual observation and were generated by produced water
and oil effluents. This excludes the environmental incidents statistics from
the production floating units that are in Joint Venture ownership and where
operational control is not managed by SBM Offshore.
It should be noted that in all other incidents involving leakage of oil, such
leakage has been contained on board the units via drain systems, which
form an integral part of the facilities design.
SBM Offshore Corporate Social Responsibility Report 2008
Health, Safety, Security and Environment (H.S.S.E.)
156.4Total production of hydrocarbons from
the 15 Offshore Production Units 156.4 Million
barrels of oil (MMbbls)
13073_SBM_2008CR 13/5/09 13:02 Page 22
23SBM Offshore Corporate Social Responsibility Report 2008
Health, Safety, Security and Environment (H.S.S.E.)
Contained Spills Offshore Production – 16 units 2008 Total number of Environmental events (Actual and Potential)
In 2008 the total production of hydrocarbons from the 15 offshore production systems totalled 156,4 MMbbls
26 22 contained 4 minor releases
Kuito
5
3 3 3
2
1
22
4
1
0 0 0 0 0 0
Xikomba Sanha Mondo Saxi-Batuque
Espadarte Brasil Marlim Sul
Capixaba Espirito Santo
Tantawan Rang Dong
Yetagun Okha Oguzhan
Total Production of Hydrocarbons
Offshore Production by Region
Units MMbbls Offloads
Asia 3 15,7 49
Brazil 4 57,8 94
Caspian 2 2,1 54
Russia 1 6,8 11
West Africa 5 74 135
Note: the Espirito Santo’s two incidents occurred at the conversion yard in 2008. Offshore production will commence in 2009.
13073_SBM_2008CR 13/5/09 13:03 Page 23
24
Environmental Management continued
SBM Offshore Corporate Social Responsibility Report 2008
Health, Safety, Security and Environment (H.S.S.E.)
Offshore Production Fleet Emissions to Air
The primary emission sources for Offshore Production are the Greenhouse
Gases (GHG) from combustion and from flaring, which occurs during
offshore operations. Flaring represents approximately 50% of these
emissions. For oil and natural gas operations resulting from our offshore
production units, carbon dioxide (CO2) and methane (CH4) are usually the
most significant components of produced greenhouse gas emissions (GHG).
Nitrous oxide (N2O) is emitted in very small quantities from the combustion
of fossil fuels and may be insignificant compared to CO2. Direct emissions
include any emissions associated with the production of energy by the entity,
such as steam or electricity used by the entity’s facility. Main sources of the
combustion GHG are emissions from gas usage for boilers and turbines,
diesel usage for engines, boilers and turbines. The following figures exclude
flaring as previously mentioned. Comparison data from 2007 and 2008
illustrates the CO2 emissions to air, mainly from combustion emissions as
explained above. In 2008 the CO2 emissions from the West African offshore
production fleet increased due to two new FPSOs starting production.
Offshore Production Emissions to Air 2007 2008 Change
CO2 from other sources tonnes 13 Units 15 Units +/- %
Asia 111,547 142,904A
28
Increase in CO2 emissions due to lower production from vessels and increased
usage of Marine Gas Oil for Boilers and Turbines etc.
Brazil 831,629 846,021A
2
Although CO2 emissions from flaring have decreased in 2008, emissions from other sources
e.g. turbines, boilers, etc have increased slightly over the 2007 figure; this is due to an increase
in usage of Marine Gas Oil (MGO) as produced gas available for fuel has reduced.
Caspian 3,798 4,008A
8
Increase in CO2 emissions from other sources due to increased fuel gas consumption to boilers
during 2008 and increase in Marine Gas Oil (MGO) consumption to vessel utilities e.g. Cranes,
Fire pumps etc in 2008.
Russia 7,176 5,125G
29
Decrease in CO2 from other source, i.e. boilers due to 135 days reported activity in 2008
as opposed to 178 days reported activity in 2007.
West Africa 342,551 739,331A
116
Increase in CO2 emissions from other sources in 2008 again due mainly to new FPSO’s
Saxi and Mondo coming on stream during 2008.
COMBINED 1,296,735 1,737,389 34%
The overall increase is mainly due to the two new additions to the offshore production fleet which started up in 2008.
Indirect Energy Consumption by Primary Source – Electricity
Onshore Operations: Four Execution Centres and Corporate Offices 2007 2008
Total electric usage kWh 10,056,021 10,554,568
Total metric tonnes CO2 equivalent 3,925 4,009
The Indirect electricity consumption CO2 equivalent stated in CSR report for 2007 was calculated based on DEFRA methodology.
For 2008 a change in methodology for calculating the onshore CO2 equivalent for the kWh data was adopted. The WRI Greenhouse Gas Protocol
(GHG Protocol) conversion was chosen as a new method, since its conversion factors is country specific rather than one factor for everything irrespective
of geographical location.
For more information on the GHG protocol and country specific calculation methods, please see their website: www.ghgprotocol.org/calculation-tools
13073_SBM_2008CR 13/5/09 13:03 Page 24
25SBM Offshore Corporate Social Responsibility Report 2008
Health, Safety, Security and Environment (H.S.S.E.)
Greenhouse Gas Emissions in 2008
2008 Greenhouse Gas Air Emissions from Offshore Production Activities Excluding Flaring
Values expressed in millions of tonnes CO2 equivalents
CO2 CH4 N20
Brazil
Marlim Sul 0.236 0.002 0.006
Brasil 0.167 0.001 0.004
Espardate 0.175 0.001 0.004
Capixaba 0.268 0.002 0.006
Caspian
MOPU Turkmenistan 0.004 0.0000 0.0001
Thailand
Tantawan Explorer 0.093 0.0006 0.0022
Vietnam
Rang Dong 1 0.046 0.003 0.001
Myanmar
Yetagan 0.005 0.0000 0.0001
Russia
OKHA 0.005 0.0000 0.0001
West Africa
Xikomba 0.103 0.001 0.002
Mondo 0.281 0.002 0.007
Saxi 0.049 0.000 0.001
Kuito 0.301 0.002 0.007
Sanha 0.006 0.000 0.000
TOTAL 1.737 0.011 0.041
Source: DEFRA – Environmental Key Performance-Indicators; Reporting Guideline for UK Business, Chapter 4. Page 28 4.1 Emissions to Air KPI 1 Greenhouse Gases.
Note: Carbon dioxide equivalency is a quantity that describes, for a given mixture and amount of greenhouse gas, the amount of CO2 that would have the same global warming potential (GWP), when measured
over a specified timescale (generally, 100 years). Carbon dioxide equivalency thus reflects the time-integrated radiative forcing, rather than the instantaneous value described by CO2e.
Other Atmospheric Emissions Excluding Flaring
All values are expressed in Tonnes
CO NOx SO2 VOC
Brazil
Marlim Sul 250 518 3 4
Brasil 184 407 8 4
Espardate 186 388 3 3
Capixaba 282 578 2 4
Caspian
MOPU Turkmenistan 9 35 4 1
Thailand
Tantawan Explorer 115 306 15 5
Vietnam
Rang Dong 1 51 113 2 1
Myanmar
Yetagan 11 49 5 2
Russia
OKHA 19 82 9 3
West Africa
Xikomba 117 275 8 4
Mondo 306 666 10 6
Saxi 55 128 3 2
Kuito 329 718 12 7
Sanha 15 64 7 2
TOTAL 1,928 4,327 91 46
Note: In the CSR report 2007, all air emissions except CO2 were stated as total from all offshore production activities which included flaring. For 2008, the CSR will report all emissions from offshore production
which excludes flaring.
13073_SBM_2008CR 13/5/09 13:03 Page 25
Responsibilities Towards Employees
SBM Offshore Corporate Social Responsibility Report 2008
Responsibilities Towards Employees26
SBM Offshore prides itself in being an equal opportunityemployer. The Company considers that cultural diversity brings an extra dimension and added value to the business.SBM Offshore employs staff of more than 55 differentnationalities and the interaction of these varied cultures is seen to be beneficial in the understanding and resolution ofwork-related problems. SBM Offshore regards diversity as an advantage. Having a diverse workforce contributes to ourgrowth strategy, providing competitive power and the ability to build stable relations.
13073_SBM_2008CR 13/5/09 13:03 Page 26
27SBM Offshore Corporate Social Responsibility Report 2008
Responsibilities Towards Employees
Total Global WorkforceThe total headcount based on the number of employees registered on
December 31st 2008 was 5,151 employees.
The Global Workforce accounts for the entire SBM Offshore Group of
Companies, which consists of Onshore Operations and Offshore Production
segments. A survey of the worldwide workforces hired under permanent
and fixed-term contracts shows the breakdown of the workforce by segment,
employment type, region, gender, and age.
The workforce can be broadly divided into the two following categories:
White Collar and Blue collar employees.
White collar workers are occupied onshore with engineering design,
support, and managerial positions in addition to being responsible for the
management of the offshore production fleet.
Blue collar employees are either working as construction workers in the
Onshore Operations segment or employed in the Offshore Production
segment onboard the fleet of floating production and/or storage units.
SBM Offshore’s workforce is distributed geographically in our four execution
centres, the construction site locations and the offshore fleet as follows:
Permanent Employee Headcount by Location
Employment Contracts
SBM Offshore employs personnel either on a permanent contract or
temporary (agency) contract. At the end of 2008, the headcount for
permanent contracts totalled 3,617 employees representing 70% of the
total workforce and the headcount for temporary (agency) contracts totalled
1,534 employees representing 30% of the total workforce.
Total Workforce by Employment Type
The 3,617 permanent employees are distributed over diverse geographical
locations comprising of the 4 execution centres, corporate functions
office, shorebases, services, construction sites and the offshore production
fleet personnel.
Permanent Employees by Location and Gender
Ratio
Female Male Total Female
Onshore Operations
Schiedam, Netherlands 71 322 393 18%
Houston, USA 160 380 540 30%
Kuala Lumpur, Malaysia 85 214 299 28%
Monaco 294 666 960 31%
Marly, Switzerland 19 5 24 79%
Worldwide Construction Sites
and Shorebases 135 350 485 28%
Offshore Production
Worldwide Offshore Fleet 26 890 916 3%
TOTAL 790 2,827 3,617 22%
Schiedam,Netherlands
Houston,USA
Kuala Lumpur,Malaysia
Marly,Switzerland
Monaco WorldwideConstructionSites andShorebases
Employees by Location
Onshore Operations
Offshore Production
530643
1,050 1,025
1,562
317
24
WorldwideOffshore Fleet
5,151 +17% increase from 2007
Permanent vs Agency Contracts
2 Contract employees 1,534
TOTAL 5,151
1 Permanent employees 3,617
2
1
13073_SBM_2008CR 13/5/09 13:03 Page 27
Full-time and Part-time Employees
Full time staff comprise of 5,006 employees working a normal 40 hours week
and part-time staff of 127 persons working less than a 40 hour week. 3.5% of
the total permanent workforce in 2008 was employed on part-time contracts.
The part-time employees employed with SBM Offshore Group are distributed
as follows:
Part-time Employees by Location
Total % %
Part-time Male Female
Onshore Operations
Schiedam, Netherlands 83 49 51
Houston, USA 3 67 33
Kuala Lumpur, Malaysia 0 0 0
Monaco 27 19 81
Marly, Switzerland 10 0 100
Worldwide Construction Sites
and Shorebases 0 0 0
Offshore Production
Worldwide Offshore Fleet 4 100 0
TOTAL 127 40 60
Temporary Employees
The Company uses temporary employees to meet peak workloads;
however the policy is not to exceed a ratio of 1:2 of temporary employees
compared to permanent employees, in order to maintain efficiency and keep
core knowledge and expertise in-house.
The Company particularly limits temporary employees in sensitive areas
such as Research and Development, High Pressure Swivel Technology,
Marketing and Sales, Proposal Development, Project Management,
and Procurement.
The temporary employee breakdown is distributed over the six geographical
locations plus construction site locations as follows:
Temporary Employees by Location
Temporary TotalTotal % Group
Onshore Operations
Schiedam, Netherlands 131 25 530
Houston, USA 103 16 643
Kuala Lumpur, Malaysia 18 6 317
Monaco 417 30 1,050
Marly, Switzerland 0 – 24
Worldwide Construction Sites
and Shorebases 219 31 1,025
Offshore Production
Worldwide Offshore Fleet 646 41 1,562
TOTAL 1,534 30 5,151
Permanent Employee Turnover
A significant challenge for the company is to remain an attractive employer
providing competitive salaries and benefits which retain the employees for
the long term. In 2008 the employee turnover was 11%, which is fairly low
compared to the average for similar industries in Europe and the U.S.A. and
can be attributed to the Company providing equitable remuneration, good
working conditions, and very interesting technical challenges that provide
professional satisfaction.
The SBM Offshore Group’s turnover of permanent employee during 2008
was 397 employees (11%). This figure includes 122 people from the offshore
production fleet who are nationals from Angola and Brazil, where turnover of
staff is at much higher levels than in the more stable areas of employment in
Europe, the U.S.A., and Malaysia.
Turnover from Onshore Operations sector accounted for 217 employees
in 2008 (6.1%). This accounts for those employees who left to further their
careers at other companies, but also includes secondary reasons such
as married employees who left because their partner resigned. The latter
is noted as resignation for personal reasons and does not reflect in any
detrimental way the Company’s operations.
SBM Offshore Corporate Social Responsibility Report 2008
Responsibilities Towards Employees28
Responsibilities Towards Employees continued
Full-time and Part-time Employees
2 Part-time employees 127
TOTAL 5,151
1 Full-time employees 5,024
2
1
Part-time Employees by Location
Onshore OperationsOffshore Production
127FemaleMale
49%
51%83
67%33%
3 0 19%
81%
27
100%
10
Schiedam,Netherlands
Houston,USA
Kuala Lumpur,Malaysia
Marly,Switzerland
Monaco WorldwideOffshore Fleet
0
WorldwideConstructionSites andShorebases
100%4
13073_SBM_2008CR 13/5/09 13:03 Page 28
Permanent Employees Onshore Operations and
Offshore Production Turnover
Turnover TotalTotal % Group
Voluntary 304 8.4
Dismissal 66 1.8
Retirement 24 0.7
Fatalities non work related 3 0.1
Fatalities work related 0 0.0
TOTAL 397 11.0 3,617
Permanent Employee Turnover by Location
Turnover TotalTotal % Group
Onshore Operations
Schiedam, Netherlands 27 6.9 393
Houston, USA 80 14.8 540
Kuala Lumpur, Malaysia 24 8.0 299
Monaco 67 7.0 960
Marly, Switzerland 4 16.7 24
Worldwide Construction Sites
and Shorebases 73 15.1 485
Offshore Production
Worldwide Offshore Fleet 122 13.3 916
TOTAL 397 11.0 3,617
Onshore Operations Turnover by Gender – Permanent Employees
Turnover TotalTotal % Onshore
Male 157 8.1 1,937
Female 60 7.9 764
TOTAL 217 8.0 2,701
Onshore Operations Turnover by Age – Permanent Employees
Turnover TotalTotal % Onshore
Age <30 33 1.2%
Age 30-50 134 5.0%
Age >50 50 1.9%
TOTAL 217 2,701
Workforce Diversity
The offshore engineering business has long been dominated by male
staff, The Company has however since 15 years adopted a recruitment
strategy to increase the percentage of female employees in the onshore
segment. This initiative has been successful to some degree, although the
number of graduates coming out of engineering schools and universities is
still predominantly male, and this restricts the gender ratio in engineering
positions. At the end of 2008 the ratio of female to male permanent
employees from Onshore Operations and Offshore Production was
as follows:
Voluntary Resignation
SBM Offshore investigates every resignation by means of an interview
between the employee and the relevant H.R. department. The intention is
to understand the exact reason(s) for the resignation with the aim of gaining
knowledge and making appropriate changes, if necessary.
Monaco (7.0%) and Schiedam (6.9%) are quite stable areas where turnover
is low, but Houston (14.8%) is more dynamic and suffers from significant
market turbulence due to the large number of oil and gas related employers
in the Houston area.
Presently in Kuala Lumpur, SBM Offshore has relatively low statistics
(8.0%), but it should be noted that the Company has been operating in
this area for less than three years.
3,617 Total Group Permanent Employees (excluding temporary contracts)
127 Total Part-time Employees
5,151 Total Group Employees
29SBM Offshore Corporate Social Responsibility Report 2008
Responsibilities Towards Employees
Permanent Employee Diversity
2 Male 2,827 78%
TOTAL 3,617
1 Female 790 22%2
1
Permanent Employee Turnover by Location
2
11 Schiedam, Netherlands 27
2 Houston, USA 80
3 Kuala Lumpur, Malaysia 24
4 Monaco 67
5 Marly, Switzerland 4
6 Worldwide Construction Sites
and Shorebases 73
7 Worldwide Offshore Fleet 122
TOTAL 397
3
4
5
6
7
13073_SBM_2008CR 13/5/09 13:03 Page 29
30
Developing CapabilitiesIn 2008 the average number of training hours per
employee, calculated over the entire Company in the
Onshore Operations sector was 38 hours per employee.
SBM Offshore provides a range of development opportunities to enhance the
capabilities of our employees.
These include training courses, international assignments, mentoring, team
development days, workshops and seminars. The training programmes
for all permanent staff have continued throughout the Company in 2008.
For onshore staff, external training is promoted for specific technical subjects’
courses, attendance at seminars and conferences and management
development courses. For internal training, the main focus is on technical
courses, language lessons and MS Office classes.
The Training Indicators for SBM Offshore Group Onshore and Offshore
permanent employees by department are set out below:
Employee Training Hours Onshore Operations and Offshore Production
Total Total Total training
number of number of hours per
training hours employees employee
Engineering 26,653 1,062 25.1
Operations 72,967 923 79.1
Services 3,496 160 21.9
Administration 3,260 235 13.9
Management 3,078 192 16.0
Offshore Production 27,821 1,045 26.6
TOTAL 137,275 3,617 40.15
Onshore Operations Employees – White Collar Worker
White Collar workers are office-based staff in Europe, the U.S.A., and
Malaysia. The Training Indicator includes hours expended by Engineering,
Operations, Project Management staff, Services, Administration,
Management, and other onshore staff.
Permanent Employees Onshore Operations – Training
Training
indicator
White collar hours/
Total hours for training 2008 employees employee
43,898 2,087 21.03
This training covers both internal training, which is performed by Company
staff or consultants, and external training, which is performed outside the
Company’s work centres by specialist training organisations.
The participants are Engineering, Administration, Project Management,
and Production Management staff.
Both external and internal training requires careful management so that
project priorities are met, focusing and adapting training in accordance
with priorities that are linked to the market and projects.
SBM Offshore focuses training on young graduates and new staff who
have been employed from allied industries, ensuring that they are familiar
with the special risks and requirements of offshore floating systems.
The highest indicators are from the engineering division totalling 25.1 hours
per employee.
The lowest indicator is from administration division 13.9 hours per employee,
for which each office has a relatively stable and experienced staff population,
with adequate training at this level.
SBM Offshore Corporate Social Responsibility Report 2008
Responsibilities Towards Employees
Responsibilities Towards Employees continued
13073_SBM_2008CR 13/5/09 13:03 Page 30
31
23.9 2008 Training Indicator
Offshore Production
Offshore Production Employees – Blue Collar Worker
SBM Offshore has a policy of nationalising its Offshore Production Fleet
crews and this requires in-depth training programs to be run to initially train
staff who have little or no offshore experience, so that they are competent
to work offshore. This training is accomplished in training schools in both
Angola and Brazil and concerns nationals who have been hired with little
professional offshore experience.
Permanent Employees Offshore Production – Training
Training
indicator
Blue collar hours/
Total training hours in 2008 employees employee
24,937 1,045 23.86
Onshore Operations Employees – Blue Collar Worker
The Company promotes several site-specific training programmes worldwide
at the shorebases and construction yards, as well as external courses and
on-the-job training on the units offshore.
Permanent Employees Onshore Operations –
Construction Sector Training
Training
indicator
Blue collar hours/
Total training hours in 2008 employees employee
68,440 485 141.11
The training school at the Paenal Fabrication Yard, Porto Amboim has again
operated to train Angolan Nationals to become welders, fitters and riggers,
providing competent staff for the construction operations that take place
there. The indicator is much higher as this is a full time school that operates
to train approximately 30 staff over a module period of four months,
i.e. three times per year.
Performance and Career DevelopmentThe introduction and implementation of the Competency System has started
to show positive results. The Company offers a wide range of work activities
and an increased response from the employees has been noticed to request
lateral transfers to functions which would be more suitable for their abilities.
This means that more people move into the right place without the Company
having to externally recruit. Performance appraisals have become more
meaningful and staff can see their career path possibilities in a more
transparent manner.
Onshore Operations Performance Appraisal
Performance Appraisals are organised by the Human Resources
Department and the results remain confidential.
All Performance Appraisals are made in accordance with the SBM Offshore
Competency System which is based on the assumption that competencies
are underlying characteristics which enable someone to perform a job
better in more situations, more often, with better results. Competencies
are not the tasks of the job; they are what enable people to do the tasks.
Competencies are a critical factor for successful performance of a job.
Performance Appraisals concerns permanent staff only and temporary
staff are not included.
The Performance Appraisal indicator for Onshore Operations is 92% in
2008 1,902 appraisals completed for 2,079 employees.
Onshore Operations – Performance Appraisals in 2008
Onshore
Operations Indicator
1,902 2,079 91.5%
Offshore Production Performance Appraisal
The annual appraisal of our offshore production staff covers all permanent
staff, nationals, and the shipping agency (contract) staff working offshore
onboard the production units. All offshore production staff are appraised in
direct accordance with the offshore work activities, differently focused to the
onshore staff appraisal mentioned above. This appraisal concentrates on
subjects that concern Safety, Teamwork, Professional Competence and
Skill levels, Attitude, Commitment, and Effectiveness. This appraisal is
performed offshore.
The Performance Appraisal indicator for Offshore Production is 96% in 2008
873 appraisals completed for 912 employees.
Offshore Production – Performance appraisals in 2008
Offshore
Operations Indicator
873 912 95.7%
SBM Offshore Corporate Social Responsibility Report 2008
Responsibilities Towards Employees
141.1 2008 Training Indicator
Onshore Operations – Construction Sector
13073_SBM_2008CR 13/5/09 13:03 Page 31
Employee BenefitsPension obligations
Group companies operate various pension schemes. The schemes are
generally funded through payments to insurance companies or are defined
as multi employer plans. The payment contributors in each case are
determined by periodic actuarial calculations. The Company has both
defined benefit and defined contribution plans. A defined benefit plan is a
pension plan that defines an amount of pension benefit that an employee
will receive on retirement, usually dependent on one or more factors such
as age, years of service and compensation. A defined contribution plan is a
pension plan under which the Company pays fixed contributions to public or
private pension insurance plans on a mandatory, contractual or voluntary
basis. The Company has no legal or contractual obligations to pay further
contributions if the fund does not hold sufficient assets to pay all employees
the benefits relating to employee service in the current and prior periods.
The contributions to defined contribution plans and multi-employer plans
are recognised as an expense in the income statement as incurred.
ESOP
The Employee Share Ownership Plan (ESOP) continues to be offered to
staff with a contribution paid by the Company encouraging employees to
invest in SBM Offshore shares. SBM Offshore subsidises 40% of the share
purchase price.
32 SBM Offshore Corporate Social Responsibility Report 2008
Responsibilities Towards Employees
Responsibilities to our employees continued
13073_SBM_2008CR 13/5/09 13:03 Page 32
33SBM Offshore Corporate Social Responsibility Report 2008
Responsibilities Towards Employees
40% ESOP
SBM Offshore covers 40 per cent of the share
purchase price
Four Year Employment Data – SBM Offshore Group
Indicator %
two previous
2005 2006 2007 2008 years
Total Workforce Employee Diversity (Onshore and Offshore)
Total number of employees worldwide permanent and temporary 3,164 3,824 4,402 5,151 A 17%
Total number of permanent employees 2,479 2,458 2,909 3,617 A 24%
Total number of temporary employees 685 1,366 1,493 1,534 A 3%
Total percentage of female employees in permanent workforce n/r n/r 22% 22% –
Total Permanent Employee with Part-time Contracts
Total number of part-time employees n/r n/r 116 127 A 9%
Total number of female employees working part-time n/r n/r 72 76 A 6%
Total number of male employees working part-time n/r n/r 44 51 A 16%
Percentage part-time workforce n/r n/r 2.6% 3.5% –
Percentage part-time females n/r n/r 62% 60% –
Percentage part-time males n/r n/r 38% 40% –
Total Permanent Employee Turnover (Onshore and Offshore)
Total amount of employee turnover percentage n/r n/r 13% 11.0% –
Total amount of employee turnover n/r n/r 378 337 A 5%
Due to retirement n/r n/r 17 24 A 41%
Due to voluntary resignation n/r 1 300 304 A 1%
Due to dismissal n/r n/r 58 66 A 14%
Death (natural causes – non work-related) 0 0 3 3 –
Fatalities (death resulting from a work-related incident or illness) 0 1 0 0 –
Occupational Health and Safety
Average absence due to normal illness
(percentage days lost through illness per employee) 1.80% 1.80% 2.3% 2.6% A 0.3%
Total consolidated million manhours SBM Offshore Group
(including Offshore Production Fleet) n/r n/r 8.5 11 A 29%
Total consolidated million manhours Onshore Operations
(excluding Subcontractors) n/r n/r 4.9 5.3 A 9%
Total million manhours Offshore Production 3.8 3.7 3.5 5.8 A 65%
Lost Time Accident Frequency Onshore Operations 0.1 0.05 0.0 0.0 0%
Lost Time Accident Frequency Offshore Production 0.1 0.05 0.0 0.0 0%
Appraisals (permanent employees)
Personnel appraisals completed for permanent employees Onshore Operations n/r n/r 92.5% 92% G 0.5%
Personnel appraisals completed for permanent employees Offshore Production n/r n/r 100% 96% –
Competency Training Indicators (permanent employees)
Training hours per employee Management (white collar) n/r n/r 14.9 16 A 7%
Training hours per employee Engineering (white collar) n/r n/r 41.6 25.1 G 40%
Training hours per employee Offshore Production Units Staff (blue collar) n/r n/r 49.3 27.2 G 45%
Training hours per employee Construction Yard, Angola (blue collar) n/r n/r 578 201.9 G 65%
n/r = not recorded
The 2005 and 2006 data entries have not been verified by our external assurance provider PricewaterhouseCoopers.
13073_SBM_2008CR 13/5/09 13:04 Page 33
Local Communities
SBM Offshore Corporate Social Responsibility Report 2008
Local Communities34
A long time before sustainable development was familiar as it is today, SBM Offshore focused on the social andeconomic benefits it could bring to client countries, in particularthe developing ones. This was not only consistent with thecompany’s ethical business principles, but it often provided theadditional benefit of obtaining more business in the countries in question. Our responsibilities towards society and localCommunities are to support and promote human rights and contribute to social welfare in the communities where we operate.
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35SBM Offshore Corporate Social Responsibility Report 2008
Local Communities
Tamatakaw Village Project, Myanmar
SBM Offshore is concerned about the welfare of the people
of Myanmar, where we have a lease/operating offshore
unit under contract until 2015. SBM Offshore has been
supporting the Myanmar Business Coalition on Aids (MBCA)
since 2001. In 2008, support was in addition given to
Marie Stopes International.
After cyclone Nargis struck Myanmar in 2008, SBM Offshore
initiated these actions as follows:
• SBM Offshore donated additional funds to Marie Stopes
International for emergency medical relief and to support
their long-term programs in the country.
• SBM Offshore donated additional funds to the Myanmar
Business Coalition on Aids for emergency medical
relief and for the long term rebuilding of an affected
village (Tamatakaw).
• SBM Offshore purchased emergency supplies (enough
to fill two shipping containers) and shipped these directly
to Myanmar for distribution.
Marie Stopes International worked in many parts of the
country and due to the magnitude of the disaster; much of
their work was focused on providing basic health needs to
the affected communities in the delta.
�www.sbmoffshore.com
Please visit our website for the full report
Project Name Marie Stopes International Australia
Cyclone Nargis Relief 2008
AusAID Reference Number 46162
Australian NGO Name Marie Stopes International Australia
Delivery Organisation’s Name Marie Stopes International Myanmar (MSIM)
Date Project Commenced May 2008
Date Project Completed December 2008
Report covers Project May 16th – December 31st 2008
activities implemented
in the period
An excerpt follows of MSI’s report, which was issued for the Australian
Government.
“On May 2nd 2008 Cyclone Nargis struck Myanmar and caused catastrophic
destruction in the Ayeyarwady Delta area and Yangon division, killing
over 140,000 people and injuring 20,000. The homes, communities and
livelihoods of around 2.4 million people were affected, with the damage
caused to infrastructure, commerce and agriculture estimated at US$4
billion. Access for the affected population, particularly rural communities, to
health services for communicable diseases, immunization, antenatal care
(ANC), delivery, emergency obstetric care (EmOC), postnatal care (PNC),
and supplies of essential medicines and contraceptives was been
severely disrupted.
‘The initial response to the Cyclone Nargis was unusual and disturbing:
slow government action and restriction of the international community's
involvement. In this context, the locally operating NGO response was
particularly important. MSIM was able to respond immediately using its
existing health personnel and resources, and in the weeks that followed
established an emergency response effort. Building on its a decade long
experience in direct reproductive health service delivery in Myanmar and
support from a range of donors, MSI Myanmar has been providing relief
and recovery assistance since May, initially encompassing a range of
services and goods distribution, and focusing over time on MSI’s expertise
in sexual and reproductive health.”
13073_SBM_2008CR 13/5/09 13:04 Page 35
36
€100,000DonationsEnvironment Charity Fund of HRH P-Albert II
Community EngagementsThe Company operates offshore facilities in a large number of countries
worldwide under long-term contracts and it frequently undertakes construction
activities in the fabrication yards of developing countries. Wherever SBM
Offshore operates in the world, its goal is to be responsive to community
needs and to maximise local content by utilising as much as possible in-
country resources and products and by making the maximum use of local
manpower. Skill-development and technology-transfer is pursued through
training programmes to improve the technical capabilities of the local
labour force. In this matter, SBM Offshore hereby confirms the policy it has
established for several years.
The Company has taken a number of initiatives to support social programmes
in countries where we have business activities. Regular meetings with these
organisations and review of their programmes continue to affirm both the
legitimacy and the effectiveness of the Company’s sponsorship.
� www.sbmoffshore.com
For more information please visit our website, in the Corporate Social
Responsibility and Benefits to Local Communities Sections
Angola – ESSAIn 2003, SBM Offshore entered into a partnership to assume the
responsibility for the operation, management, marketing, and development
of all on-going and future activities of ESSA (Empresa de Serviços e
Sondagens de Angola Limitada), a training centre in Luanda developed
and owned by SONANGOL.
The participation of SBM Offshore in the ESSA training centre allows the
Company to increase the involvement of national resources in its operations.
In addition, the ESSA training centre which provides education and offers
workshop facilities focusing on basic mechanical and electrical training,
received a process control room simulator from the Company.
Padre HoracioSBM Offshore is financially supporting an institution run by an Argentinian
priest, Padre Horacio, who lodges and feeds street children. Education is
given to these children including tuition on technical subjects such as basic
mechanical and electrical knowledge. SBM Offshore is now committed to
incorporate some of the children from this institute in the ESSA project for
an enhanced electrical training and the creation of an electrical workshop.
Angola – Porto Amboim Training SchoolRecruitment from the local market of skilled workers is difficult, and is not
sufficient to meet the requirements of the yards’ expected work programme.
For this reason a training schools was established at the Porto Amboim yard,
in order to train locally hired (mostly) unemployed persons a temporary
location in Porto Amboim.
The first training programmes initiated at the school were welding, fitting,
rigging, and scaffolding. The newly trained workers will commence with
structural works and as they progress and gain experience, then they
will be moved to more complicated tasks such as Topside fabrication.
The envisaged training school will initially have a capacity of approximately
150 trainees per year. The courses have been made in groups of
30 students and generally last 12 weeks. Formal competence tests are
carried out and certificates are issued to successful graduates.
SONANGOL and SBM Offshore, through their Joint Venture company
‘OPS,’ already have extensive training programmes in place in Angola,
aimed at the skills needed for offshore positions. SBM Offshore has drawn
on this experience to set up the training program for the Porto Amboim
Training School. SBM Offshore also provides support to two projects:
‘Casa dos Rapazes do Palanca’, a school and workshop for boys in Luanda
and ‘Lar Nossa Senhora das Dores’, an orphanage for girls’ in Lubango.
SBM Offshore Corporate Social Responsibility Report 2008
Local Communities
Local Communities continued
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37
Brazil SenaiSBM Offshore invested in a process simulator for offshore production
operations in mid-2005 on the premises of Senai, in Macaé, Brazil. Senai
is a governmental Brazilian Training Institution which develops, together
with SBM Offshore Competence Assurance specialists, training modules for
our process operators. The training of our Brazilian employees working on
FPSOs is performed by the Senai instructors in Macaé. SBM Offshore has
twelve groups of eight trainees for periods of five days, which is almost one
hundred training sessions of five days per year. This training action has been
implemented to allow SBM Offshore to achieve its Nationalisation target,
which is 60% of its offshore crew in 2005, 70% in 2006, and 80% in 2008.
SBM Offshore and CASA do MENOR – 2008 Apprentices Program
The Brazilian government has issued recent laws determining that five
percent of the technical workforce from every company must be added by
filling these positions with apprentices. Apprentices are youngsters from
14 years old to 24 years old, who need a chance to a formal entry into the
labour market. The Ministry of Labour has an Inspection Division that visits
the companies to verify the compliance with the labour law. SBM Offshore
was recently inspected by the Ministry of Labour whose interest was the
Apprentices Program and it was found to be in compliance with the law.
SBM Offshore outsourced the Apprentices Program to Casa do Menor.
Casa do Menor is a non-governmental institution that has been accredited
by the government to deliver basic education and to prepare youngsters for
integration into organised society. Casa do Menor focuses on less favoured
groups, meaning family groups with a monthly income less than US$ 100.00
(one hundred dollars). Casa do Menor is sponsored by several companies
and institutions. Among them SBM Offshore sponsors the Maintenance
Course for 13 apprentices every year, which is the quota set by the Ministry
of Labour. The Maintenance Course has the objectives to transmit basic
theory and practice in the workshops for students in the areas of Mechanics
and Electricity. There are other subjects in the course content aimed at
ethical standards and citizenship that will serve as a reference for their stable
growth. Classes take place during the day and last one year. The students
are also obliged to attend classes in public schools in order to be kept in the
program, usually held in the evening.
SBM Offshore through Casa do Menor, trains annually 13 apprentices
and offers for the two top students an offshore assignment to introduce
them to offshore life and to allow them a solid start. Currently, we have
two apprentices following practices offshore. Both have expressed
their enthusiasm and willingness to join the maintenance team in the
instrumentation area, in the future. They are evaluated quarterly against
offshore induction program objectives that have been monitored by an
offshore employee.
The Apprentices Program prepares the youngsters for the working world
introducing them in the formal educational system and organised society
with basic tools to engage in productivity initiatives in order to generate
income and personal dignity.
Casa do Menor official campaign ‘Boys of Street Out of the Streets’ has been
supported by SBM Offshore in a successful partnership with concrete social
results for four years, since 2005.
Monaco – The Single Buoy Nursery, Principality of MonacoIn 2007 the Single Buoy Nursery was opened and is a professionally-run
nursery and pre-school for infants and toddlers between the age of two
months and four years. Single Buoy Nursery is unique, as it is the first
of its kind in Monaco being completely privately funded.
� www.sbmoffshore.com
For more information please visit our website, in the Corporate Social
Responsibility and Benefits to Local Communities Sections
US$131,000Donations
Myanmar relief help
SBM Offshore Corporate Social Responsibility Report 2008
Local Communities
13073_SBM_2008CR 13/5/09 13:04 Page 37
Renewable Energy Systems
SBM Offshore Corporate Social Responsibility Report 2008
Renewable Energy Systems38
SBM Offshore is running several initiatives to leverage its in-house expertise to develop large scale equipment for the offshore renewables sector that is complementary toexisting marine based business. The Company continues to focus on helping reverse the negative impact of fossil fuel emissions through the supply of clean fuels – a strategy to help sustain and grow the supply of clean and ‘green’ (or ‘blue’ marine) energy.
13073_SBM_2008CR 13/5/09 13:04 Page 38
39SBM Offshore Corporate Social Responsibility Report 2008
Renewable Energy Systems
Green Power GenerationThe sectors of the renewables market which are expected to have the largest
near term potential offshore are the wind and wave energy generation
sectors. SBM Offshore sees opportunities to provide support to the rapidly
growing wind sector through the provision of vessels both for transportation,
and for the installation and maintenance of wind turbines. Wave energy
conversion is very much a nascent industry, with no commercial farms in
place at all so far. The Company is working on a prototype wave energy
generator based on breakthrough technologies.
A new development theme is the generation of electricity in an
environmentally friendly manner. Offshore waters do contain an enormous
amount of potential energy and SBM Offshore has extensive knowledge
and experience in providing and installing systems to operate in the offshore
environment where waves and currents can be significant.
We therefore decided to explore ways of capturing a portion of that energy
in a sustainable manner: green power.
After reviewing various energy potential sources (current energy,
thermal/density, solar, etc.), we concluded that of the technically feasible
options, Wave Energy Conversion systems (WEC) offered the greatest
potential for commercial viability. A creative team of engineers has therefore
been working on a range of WEC concepts with the ambition to test the
first prototype by the end of 2009.
The concept of wave energy absorption is not new; it has been in
development for over 30 years. Today’s environmental objectives, backed
by political initiatives, have changed the economic case strongly in favour
of renewables.
SBM Offshore sees that a highly competitive clean energy production
system can be developed by combining our long expertise in design and
construction for operation in extreme environments with emerging power
take-off technologies.
Today, we wish to harness wave energy for mankind.
Reducing the Ecological Impact of Current OperationsThe reduction of the greenhouse gas emissions generated by process,
production, and manufacturing operations is a key concern for SBM
Offshore. In our day-to-day activities, SBM Offshore is constantly seeking
ways to reduce the impact of our activities, both in the supply of our systems
and in operation. Offshore facilities consume significant quantities of raw
materials, notably steel for the large structures employed. The Company
is a world leader in building lightweight topside production systems on
our facilities to meet high-capacity requirements.
FPSOs traditionally vent some hydrocarbon gas into the atmosphere each
time the cargo tanks are filled.
SBM Offshore is investigating technologies to recover the tank gases via
a compression system, thereby cutting emissions and improving both the
global and local environmental impact. When vented in calm weather, trace
levels of this vented hydrocarbon gas occasionally sink to the deck and
cause process plant shut-downs with corresponding flaring of the plant
inventory. Tank gas recovery removes this risk and increases process plant
uptime, which has a knock-on effect of reducing the number of such short
flaring events.
SBM Offshore has both the strategies and the expertise in place to help
create a sustainable supply of clean energy. With a clear view on the
renewable energy sector, our focus is to deliver ‘green’ technologies and
reduce our carbon footprint.
Sources:
Commission of the European Communities, DG XVII. ‘An Assessment of the State of Art, Technical
Perspectives and Potential Market for Wave Energy’.
Thorpe, T W. ‘An Overview of Wave Energy Technologies’, A report produced for the Office of
Science and Technology, AEA Technology
Research and Long-term DevelopmentsSBM is also working on research and long-term development projects aimed
at sustaining the company’s business well into the future. These projects
include deepwater production technology and liquid natural gas (LNG)
productions systems, which is a more environmentally friendly fossil fuel
than crude oil. The technology development focuses on system robustness,
reliability, safety in operation and environmental friendliness.
�www.sbmoffshore.com
For more information please visit our website, in the SBM Offshore Annual
Report 2008, Product and Technology Development section, pages 70-81
US$25 millionIn 2008 SBM Offshore invested 25 million US$on Research and Development
13073_SBM_2008CR 13/5/09 13:04 Page 39
Performance IndicatorsSBM Offshore Group
SBM Offshore Corporate Social Responsibility Report 2008
Performance Indicators40
EconomicShareprice – Listed as SBM Offshore N.V. on the Euronext Stock Exchange, Amsterdam
2008 2007
Turnover as % of share capital 309.94 240.52
Highest share price in u 26.77 31.52
Lowest share price in u 8.72 19.85
Closing share price in u 9.35 21.6
Closing share price in US$ 13.07 31.8
Share prices for the years 2004 through 2006 are restated for the four for one share split effected on June 2nd 2006.
Total capital expenditure for 2008 (comprising of additions to property, plant and equipment plus capitalised R and D expenditure) amounted to US$ 999.8 million
(2007: US$ 551 million)
Health, Safety, Security and Environment (H.S.S.E.)Occupational Health and Safety for SBM Offshore Group
2008 2007
Average absence due to normal illness (percentage days lost through illness per employee) 2.6% 2.3%
Total consolidated million manhours SBM Offshore Group (including Offshore Production Fleet) 11 8,5
Total consolidated million manhours Onshore Operations (excluding Subcontractors) 5,76 4,92
Total consolidated million manhours Offshore Production 5,32 3,58
Lost Time Accident Frequency Offshore Production 0.04 0.04
Death during service (natural causes – non work-related) 3 3
Fatalities (death resulting from a work-related incident or illness) 0 3
Subcontractor Manhours 2008
Ongoing projects Completed projectsManhours Manhours
TOTAL 24,318,501 10,010,346
H.S.S.E. Accident Statistics for Onshore Operations
2008 2007
Total Manhours Onshore Operations 5,766,269 4,912,362
Fatalities F 0 0
Lost Time Incidents LTI 4 0
Restricted Work Cases RWC 0 1
Medical Treatment Case MTC 2 1
Near Miss Incidents NMI 2 0
Days Lost LTI 28 Not recorded
in 2007 report
LTI Frequency Rate LTIFR 0.13 0
Total Recordable Incidents TRI 6 2
Total Recordable Incident Frequency Rate TRIFR 0.21 0.08
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41SBM Offshore Corporate Social Responsibility Report 2008
Performance Indicators
H.S.S.E. Accident Statistics for Offshore Production
2008 2007
Total Manhours Offshore Production 5,320,943 3,557,955
Fatalities F 0 0
Lost Time Incidents LTI 1 0
Restricted Work Cases RWC 5 7
Medical Treatment Case MTC 10 3
Near Miss Incidents NMI 81 64
Days Lost LTI 5 Not recorded
in 2007 report
LTI Frequency Rate LTIFR 0.04 0.09
Total Recordable Incidents TRI 16 10
Total Recordable Incident Frequency Rate TRIFR 0.60 0.51
Environmental Data Offshore Production – Recordable Spills
2008 2007
Offshore Production Units 15 13
Contained Spills Onboard 22 23
External Spills to Environment 4 2
2008 Offshore Production – Greenhouse Gas Air Emissions
Values below expressed in millions of tonnes CO2 equivalents
Production and/or Storage Unit CO2 CH4 N20
Brazil
FPSO Marlim Sul 0.236 0.002 0.006
FPSO Brasil 0.167 0.001 0.004
FPSO Espadarte 0.175 0.001 0.004
FPSO Capixaba 0.268 0.002 0.006
Caspian
FSO and MOPU Turkmenistan 0.004 0.0000 0.0001
Myanmar
FSO Yetagun 0.005 0.0000 0.0011
Russia
FSO Okha 0.005 0.0000 0.0011
Thailand
FPSO Tantawan Explorer 0.093 0.0006 0.0022
Vietnam
FPSO Rang Dong 1 0.046 0.0003 0.0011
West Africa
FPSO Xikomba 0.103 0.001 0.002
FPSO Mondo 0.281 0.002 0.007
FPSO Saxi Batuque 0.049 0.000 0.001
FPSO Kuito 0.301 0.002 0.007
FPSO LPG Sanha 0.006 0.000 0.000
TOTAL 1.737 0.011 0.041
13073_SBM_2008CR 13/5/09 13:04 Page 41
42
Performance Indicators continued
Health, Safety, Security and Environment (H.S.S.E.) continuedGreenhouse Gas Air Emissions Comparison
Air Emissions in tonnes 2008 2007*
Number of Offshore Production Units 15 13
N2O 133 149
CH4 540 10,488
CO2 1,737,389 1,296,735
Environment Data Offshore Production – Non Greenhouse Gas Air Emissions
Air Emissions in tonnes 2008 2007*
Number of Offshore Production Units 15 13
CO 1,928 5,241
NOX 4,327 4,202
SO2 91 100
VOC 46 1,150
Environment Data Offshore Production – Regional CO2 Emissions
CO2 in Metric tonnes 2008 2007*
Number of Offshore Production Units 15 13
Asia 142,904 111,657
Brazil 846,021 831,629
Caspian 4,008 3,722
Russia 5,125 7,176
West Africa 739,331 342,551
Total 1,737,389 1,296,735
*With exception of CO2, all GHG and Non-GHG emissions otherwise stated for 2007 include flaring. For 2008, all reported GHG and Non-GHG air emissions exclude flaring, as this factor is reported by our Clients.
Environmental Data – Indirect Energy Consumption by Primary Source – Electric Usage
Onshore Operations: Four Execution Centres and Corporate Offices
Indirect Energy Consumption 2008 2007
Total electric usage kWh 10,554,568 10,056,021
Total metric tonnes CO2 equivalent 4,008 3,924
The Indirect consumption of electricity stated as CO2 equivalent in CSR report for 2007 was calculated based on DEFRA methodology.
The calculated total by DEFRA published in 2007 was 5,184 CO2 calculated from 9.9 million kWh usage. The total kWh for 2007 was slightly lower
as the month of December was missing and the usage for December was based on an average calculation. This is rectified above.
For 2008 a change in methodology for calculating the onshore CO2 equivalent for the kWh data was adopted. The WRI Greenhouse Gas Protocol
(GHG Protocol) conversion was chosen as a new method, since its conversion factors is country specific rather than one factor for everything irrespective
of geographical location.
SBM Offshore Corporate Social Responsibility Report 2008
Performance Indicators
13073_SBM_2008CR 13/5/09 13:04 Page 42
43
Human ResourcesTotal Employee Headcount by Location
2008
Onshore Operations
Schiedam, Netherlands 530
Houston, USA 643
Kuala Lumpur, Malaysia 317
Monaco 1,371
Marly, Switzerland 24
Worldwide Construction Sites and Shorebases 704
Offshore Production
Worldwide Offshore Fleet 1,562
TOTAL 5,151
Permanent Employees by Gender2008
Female 790 22%
Male 2,827 78%
TOTAL 3,617
Permanent SBM Offshore Group Employees by Location and Gender Ratio
Female Male Total Female
Onshore Operations
Schiedam, Netherlands 71 322 393 18%
Houston, USA 160 380 540 30%
Kuala Lumpur, Malaysia 85 214 299 28%
Monaco 294 666 960 31%
Marly, Switzerland 19 5 24 79%
Worldwide Construction Sites and Shorebases 135 350 485 28%
Offshore Production
Worldwide Offshore Fleet 26 890 916 3%
TOTAL 790 2,827 3,617 22%
Permanent Contracts vs Agency Contracts
2008
Permanent Employees 3,617 70%
Contract Employees 1,534 30%
TOTAL 5,151
SBM Offshore Group Permanent and Part-time Employees by Location Total Permanentand Part-time Men Female
Employees % %
Onshore Operations
Schiedam, Netherlands 83 49% 51%
Houston, USA 3 67% 33%
Kuala Lumpur, Malaysia 0 0% 0%
Monaco 27 19% 81%
Marly, Switzerland 10 0% 100%
Worldwide Construction Sites and Shorebases 0 0% 0%
Offshore Production
Worldwide Offshore Fleet 4 100% 0%
TOTAL 127 40% 60%
SBM Offshore Corporate Social Responsibility Report 2008
Performance Indicators
13073_SBM_2008CR 13/5/09 13:05 Page 43
44 SBM Offshore Corporate Social Responsibility Report 2008
Performance Indicators
Human Resources continuedTemporary Employees by Location Total
Headcount headcount Percentage
temporary (permanent and of temporary
staff (temporary) workforce
Onshore Operations
Schiedam, Netherlands 131 530 25%
Houston, USA 103 643 16%
Kuala Lumpur, Malaysia 18 317 6%
Monaco 417 1,050 40%
Marly, Switzerland 0 24 0%
Worldwide Construction Sittes and Shorebases 646 1,562 21%
Offshore Production
Worldwide Offshore Fleet 219 1,025 41%
TOTAL 1,534 5,151 30%
Employees Turnover by Category Turnover Total Turnovercount count percentage
Voluntary 304 8.4%
Dismissal 66 1.8%
Retirement 24 0.7%
Fatalities non-work related 3 0.1%
Fatalities work related 0 0.0%
TOTAL 397 3,617 11.0%
Permanent Employees Turnover Onshore Operations by GenderTurnover Total Turnover
count count rate
Male 157 1,937 8.1%
Female 60 764 7.9%
TOTAL 217 2,701 8.0%
Permanent Employee Turnover by Geographical LocationTurnover Total Turnover
count count rate
Onshore Operations
Schiedam, Netherlands 27 393 6.9%
Houston, USA 80 540 14.8%
Kuala Lumpur, Malaysia 24 299 8.0%
Monaco 67 960 7.0%
Marly, Switzerland 4 24 16.7%
Worldwide Construction Sites and Shorebases 73 485 15.1%
Offshore Production
Worldwide Offshore Fleet 122 916 13.3%
TOTAL 397 3,617 11.0%
Permanent Employees Turnover Onshore Operations by AgeTurnover Total Turnover
count count rate
Age <30 33 1.2%
Age 30-50 134 5.0%
Age >50 50 1.9%
TOTAL 217 2,701
Performance Indicators continued
13073_SBM_2008CR 13/5/09 13:05 Page 44
45SBM Offshore Corporate Social Responsibility Report 2008
Performance Indicators
Permanent Employees Training Hours Onshore Operations and Offshore Production
Total Totalnumber of Total training
training number of hours perDivision/Department hours employees employees
Engineering 26,653 1,062 25.1 hours
Operations 72,967 923 79.1 hours
Services 3,496 160 21.9 hours
Administration 3,260 235 13.9 hours
Management 3,078 192 16.0 hours
Offshore production 27,821 1,045 26.6 hours
TOTAL 137,275 3,617 40.15 hours
Permanent Employees Onshore Operations Training 2008Training
White indicatorcollar hours/
Total Hours for Training 2008 employees employee
43,898 2,087 21.03
Permanent Employees Offshore Production Training 2008
Blue collar Trainingemployees indicator
Offshore hours/Total Hours for Training 2008 Production employee
24,937 1,045 23.86
Permanent Employees Onshore Operations Construction Sector TrainingBlue collar Trainingemployees indicator
Onshore hours/Total Hours for Training 2008 Operations employee
63,440 485 141.11
Permanent Employees Onshore Operations Performance Appraisal
OnshorePerformance Appraisals Operations Indicator
1,902 2,079 91.5%
Permanent Employees Offshore Production Performance Appraisal
OffshorePerformance Appraisals Production Indicator
873 912 95.7%
CommunitySBM Offshore Group 2008 Donations $619,638.72
SuppliersIn 2008 SBM Offshore conducted business with approximately 2,500 suppliers and placed Purchase Orders for 1,724,666,912 US$.
13073_SBM_2008CR 13/5/09 13:05 Page 45
SBM Offshore Corporate Social Responsibility Report 2008
Appendices46
AGIP
Azienda Generale Italiana Petrol, established in 1926 is an Italian automotive
gasoline and diesel retailer. It is a subsidiary of multinational petroleum
company ENI.
API
The American Petroleum Institute is the primary trade association in the
United States representing the oil and natural gas industry, and the only one
representing all segments of the industry.
BOE
Barrels of oil equivalent.
CALM
Catenary Anchor Leg Mooring.A floating buoy that performs the dual function
of keeping a tanker moored on a single point and transferring fluids while
allowing the ship to weathervane.
CAPEX
Capital Expenditure.
Chevron
U.S. integrated energy, oil and gas company.
CIS
Corporate Intranet Site.
CO
Carbon Monoxide.
CO2
Carbon Dioxide, also a greenhouse gas.
CO2e
Carbon Dioxide equivalency is a quantity that describes, for a given mixture
and amount of greenhouse gas, the amount of CO2 that would have the
same global warming potential (GWP), when measured over a specified
timescale (generally, 100 years).
Contractor
An individual, company or other legal entity that carries out work or performs
services pursuant to a contract for service. This includes sub-contractors.
Crane vessel
A ship-shape vessel or semi-submersible vessel with one or two cranes
for lifting platform modules and structures at sea.
Cryogenic
Low temperature processing, generally sub zero. For LNG this can be
as low as minus 162˚C.
Deepwater
More than 300 metres water depth.
DSV
Diving Support Vessel. A dedicated vessel, most frequently dynamically
positioned, for assistance of subsea saturation diving and installation work.
EBIT
Earnings before interest and income taxes.
EBITDA
Earnings before interest, taxes, depreciation and amortisation.
E/P OR E&P
Exploration and Production.
EPCI
Engineer, Procure, Construct and Install A form of contracting that provides
for turnkey delivery of facilities.
ESOP
The Employee Share Ownership Plan.
ESSA
Empresa de Serviços e Sondagens de Angola. Services and Surveys
Company of Angola.
FEED
Front End Engineering and Design A study used to analyse the various
technical options for new field developments with the objective to define
the facilities required.
Flowlines
Pipelines carrying reservoir fluid on the seabed from wells to risers.
FPSO
Floating Production, Storage and Offloading system. An FPSO is a floating
facility installed above or close to an offshore oil and gas field to receive,
process, store and export hydrocarbons.
FSRU
Floating Storage and Re-gasification Unit. A floating vessel that is permanently
moored at a site where it can receive LNG from carriers, store and re-gasify
the LNG.
GHG
Greenhouse Gas Emissions. Gaseous emissions to the atmosphere
that may contribute to global warming.
GTL
Gas To Liquids conversion.
GRI
Global reporting Initiative. A multi-stakeholder process developing and
disseminating globally applicable sustainability reporting guidelines for
organisations to report on the economic, environmental and social
dimensions of their activities, products and services.
HSE Charter
The set of clearly defined HSE values applicable to each employee
of the Group.
Hydrocarbons
Oil, gas, and other chemical components carrying hydrogen and carbon atoms.
IOC
International Oil Company.
IMCA
International Marine Contractors Association.
IPIECA
The International Petroleum Industry Environmental Conservation
Association (IPIECA) is comprised of oil and gas companies and
associations from around the world.
IPIECA Standard
Oil and Gas Industry Guidance on Voluntary Sustainability Reporting.
ISO 9001
International standard for quality management. It is intended to help an
organisation enhance customer satisfaction by meeting customer and
applicable regulatory requirements and to improve its performance in
this regard.
ISO 14001
International standard for environmental management. It is intended to help
an organisation to minimise harmful effects on the environment caused by its
activities and to improve its environmental performance.
ISM/ISPS
International Ship Management.
ISPS
International Code for the Security of Ships and of Port Facilities.
Glossary
13073_SBM_2008CR 13/5/09 13:05 Page 46
47 SBM Offshore Corporate Social Responsibility Report 2008
Appendices
JVPC
Japan Vietnam Petroleum Co., Ltd. (JVPC).
LNG
Liquefied Natural Gas Natural gas (mainly methane) that is refrigerated to
minus 162˚C.
LPG
Liquefied Petroleum Gas Butane and propane, separated from well
fluid stream.
LTA
Lost Time Accident.
LTAF
Lost Time Accident Frequency.
LTI
Lost Time Injury.
LTIFR
Lost Time Injury Frequency Rate.
M.I.S.C Berhad
MISC Berhad incorporated in 1968 as Malaysia International Shipping
Corporation Berhad, is the leading international shipping line of Malaysia.
Its main shareholder is Petroliam Nasional Berhad (PETRONAS),
the national oil conglomerate of Malaysia. The principal business of the
Corporation consists of ship-owning, ship-operating and other logistics and
maritime transportation services. With a modern and well-diversified fleet of
139 vessels and a combined tonnage of 8 million deadweight tonnes (dwt).
MMBBL
Million Barrels of Oil.
MOPU
Mobile Offshore Production Unit. A jack-up platform carrying oil, gas and
water separation equipment.
NOC
National Oil Company.
Non-flaring operations
Operations where the produced gas from an oil field is not allowed to be
flared and therefore either has to be exported by pipeline, used as a fuel
source or re-injected into the well.
NO2
Nitrogen dioxide, sources are internal combustion engines and thermal
power stations.
NOx
Nitrogen Oxide. Any binary compound of oxygen and nitrogen,
or to a mixture of such compounds.
NGO
Non Governmental Organisation.
OPS
OPS-Serviços de Produção de Petroleo Ltda.
OHSA
Occupational Health and Safety.
OHSAS 18001
An international occupational health and safety management system
specification. It is intended to help an organisation to control occupational
health and safety risks.
Oil barrel
Standard measure for crude oil and other petroleum products 42 US gallons
or 158.9873 litres or 34.9723 Imperial (UK) gallons.
Onshore operations
All activities that take place in offices, engineering design and construction
on land.
PETRONAS
Petroliam Nasional Berhad (PETRONAS), the national oil conglomerate
of Malaysia.
RWC
Restricted Work Case.
SAI
Social Accountability International.
Sakhalin energy
Sakhalin Energy Investment Company Ltd.
SCR
Steel Catenary Riser A steel pipe hung in a catenary configuration from
a floating vessel in deep water to transmit flow to or from the sea floor.
SO2
Sulphur Dioxide.
SONANGOL
Sociedade Nacional de Combustíveis de Angola. Angolese State owned Oil
Company that oversees petroleum and natural gas production in Angola.
SPM
Single Point Mooring System.
Swivel
Mechanical component consisting of a fixed and a rotating part, connected
by means of a roller bearing and a sealing arrangement, allowing fluids to
pass between the stationary and the weathervaning part of a Single Point
Mooring system.
Stakeholder
The clients, employees, suppliers, shareholders and the local communities
where the Company operates of which the performance of SBM Offshore
has a direct effect.
Tablaksblat Code
Dutch Corporate Governance Code.
Task
Total Application of Safety Knowledge.
The Company
SBM Offshore Group of Companies.
TLP
Tension Leg Platform.A floating production platform positioned and stabilised
by at least three separated, vertical tendons anchored to the seabed.
TREG
Time Registration (Company online timesheet registration for working hours).
Turnkey supply
Design, construction, installation and delivery of an operational system.
TRIFR
Total Recordable Incident Frequency Rate.
Turret
The turret system is integrated into or attached to the hull of the tanker,
in most cases near the bow, and allows the tanker to weathervane around it
and thereby take up the line of least resistance to the combined forces
of wind, waves and current.
VOC
Volatile Organic Compound.
13073_SBM_2008CR 13/5/09 13:05 Page 47
PricewaterhouseCoopers Assurance ReportTo the Board of Management of SBM Offshore N.V.
SBM Offshore Corporate Social Responsibility Report 2008
Appendices48
Assurance report
Scope and Responsibilities
We have been engaged by the Board of Management of SBM Offshore N.V.
(‘SBM Offshore’), Rotterdam, the Netherlands, to review the content
of the Corporate Social Responsibility Report for the year ending
December 31st 2008 (hereafter referred to as the Report).
A review engagement is aimed at obtaining limited assurance for our
conclusions. The detail of review procedures is substantially less than audit
procedures and consequently a review engagement provides less assurance
than what would be obtained from an audit engagement.
We do not provide any assurance on the assumptions and achievability
of prospective information (such as targets, expectations and ambitions)
included in the report. Furthermore, we have not reviewed the performance
data for 2006 and prior years included in the report, and therefore do not
provide any assurance on those data.
The Report has been prepared under the responsibility of the Board of
Management of SBM Offshore. Our responsibility is to draw a conclusion
on the Report based on our review.
Reporting Criteria
SBM Offshore developed its reporting criteria on the basis of the G3
Sustainability Reporting Guidelines of the Global Reporting Initiative
(GRI) as explained in the Report in the section titled ‘Reporting scope’.
These reporting criteria include certain inherent limitations that can influence
the reliability of the information. We consider these reporting criteria to be
relevant and sufficient for our review engagement.
Work Performed
We planned and performed our work to obtain a basis for our conclusion
in accordance with Dutch law, including the Assurance Standard 3410N
‘Assurance Engagements relating to Sustainability Reports’, drawn up by
the professional body of Dutch accountants (‘NIVRA’).
Our most important review procedures consisted of:
• Improving our understanding of the activities and the organisation of SBM
Offshore;
• Analysing public information to gain insight into sustainability aspects
relevant to SBM Offshore and its industry during the reporting period;
• Evaluating the acceptability and application of SBM Offshore’s reporting
criteria, in relation to the information requirements of its intended
stakeholders;
• Conducting interviews with responsible officers and data suppliers on the
corporate level, aimed at understanding the data collection and reporting
process and at evaluating the completeness, accuracy and adequacy of
the qualitative and quantitative information in the Report;
• Evaluating the design and functioning of the systems and processes used
for data capturing, collation, consolidation and validation, including the
methods used for calculating and estimating results;
• Performing analytical procedures on a sample basis on the reported data
and accompanying notes;
• Reviewing the application of the G3 Sustainability Reporting Guidelines
of the GRI; and
• Evaluating the overall format and presentation of the Report, including
evaluating the consistency of the information, in line with the reporting
criteria of SBM Offshore.
We believe that the evidence obtained from our review procedures
is sufficient and appropriate to provide a basis for our conclusion.
Conclusion
Based on our review procedures performed, nothing has come to our
attention that would cause us not to believe that:
• The reporting principles of SBM Offshore are acceptable and have
been applied consistently;
• The reported information is material to SBM Offshore’s stakeholders;
• The events described took place during the reporting period and are
presented completely, accurately and timely; and
• The information is, in all material respects, presented completely,
accurately and adequately.
Amsterdam, May 14th 2009
PricewaterhouseCoopers Accountants N.V.
Original has been signed by J. van der Hilst RA
13073_SBM_2008CR 13/5/09 13:05 Page 48
SBM Offshore Corporate Social Responsibility Report 2008
Who We Are
SBM Offshore is a multinational group of companies servingthe oil and gas industry through the sale, lease, and/or theoperation of offshore production facilities, as well as relatedservices. The Company has been publicly listed on theEuronext Amsterdam Stock Exchange since October 11th 1965, originally under the name IHC Holland and afterwardslisted as IHC Caland. On May 1st 2005, IHC Caland N.V. was renamed SBM Offshore N.V.; and the shares weresubsequently listed under this name. The Company’s clients are mainly international oil and gas corporations, bothprivate and public sector organisations, including national oilcompanies. SBM Offshore manages all business, project, and engineering activities through four key execution centres.
In addition to these main centres, there are permanentestablishments in 15 countries for regional marketing and sales, local management of offshore operations andconstruction activities.
SBM Offshore Corporate Social Responsibility Report 2008
Appendices
GRI Index Level C+
GRI Index Report Page
Vision and Strategy Sustainability, Vision and Strategy 1.1 6, 7
Oganisational Profile Name of Organisation 2.1 2, 3, 8, 11
Primary Products 2.2 2, 5
Operational Structure 2.3 2 – 4, 10 – 14
Location of HQ 2.4 2, 3, 11, 27
Countries of Operation 2.5 2, 3, 27
Nature of Ownership 2.6 2, 3, 11
Market Served 2.7 2, 3, 5, 16
Scale of Reporting Organisation 2.8 2, 3, 16
Significant Changes 2.9 11
Awards Received 2.10 Not reported
Report Parametres Reporting Period 3.1, 3.2, 3.3 4, 6, 9, 16, 17
Contact point for questions regarding 3.4 49
the report or its contents
Reporting Boundaries 3.5, 3.6, 3.7, 3.8 16, 17
Basis for Reporting Including JV 3.8 9, 16
Re-Statements 3.10 13, 16, 42
Significant Changes 3.11 16
PI tables 3.12 40 – 45
Governance, Commitments and Engagement Governance 4.1, 4.2, 4.3, 4.4 10 – 15
Stakeholder Engagement 4.14, 4.15 6, 12, 17
Employees benefit plans EC3 32
Environmental Performance Indicators Direct Energy and Indirect Energy EN3, EN4 16, 17, 24
Energy Saved EN5 24
Emissions, Discharges and Waste E20, E23 24, 25, 41, 42
Number and Volume of Spills E23 17, 22, 23, 41
Labour Practices and Decent Work Employment LA1, LA2 12, 16, 26 – 33
Labour/Management Relations LA3 12
Health and Safety LA7 7, 12, 14, 16, 18, 19, 40, 41
Diversity and Opportunity LA10 6 – 8, 26, 29, 33
Training and Education LA13 14, 17, 19 – 22, 30 – 33,
36 – 37, 45
Security Practices HR1 – HR9 7, 17, 19, 21
Social Society SO1 – SO8 7, 12, 34 – 37
Product Responsibility PR1 – PR9 Not reported
SATIMAT GREEN / MAINE GLOSS GREEN
Satimat Green is manufactured by Arjowiggins one of Europe’s leading makers of recycled coated
papers, who have a reputation for making products which meet the latest environmental standards.
Satimat Green contains a minimum of 60% recycled fibre and 40% FSC virgin fibre. The recycled fibre
content being mainly taken from office waste. The mills are ISO 9001, ISO 14001 and FSC mixed
source certified. Satimat Green is an FSC mixed source product. A full copy of the mill’s environmental
statement is available on request.
Disclaimer
Some of the statements contained in this report that are not historical facts are statements of future
expectations and other forward-looking statements based on management’s current views and
assumptions and involve known and unknown risks and uncertainties that could cause actual results,
performance, or events to differ materially from those in such statements. Such forward-looking
statements are subject to various risks and uncertainties, which may cause actual results and
performance of the Company’s business to differ materially and adversely from the forward-looking
statements. Should one or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those described in this
presentation as anticipated, believed, or expected. SBM Offshore NV does not intend, and does not
assume any obligation, to update any industry information or forward-looking statements set forth in
this presentation to reflect subsequent events or circumstances.
Photography: SBM Offshore N.V.
Photo Serge-Henri, Valbonne, France (CEO Photo)
Lithography and printing: B.V. Drukkerij De Eendracht, Schiedam
Binding: Boekbinderij van Wijk B.V. Utrecht
� www.sbmoffshore.com
The CSR Report can be downloaded at www.sbmoffshore.com, whose
Corporate Social Responsibility section provides additional information.
Contacts
To let us know what you think of the report and the issues covered in it.
Please send your comments to [email protected]
This report has been issued by the Corporate Communications Department
at SBM Offshore.
Designed and produced by Radley Yeldar (London) www.ry.com
SBM Offshore
Corporate Social Responsibility Report 2008
Sharing our future
www.sbmoffshore.com
SBM Offshore N.V.
Postal address
P.O. Box 31
3100 AA Schiedam
The Netherlands
Street address
Karel Doormanweg 66
3115 JD Schiedam
The Netherlands
Telephone +31 10 232 0900
Telefax +31 10 232 0999
E-mail: [email protected]
Full information regarding
SBM Offshore is available
on the Company’s website
at www.sbmoffshore.com
The Netherlands
P.O. Box 11, 3100 AA Schiedam
Karel Doormanweg 66
3115 JD Schiedam
The Netherlands
Telephone +31 (0) 10 2320 000
Telefax +31 (0) 10 2320 101
Malaysia
Block 2B – Level 9
Plaza Sentral
Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur – Malaysia
Telephone +60 (3) 2773 53 00
Telefax +60 (3) 2773 5399
Monaco
24 avenue de Fontvieille
P.O. Box 199
MC 98007 Monaco CEDEX
Principality of Monaco
Telephone +(377) 92 05 15 00
Telefax +(377) 92 05 85 00
USA
1255 Enclave Parkway, suite 400
Houston, TX 77077
USA
Telephone +1 (281) 848 6000
Telefax +1 (281) 848 6100
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