Corporate Social Report 2009 - SBM Offshore · SBM Offshore – CSR Report 2009 9 CEO Message This is SBM Offshore’s third separate Corporate Social Responsibility (CSR) report

Corporate Social Responsibility Report 2009

SB

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SBM Offshore N.V.Postal addressP.O. Box 313100 AA SchiedamThe Netherlands

Street addressKarel Doormanweg 663115 JD SchiedamThe Netherlands

Telephone +31 (0)10 232 0900Telefax +31 (0)10 232 0999E-mail: [email protected]

www.sbmoffshore.com


Financial Review / Financial Statements 2009

2 SBMOffshore–AnnualReport2009FPSO Xikomba during offloading operations in Angola

TechnologyCreating

Value


SBMOffshore–AnnualReport2009 3

TechnologyCreating

Value


1 8 TheCompany, Principles andPractices 9 Message from the CEO 10 Company Profile 12 Snapshot 2009 13 Highlights 14 Corporate Strategy 16 Corporate Principles and Practices 18 Corporate Management Systems 20 Management System

Compliance Table 21 World Map of SBM Offshore 22 CSR Commitments and Performance

2 26 CSRReporting

Scope 27 Introduction 27 Reporting Segments 27 Health, Safety and Security 28 Environmental 30 Human Resource 30 Performance Reviews / Training 30 Social and Community Reporting

3 34 Health,Safety, Securityand Environment 35 Health Management 35 Safety Management 37 Security Management 38 Environmental Management


6 60 Performance Indicatorsand Appendices 61 Performance Indicators 73 PriceWaterhouseCoopers

Assurance Report 74 GRI Index Level C+ 75 Performance Indicators Notes

4 42 Human Resources 43 Responsibilities towards employees 43 Corporate activities 44 Total global workforce results 49 Local Communities

5 54 Renewable EnergySystems 55 Marine renewable energy 56 Offshore wind energy 56 Emission reduction initiatives

The Company, Principles and Practises

6 SBMOffshore–CSRReport2009Lifting operation of the lower turret

section of the Skarv turret


SBMOffshore–CSRReport2009 7


8 SBMOffshore–CSRReport2009

1TheCompany,PrinciplesandPractices

9 Message from the CEO 10 Company Profile 12 Snapshot 2009 13 Highlights 14 Corporate Strategy 16 Corporate Principles and Practices 18 Corporate Management Systems 20 Management System Compliance Table 21 World Map of SBM Offshore 22 CSR Commitments and Performance



CEOMessageThisisSBMOffshore’sthirdseparateCorporateSocialResponsibility(CSR)reportfornon-financialactivitiesandcoverstheyear2009.

TheCompanydesignsandprovidesoffshoreenergysys-temsonaleaseorsalebasistooilandgascompaniestoproducehydrocarbonsforenergysupplytoconsumersworldwide.Providingsolutionsandservicestoproduceoilandgasinlargequantitiesinasafeandenvironmen-tallyacceptablemannerinoffshoreconditionsrequirestechnicalexpertisetodesignreliablesystemsaswellasexperienceinoperatingthesefacilities.TheCompanyhasdevelopedtheseskillsoverthelast50yearsandcontinuestoimprovethroughtrainingofemployeesandbyusing184yearsofcumulativeoperationalexperienceoftheCompany’sleasefleetinthedesignofnewsystems.

TheCompany’sCodeofConductdeclaresitsrespon-sibilitiestowardsallstakeholdersandcommitstoresponsiblesustainablemanagement.ThisyeartheCompanyhascompletedseveralinitiativesdemon-stratingitscommitmenttothisobjective,includingtheimplementationofaseparatesecuritypolicytoimprovesecurityforemployeesandCompanypropertyandtwosafetyawarenessprogrammes,entitledSafetyTrainingObservationProgramme(STOP)andTotalApplicationofSafetyKnowledge(TASK),whichhavebeenextendedtomoreactivitiesthroughouttheCompany.

Wehaveimplementedseveralimportantinitiativesdur-ingtheyearaimedatimprovingandstrengtheningtheCompany’sprojectexecutionperformance.Thishascoveredthebiddingphaseofnewprojectsaswellasthecontrolofprojectexecutionfromthecostandschedulestandpoint.Amoredecentralizedmanagementstructurehasalsobeenintroducedinordertoincreasetheresponsibilityoflocalmanagementforindividual

unitoperatingperformanceateachoftheCompany’sfourexecutioncentres.

TheCompanycontinuestofocusonastrategyoforganicgrowthofthebusinessinasustainableandresponsibleman-ner.ThesectioninthisreportonCorporateStrategydetailstheupdatedstrategyprocedurethathasbeenimplementeddefiningspecificstrategiesperbusinesssegmentforgrowth,performance,leadershipandnewproducts/markets.

TheCompanyhasbeenverybusywiththeprojectexecutionofelevenmajorprojectsofwhichtwoweredeliveredduringtheyearandtheotherswillcontinueinto2010forcompletion.TheCompany’sorderbacklogcomprisesafewolderprojectsstilltobedeliveredwhichhaveincurredfurthercostoverrunsduringtheyear,aswellasseveralnewerprojectswhichareproducinggoodresultswellinlinewiththeCompany’sobjec-tives.Ourleasefleetoperationsandourservicesbusinesshaveagainproducedverygoodresults.

Inouroffshoreoperations,overallGHGemissionshasincreasedcomparedtotheprioryearduetothestartupoftwonewproductionunitswhichcausedahigherthanusualCO2emissionperbarrelofoilequivalentproducedthaninnormalisedoperations.TheCompanymaintainsahighleveloffocusonseveralinitiativestoreduceGHGemissionsbyprovidingtechnicalsolutionsduringthedesignphaseoftheprojectsandreducingemissionsduringoperations.Wepro-videourclientswithnewsolutionsontheproductionfacilitiestoreduceemissionsbyusingwasteheatrecoverysystems,sequestrationofCO2,gascleaningsystemsandcargotankventingreduction,amongstothers.

ForthefuturetheCompany’smainfocusisondevelopmentoffloatingLNGsolutionsforgasfieldsinremotelocationsoffshore.Thisisalogicaldevelopmentfollowingoilandgasdeepwaterproductionandamoreenvironmentallyfriendlyenergysource,whichwillreduceGHGemissionsforthesameamountofenergyproducedcomparedtocrudeoil.

TheCompanyhasrecognisedthedemandforrenewableenergysupplytomaintainenergysupplyinasustainableman-nerandhasinvestedintothedevelopmentofaWaveEnergyConverter.Weareveryenthusiasticandhopefulthistechnol-ogywilldevelopintoasustainablealternativeenergysource.

ThisreportprovidesdetailsonourSocialResponsibilityinitiativesandwehopeyoufinditinterestingandhelpful.



CompanyProfileIntroductionSBMOffshoreN.V.(SBMOffshore,‘theCompany’)designsandprovidesoffshoreenergysystemsonaleaseorsalebasistoourclientsworldwidebasedonin-houseengineeringandprojectmanagementexpertise.TheCompany’sclientsaremainlyoffshoreoilandgasproducingcompanies,bothprivateandgovernmentowned.TheCompanyhasestablisheditspositionasaspecialisedserviceproviderinthemiddletoupperseg-mentofthefloatingproductionindustrywhereitisoneofthemarketleaders.TheCompanyoperatesgloballyunderthenameSBMOffshorewithsevenoperatingunits.Eachoperatingunitisamongoneoftheleadersinitsrespectivenichemarket.TheCompanycurrentlyemploysover5,000peopleworldwide.

ProductlineTheCompany’sactivitiesincludetheengineering,supplyandoffshoreinstallationoffacilitiesfortheproduc-tion,storageandexportofcrudeoil,gasandLiquefiedNaturalGas(LNG).ThesecompriseFloatingProductionStorageandOffloadingsystems(FPSOs),FloatingStorageandOffloadingsystems(FSOs),TensionLegPlatforms(TLPs),monohullandsemi-submersibleFloatingProductionUnits(FPUs),aswellasselfelevat-ingMobileOffshoreProductionUnits(MOPUs).

Over30yearsago,theCompanywasthefirsttoofferclientsanintegratedoilandgasservicebyprovidingturnkeysupplyoffloatingproductionvessels,aswellasleasingoptionswheretheCompanyoperatesthefacil-ity.Thisconceptisnowconsideredasamainstreamproductionmeansbytheoilindustry,particularlyindeepandremotewaters,andtheleaseandoper-atebusinesshasbecomeamajorcomponentoftheCompany’sactivities.

Includedintheproductlineareallthesystems,mostlybasedontheSinglePointMooringprinciple,usedtomoorcrudeoilandgascarriersinopenseasforthepurposeofloadingoroffloadingcargoes.In2009SBMOffshorecelebratedthe50thanniversaryofthefirstCALMbuoy,whichwasdesignedanddeliveredto

Shellin1959.Derivedfromthesametechnologyarecomplexmooringsystems,whichanchorthefloatingproductionfacilitiesinoilandgasfieldsandarethecoreproductsoftheCompany.Therearevarioustypesofmooringsystemssuchasfixedheadingorweather-vaning,permanentordisconnectable.

Inadditiontotheseactivities,theCompanyprovidesdesignandengineeringservices,andforcertainoppor-tunitiesentersintoturnkeysupplycontracts,forcranevessels,pipelaybargesanddrillingunitsofalltypes,suchasmonohulls,jack-upsandsemi-submersibles.

Insupportofalltheabove,anothersteadyactiv-itywhichrepresentsasubstantialelementintheCompany’sbusinessistheprovisionofspecialisedservicessuchasmaintenance,spareparts,repairsandoffshoreinstallationthroughtheCompanyownedinstallationvessels.Thisformsanessentialcom-plementtothesalesoffacilities,offeringclientsacomprehensiveandintegratedservice.

TheCompanyhasaddedtheLNGFPSOtoitsproductlinetorespondtotheexpectedfuturedemandforoff-shoreproductionofLNGfromstrandedgasfieldsandisalsodevelopingrenewableenergysystemsforthemarineenvironment.

OrganisationSBMOffshorecurrentlyoperatesfromfourmainprojectexecutioncentreswithengineeringandprojectman-agementresourceslocatedinSchiedam(Netherlands),Monaco(Monaco),Houston(USA)andKualaLumpur(Malaysia).TheCompanyhasacorporatestructureconsistingofsevenoperatingunits,supportedbycorporatefunctions,whichallreporttotheBoardofManagement.Theorganisationchartonpage11 showstheindividualunits,theirlocationandtheirfinancialreportingsegment.

TheManagementBoardconsistsoftwostatutorydirectors,theCEOandtheCFO.Thestatutorydirec-torsandnon-statutorydirectorsformtogethertheBoardofManagement.TheCompanyismanagedbytheManagementBoard,underthesupervisionofaSupervisoryBoard.EachyeartheManagementBoard

50

years ofTechnologyCreatingValue



SBM Offshore N.V.Netherlands

Corporate FunctionsSchiedam, Marly, Monaco

SBM-Production ContractorsWorldwide

Lease & Operate

SBM-ServicesMarly, Monaco

Turnkey Services Turnkey Systems Turnkey Systems Turnkey Systems Turnkey Systems Turnkey Systems

SBM-MonacoMarly, Monaco

SBM-GustoSchiedam

SBM-MSCSchiedam

SBM-AtlantiaHouston

SBM-MalaysiaKuala Lumpur

Company Organisation Chart

presentstotheSupervisoryBoard,theoperationalandfinancialobjectivesoftheCompany,thestrategydesignedtoachievetheobjectivesandtheparametersapplicableinrelationtothestrategy.

Inadditiontothesemaincentres,theCompanyispresentinseveralcountriesforregionalmarketingandsales,localmanagementofoffshoreoperationsandconstructionactivities.

InrespectoftheCompany’sactivities,includingboththesupplyoffacilitiesonasalebasisandtheleaseandoperateactivities,thereisaGroupManagementSystemdefiningtheCompany’sprocedures.TheCompany’sCorporateEngineeringStandardsensureacommondesignapproachinthefourcentresandfacilitatetheoptimaluseoftheskillsandglobalresourcesavailablefortheexecutionoflargeandcomplexprojects.

TheCompanysellsorleasesoffshorefacilitiesgen-erallybyoutsourcingallhardwarecomponentsandconstructionservices.Therefore,itdoesnotownanymanufacturingplant,constructionyardorshipyardwiththeexceptionofapartiallyownedconstructionyardinAngola,whichwillbedevelopedintoanFPSOintegrationfacilityshouldtheCompanybeawardedFPSOcontractsrequiringenhancedlocalcontent.OneoftheCompany’sstrengthsisthatitpossessesalltheengineering,projectmanagementandoffshoreinstalla-tioncompetenciesin-housetoexecutelargecomplexsystems,withouthavingtorelyonexternalresources,exceptfortheliquefactiontechnologyrelatedtoLNGFPSOtopsides.

FuturefocusTheCompany’sbusinessdirectionischaracterisedbymarket-orientedtechnologyinnovation.TheCompanyisatrendsetterinthedevelopmentofnew,costeffec-tive,technologicallyfitforpurposesolutionswhichoptimallyrespondtoclients’changingneeds.Today,theCompany’sfocusisonprovidingsolutionsforultra-deepwaterproduction,arcticenvironmentfloatingproductionandFloatingLNG(FLNG)developments.TheCompanyisalsoengagedindevelopmentworkforrenewableenergysystemsinthemarineenviron-ment.Inordertoprotectandexpanditsleadingmarketposition,theCompanydevotessignificantatten-tiontoresearch,development,andtheprotectionofIntellectualProperty.

Board of Management, Mr M. Wyllie, Mr A. Mace, Mr D. van der Zee, Mr M. Miles and Mr F. Blanchelande. (from left to right)

9Main clients Lease & OperateMostlymajorIOC&NOCs



Snapshot2009Item 2009 2008 Movement % Comment

FinAnCiAL ReSuLTSNet profit (US$) 230.0 227.9 2.1 0.9 Improved Turnkey Systems contribution;

Yme MOPUstor™ impairmentPer share (US$) 1.5 1.5 (0.1) (4.5) Higher average number of sharesEBIT (US$) 293.4 275.1 18.3 6.7 Improved Turnkey Systems contribution;

Yme MOPUstor™ impairmentEBITDA (US$) 613.3 530.1 83.2 15.7 Improved Turnkey Systems contributionNet debt (US$) 1,464.0 1,464.0 - - Lease fleet investments offset by new equityTurnover (US$) 2,956.5 3,060.3 (103.8) (3.4) Turnkey Systems revenue downCapital expenditure (US$) 655.9 998.9 (342.9) (34.3) Reflects slow order intake before H2 2009New orders (US$) 3,739.9 4,365.5 (625.6) (14.3) Includes two major FPSO contractsBacklog (US$) 10,032.3 9,246.9 785.4 8.5 A new recordShare price 31/12 (€) 13.78 9.35 4.43 47.4 AEX-index 335.3 245.9 89.4 36.4 Market capitalisation (€) 2,265.4 1,361.3 904.1 66.4 Share price rose and new shares issuedMarket capitalisation (US$) 3,196.8 1,902.9 1293.9 68.0 Share price rose and US$ weakened against €

HSSeFatalities 0 0 0 0.0 In line with targetLTIFR Offshore Production 0.03 0.04 (0.01) (25.0) In line with targetTRI Offshore Production 17.0 16.0 1.0 6.3 TRIFR Offshore Production 0.59 0.60 (0.01) (1.7) Target of TRIFR < 0.20LTIFR Onshore Operations 0.0 0.1 (0.1) (100.0) In line with target TRI Onshore Operations 1.0 6.0 (5.0) (83.3) Good resultTRIFR Onshore Operations 0.03 0.21 (0.18) (85.7) In line with target of TRIFR < 0.20

enViRonMenTCO2 Emissions from Offshore Production in million of tonnes

1.945 1.737 0.208 12.0 Increase is mostly attributed to full production of two units which were in start-up phase previous year

GHG Emissions from Offshore Production in million of tonnes

2.003 1.789 0.214 12.0 Increase is mostly attributed to full production of two units which were in start-up phase previous year

Total hydrocarbon Production in million barrels of oil equivalent

142.5 156.4 (13.9) (8.9) Due to reduced total number of units reporting and low production of two start-up units

HuMAn ReSouRCeSTotal Employees 5,389 5,151 238.0 4.6 Increase mostly in contract employees,

underlying figure is stableTotal Offshore Employees 1,488 1,562 (74.0) (4.7) In line with changes in the fleet compositionTotal Onshore Employees 3,901 3,589 312.0 8.7 Increase mostly in contract employees,

underlying figure is stableContract / Permanent ratio 1.8 2.3 (0.5) (21.7) Target is 2.0Offshore Production Training hours per employee

23.26 23.86 (0.60) (2.5) Stable despite economic downturn

Onshore Operations Training hours per employee

19.13 21.03 (1.90) (9.0)

Onshore Construction Training hours per employee

60.6 141.1 (80.5) (57.1) Result attributed to completion of Phase 1 Paenal



HighlightsFinancial• turnoverslightlydowntoUS$2,957million(US$3,060millionin2008);

• neworderstotalledUS$3,740million(US$4,366millionin2008);

• EBITDAofUS$613.3million(US$530.1millionin2008);

• EBITofUS$293.4million(US$275.1millionin2008);

• EBITmargin9.9%(9.0%in2008);• netprofitofUS$230.0million(US$227.9millionin2008);

• non-recurringsalesofassetsgeneratednetprofitofUS$32.4million(US$31.4millionin2008);

• earningspershareofUS$1.47(US$1.54in2008);

• dividendofUS$0.67pershare(US$0.93in2008);

• investmentinfixedassetsofUS$656million(US$1,000millionin2008);

• €180.7millionraisedthrough9.2%equityissue.

Operations• FPSOEspiritoSantostartedoperationoffshoreBrazil;

• Semi-submersibleproductionplatformThunderHawkstartedoperationintheGulfofMexico;

• FPSOFradestartedoperationoff-shoreBrazil(operatecontractonly);

• FPSOCapixabadisconnectedfromGolfinhofieldforupgradeandrelocationtoCachalotefield;

• 12months extensionfromTotalfortheFSOUnityoperations;

• ExxonMobilterminatedtheleasecontractandredeliveredFPSOFalcon,followingaperiodofstandby;

• PetronasexercisedPurchaseOptionatendofleasecontractfortheTurkmenistanMOPU/FSO;

• new15yearleasecontractfromNobleEnergyfortheAsengFPSOinEquatorialGuinea;

• new18yearleasecontractfromPetrobrasfortheexistingEspadarteFPSOfortheBaleiaAzulfieldinBrazil;

• deliveryandstartupoftheFPSOFradeforChevroninBrazil;

• frameworkcontractarrangementfromShellforsupplyofturretsforFLNGfacilities;

• FrontEndEngineeringDesign(FEED)studyforanLNGFPSOforPetrobras;

• acontractfortheengineeringandsupplyofequipmentfortheDeepwaterCALMbuoyfortheUsanOilOffloadingLine(OOL)forTotal;

• goodutilisationlevelofbothinstallationvessels;

• deliveryofthefirstsegmentsoftheturretfortheSkarvFPSOforBP.

HealthSafetySecurityandEnvironment• comprehensiveadviceCompanywidecoveringtheH1N1swinefluvirus;

• implementedSafetyTrainingObservationProgramme(STOP)inconstructionyards;

• TotalApplicationofSafetyKnowledge(TASK)continuedimplementationatconstructionsites;

• TRIFRof0.59(0.60in2008)andLTIFRof0.03(0.04in2008)forOffshoreProduction;

• TRIFRof0.03(0.21in2008)andLTIFRof0.00(0.13in2008)forOnshoreOperationsoffices;

• TRIFRof0.22(0.44in2008)andLTIFRof0.04(0.11in2008)forOnshoreOperationsconstructionyardssubcontractors;

• theCompany’sSecurityPolicywasissuedinMay2009;

• CO2emissionsincreasedto1.95milliontonnes(1.74milliontonnesin2008).

HumanResources• workforceincreasedto5,389employeesin2009,comparedto5,151in2008;

• permanentemployeesturnoverat9%in2009,comparedto11%in2008;

• totaltrainingof112,457hoursin2009;

• startedTalentManagementandSuccessionPlanninginitiatives.

SocialandLocalCommunities

• charityandsponsorshipofUS$253,000worldwide;

• sponsorshipof“CasadosRapazesdoPalanca”aschoolandwork-shopforboysinAngola;

• sponsorshipof“LarNossaSenhoradasDores”anorphanageforgirlsinAngola;

• achievementofBraziliannationali-sationtargetofover70%nationalemployeesforfleetoperations;

• sponsorshipof13apprenticestoparticipateintheCasadeMenorprogrammeinBrazil.



CorporateStrategyTheCompanyhasenhanceditsCorporateStrategicPlanningprocessin2009anddevelopedanewCorporateStrategicPlan,definingtheCompany’sobjectivesforthecomingthreeyears.TheCorporatePlanissupportedbyBusinessAreaPlans,acrosstheCompany’smainareasofactivities:LeaseandOperate,TurnkeySystemsandTurnkeyServices.ThestrategydrawsupontheoutcomeofanumberofStrategySeminarsheldwiththeseniormanagementteamandwillbereviewedonanannualbasistakingintoaccountsignificantdevelopmentsinthemarketplaceandanyexternaleventsthatwouldaffecttheCompany’sbusiness.

TheCompany’sCorporateStrategicPlanningprocess,asoutlinedbelow,startswiththeCompany’sMissionstatementandthedefinitionoftheCompany’sStrategicObjectives.TheStrategyFormulationconsistsofthedevelopmentoftheBusinessAreaObjectivesinsupportoftheCorporateObjectives.ProgresswillbemeasuredregularlyandusedasfeedbackforboththeBusinessAreaObjectivesaswellastheCorporateObjectives.

CompanyMissionTheCompany’smissionstatementreads:Toprovidesolutionsfortheoffshoreenergyindustry.

Themissionstatementhaschangedin2009fromonefocussingsolelyontheoilandgasindustryintoabroaderstatement‘energyindustry’inordertoincludetheCompany’sambitionsrelatedtorenewableenergysolutions.

Theexpressionofthismissionstatementinafewmajorobjectiveswithrespecttothekeystakeholdersishigh-lightedonthetopofthepage.

TheCompany’smottois:TechnologyCreatingValue.

ThekeytargetsdrivingtheCompany’sstrategyforthethreebusinesssegmentswillbegrowth,performance,leadershipandthedevelopmentofnewmarkets.

LeaseandOperateTheleaseandoperationofoilandgasproductionfacili-tiesisthemaincomponentoftheoperatingresultsandtheCompanyholdsapositionofleaderintheFPSOleasingmarket.Themeritoftheleasingactivityisessentiallythatitprovideslong-termvisibilityofcashflowsandearnings,howeveritrequirestightmanage-mentofcomplexfinancial,operationalandcontractualrisks.Thestrategyistoretainthisleaderpositionwithgrowthoftheleasefleet,whileremainingfocusedonhighstandardandcomplexclientdemand,asthisrequiresintegratedcompetenceandlargeresourcesinengineeringandprojectmanagement.Inviewoftheincreasedsizeofnewprojects,strategicpartnershipswillbepursuedfurtherwherenecessarytoleveragethecurrentposition.

FortheCompany’sfleetoperationstheobjectiveistoconcentrateonperformanceandfurtherincreasereli-abilityoftheunits,maximizeproductionuptimeforourclientsandstriveforexcellenceinourfleetoperations.

Theleaseofothertypesoffacilities,suchasMOPUstor™,MOPUandsemi-submersibleproduc-tionunitsarenowoftenbeingpursuedusingthesameprinciplesthatapplytoanyoilandgasproductionunitprovidedthatithasatleastthesamerelocationpoten-tialasanFPSO.RecentexamplesofsuchfacilitiesbeingdevelopedfornewgeographicalareasincludetheNorthSea,CanadaandtheGulfofMexico.Itisexpectedthattheeffortsmadeduringthepastfouryearsinthedevelopmentofgasrelatedtechnology

Feedback

Corporate Mission

Corporate Strategic Objectives

Business Area Objectives

Strategic Analysis

Strategy Formulation

Implementation

Control

Corporate Strategic Planning

Towards Clients• toprovidesuperiorproductsandservicesthroughinnovative,fitforpurposeandcompetitivesolutionsfortheoffshoreenergyindustry;

• todesign,construct,install,maintainandoperatesuchfacilitiesinasafeandenvironmentallysoundmanner;

Towards Employees• togenerateanattitudeofenthusiasmandpridethroughouttheCompany,throughpromotinghigh-technologyproductsandprovidingamostfavourableenvironmentforprofessionalandpersonaldevelopment,andtohighlyrewardit;

Towards Suppliers• tosupportfaircompetitionandstriveforlong-termstabilityintherelationships;

• tojointlyimprovesocialandenvironmentalperformance;



willoffertheleasebusinessanotherareaforexpan-sioninthecomingyearswithFloatingStorageRe-gasificationUnit(FSRU)andLiquifiedNaturalGas(LNG)/LiquifiedPetroleumGas(LPG)FPSOs.

LeaseandOperateprinciplesTheleaseandoperationoffloatingproductionunitsisacapitalintensivebusinessandthestrategyoftheCompanyistocontinuetoapproachthisactivitycarefully,particularlyinthecurrenteconomicclimate.Thefollowingseriesofprinciplesareappliedinaconsistentmanner:• noinvestmentonspeculation,investonlyonthe

basisofacontractinhand,exceptfortheacqui-sitionofexistingtankersorhullssuitableforconversionintoanFPSO;

• convertonlyqualitytankersexcluding‘early’doublehulls;

• contractforfirmleaseperiodsideallyinexcessoffiveyears;

• revenuesnotexposedtooilpricevariations;• revenuesnot,oronlytoalimitedextent,linked

toreservoirperformance;• interestandcurrencyexchangerateriskshedged

uponcontractaward;• whereappropriateuseprojectfinancingforup

to80%ofcapexbyfirstoildate;• projectdebtfullyrepaidbyleaseincomefrom

initialleaseduration;• applyconservativepolicieswithrespectto

depreciation;• managefleetoperationsin-house;• engageallseniorstaffforthefleetunderdirect

employment;• placesafetyperformanceandenvironmental

protectionasprimaryobjectives.

LeasepartnershipsTheCompanyaimstofurtherdiversifyitssourcesofcapitalthroughtheuseofpartnerships.Engaginginlongtermpartnershipsisbecomingparticularlyimpor-tantduetotheincreasingsizeandcapitalrequirementsofourfutureprojects.Sofar,intheleaseandoperatesegment,theCompany’spartnershavebeenrespon-sibleforapre-definedpartoftheprojectaswellas

acquiringacertainpercentageoftheownershipoftheproductionfacility.

Reasonsforhavingequitypartnershipsinclude:• obtainingaccesstocertainspecificexpertisenot

availablewithintheCompany;• obtainingaccesstoatankerunderconstructionin

ordertomeettherequireddeliverytimeschedule;• mitigatingbusinessrisks,especiallyforunitswhere

theinitialleasecontractisrelativelyshort;• takingmutualadvantageofaclient’spreferencefor

aparticularcompany,whichdoesnotitselfhavethenecessarycompetencetosupplyandinstallacom-pleteFPSO;

• financingoftheequityinvestmentaswellasenlarg-ingthepotentialsourcesofdebtthroughaccesstothepartner’srelationshipbanksand/orExportCreditAgencies.

PartnershipsareonlyengagedinordertobothenhancetheprobabilityofsecuringnewbusinessandinthelongruntoaddvaluetotheCompany’sperformance.

TurnkeySystemsTheCompanyisaleaderinthesupplyofcomplexmooringsystems,FPSOs,TLPsandSemi-SubmersibleunitsandotherinnovativetechnologysuchastheGravityActuatedPipe(GAP)system.

ThestrategyistomaintainthisleadershippositionandtodevelopnewmarketsandgrowthintheTurnkeySystemssegmentbasedonaselectiveapproachdependingonthecomplexityofthetechnology,theclientandthecontractingconditions.Thefocusistodeveloptechnologicalsolutionstosuitourclients’needsandsellthesesolutionsonaturnkeybasiswhileengaginganacceptableriskandrewardbalance.TheCompanywillaimtoidentifytheclients’needsandpro-poseinnovative,fitforpurpose,robustsolutionswithsuitabledeliveryschedulesandappropriateprices.

Animprovedprojectexecutionperformanceistar-getedfortheTurnkeySystemssegmentfocusingonrobustprocedures,increasedprojectmanagementandenhancedprojectcontrols.Theplanistoraise

Towards Society / Communities• tosupportandpromotehumanrightsandcontributetosocialwelfareinthecommunitieswhereweoperate;

• tosupportandpromotebusinesspracticesfreeofbriberyandcorruption;

Towards the Environment• tominimizethenegativeimpactandrisksofouractivitiesontheenvironmentandco-operatewithbusinesspartnerstoimproveperformance;

Towards Shareholders / Capital Providers• toconstantlyimproveourknow-howandefficiency,withtheobjectivetogeneratereturnswellabovethecostofcapital;

• tomaintainahighdegreeoftransparencyandreliabilitybyprovidingaccuratefinancialandnon-financialinformation;

• toachievethehigheststandardsofcorporategovernance;

• toprovideEPSgrowthaheadoftheexpectedEPSgrowthoftherelevantoilandgasindustry’sindices.



thelevelofexpertiseandefficiencyoftheengineer-ingandprojectmanagementresources,whichhavenowreachedanannualcapacityofmorethan3millionmanhours.

FortheLNGandgasmarketsdevelopmentthefocusisonsellingtheLNGFPSOanddevelopmentofthecryo-genicflexiblehoseandaseriesofdownstreamoffshoregassolutionswillalsobepursued.Inaddition,theCompanyisdevelopingmarineenergytechnologies.BothLNGandRenewablesarepartofthediversifica-tionoftheCompany’sincomestreams,geographicalmarketsandclientbaseinthelongrun.

TurnkeyServicesTheCompanyhasalwaysownedandoperatedanoff-shoreinstallationvesselwiththecapabilitiestoinstalltheCompanysuppliedproducts,eitherfortheleasefleetoronaturnkeysalesbasis.Themainobjectiveofthisvesselisstrategic,creatingacompetitiveedgefortheCompanyasitcanincludeandestimatethecosts,oftentwotothreeyearsfromaward,ofoffshoreinstallationfortheunits.TheNormandInstalleristheCompany’sthirdgenerationinstallationvessel,ownedinjointventurewithSolstad,andinadditiontointernalwork,italsoworksforthirdparties.Recentlytheves-selwasupgradedwithafacilitytoinstallflexiblepipe,whichincreaseditscapabilityandmarketability.TheDynamicInstalleristheCompany’ssecondinstallationvessel,fortheinstallationofCALMbuoys,andothershallowwaterworkincludingdivingservices.

Thefocusforthecomingthreeyearswillbetosuc-cessfullydeploytheCompany’sownedinstallationvessels,bothtosupportinstallationoftheCompany’sunitsaswellastoprovideservicestothirdparties.TheCompanyplanstomaintainitsleadingpositionforthesupplyofCALMbuoys,swivelsandservices.Thesup-plyofspareparts,engineeringandinspectionservicesfortheCompanysuppliedterminals(morethan400worldwide)hasalsobeenaveryimportantactivity,whichwillcontinuetoexpandinthefuture.

CorporatePrinciplesandPracticesCorporateGovernanceSBMOffshoreN.V.,alimitedliabilitycompany(“NaamlozeVennootschap”)incorporatedunderthelawsofTheNetherlandswithitsstatutoryseatinRotterdam.TheCompanyhasatwotierboard,aSupervisoryBoardandaManagementBoard.EachBoardhasitsspecificroleandtaskregulatedbytheCorporateGovernanceCode,lawsandarticlesofassociation.

DutiesoftheBoardofManagementTheCompanyismanagedbytheBoardofManagementunderthesupervisionofaSupervisoryBoard.EachyeartheBoardofManagementpresentstotheSupervisoryBoard,theoperationalandfinancialobjectivesoftheCompany,thestrategydesignedtoachievetheobjectivesandtheparametersapplicableinrelationtothestrategy.Theoperationalplan2010hasbeendiscussedandapprovedintheSupervisoryBoardMeetingofDecember8,2009.

SupervisoryBoardFollowingtheresignationofMr.D.H.KellerasamemberoftheSupervisoryBoardduringthecourseof2009,theSupervisoryBoardnowconsistsoffivemembers.InDecember2009,theSupervisoryBoardannounceditsdecisiontoproposetotheGeneralMeetingofShareholdersthenominationofMr.F.J.G.M.CremersandwiththeretirementofMr.L.J.A.M.LigthartfromtheSupervisoryBoardattheendofhistermattheGeneralMeetingofShareholdersin2010theamountofSupervisoryBoardmembersremainsfive.TheSupervisoryBoardhasestablishedanAuditCommittee,aRemunerationCommitteeandaSelectionandAppointmentCommittee.

DutiesoftheSupervisoryBoardTheSupervisoryBoardsupervisesthegeneralconductofaffairsoftheCompanyanditsbusinessesandtheeffectivenessandintegrityoftheinternalcontrolandriskmanagementsystemsandproceduresimplementedbytheManagementBoard.TheSupervisoryBoardassiststheManagementBoardwithadviceinaccordancewith

375,133 Total exposure hours forDynamicInstallerandNormandInstaller



thebestpracticesoftheDutchCorporateGovernanceCode.TheArticlesofAssociationandtheSupervisoryBoardrulesprovidethatcertaindecisionsbytheManagementBoardshallbesubjecttotheapprovaloftheSupervisoryBoard.IntheperformanceoftheirdutiestheSupervisoryBoardisguidedbytheinterestsoftheCompany,andtheenterprisesconnectedtherewith.

DutchCorporateGovernanceCodeTheCompanyisobligedtocomply(orexplainanynon-compliance)withtheDutchCorporateGovernanceCode.TheCorporateGovernanceMonitoringCommitteehaspublishedtheamendedDutchCorporateGovernanceCodeon10December2008andon21December2009thisamendedCodewasbylawdesignatedastheCorporateGovernanceCodewhichlistedcompanieswillhavetoapplyandreporton(hereafter;Code).Duringthecourseof2009theCompanyhasstudiedtheCodeanditsimplicationsforthecorporategovernancestructureofSBMOffshoreN.V.AreportontheimplementationoftheCodecanbefoundintheCorporateGovernancesectionoftheAnnualReport2009whichcanbedownloadedfromtheCompanywebsitewww.sbmoffshore.com

FormoredetailsonCorporateGovernanceinformation,pleaserefertotheCompany’s2009AnnualReport.

CodeofConductTheCompany’scommitmenttoresponsiblebusinessmanagementisexpressedintheCodeofConduct,whichoutlinestheCompany’sresponsibilitiestowardsitsstakeholders.TheCodeofConductisthebasisforthedailyperformanceofbusinessactivitiesandallemploy-eesareaccountableforcompliancewiththeCode.

Inaddition,RulesofConductRelatingtoSuspectedIrregularitiesorbetterknownasthe“WhistleBlowingRules”havebeendevelopedincompliancewiththeCodeofConduct.Thissetofrulesprovidesguidancetoemployeeshowtheyshouldreportinternallyanysus-pectedirregularitiesofageneral,operational,orfinancialnaturewithoutjeopardisingtheiremploymentstatus.

TheCodeofConductandRulesofConductRelatingtoSuspectedIrregularitiescanbefoundonthe

Companywebsitewww.sbmoffshore.comaswellastheCorporateIntranetSite(CIS).

ShareholdersWithreferencetothearticlesofassociation,allShareholdersareentitledtoattendtheGeneralMeetings,toaddresstheGeneralMeetingandtovote.AttheGeneralMeetingeachOrdinaryShareshallconfertherighttocastone(1)vote.Each PreferenceShareshallconfertherighttocastfour(4)votes,whenissued.Unlessotherwiserequiredbythelawandarti-clesofassociation,allresolutionsshallbeadoptedbyanabsolutemajorityofvotes.

TheCompanymaintainsactivecommunicationswithitsshareholdersonseveraldifferentoccasions,eventsormeetingsinordertokeeptheminformedonthegeneralandspecificallyfinancialaspectsofthebusi-ness.TheinformationiscommunicatedinwritingintheAnnualReport,intheminutesofmeetingoftheannualgeneralmeetingofshareholders(AGM),inpressreleasesandinpresentationsforfinancialanalystsandisdistributedelectronicallyonthewebsite,viaemailandinhardcopyformat.TheCompanyalsoaddressesshareholdersverballyduringtheAGM,atinvestormeetings,investorpresentations(whicharewebcast),andconferencecalls.

TheAnnualReportcontainsseveralsectionsinwhichtheCompanypresentsitsfinancialresultsandotherinformationonitsactivities,developmentsandstrategy.Thereportisauditedbyanexternalaccountingfirm.TheAnnualReportisprintedinhardcopyfordistribu-tionandcanalsobedownloadedelectronicallyfromtheCompany’swebsite.

AttheAGMtheshareholdersinattendancevoteongrantingdischargetotheBoardofManagementfortheconductoftheCompany’sbusinessesandtotheSupervisoryBoardforitssupervisorydutiesduringtheyearunderreview.

FormoredetailsonShareholderInformation,pleaserefertotheCompany’s2009AnnualReport.



InvestorRelationsTheCompanyhasanactiveinvestorrelationsprogrammewhichconsistsofprovidinginformationtothestakehold-ersbypressreleasesfollowedbydirectdialoguewiththeinvestmentscommunityviateleconferencecallsforthequarterly tradingupdates andananalystpresentationforfullandhalfyearresults.Boththeconferencecallsandtheanalystpresentationarewebcast.Meetingsarealsoheldwithindividualinvestorsatconferences,attheinves-tor’spremisesoronCompanypremises.Telephonecallswithinvestorsandanalystsareheldonaregularbasis.

In2009,theCompanyorganizedavisitforfinancialanalyststoongoingconstructionprojectsinSingapore,whichwasattendedby15analystsalongwiththeCompany’sCEO,Mr.TonyMace.

Atotalof23roadshowsandconferenceswereattendedbytheCompanyinthecourseof2009.

StakeholderEngagementTodate,theCompanyhasnotyetengagedinanystakeholderdialoguespecificallyrelatedtoitsoverallCSRperformanceandreporting.

TheCompanyencouragesandmaintainsanopenandrespectfulengagementwithallourstakeholders.Thistakesplaceatannualshareholdersmeetings;withourCompanyemployeedelegates,ourclientsandNonGovernmentalOrganisations(NGO).

Mainstakeholdergroupsidentifiedinthisreportareouremployees,clientsandbusinesspartners,capitalproviders,shareholders,suppliersandNGOs,localauthoritiesandlocalhostcommunitiesinthecountrieswheretheCompanyhasapresence.

CarbonDisclosureProjectTheCompanyparticipatedintheCarbonDisclosureProject(CDP)fortheNetherlands50in2009andintendstoparticipateagainin2010.CarbonDisclosureLeadershipIndexassessesthequalityanddepthofacompany’sresponsetotheannualCDPquestion-naireforitsinternalmanagementofdatarelatedtogreenhousegasemissionsandunderstandingoftheissuesthatclimatechangepresentstothe

Company’sbusiness.TheCompanyispartoftheEmissionsCarbonIntensivesectorandwithinthisgroup,isoneofthelowestcarbondioxideemitters.

CorporateManagementSystemsToensurethequalityoftheproductsandservicesoftheCompany,ithasdevelopedaformalisedsystemwhichdescribestheinternalworkingprocedures,GroupManagementSystem(GMS).Inordertoverifythepro-ceduresthe CompanyhasidentifiedandadoptedasetofinternationallyrecognisedstandardswhichareinlinewiththeGMSforexternalcertificationpurposes.

TheCompany’sCorporateManagementSystemsarebuiltonthefollowinginternationallyrecognisedstandards:• QualityManagementSystemStandard

ISO9001:2008;• EnvironmentManagementSystemStandard,

ISO14001:2004;• OccupationalHealthandSafetyManagement

SystemStandard,OHSAS18001;• SBMOffshoreSocialAccountabilityManual

(compatiblewithSA8000Standard);• MARPOLRegulations2002;• ISM/ISPSCodes(InternationalSafetyManagement/

InternationalShipandPortFacilitySecurity).

QualityManagementTheCompany’sinternalGroupManagementSystem(GMS)describestheCompany’smanagementsys-temandprocedures,whichareappliedconsistentlyinalltheprojectexecutioncentres.AllcentreshavebeenauditedbytheAmericanBureauofShipping(ABS)in2009andhaveobtainedcompliancewithISO9001:2008.ItistheintentionoftheCompanytoalsoattaincompliancerecognitionforISO9001fortheoperatingunitSBM-ProductionContractors,whichmanagesthefleetoperationsin2010.

Emission Carbon Intensive SectorNote:TheWorldResourcesInstituteandtheWorldBusinessCouncilforSustainableDevelopment,GreenHouseGasProtocoldefinesScopes1and2as:Scope1directemissionsfrompowergeneratedbythecorporation;Scope2indirectemissionsthroughconsumptionofelectricity,heat,coolingorsteam.Source: Carbon Disclosure Project 2009: The Netherlands 50. www.cdproject.net

A

Emission Carbon Intensive Sector

A. Arcelor Mittal, B. Royal Dutch Shell, C. Air France - KLM,D. Royal DSM, E. Akzo Nobel, F. SBM Offshore, G. TNT

500 100 150 200

B

C

D

E

F

G

Scope 1 EmissionsScope 2 Emissions

Million tonnes CO2



EnvironmentISO14001accreditationisvoluntarilyappliedbytheCompany.ImplementationstartedinBrazilthisyearandcontinuestoexpandacrossthefleet.ThemostrecentadditiontothefleetinBrazil,FPSOEspiritoSanto,commencedoilproductionin2009andtheCompanyexpectstoobtainaccreditationforthisunitin2010.ThisstandardisalsobeingimplementedinAngola,whereaccreditationonallunitsisongoingandcompletionisexpectedin2011.

HealthandSafetyTheCompany’soffshorefleetmanagementiscom-pliantwiththeInternationalSafetyManagement(ISM)standardandtheInternational ShipandPortFacilitySecurity(ISPS)Code,whichisamandatoryrequirement.

TheCompanyhastheobjectivetoattaincompliancerecognitionforOccupationalHealthandSafetyStandard(OHSAS)18001,whichisvoluntary,forallshorebasesandoperatingunitstoimproveHealthandSafetyprac-tises.AccreditationwasobtainedintheshorebaseinBrazilandisbeingimplementedinallothershorebaseandoperatingunitsduring2010and2011.

BaseduponthesuccessfulauditcarriedoutbyABSQualityEvaluationsagainstBSOHSAS18001intheMacaeshorebaseandoneFPSOinBrazil,theCompanyisconfidentthatcomplianceinallareaswillbeestablished

EmploymentStandardsTheCompanyseekstogiveallitsemployeesthebestemploymentstandardsaspertheCodeofConductandSocialAccountabilityManual.TheCompanyoperateswithstandardsthatinmostcasesexceedinternationalhumanrightsandinternationallabourguidelines.

AllseniorandnationalemployeesoftheoffshorefleetoperationsareemployeddirectlybytheCompany.Thecomplementofthecrewsisemployedthroughapprovedmanningagencieswiththeobjectivetograd-uallyfillallthesepositionswithnationalemployees.

TheCompanydoesnottoleratechildorforcedlabouranddoesnotsupportorworkwithcompaniesthatsus-tainforcedorcompulsorylabour.ThisisincompliancewiththeUNUniversalDeclarationofHumanRights,theILOConventions,andtheOECDGuidelinesformulti-nationalenterprisesandisaddressedintheCompany’sCodeofConduct.

SocialAccountabilityTheCompanyisintheprocessofachievingcompli-anceforitsglobalshorebasesinaccordancewiththeSocialAccountabilityManual,basedonSA8000standards.ImplementationoftheSocialAccountabilityManualstandardwasachievedthisyearinBrazilandisplannedforEquatorialGuineaandMalaysiain2010.TheCompanyhastheobjectivetoattaincertificationoftheAngolanshorebaseby2011.

In2006,whentheCompanyimplementedtheSA8000,SocialAccountabilityInternational(SAI)directedtheSA8000AdvisoryBoardthatverificationofthestandardwouldnotbeallowedinMyanmar,untiltheInternationalLabourOrganisation(ILO)lifteditssanc-tions.Therefore,thedecisionwasmadetocontinuetheimplementationusinganin-houseSocialAccountabilityManual,basedontheprecedentsetbytheSA8000Framework.Thisrequiresthecontinuousandtranspar-entauditinginMyanmaroftheCompany’ssuppliersandsubsuppliers.

WhiletheeffectsofcycloneNargisinMyanmarin2008delayedthecomplianceprocess,theCompanywasabletoaudittheshorebaseattheendof2009withthecertificateissuedearlyin2010.

ThestatusoftheimplementationandcertificationofmanagementsystemsispresentedintheManagementSystemCompliancetable.

Appliedstandards:

ISO 9001ISO 14001OHSAS 18001

SBM Offshore Social Accountability Manual MARPOL Regulations

ISM CODEISPS CODE



20112010

2010 2010

20102010

2011

2010

2010

2009

2011

2010

2010

20112011

2011 2010

2009 2011 2010

2011 2010

2009

2011 2011

ManagementSystemComplianceTable31December2009

ISM ISO9001

eXeCuTion CenTReSGustoMSC – Schiedam, The Netherlands n/aSBM Atlantia – Houston – USA n/aSBM Malaysia – Kuala Lumpur, Malaysia n/aSingle Buoy Moorings – Monaco n/aSBM Production Contractors (Fleet) – Monaco

ISM OHSAS18001

Social Accountability

SHoReBASeSAngolaBrazilEquatorial Guinea MalaysiaMyanmarNigeria

ISM ISPS ISO14001

OHSAS18001

oFFSHoRe PRoDuCTion FLeeTAngola

FPSO KuitoFPSO XikombaFPSO SanhaFPSO MondoFPSO Saxi BatuqueBrazil

FPSO Espadarte*FPSO BrasilFPSO Marlim SulFPSO Capixaba*FPSO Espirito SantoMyanmar

FSO Yetagun

Theversionofthematrixinthe2008CSRreportcontainedamisstatementwithregardtotheISO14001andOHSAS18001compliance.Thishasbeenrectifiedintheabovematrixfor2009.

Compliantaccordingtoexternalaudits(withdateifachievedin2009)

Targetfor2010

Targetfor2011

Noinitiativesplanned

*Unitwillberelocatedafterreconversion



Houston

Schiedam

Monaco

Marly

Kuala Lumpur

Project Execution/Corporate Centres Shore Bases Lease Units Future Lease Units Operate only Laid-up Unit

WorldMapofSBMOffshore

5,389Total Employees Worldwideatyearend2009

4

Main Project Execution Centres


CSRCommitmentsandPerformancePrinciplesandCorporateGovernancePriorities Commitments Accomplishments Future Targets 2010+

CoDe oF ConDuCT 2009Familiarise all employees, contractors, and temporary staff with our principles and practices.

Ensure the proper application of the Code of Conduct.

• Code of Conduct revised and issued in Jan 2010.

• Guidelines for Use of Agents and Commercial Relations with Public Officials.

• Continued awareness of revised Code of Conduct to be made to all of our employees.

• Establish an internal contact for reporting on moral issues

H.S.S.E.Priorities Commitments Accomplishments Future Targets 2010+

HeALTHHealth at Work Ensure better health of

employees.Offshore marine units are equipped with gymnasium facilities and crew are encouraged to use the equipment.

Continue with programme.

The SBM-PC Code of Practice for Medical Evacuations has been revised to improve response arrangements.

SBM-PC management system is under constant review.

The competencies of offshore medics has been reviewed to ensure that marine unit crew can receive prompt and apposite medical advice and attention.

Ensure standards are maintained.

Enrollment in Company gymnasium training facilities was 220 employees for Monaco and 214 employees for Houston.

Encourage employees fitness by offering low subscription fees to join Company training facilities where applicable.

Subsidised full medical for employees in select positions and age group in several locations Worldwide.

Expand to age group.

Stop smoking sessions organised yearly in Monaco.

Expand to other locations where applicable.

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.

OHSAS 18001 A formal Health and Safety Manual, inclusive of policies and procedures.

OHSAS 18001 certification of the shore base in Brazil and FPSO Capixaba.

Target to certify all shore bases and units in accordance with OHSAS 18001 over 2010 and 2011.

SAFeTyReduce accidents where we have control and direct influence

Keep track of all incidents both for our own people and our subcontractors.

Reporting system SIRS is opera-tional and being extended to report additional information on incidents. Expanded and developed system to operate in construction sites.

Improve consolidated database, improve reporting statistics. Remaining marine unit FSO Yetagun to receive SIRS applications. Develop system further for use in onshore project execution centre offices and shore bases.

Single Incident Reporting System (SIRS)

Implement SIRS wherever SBM Offshore is present.

Already implemented on all but one of the marine units (FSO Yetagun).

All new conversion projects to have SIRS.

Keep Lost Time Incident (LTI) to zero

Zero accidents. Good performance result. Maintain progress and target for zero accidents.


H.S.S.E.continuedPriorities Commitments Accomplishments Future Targets 2010+

SeCuRiTyProvide security protection in all foreseen circumstances for SBM Offshore employees

To provide security protection for personnel, property, information, financial holdings and reputation.

Issue of Security Policy. Continue to implement the Security Policy within the Management System.

International Ship and Port Security (ISPS) Code compliance in place on all offshore units.

Ensure continued ISPS compliance for the fleet. Implement ISPS Code on new projects during the conversion.

enViRonMenTStrengthen the Environmental Management System

ISO 14001 EMS system to be progressively put in place for the fleet.

• Certification of the West African fleet has commenced. ISO 14001 compli-ance in place on FPSOs, Espadarte, Brasil, Marlim Sul and Capixaba.

• Additional environmental reporting requirements have been added to SIRS

Lease and operate fleet to be com-pleted by the end of 2010 with the exception of Kuito which will be done in 2011.

Recycling programme Implementing Recycling programme for Onshore Operations and Offshore Production

In the Monaco project execution centre a new recycling system was implemented which allows for moni-toring. Waste segregation continues at offices in Schiedam and special IT disposal programme continues to be a success at the Houston offices.

Expand recycling and waste recy-cling programmes throughout the Company. Waste recycling objectives have been set for the office in Kuala Lumpur for 2010.

In Brazil recycling programme has been implemented and is running, onshore and offshore, as part of ISO 14001.

Study ISO14001 requirements in 2010 for implementation in shore bases during 2010.

Emissions monitoring for offshore production

CO2 registers to be kept for all Floating Offshore Production Units.

Emission data are recorded for all units, additional reporting requirements added to SIRS for reportable releases.

Include monitoring of all air emissions for new production units and continue with the existing fleet.

ResponsibilitiesTowardsEmployeesPriorities Commitments Accomplishments Future Targets 2010+

HuMAn ReSouRCeSSocial Accountability Implementation

SBM Production Contractors Social Accountability Standards established as part of Production Contractors Management Systems already in place in Brazil and Myanmar.

Social Accountability Standards to be implemented in Malaysia and Equatorial Guinea in 2010.

Nationalisation programme Maximize percentage of nationals onboard the units

75% of the crews on the FPSOs in Brazil are nationals.

Nationalisation programmes for the new units which have been brought on stream.

Well being of employees Maintain employees well being around the workplace

• Bicycle plan in Schiedam.• Employee care officer in Schiedam.

Expand those initiatives where applicable to other locations.

LocalCommunitiesPriorities Commitments Accomplishments Future Targets 2010+

CoMMuniTy inVoLVeMenTPaenal Fabrication Yard, Porto Amboim, Angola

Development of a Fabrication yard that can boost local Angolan community.

Phase one implemented and maintained sufficient work for current workforce

Fully develop yard into a topsides fabrication and FPSO integration yard. Completion of this development is dependant on order intake.

CSR Reporting Scope

24 SBMOffshore–CSRReport2009FPSO Saxi Batuque in operation

offshore Angola

CSR Reporting Scope


CSR Reporting Scope


2CSRReportingScope

27 Introduction 27 Reporting Segments 27 Health, Safety, Security and Environment Reporting 28 Environmental Reporting 30 Human Resource Reporting 30 Performance Reviews / Training 30 Social and Community Reporting

CSR Reporting Scope


IntroductionTheCompany’sCSRreportisbasedonGlobalReportingInitiative(GRI)G3guidelinesattheC+level.TheCompany’sperformanceisreportedfromJanuary1toDecember31,2009.TheperformanceindicatorscomplywiththeGRIGuidelinesandformpartofthenon-financialreportingscope.

TheCompanyhassoughtexternalassurancefromPricewaterhouseCoopersAccountantsN.V.toverifytheindicatorperformancedata.CSRreportingisundercontinuousdevelopmentandtheCompanyisimplementingawebbaseddatareportingtooltofacilitatereportingofCSRdatabyalloperatingunitsandlocations.

TheCompanystrivestomeettherequirementsofbestpracticesforGRIreportingprinciples.Forthe2009report,afewmodificationsweremade,howeverthemainreport-ingprinciplesarethesameasin2008.

TheManagementSystemCompliancematrixhasbeenupdatedtoreflectthelatesttargetsforcompliance.Duetoanerrorintheeditingphaseofthereportlastyear,thetablecontainedsomemistakeswhichhavebeenrectifiedinthetablethisyear.

Allperformanceindicatorsareconsolidatedintheappendicesattheendofthereport;Economic,Health,Safety,SecurityandEnvironment(HSSE),HumanResourcesandCommunity.

ReportingSegmentsThereportingscopeisdividedintotwomainsegments,OnshoreOperationsandOffshoreProduction.Dependingontheperformanceindicatorsbeingreported,thesegmentcanbesplitfurther.

Theresultsarereportedasperformanceindicatorsandarepresentedforboth2008and2009tofacili-tatecomparison.Tohighlighttrends,theCompanyhasinsomecasesdecidedtoshowmultipleyearsofreporting.

Health,Safety,SecurityandEnvironmentReportingPerformanceindicatorsareappliedtotheCompanyforbothOnshoreOperationsandOffshoreProduction.Indicatorstakeintoaccountallpermanentemployees,part-timeemployees,localemploymentstafffromagenciesontheconstructionsites,officesandonboardtheoffshoreproductionfleet.

WithrespecttoOffshoreProduction,HSSEincidentreportingisregisteredandmanagedthroughtheSingleIncidentReportingSystem(SIRS)database.

SIRSisareportingsystemthatisusedtocollectdataonallincidentsonallunitsoperatedbytheCompany.Thesystemisawebbasedapplicationandisacces-sibleworldwidefromallthelocationstofacilitatedataentry.

TheCompanyalsoreportsonanyincidentsatsubcon-tractor’sconstructionfacilities iftheincidentoccurswhileworkingononeoftheCompany’sprojects.

Manhoursarecalculatedinthreedifferentwaysdependingonthesegment;OffshoreProduction,OnshoreOperations andOnshoreconstruction.

CSR Reporting Scope


TheCompanyrecordsmanhoursforOffshoreProductionasaheadcountofthenumberofpeopleonboard.Onshore,theCompanypersonnelrecordtheirmanhours,usinganinternalTimeREGistrationsys-tem(TREG).OnshoreconstructionyardmanhoursarereportedtotheCompanybytheyardsthemselvesastotalmanhoursworked.

TheCompanyusesmanhourrecordsandSIRSdatatocalculateHealthandSafetyperformanceindicators.

Thesafetystatisticsarereportedbasedontheinci-dentclassificationsdefinedintheU.S.DepartmentofLabor’sOccupationalSafetyandHealthAdministration(OSHA)InternationalIndustryStandard.

EnvironmentalReportingEnvironmentalperformanceofthe12productionand/orstorageunitsisreportedtakingintoaccountthefollow-ingreportingboundaries:• unitsintheCompany’sfleetproducingand/orstor-

inghydrocarbonsunderleaseandoperatecontractsduring2009;

• unitsinwhichtheCompanyexercisesfullopera-tionalmanagementcontrol;

• unitsinwhichtheCompanyhasfullownershiporparticipatesinaJointVenture(JV)partnership,wheretheCompanycontrols50%ormoreoftheshares.

OwnershipandJointVenturePartnerships–OffshoreProduction2009ThefollowingtableliststheleaseunitsinwhichSBMOffshoreholdsa50%orgreaterownershipandisthereforeincludedinthereportingscopeaswellasleaseunitsinwhichSBMOffshoredoesnotexerciseoperationalmanagementand/ordoesnotholdJVmajorityownershipareexcludedfromthereportingscope.

OffshoreProductionenvironmentalperformanceresultsarechosenaccordingtotheperformanceindica-torsrelativetoGRI.Thisincludesgreenhousegases

referredtoasGHG,whichareN2O,CH4andCO2,inadditiontoothernon-GHGairemissions,suchasCO,NOx,SO2andVOC.TheairemissionscalculationfromtheoffshoreproductionunitsareperformedusingasthebasisforthecalculationthemethodfromtheUKoffshoreoperatorsassociation(UKOOA).

TheCompanyusestheWRIGreenhouseGasProtocol(GHGProtocol)methodtocalculateCO2equiva-lents.Carbondioxideequivalencyisaquantitythatdescribes,foragivenmixtureandamountofgreen-housegas,theamountofCO2thatwouldhavethesameglobalwarmingpotential(GWP),whenmeasuredoveraspecifiedtimescale(generally,100years).FormoreinformationontheGHGprotocolandcountryspecificcalculationmethods,pleaseseetheirwebsite:www.ghgprotocol.org/calculation-tools.

Environmentalspillstoair,waterorlandfortheunitsarereported.

Allreportedairemissionsexcludeflaring,asthisfactor,relatedtotheproducedfluidsfromtheoil/gasreser-voirs,isreportedbytheCompany’sclients.

CSR Reporting Scope


Unit name in operation Country of operation

JV partner and ownership level

JV ownership title Operational management

Client

1 FPSO Kuito Angola SBM Offshore 50% Sonangol 50%

Sonasing Kuito Ltd SBM Offshore Chevron

2 FPSO LPG Sanha Angola SBM Offshore 50% Sonangol 50%

Sonasing Sanha Ltd SBM Offshore Chevron

3 FPSO Xikomba Angola SBM Offshore 50% Sonangol 50%

Sonasing Xikomba Ltd SBM Offshore ExxonMobil

4 FPSO Mondo Angola SBM Offshore 50% Sonangol 50%

Sonasing Mondo Ltd SBM Offshore ExxonMobil

5 FPSO Saxi Batuque Angola SBM Offshore 50% Sonangol 50%

Sonasing Saxi Batuque Ltd

SBM Offshore ExxonMobil

6 Espadarte FPSO Brazil SBM Offshore 100% n/a SBM Offshore Petrobras

7 FPSO Brasil Brazil SBM Offshore 51% MISC Berhad 49%

FPSO Brasil Venture S.A. SBM Offshore Petrobras

8 FPSO Marlim Sul Brazil SBM Offshore 100% n/a SBM Offshore Petrobras

9 FPSO Capixaba Brazil SBM Offshore 80% Star 20%

FPSO Capixaba Venture S.A.

SBM Offshore Petrobras

10 FPSO Espirito Santo** Brazil SBM Offshore 51% MISC Berhad 49%

Brazilian Deepwater Production Ltd

SBM Offshore Shell

11 FSO Yetagun Myanmar SBM Offshore 75% Mitsubishi 25%

South East Shipping Co.Ltd

SBM Offshore Petronas

12 FSO Oguzhan and MOPU Turkmenbasy*

Turkmenistan SBM Offshore 100% n/a SBM Offshore Petronas

Unit name in operation Country of operation

JV partner and ownership level

JV ownership title Operational management

Client

1 FSO LPG Nkossa II Congo (D.R.) SBM Offshore 49% Maersk Ltd 51%

Anchor Storage Ltd Gas Management (Congo) Ltd

Total

2 DeepDraft Semi™ Thunder Hawk**

United States of America

SBM Offshore 100% n/a Murphy Murphy

3 FPSO Kikeh Malaysia SBM Offshore 49%MISC Berhad 51%

Malaysia Deepwater Floating Terminal (Kikeh) Ltd

Malaysia Deepwater Production Contractors Sdn Bhd

Murphy

*lease and/or operate contracts that expired in 2009

**lease and/or operate contracts that commenced in 2009

OwnershipandJointVenturePartnershipsOffshoreProduction2009Includedinreportingscope

Excludedfromreportingscope

CSR Reporting Scope


SocialandCommunityReportingThesocialandcommunitysectionreportsonrelationsbetweenCompany’soperationsandthelocalcommuni-ties,suchashumanrights,communityinvolvementandcontributionstocommunitymadebytheCompany.

HumanResourceReportingTheCompany’sHumanResourcedatacoversalltheworkforcesworldwideandisbrokendownbyseg-mentsofemploymenttype,region,gender,andage.Theperformanceindicatorsreporttheworkforcestatusatyear-endonthe31December2009.

Itincludesallstaffwhowereassignedonpermanentandfixed-termcontracts,employeehiresanddepar-tures,totallocallyemployedstafffromagenciesandallcrewworkingonboardtheoffshoreproductionunits.TheperformanceindicatorscontinuetoreportusingthecategoriesofWhiteCollarandBlueCollarworkersin2009.WhiteCollarisdefinedasstaffworkingattheCompany’scorporateandengineeringofficesandfourprojectexecutioncentres.BlueCollarisdefinedasper-sonnelworkinginprojectexecutionandconstructionactivities,includingthepersonneloftheCompany’ssubcontractorsandoffshorepersonnelemployedonboardtheoffshoreproductionunits.

PerformanceReviews/TrainingEveryyear,theCompanyconductsannualperformancereviewsforemployees.Globally,theCompanyutilisestheHayCompetencysystemtogradeandevaluateallpermanentstaff.

TotaltraininghoursforallCompanystaffforbothBlueCollarandWhiteCollarareincludedinthereport.

CSR Reporting Scope


Health, Safety, Security and Environment



32 SBMOffshore–CSRReport2009FPSO Capixaba entering the

dry dock at Keppel in Singapore







3Health,Safety,SecurityandEnvironment(HSSE)

35 Health Management 35 Safety Management 37 Security Management 38 Environmental Management



HealthManagementGeneralThehealthoftheCompany’sworkforceisofprimeimportanceandisgivensignificantattentionthroughvariousinitiatives.TheCompanyisproactiveinitscom-mitmenttoimprovethestandardoftheimplementedhealthproceduresandtomitigateallhealthrisks.

OffshoreProductionAllCompanyoffshoreemployeesmustattendregularmedicalexaminationswhicharedependentupontheirage.HealthandWellbeingprogramsareinplaceonthemarineunits.Allmarineunitsareequippedwithgymna-siumequipmentandemployeesareencouragedtousethesefacilities.

AllCompanyemployeesworkinginareaswheremalariaispresentareadvisedoftheappropriatemalariapreventionmeasures,andareprovidedwithprophylaxismedication.Vaccinationrecommendationswhenworkingindifferentlocationsworldwideareavailabletoallemployees.

OnshoreOperationsItistheCompany’sdutyofcaretoprotectallperson-nelwithinitsoperationsfrompotentialhealthhazards.Examplesthatdemonstratethiscommitmenttoprovid-inghighlevelhealthsupporttotheemployees are:• theissueofcomprehensiveadviceCompanywide

coveringtheH1N1swinefluvirus; • thesupporttoemployeesoveracertainageto

attendacomprehensivemedicalexamination; • nosmokinginitiatives; • provideorsponsoruseofgymfacilitieswhere

applicable; • promotionofsportingactivitiesingeneral.

SafetyManagementGeneralToplevelsafetyperformanceisrecognisedasanindicatorofaneffectiveoverallmanagementsystemmanagedbycompetentandexperiencedsupervisionthatcreatesagoodsafetycultureatalllevelsoftheorganisation.

TheCompanyHSSECharterliststhefiveessentialelementsthatmustbeinplacetocreateasafeplaceofwork,theyare:• competency;• effectiveprocedures;• commitmentfrommanagement;• commitmentfromtheworkforce;• aproactiveapproachtotheworktakingplace.

TheCompanyhasrecentlyintroducedtwonewinitia-tivesaimedatincreasingsafetyawarenessatonshoreconstructionyardsandoffshoreon productionunits,asthesetwolocationsarehazardous,representingthehighestriskandrequireconstantattention.

TotalApplicationofSafetyKnowledge(TASK)concentratesuponkeyHSSEelementsthatareessentialforthecrea-tionofasafeworkingenvironment.Toensurethatthisisachieved,HSSEsafetymeetingsareheldonaregularbasis,auditsofworkingproceduresareinplace,andTASKsafetyposterssupporttheTASKinitiative.TheTASKinitia-tivecommencesintheconstructionyardsandcontinuesthroughtheoperatinglifecycleofthemarineunit.TheTASKsystemwasfirstestablishedattheSingaporeKeppelconstructionyards2008andcommencedimplementationattheAbuDhabiconstructionyardslate2009.

SafetyTrainingObservationProgramme(STOP),abehav-iouralbasedsystemwasimplementedintheconstructionyardsinSingaporeandinAbuDhabiduring2009.Itisalsowellestablishedintheoffshorefleet.

OffshoreProductionOffshoreProductionrecordedareductionintheTotalRecordableIncidentFrequencyRate(TRIFR)*of0.59in2009comparedto0.60in2008andaLostTimeIncidentFrequencyRate(LTIFR)*of0.03in2009comparedto0.04in2008.

* The calculation methods for LTI, LTIFR and TRIFR are explained in the notes on page 75 in the performance indicators section



TheCompanyrecognizessafetyperformanceforOffshoreProductionbycertifyingoperationsbasedonthenumberofLostTimeIncident(LTI)freeyears.In2009certificateswereawardedtothefleetforachieve-mentsofuptonineyearsLTIFree.

Inpursuitofcontinualimprovement,SBM-ProductionContractorshasattainedcompliancerecognitionbyABS,onavoluntarybasisinBrazilforOccupationalHealthandSafetyStandard(OHSAS)18001.Thesuc-cessfulimplementationinBrazilhasbeenfollowedbyaprogrammetocompletecompliancetothisstandardinAngola,andselectedareasintheRestoftheWorldFleetduring2010.

CompliancetothemandatoryInternationalSafetyManagement(ISM)standardandtheInternationalShipandPortFacilitySecurity(ISPS)Codecontinuestobethecornerstoneforeffectivefleetmanagement.

TheCompany’sdocumentedManagementSystemandBusinessContinuityPlanshavebeenreviewedduring2009aspartofanongoingprogrammetoenablecon-tinuousimprovementandtomeetcurrentrequirementsforfleetoperations.

BeingpreparedforanyoffshoreemergencycontinuestobeapriorityfortheCompany.Inadditiontotheextensivedocumentedproceduresrequiredtomeet

0.0

0.2

0.4

0.6

2008 2009

Offshore Production

0.03

0.59

0.04

0.60

LTIFR TRIFR

ISMcertification,theCompany’smarineunitsundertakeregularemergencyexercisesatfourlevels: (i)marineunitlevel;(ii)marineunitincludingshorebase;(iii)marineunitincludingshorebaseand

MonacoEmergencyControlCentre;(iv)exercisesinitiatedbyotherauthorities,

includingclients.

ManagementinitiatedchangesintheHSSEsupportforfleetoperationsinOctober2009toprovideanHSSEManagerandtwoHSSEEngineersforeachofthethreemainoperat-inglocations,Angola,BrazilandtheRestofWorld.

ThishasbeenimplementedinBrazilandtheRestofWorld,butisstillinprogressforAngola.ThiswillprovidedirectcontrolofHSSEandgreaterinhouseguidanceandsupporttotheoffshoremarineunits.

OnshoreOperationsSafetyremainsapriorityacrossallfourprojectexecutioncentresandshorebases.Initiativeshavebeentakenatthecorporateleveltoensureasafeandhealthyworkingenvironmentthroughtheimplementationoffiredrills,inci-dentreportingschemesandsafetyseminars.TheMonacoofficeshaveappointedanOfficeHSEAdvisor,whoaspartofherdutiesmonitors,auditsandreviewstheofficesafetystandardsandhasenhancedofficesafety.TheHoustonoffice,duetoitslocationandriskpotentialforhurricanes,hasimplementedacomprehensiveEmergencyResponse&BusinessContinuityPlanforhurricaneresponse.

ThesafetyrecordsfortheconstructionyardsareprovidedtotheCompanybytheyardsaspartofthereportingrequirementsforconstructionactivities.TheserecordsareissuedonadailybasisandareauditedperprojecttoverifycompliancewiththeCompanyrequirements.

TheCompanybelievestherecognitionofgoodsafetyperformanceisessentialtothecontinuationofaneffectiveManagementSystem.In2009,certificateswereissuedbytheCompanyinrecognitionofsignificantperiodsoftimeworkedintheconstructionyardswithoutanLTI*.Therewerenofatalitiesresultingfromawork-relatedincidentorillnessonCompanyprojectsatanysub-contractorfabri-cationyardsin2009.



TheCompanyawardscertificatesbaseduponmillionsofLTIfreemanhours.CertificateswereawardedtotheyardsrangingfromonetosixmillionLTIfreemanhours,demonstratingthehighsafetyperformanceachieved.

OnshoreOperationsintheofficesrecordedareductioninTRIFR*to0.03in2009comparedto0.21in2008and0.00LTIFR*in2009comparedto0.13in2008.

SecurityManagementGeneralSecuritywithintheCompanyremainsakeyelementthatcommandsthefullsupportandattentionofman-agementandsupervisorsalike.

TheCompanyissuedaformalSecurityPolicyinMay2009,inwhichtheBoardofManagementcommittedtoestablishandimplementaSecurityManagementSystemcapableofeffectiveapplicationthroughouttheCompany’soperations,bothoffshoreandonshore.TheSecurityManagementSystemprovidesprotectioninallcircumstancestopersonnel,property,financialholdingsandtheCompany’sreputation.

OffshoreProductionTheSecurityPolicyhighlightstheCompany’sprioritytoassure theprotectionofpersonnelwherevertheymaybe.TheCompany’sCorporateHeadofHSSEisdirectlyresponsibletotheCEOfortheeffectiveexecutionofthisPolicy.

Withintheleasefleet,theISPSCodecontinuestofeatureastheoverridingsecurityelementthatwillsafeguardpersonnelonboard,andfortheoverallprotectionofCompanymarineunits.Securitydrills,exercisesandauditshavebeencarriedoutduring2009toensurethatthesecurityproceduresintheeventofasecurityinci-dentoffshorearewellpracticed,comprehensiveandfitforpurpose.

TheDynamicInstalleroffshoreactivitiesaresupportedbyindepthriskassessmentsandsecurityplansthataredevelopedintheMonacooffices,inconjunctionwiththeship’sstaffandtheCompany’sprofessionalsecuritystaffincountrywhenworkinginlocationswherepiracyormilitantactivityisapotentialthreat.

Theseplansformthebasisoftheprocedurestobeputinplaceforthewellbeingofthevesselcrewwhenonlocation.

0 Lost Time Incident Frequency (LTIFR)forOnshoreOperations

0.03 Lost Time Incident Frequency (LTIFR)forOffshoreProduction

6.6million manhours Onshore operation(2008:5.8millionmanhours)

0.0

0.1

0.2

0.3

2008 2009

Onshore Operations

0.00

0.03

0.13

0.21

LTIFR TRIFR

Onshoreconstructionyardsactivitiesrecordedareduc-tionintheTRIFR*to0.22in2009comparedto0.44in2008andanLTIFR*of0.04in2009comparedto0.11in2008.

0.0

0.2

0.4

0.6

2008 2009

Subcontractors(Fabrication/Conversion Yards)

0.04

0.22

0.11

0.44

LTIFR TRIFR

* The calculation methods for LTI, LTIFR and TRIFR are explained in the notes on page 75 in the performance indicators section



OnshoreOperationsDuring2009,aCompanySecurityAdvisorwasappointedwhoisbasedinLagos,NigeriaandhasaworldwidefunctionfortheprovisionofprofessionalsecurityadvicetoallbranchesoftheCompany.

JourneymanagementinallofthelocationsinwhichtheCompanyoperateshascontinuedtoreceiveahighprior-itythroughout2009andwillcontinuethroughinto2010.

EnvironmentalManagementGeneralTheactivitiescarriedoutbytheCompanyonbehalfofourclientscontinuetobeconductedinthemostenvironmentallysustainablemannertominimizeanydamagetothelocalecosystems.

OffshoreProductionTheCompanyisawareofthepotentialenvironmentalimpactsassociatedwiththehandlingofhydrocarbonsoffshoreandisfullycommittedtosafeoperationsandtheprotectionoftheenvironment.Withinthebroadscopeofenvironmentalaspectsrelatedtoitsoperations,specialattentionispaidtotheavoidanceofoilleakages,tothepreventionofunnecessaryflaringoremissionstowaterandair,andtominimisingtheuseofenergy.

TheCompanyStandardsandCodesofPracticetailoredforeachmarineunitprovidesdetailedrequire-mentsforthesafeandeffectivecontrolofwork,i.e:

• tocomplywithlocalenvironmentallaws;• tocomplywithMARPOL,theinternationalmarine

environmentalconventiontominimisepollutionoftheseas;

• toensurehighstandardEnvironmentalManagementSystems(EMS),meettherequirementsofISO14001;

• tocontrolandreducepollutionemissionsandtominimisewastegeneration;

• tocomplywiththeCompanyproceduresforthesafehandling,storage,anddisposalofhazardouswaste;

• toraiseenvironmentalawarenessthroughtrainingandinstruction.

TheEMSforthefleetofmarineunitscomplieswiththeinternationalISO14001requirements.EMSandstrin-gentcodesofpracticesareinplaceonboardeachofthemarineunits.TheCompanyisnotonlycommittedtotrackingemissionswhichhaveadirectimpactontheenvironment,butalsotoconsolidateitspreventativemeasuresandidentifypotentialemissionsourcepoints.TheCompanyhasintegratednewenvironmentalreportingcriteriawithinSIRS(SingleIncidentReportingSystem)inordertoprovidemoreaccurateanddetailedenvironmentalreportsonanyreleasedeffluents.

TheCompanyiscommittedtocomplywithrelevantinternationaloilindustrystandards,whichisillustratedbytheplantocertifytheAngolanfleetwiththeISO14001standardbytheendof2010followingonfromthecertificationobtainedfortheBrazilianfleetin2008and2009.

TheprimaryemissionsourcesfortheoffshorefleetaretheGreenhouseGases(GHG)fromcombustionandflaring,whichoccurduringoperations.Flaringrepre-sentsapproximately50%oftheseemissions.Whenproducingoilandnaturalgas,carbondioxide(CO2)andmethane(CH4)areusuallythemostsignificantcomponentsofproducedGHG.Emissionsassociatedwiththeproductionofenergyontheunit,suchassteamorelectricityrequiredbytheunit’sfacilityhasbeenincludedintheCompany’semissionsrecords.MainsourcesofthecombustionGHGareemissionsfromgasusageforboilersandturbinesanddieselusageforengines.

EnvironmentalLossStatisticsTheCompanymeasuresallunintentionalandinten-tionalemissionstoland,sea,andaironaregularbasis.In2009,theOffshoreProductionfleetexperienced23recordableenvironmentalevents,ofwhich16werecontainedwithinthemarineunitspaces,withoutanyreleasetothesea,howevertherewere7minorreleasestothesea.

6 million

manhours LTI freeforOnshoreOperations



Thevolumesreportedarefarbelowtherequiredreport-ingthresholdspecifiedintheInternationalIPIECA/APIStandardforOilandGasIndustryGuidanceonVoluntarySustainabilityReporting.IPIECAcoreindi-catorENV-1:HydrocarbonSpillstotheEnvironment:Numberandvolumeofhydrocarbonliquidspillsgreaterthan1barrel(159litres)thatreachtheenvironment.

EmissionstoAirTheemissionstoairasreportedbytheCompanyhaveincreasedby12%duetomajorshutdownsonSaxi-BatuqueandMondoforflarerepairs,resultinginincreasedusagedieselforboilersandauxiliaryequip-mentastherewasnofuelgas.

Offshore Production Emissions to Air 2009 2008

CO2 from other sources in tonnes12 Units 15 Units Change

+/- %

BRAZiL Increase in CO2 emissions due to the new FPSO Espirito Santo coming on stream in 2009 873,663 846,021 3%CASPiAn MOPU Turkmenistan contract finished 31st July 2009 therefore reduction on CO2 emissions 1,552 4,008 (61%)ASiA Tantawan Explorer and Rang Dong 1 contracts finished end 2008. Emissions are for Yetagun only 4,393 142,904 (97%)WeST AFRiCA Increase in CO2 emissions in 2009 due to major shutdowns on Saxi-Batuque and Mondo for flare repairs, therefore no fuel gas available resulting in increased usage in diesel for boilers and auxiliary equipment. 1,065,354 739,331 44%RuSSiA OKHA Contract ended 2008 therefore no emissions data for 2009. - 5,125 Totals 1,944,962 1,737,389 12%

OnshoreOperationsTheCompanyhasseveralinitiativesthatfocusonreduc-ingtheenvironmentalimpactofOnshoreOperations.TheCompanydoesnotreportontheperformanceontheseinitiatives,astheyareminorcomparedtooffshoreproductionandhaveaninsignificantimpactontheCompany’sfootprint.TheCompanysupportstheseiniti-atives,asitbelievesthateveryimprovementinreducingemissionsispositive.

During2009,aqualifiedenvironmentalistwasrecruitedtoinitiallysupporttheprojectactivities.Thisrolehasbeenextendedtoprovidingenvironmentalsupporttothefleetoperationsaswell.

WastesegregationprogramshavebeenimplementedinofficesacrosstheCompany’sprojectexecutioncentres.IntheMonacooffices,inlinewithlocalauthor-ity(SociétéMonégasqued’Assainissement)andwiththesupportoftheMonacoGovernmentinitiative,theCompanyhasimplementedwastesegregationpro-grams.TheSchiedamofficehasaprogramme,whichseparateswasteintodifferentstreams,paperwasteandcardboardwaste,residualwaste,smallchemicalwaste.AllITresidualwasteisdisposedofinaspecial-izedmanner.TheHoustonofficeprovideanITcomputerrecyclingprogrammethatisextendedtoemployeeswhohavedisusedcomputers.SBMMalaysiasetspecificobjectivesforitsofficerecyclingandefficiencyinclud-ingreductiontargetsforenergyandpaperusagefortheupcomingyear.

143 MMbbls

total production of hydrocarbon fromthe12offshoreproductionunits

1.95 million

tonnes of CO2 emissions

5.8 million

manhours Offshore operation(2008:5.3millionmanhours)

Human Resources

40 SBMOffshore–CSRReport2009Semi-submersible drilling rig

leaving the dry dock at GPC in Abu Dhabi

Human Resources


Human Resources


4HumanResources

43 Responsibilities towards employees 43 Corporate activities 44 Total global workforce results 49 Local Communities

Human Resources


ResponsibilitiestowardsemployeesTheCompany’sobjectivetowardstheemployeesistogenerateanattitudeofenthusiasmandpridethrough-outtheCompany,throughpromotinghigh-technologyproductsandprovidingamostfavourableenvironmentforprofessionalandpersonaldevelopment,andtohighlyrewardit.

EmploymentisofferedoncompetitivetermsinasafeandhealthyworkingenvironmentwithaHumanResources(HR)policyinwhichthebestpossibleuseofeachper-son’sskillsismade.Appropriatetrainingisprovidedtoallemployeesandpersonaldevelopmentisencouraged.

TheCompanypursuesanemploymentpolicyfollow-ingtheprinciplesofequalopportunity,preventinganydiscriminationonthebasisofsex,age,race,religion,politicalortradeunionaffiliations,nationalityordisability.

Theglobalworkforceisdividedintwosegmentsforreportingpurposes:OnshoreOperationsandOffshoreProduction.Theworkforceishiredunderpermanentorfixed-termcontractsandcanbedividedbysegment,employmenttype,region,gender,andage.TheCompanyalsoidentifiesWhiteCollarandBlueCollaremployees.

CorporateactivitiesThereorganisationoftheCompanytoacorporatestructurewithindividualoperatingunitshasresultedinthecreationofaCorporateHRfunctionresponsibleforallCompanyHRactivitiesexceptfortheleasefleet.TheleasefleetHRactivitiesareorganisedseparately

undertheSBM-ProductionContractorsoperatingunitandspecificallyprovidethecrewandlogisticsfortheoffshoreactivities.

AbenchmarksurveyoftheCompany’sprojectmanag-erswascompletedbyanexternalconsultantwiththefocusonimprovingthemanagementskillsofprojectmanagers,projectstaffingproceduresandupdatingthecompetencyrequirements.

AstudentinternshipprogrammecontinuedtofunctionwellandenabledhighqualitygraduatestoobtaintheirfirstworkexperienceintheCompany.Judiciousselec-tionfromthisintakehasallowedanumberofgraduatestogainsuccessfulemploymentwithintheCompany.

TheAngolanizationprogrammecontinuestobenefitfrominvestmentsmadebyOPSServiçosdeProduçãodePetróleosLtd.,thejointventurecompanyinAngolaofSonangolandSBMOffshore,throughthecrea-tionoftrainingprogrammeswithSouthAfricanandBritishinstitutions.Severalmechanicalandelectricaltechniciansgraduatedfromtheseschoolsin2009andstartedworkontheoffshoreunits.

TalentManagementandSuccessionPlanning

ACorporateTalentManagementandSuccessionPlanningProjectwaslaunchedinresponsetothegrowthexperiencedbytheCompanyoverthelasteightyearsandtothescheduledretirementofasig-nificantproportionofuppermanagementwithinthenextfiveyears.Thisprojecthasidentifiedthekeyrolesandcompetenciesrequiredforfuturegrowth.ThefirstphaseoftheProjectwasbasedonastructured,pragmaticandresult-orientatedprocess,whichhasprovidedthefollowingresults:• definedSuccessionPlansforuppermanagement;• mostshorttermcriticalsuccessionshave

beensecured;• identificationoftopemployeesforfuture

corefunctions.

Thenextphaseoftheprojectwillconcentrateoninclud-inglinemanagersintotheplanningprocesswiththeobjectiveofidentifyingandgrowingCompanytalent.

Human Resources


TotalglobalworkforceresultsThetotalheadcountisbasedonallCompanyemploy-eesregisteredon31December2009forOnshoreOperationsandOffshoreProduction,workinginoneofthesevenoperatingunitsandequals5,389employeeswhichisanincreaseof5%comparedto2008.

TheCompany’sworkforceisdistributedgeographicallyinourproject executionandcorporatecentres,theconstructionsites,shorebasesandoffshorefleetasperadjacentgraph“TotalEmployeeHeadcountbyLocation”.

TheworkforceinMonacoincreasedby7%to1,120employeesin2009comparedto1,050employeesin2008.Thisis explainedby anincreaseinpersonnelformanagementoftheleasefleetandinprojectexecutionpersonnel.

TheSchiedamoffice’sworkforce remainedconstantat530employeesreflectingthestableworkloadinthisproject executioncentre.

InHouston,staffnumbersreducedby9%to587employeesin2009comparedto643employeesin2008.Thisreflectstheeconomiesmadebytheinte-grationofsharedsupportservicesofthemergedcompaniesSBM-AtlantiaandGustoMSCInc. andalsoistheresultof reductioninactivitiesduetothecompletionofamajorprojectattheendof2008.

InKualaLumpurtherewasa9%increaseto347employeesin2009comparedto317employeesin2008.ThisincreasecanbeattributedtotheneedtoexpandtheprojectmanagementandengineeringcapabilitiestobeabletoexecutelargeengineeringprojectssuchascompleteFPSOprojectsandotherturnkeywork.

Thetotalworkforceinthefleetoffshoredecreasedby5%to1,488employeesin2009comparedto1,562employ-eesin2008.ThisreductionisaresultofthesalebySBMOffshore inmid2009oftheFSOOguzhanandMOPUTurkmenbasyinTurkmenistan.TherewasaslightincreaseofcrewonFPSOEspiritoSantoasitsoperationalcapac-ityincreasedin2009withthestartupofproduction.

0

1000

2000

3000

4000

5000

6000

2005 2006 2007 2008 2009

Total Workforce Employee Diversity(Onshore & Offshore)

3,164

3,8244,402

5,3895,151

Total number of employees worldwide permanent and temporary

Total Employee Headcount by Location

A Schiedam, NetherlandsB Houston, USAC Kuala Lumpur, MalaysiaD MonacoE Marly, SwitzerlandF Worldwide Offshore FleetG Construction SitesH Shorebases

Total: 5,389

A530

C347

E23

F1,488

G1,117

H177

D1,120

B587

A3,460

B1,929

A Permanent Employees 64%B Contract Employees 36%

Total: 5,389

Permanent versus Contract Employees

Target

5%increase in Company employeescomparedtopreviousyear

1,117Onshore Construction employees

Human Resources


OnshoreConstructionshowsastrongincreaseofper-sonnelfrom515in2008to 1,117employeesin2009.Atyearend2009theCompanywascompletingtwoproductionunitsattheshipyardswithahighlevelofcommissioningactivity,whichrequiresalotofaddi-tionalcontractwork.Thisalsoexplainstheincreaseincontractemployeesandtheoverallincreaseinper-centageofcontractorvspermanentemployees.Ifweanalysethedataforonshoreofficeemployeesitshowsanincreaseof 13%ofpermanentemployeesversuscontractwhichisinlinewiththeCompany’sintentiontoincreasethepercentageofpermanentemployees.

Attheendof2009,theheadcountforpermanentemployeestotalled3,460employeesrepresenting64%ofthetotalworkforceandtheheadcountforcontractemployeestotalled1,929employeesrepresenting36%ofthetotalworkforcewhichisabovethetargetof33%.ThegrowthoftheCompanyhasresultedinanincreaseofcontractversuspermanentemployeesandrecruitmenteffortshavebeendirectedatincreasingthepermanentproportionof employeesinordertomain-tainefficiencyandkeepcoreknowledgeandexpertiseinhouse.

3,460

Permanent employees (2008:3,617)

1,929 Contract employees (2008:1,534)

Human Resources


EmployeeturnoverTherewasasignificantdecreaseinturnoverofpermanentemployeesanddecreaseinvoluntaryresignationcom-paredtoprioryears.TheCompany’sturnoverofpermanentemployeeswas9%in2009comparedto11%in2008.ThepercentageofturnoverislowcomparedtotheaverageforsimilarindustriesinEuropeandtheUSAandcanbeattrib-utedtotheCompanyprovidingequitableremuneration,goodworkingconditionsandoverallprofessionalsatisfac-tion.Thereductioninvoluntaryresignationfromthe previousyearcanbeattributedtoincreasedneedforjobsecuritywhichisatypicalphenomenoninaslowingeconomy.

Performanceandcareerdevelopment

AllperformanceappraisalsforpermanentemployeesunderOnshoreOperationsaremadeinaccordancewiththeCompany’sCompetencySystemwhichisbasedonratingemployeesagainstspecificcompetenciesrelatedtotheirpositionaswellascorecompetencies.Performanceappraisalsarecarriedoutonanannualbasisforperma-nentemployeesonly.

In2009,theCompany’scompetencysystemwasextendedtoincludetheshorebaseemployeesinBrazil,AngolaandtoanumberofOnshoreConstructionemploy-eesatyardsintheUnitedArabEmirates.ThesystemenablesstaffperformanceassessmentstobeperformedannuallyinaccordancewiththeCompany’sstandards.

ThisyearanewelectronicformofperformanceappraisalhasbeenintroducedinMonacoandBrazil,tofacilitatetheprocessandreplacethepreviouspapersystem.Thiswillbeextendedtotherestoftheoperatingunitsin2010.

TheperformanceappraisalindicatorforOnshoreOperationswas94%in2009for2,433employeescom-paredto92%in2008with2,079employees.

ForOffshoreProductionappraisalsareperformedforallpermanentandcontractemployeesworkingoffshoreonboardtheproductionunits.Allemployeesareappraisedindirectaccordancewiththeoffshoreworkactivitieswhichcoverthesubjectsofsafety,teamworkandprofes-sionalcompetence.

A

B

C

D

EF

G

H

A Schiedam, Netherlands 6%B Houston, USA 15%C Kuala Lumpur, Malaysia 5%D Monaco 5%E Marly, Switzerland 4%F Worldwide Offshore Fleet 5%G Construction Sites 35%H Shorebases 27%

Total: 9%

Permanent Employees Turnover Rate by Location

A

B

C

DE

GH

I

J

K

L

A American 8,4%B Brazilian 10,8%C French 19,9%D Dutch 12,3%E British 8,4%F Polish 2,0%G Angolan 4,8%H S. African 4,1%I Indian 5,5%J Malaysian 7,4%K Filipino 6,0%L Others (over 45 nationalities) 10,3%

Total: 3,873

Workforce diversity, consolidated including Fleet*

* Excluding contractors for execution centers, including fleet (with contractors and only nationals for the shore bases), including permanent on construction sites

94% of Onshore Operations employeescompletedperformanceappraisalsin2009(2008:92%)

96% of Offshore Production employees completedperformanceappraisalsin2009(2008:96%)

Human Resources


TheperformanceappraisalindicatorforOffshoreProductionis96%in2009for909employeescom-paredto96%in2008with912employees.

RemunerationIntheannualreviewofthebasicsalaryandbonusoftheindividualstaffmembers,thelocalmarket,annualinfla-tionandindividualperformancearetakenintoaccount.

Asalarybenchmarkinganalysishasbeencom-pletedin2009toverifythecompetivenessoftheCompany’scompensationpackagecomparedtootheroilandgasgroupsofsimilarorlargersize.ThisconfirmedthattheCompany’sremunerationprincipleofrewardinghighperformingpermanentstaffwaswellabovemarketaverage.Thisisachievedthroughasystemwherethevariableperformancerelatedelementishigh.

TheEmployeeShareOwnershipPlancontinuestobeofferedtostaffwithasignificantcontributionpaidbytheCompanyencouragingemployeestoinvestinSBMOffshoreshares.TheCompanysubsidises40%ofthesharepurchaseprice.

AnewLongTermIncentivePlanwasimplementedforseniorstaffbychangingthecurrentCompany’sStockOptionPlanintoanewRestrictedandPerformanceSharePlan.

PensionobligationsTheCompanyhasanattractivepensionbenefitsys-temforallemployees.Asamulti-nationalcompany,theCompanyoperatesvariouspensionschemesdependingonthecountryinwhichoperationstakeplace. Certainschemesarefundedthroughpaymentstoinsurancecompaniesoraredefinedasmulti-employerplans.

AbsenceTheaverageabsenceduetonormalillnesshasdecreasedslightlyto2.5%in2009from2.6%in2008.

Part-timeemployeesPart-timeemployeescomprise2.5%oftheworkforce.

WorkforcediversityTheoffshoreengineeringbusinesshaslongbeendominatedbymalestaff,theCompanyhashoweveroverthepast15yearsadoptedarecruitmentstrategytoincreasethepercentageoffemaleemployeesintheonshoresegment.Thisinitiativehasbeensuccessfultosomedegree,althoughthenumberofgraduatescom-ingoutofengineeringschoolsanduniversitiesarestillpredominantlymale,andthisrestrictsthegenderratioinengineeringpositions.ThepercentageoffemaletomalepermanentemployeesfromOnshoreOperationsandOffshoreProductionwas21%femaleemployeesin2009comparedto22%femaleemployeesin2008.

TheCompanyemploysmorethan55differentnationali-tiesasaresultofthephilosophytopreferablyrecruitlocalbasedemployeeswhilstmaintainingcompetencyrequirements.Thisisdemonstratedinthechart,withahighpercentageofFrench,Dutch,Brazilian,Angolan,American,BritishandMalaysianwhichisinlinewiththelocationoftheoffices,shorebasesandunits.

TraininganddevelopmentTheCompanyprovidesarangeofdevelopmentoppor-tunitiestoenhancethecapabilitiesofouremployees.TrainingcontinuesatalloftheCompany’sprojectexe-cutioncentres,offshoreandatconstructionssites.

Trainingcoversbothinternaltraining,whichisperformedbyCompanystafforconsultants,andexternaltraining,whichisperformedoutsidetheCompany’sworkcentresbyspecialisedtrainingorganisations.Theparticipantsareengineering,operations,administration,projectman-agement,andoffshoreproductionemployees.OveralltrainingforOnshoreOperationsandOffshoreProductionhasdecreasedtoanindicatorof25.1in2009comparedto38in2008.AsignificantportioncanbeattributedtoareductionintraininghoursinconstructionyardswhichisaresultofadecreaseintrainingrequirementsatthePaenalconstructionyardinAngola.

OnshoreOperationsManagementThemainareasforexternaltrainingoftheOnshoreOperationemployeeswasonmanagementskillsandspecifictechnicalsubjects.Forinternaltraining,the

55 Different nationalitiesemployedbytheCompany

Human Resources


2009/2010session,theparticipationofpersonnelbasedinMonacohasdoubledwiththeinscriptionofeightpeo-pleintheprogrammeofatotalofthirtypeople.

EngineeringEngineeringtraininghoursarebasicallystablewithaslightdecreaseto24.1in2009from25.1in2008.ThisstableresultintrainingforengineersreflectsthattheoveralllevelofengineeringworkwithintheCompanyhasbeenconstant.

OffshoreProductionTheCompanypromotesseveralsite-specifictrainingprogrammesworldwideaswellasexternalcoursesandon-the-jobtrainingontheunitsoffshore.Inmanycasescompulsorysafetytrainingisrequiredforthewholecrew,bothpermanentandcontractors,andtraininghoursandheadcountarerecordedtoreflecttheirinclusion.

OffshoreProductiontrainingincreasedby45%to23.3traininghoursperemployeein2009from16in2008.Theincreaseintraininghourscanbeattributedtothepro-ductionstartupofFPSOFradeandFPSOEspiritoSantoinBrazil.Thenewcrewswereinitiallytrainedduringtheconstructionphaseattheshipyardandfinishedtheirtrainingoffshoreontheunitswithlivesystems.OffshoreProductiontrainingalsoincreasedinresponsetorequire-mentstoincreasetheemploymentofBraziliannationals.

TheCompanysupportsnationalizationprogrammesforitscrewsonthefleetandthisoftenrequiresin-depthprogramstotrainstaffwhoinitiallyhavelittleornooffshoreexperience.ThistrainingisaccomplishedintrainingschoolsforbothAngolaandBrazil.

ConstructionYardsTheCompany’sOnshoreConstruction(Paenal)inAngolahasreachedthephaseIobjectiveforqualifiedpersonneltorunthefacility.Thishasbeenobtainedbytrainingoflocalhiredpersonnelinpreviousyearswhichendedatthebeginningof2009.Atotalof151,000cumulativehourshasbeenspenttoachievetheobjective.Jobtraininghascontinuedintheyardforthosestaffwhowerepartiallytrainedin2008,how-evertraining overallreducedwith29,000hoursin2009comparedto68,500in2008.

0 10 20 30 40 50 60 70 80 90

A. Engineering B. Operations C. Services D. AdministrationE. Management F. Offshore Production G. Total

2008 2009

Training hours per employee

A

B

C

D

E

F

G

25

79

22

14

16

16

38

24

40

15

14

22

23

25

mainfocusisontechnicalcourses,languagelessons,andsoftwareclasses.TheCompanyfocusestrain-ingonyounggraduatesandnewstaffwhohavebeenemployedfromalliedindustries,ensuringthattheyarefamiliarwiththespecialrisksandrequirementsofoff-shorefloatingsystems.

TheCompany’smanagementtraininghourshaveincreasedby40%toanindicatorof22.4hoursin2009from16hoursin2008.TheincreaseintraininghoursisaresultofCompany’sfocusonincreasinginternalexpertise,particularlyonlead,supervisoryandman-agementlevelpositionsaswellasincreasedtrainingatSBMMalaysiainpreparationoftheexecutionoftheFPSOAsengproject.

InternaltrainingformanagementcontinueswiththeGustoManagementSchoolwhichprovidesaprogrammeofspecificprojectmanagementcourses witha targetgroupconsistingofstaffthatareenvisagedtohavelead,supervisoryormanagerialpositionsinthefuture.Forthe

151,000 Total training hours forPaenalyard

25.1 Training hours peremployee

Human Resources


Incertaincasestrainingforconstructionyardsisper-formedandrecordedforbothpermanentandcontractemployees,suchasforcompulsorysafetytraining.

LocalCommunitiesTheCompanyhasalwaysfocusedonthesocialandeconomicbenefitsitcanbringtocountrieswhereitisoperating.ThisisconsistentwiththeCompany’sethicalbusinessprinciplesbutitalsoprovidestheadditionalbenefitofenhancingthebusinessrepu-tationoftheCompanyandcreatesamoresecureworkingenvironment.Thisdiscreteengagementtowardsthecommunitiespromoteshumanrightsandcontributestothesocialwelfareofthecommunitiesinwhichweoperate.

CommunityengagementsTheCompanyoperatesoffshorefacilitiesinseveralcountriesworldwideunderlong-termcontracts.ItistheCompany’saimtomaximisenationallabourandbusinesscontentwithinthe productionoperationsandlocalonshoreoperations.Throughtheseactivi-tiestheCompanyisabletoprovidesignificantdirectandindirectemploymentopportunitiesandindoingsocontributesmeaningfullytothelocaleconomies.Skilldevelopmentandtechnologytransferarepursuedthroughtrainingprogrammestoimprovethetechnicalcapabilitiesofthelocallabourforce.

TheCompanyhastakenanumberofinitiativestosupportsocialprogrammesincountrieswhereithasbusinessactivities.Regularmeetingswiththeseorgani-sationsandreviewsoftheirprogrammescontinuetoaffirmboththelegitimacyandtheeffectivenessoftheCompany’ssponsorship.

DonationsAllprojectexecutioncentresandoverseasFPSOoper-ationsofficesareactiveintheirownlocalcommunityandinsupportofvariouscharity,culturalandsportingactivities thefollowingcontributionsandpromotionshavebeenrecordedduring2009.

A

B

CD

A Charity $206,324 B Cultural Sponsoring $8,605 C Sport Sponsoring $18,833 D University Sponsoring $19,124

Total: $ 252,885

SBM Offshore Sponsoring & Charities

ActivitiesThefollowingprogrammeshavebeenputintoplaceinAngolaandBrazil,beingthetwocountriesinwhichtheCompanyhasthemostimportantoperations.

Angola–PaenalyardInAngola,theCompanyhasinvestedinajointven-turewithSonangol,thenationaloilcompany,forthedevelopmentofafabricationandintegrationyard inPortoAmboimbeginning in2007.ThisyardiscalledPaenal anditistheintentionthatthisyardwillulti-matelybecapableofthefabrication,integrationandcommissioningoftopsidemodulesforFPSOs.Phase1oftheyardhasbeencompletedandtheyard isinoper-ation. Fullyarddevelopmentwasputonholdin2009,withtheexceptionoftheconstruction ofa breakwater.Furtheryarddevelopmentofphasetwoandthreeispendingsanctionandcontractawardofa major FPSOproject.TwoCALMbuoyshavealreadybeenfab-ricatedinPaenalanddeliveredtoCabindaGulfOilCompany(CABGOC)thisyear.ThePaenalyardwasalsoawardedacontractinAugust2009byHeeremaMarineContractorsforthefabricationofmud-matsforanoffshoreAngolanproject.Thiscontractwillkeeptheyardoccupieduptothefourthquarterof2010.Inthemeantime,theyardispursuingseveralconstructionprospectsinordertoobtainfabricationworkstokeeptheyardfullyoccupiedin2010andbeyond.

Recruitmentofskilledworkersfromthelocalmarketisdifficultandavailabilityisnotsufficienttomeettherequirementsoftheyard’sexpectedworkprogramme.

Human Resources


Forthisreason,atrainingschoolwasestablishedatthePortoAmboimfacilitiesinordertotrainlocallyhired(mostly)unemployedpersons.Thefirsttrainingpro-grammesinitiatedattheschoolwerewelding,fitting,rigging,andscaffolding.Newlytrainedworkerscom-mencewithstructuralworksandastheyprogressandgainexperience,theyaremovedtomoreskilledworksrelatedtotopsidefabrication.Thetrainingschoolhasacapacityofapproximately150traineesperyear.Thecoursesgenerallylastfortwelveweeksforgroupsof30students.Formalcompetencetestsarecarriedoutandcertificatesareissuedtosuccessfulgraduates.

During2009theyardreachedphaseIcompletionandtrainingwillcontinueforthecurrentworkforcetoallowthemtodeveloptheirskillsandcompletetheirtrain-ing.ThiswillresultinlessactivityforthetrainingschoolasnonewpupilswillentertheschooluntilphaseIIissanctionedwiththeawardofanFPSOproject.

ThePaenalyardrepresentsamajorinvestmentinthePortoAmboimregionandinitiatesadditionaleconomicactivityandalsoattractsotherdevelopmentsthrough:• increasingemploymentbytrainingandofferingjob

opportunitiestolocals;• assistinginthecreationofsmallprivatecompanies,

tosupporttheneedsoftheyard;• encouraginginternationalcontractorsandservices

providerstoestablishtheirofficeand/orshorebaseinPortoAmboimpotentiallycreatingadditionaljobopportunities;

• thedevelopmentofsocialandsportingactivities;• thedevelopmentofanyinfrastructurerequiredto

improvethequalityoflifeofthehabitants,suchashospital,clinics,schools.

Human Resources


Angola–ServicosdeProduçaodePetroleosLda–OPSSonangolandSBMOffshore,throughtheirJointVenturecompanyServicosdeProduçaodePetroleosLda–OPS(OPS),hasextensivetrainingprogrammesinplaceinAngola,aimedat creatingtheskillsneededforoffshorepositionsontheCompany’sFPSOs.OPShasdrawnonthisexperiencetosetupthetrainingprogrammeforthePortoAmboimTrainingSchool.OPSalsoprovidessupporttotwoprojects:“CasadosRapazesdoPalanca”,aschoolandworkshopforboysinLuandaand“LarNossaSenhoradasDores”,anorphanageforgirlsinLubango.

BrazilSince2005,theCompanyhasorganisedCompetencyAssurancetrainingatitsdedicatedfacilityinMacaé,Brazilinsupportof itsoffshoreoperationsontheFPSOs.ThistrainingprogrammewasimplementedtoenabletheCompany toachieveitsnationalisa-tiontargetsofover70%nationalemployeeswithinitsexpandingfleet.

TheComputerBasedTraining(CBT)trainingmodule,whichisnowavailableinPortuguese,allowsstafftosimulatetheFPSOprocesscontrolroom.TheCompanytrainsapproximatelyseventyBrazilianemployeesperyearusingthissimulator.Thepurposeofthetrainingistoimproveoperationalperformanceoffshorebysub-jectingtraineestoawidevarietyofsimulatedprocessupsetconditionsthatdemandoperatorresponseandensuresthatemployeesarewellpracticedandabletoproperlydealwithanypotentialsituations.

Brazil–SBMOffshoreandCASAdoMENOR–ApprenticeshipProgrammeTheBraziliangovernmentrecentlyissuedlawsdic-tatingthatapprenticesmustfillfivepercentofthetechnicalworkforceofeverycompany.ThegoaloftheApprenticesProgrammeistoprepareyoungpeopleagedfrom14to24toenterintotheworkingworld.Thisisachievedbyintroducingthemtoaformaleducationalsystemandorganisedsocietyandgivingthembasictoolstoengageinproductivityinitiativesinordertogenerateincomeandpersonaldignity.

TheCompanysupportstheBrazilianApprenticeProgrammewithCasadoMenoranon-governmentalinstitution,whichisaccreditedbythegovernmenttodeliverbasiceducation.TheCompanydirectlyspon-sorsamaintenancecourseforthirteenapprenticeseveryyear.Theobjectivesofthecoursearetoteachbasictheoryandpracticetostudentsintheareasofmechanicsandelectricity.Apprenticesareevaluatedquarterlyagainstoffshoreinductionprogrammeobjec-tives.TheCompanyoffersthetoptwostudentsanoffshoreassignmentandin2009,bothapprenticeshaveexpressedtheirenthusiasmandwillingnesstojointhemaintenanceteam.

CasadoMenor’sofficialcampaign“BoysofStreetOutoftheStreets”hasbeensupportedbyTheCompanyinasuccessfulpartnershipwithconcretesocialresultsforseveralyears,since2005.

Monaco–SingleBuoyMooringsNursery

TheMonacoprojectexecutioncentrehasaprofession-allyrunnurseryandpre-schoolforinfantsandtoddlers.ThenurseryisuniqueasitisprivatelyfundedbytheCompany.

70%National employeesforBrazilianFleetOperations

13Apprentices sponsoredwiththeCasadoMenorApprenticeprogramme

Renewable Energy Systems

52 SBMOffshore–CSRReport2009Manifold section of the

Skarv turret under construction at Keppel in Singapore





5RenewableEnergySystems

55 Marine Renewable Energy 56 Offshore wind energy 56 Emission reduction initiatives



TheCompanyispursuingseveralinitiativestoleverageitsin-houseexpertisetodeveloplargescalesystemsthatrespondtotheneedforenergydemandinanenvironmentallysustainablemanner.

ThemainfocusisondevelopmentofsystemsrelatedtoLiquefiedNaturalGas(LNG)andrecoveringenergyfromtheenvironment.ThesedevelopmentsarepartofthelongertermdiversificationoftheCompany’sincomestreams,geographicalmarketsandclientbase.Inadditionitispart of theCompany’scontributiontowardsalowcarboneconomy.

AllRenewableEnergySystemdevelopmentsfocusonsystemrobustness,reliability,safetyinoperationandenvironmentalfriendlinessaswellaseconomicfeasibility.

MarineRenewableEnergyThemarketinwhichtheCompanyoperatesisgraduallychangingintoonewhereenergysecurityandenviron-mentalconcernsarethemaindriversbehindthesearchforsustainableenergygeneration.

ThethemeofRenewableenergyanditssignificanceforanyoilandgasplayerhasbecomeanunavoid-ablequestiontowhichtheCompanyhasrespondedbyhavingadoptedanactivemarketentrystrategyforRenewableenergysystems.

ThefocusonRenewableenergysystemsoperatinginamarineenvironmentisbasedonmaximizingthecom-petitiveadvantagefortheCompanywhoseexpertiseisinoffshoreengineering.Offshorewaterscontainanenormousamountofpotentialenergyandtocapturethissuccessfullyrequiresextensiveknowledgeandexperienceindesigning,installingandoperatingsys-temsintheoffshoreenvironment.

Thus,fieldsofpotentialinterestarewaveenergy,off-shorewindenergy,tidalenergysystemsandOceanThermalEnergyConversion(OTEC).Inthecomingthreeyearstheproperfoundationneedstobelaid,technologiestobedeveloped,businessmodelstobeworkedoutandpartnershipstobeformedinordertodeliverthelongertermfinancialandothergoalsinrespectofRenewables.

ThegrowthoftheMarineRenewablessectorwilldependonacomplexarrayoffactorsincluding:• reliabilityoftheoilandgassupplychain;•costofenergydevelopment;•technologydevelopment;•qualityandversatilityofelectricitynetworks;•environmentalandregulatoryrequirements.

Intermsofin-housetechnologydevelopment,theCompanydirectedmostofits2009researchanddevelopmentbudgetforRenewableEnergytothedevelopmentofourownWaveEnergyConverter(WEC)technology.TheCompanybelievesthisoffersthegreatestpotentialforbulkelectricitysupplyatcommerciallyfeasibleterms.Waveenergyisverymuchanascentsectorwithnosuccessfulcommercialprojectshavingbeencompletedtodateasitisoneofthemoredifficulttechnologiestomasterinthemarineenvironment.

TheCompanyisworkingonaprototypewaveenergygeneratorbasedonemergingpowertakeofftechnolo-giesandin2009enteredintoacooperationagreementwithanindustrialpartnertojointlydevelopaWEC.Thistechnologywillpermittheproductionofcleanenergyinthefuture,harnessingtheuntappedresourcesofourseas.TheWECwilltransfertheenergyoftheoceanwavesdirectlyintoelectricalpower.



TheWorldEnergyCouncilestimatesglobalwaveenergyresourcestoberoughlydoubletheamountofelectricalpowercurrentlygeneratedthroughouttheworld.ItisexpectedthereforethattheWECtechnologywillbeofparticularinteresttotheutilitycompaniesworldwide,inordertoextendtheirRenewablesportfolio.

OffshorewindenergyTheobjectiveoftheEuropeanUniontogenerate20%oftheenergydemandintheyear2020fromrenewablesourcesgivesanimportantboosttothedevelopmentofoffshorewindturbineparks,primarilyinthecountriesaroundtheNorthSeaandtheBalticSea

TheCompanycontributestothissignificantexpan-sionofwindenergygenerationoffshore,byprovidingdesignsforspecificinstallationandmaintenanceves-selsforoffshorewindturbines,anddeliveryofspecialmechanicalcomponentsforthesevessels,suchasjackingsystemsandcranes.TheCompanytechnologybackgroundinjack-upvesselsforoil andgasindustryandoffshorecivilconstructionprovidesthe know-how neededforthedesignofunitstailoredfortheinstallationofbottom-foundedwindturbines.

MoreglobalconcernsaboutclimatechangecanbeseentogenerateasimilarattentiontothepotentialofoffshorewindinotherareasthanNorthWestEurope.AlsointhesemarketstheCompanywouldliketobeactivebyprovidingdesignsforinstallationandmainte-nancevessels.

Inthoseregionsnearthecoastwhereenergydemandishigh,butwherenolargeareasofrelativelyshallowwaterareavailable,offshorewindturbinesmaybeinstalledonfloatingsupportstructures.TheCompanyisdevelopingtechnologytooptimisethetechnicalandeconomicalpropertiesofthesefloatingsupportstructurestoenabletheentryofoffshorewindenergyinwaterdepthslargerthan50metres.

EmissionreductioninitiativesTheCompanyengagesinreducingtheenvironmentalimpactofthesystemsitsuppliesbycreatingtechnol-ogythateitherreduces,containsorminimizesGHGemissions.

FPSOstraditionallyusethestandardmarinesystemofInertGastoblanketthecrudeoilstoragetanks,asusedbycrudeoiltankers.ThissystemrequiressomeInertGastobeventedtotheatmosphereoneachload-ingcycle,andreplacedwithnewInertGasoneachcargooffloadingcycle.TheInertGaswhichisventedismainlyCO2andN2,butdoescontainsomehydrocar-bonsduetothecontactthattheInertGashaswiththecrudeoilcargointhetanks.

In2009wehaveengineeredanalternativeschemewherethecargoisblanketednotwithInertGas,butwithhydrocarbongas.Onfillingcyclesthisblanketgasisre-compressedandrecycledtothetopsidesprocesssystem,andisnotvented.Hence,thissystemhastheadvantageofdrasticallyreducingtheamountofhydro-carbongasemissionsfromtheFPSO.

ThissystemwillbedeliveredonourfirstFPSOin2010,andhavingproventhisdesignconceptduring2009wewillbeadoptingthisasa standardformostofournewFPSOprojects.



Performance Indicators and Appendices

58 SBMOffshore–CSRReport2009FPSO Saxi Batuque

in operation offshore Angola





6PerformanceIndicatorsandAppendices

61 Performance Indicators 73 PriceWaterhouseCoopers Assurance Report 74 GRI Index Level C+ 75 Performance Indicators Notes



PerformanceIndicatorsEconomic

SharePrice.ListedasSBMOffshoreN.V.ontheEuronextStockExchange,Amsterdam

2009 2008Turnover as % of share capital 193.63 309.94Highest share price in € 15.30 26.77Lowest share price in € 9.00 8.72Closing share price in € 13.78 9.35Closing share price in $ 19.75 13.07

In millions of US$ (unless stated otherwise) 2009 2008Net profit 230.0 227.9EBIT 293.4 275.1EBITDA 613.3 530.1Capital expenditure 655.9 999.8Total equity at year end 1,816.8 1,240.9Turnover 2,956.5 3,060.3Total assets at year end 4,658.4 4,344.9Shareprice (€) at year end 13.78 9.35AEX-index at year end 335.3 245.9Market capitalisation at year end (US$) 3,248.9 1,902.9



Health,Safety,SecurityandEnvironment(H.S.S.E)

OccupationalHealthandSafety2009 2008

Average absence due to normal illness (percentage days lost through illness per employee) 2.5% 2.6%Consolidated million manhours (including Offshore Production Fleet) 12.36 11.08Total million manhours Onshore Operations (excluding Subcontractors) 6.57 5.76Total million manhours Offshore Production 5.79 5.32Lost Time Incident Frequency Onshore Operations 0 0.13Lost Time Incident Frequency Offshore Production 0.03 0.04Death during service (natural causes – non work-related) 7 3Fatalities (death resulting from a work-related incident or illness) 0 0

Subcontractormanhours2009

Manhours

Ongoing Projects 33,513,377Completed Project 579,942

Exposurehoursbylocation2009

SBM Offshore

Hours

Contractor Hours

Total

SBM-Monaco 2,588,618 22,654,670 25,243,288SBM-Atlantia 1,363,988 10,523,232 11,887,220SBM-Malaysia 670,533 103,407 773,940SBM-PC 223,429 - 223,429SBM-Services 398,011 - 398,011SBM-Gusto & SBM-MSC 1,328,175 812,010 2,140,185Dynamic Installer 269,687 - 269,687Normand Installer 105,446 - 105,446Total 6,947,887 34,093,319 41,041,206



Health,Safety,SecurityandEnivronment(H.S.S.E.)

2009 2008HSSe ACCiDenT STATiSTiCS FoR onSHoRe oPeRATionSExposure Hours 6,572,753 5,766,269Fatality FAT 0.00 0.00Lost Time Incident LTI 0.00 4.00Restricted Work Case RWC 0.00 0.00Medical Treatment Case MTC 1.00 2.00Near Miss NM 0.00 2.00LTI Days Lost Days Lost 0.00 28.00Lost Time Incident Severity Rate LTISR 0.00 0.97Lost Time Incident Frequency Rate LTIFR 0.00 0.13Total Recordable Incidents TRI 1.00 6.00Total Recordable Incident Frequency Rate TRIFR 0.03 0.21

HSSe ACCiDenT STATiSTiCS FoR oFFSHoRe PRoDuCTionExposure Hours 5,795,151 5,320,943Fatality FAT 0 0Lost Time Incident LTI 1 1Restricted Work Case RWC 4 5Medical Treatment Case MTC 12 10Near Miss NM 89 81Days Lost Days Lost 91 5Lost Time Incident Severity Rate LTISR 3.14 0.19Lost Time Incident Frequency Rate LTIFR 0.03 0.04Total Recordable Incidents TRI 17 16Total Recordable Incident Frequency Rate TRIFR 0.59 0.60

HSSe ACCiDenT STATiSTiCS FoR SuBConTRACToRS (FABRiCATion/ConVeRSion yARDS) Exposure Hours 34,093,319 34,328,847Fatality FAT 0.00 0.00Lost Time Incident LTI 6.00 20.00Restricted Work Case RWC 16.00 38.00Medical Treatment Case MTC 16.00 18.00Near Miss NM 65.00 86.00Days Lost Days Lost 70.00 348.00Lost Time Incident Severity Rate LTISR 0.41 2.03Lost Time Incident Frequency Rate LTIFR 0.04 0.11Total Recordable Incidents TRI 38.00 76.00Total Recordable Incident Frequency Rate TRIFR 0.22 0.44



IncidentsandFrequencyRatesforDynamicInstallerandNormandInstaller

2009 Dynamic

Installer Normand

Installer

HSSe ACCiDenT STATiSTiCS FoR DynAMiC inSTALLeR AnD noRMAnD inSTALLeRExposure Hours 269,687 105,446Fatality FAT 0 0Lost Time Incident LTI 1 0Restricted Work Case RWC 3 0Medical Treatment Case MTC 0 1Near Miss NM 9 7Days Lost Days Lost 40 0Lost Time Incident Severity Rate LTISR 29.66 0Lost Time Incident Frequency Rate LTIF 0.74 0Total Recordable Incidents TRI 4 1Total Recordable Incident Frequency Rate TRIFR 2.97 1.9

HumanResourcesPermanentemployeesheadcountbylocation

2009Schiedam, Netherlands 433Houston, USA 490Kuala Lumpur, Malaysia 334Monaco 989Marly, Switzerland 23Worldwide Offshore Fleet 907Construction Sites 162Shore bases 122TOTAL 3,460

PermanentEmployeesHeadcountbyGender

2009Headcount Ratio %

Female 715 21%Male 2,745 79%TOTAL 3,460



PermanentEmployeesHeadcountbyLocationandGender

2009Female Male Total Ratio of

females

Schiedam, Netherlands 78 355 433 18%Houston, USA 141 349 490 29%Kuala Lumpur, Malaysia 94 240 334 28%Monaco 308 681 989 31%Marly, Switzerland 20 3 23 87%Worldwide Offshore Fleet 0 907 907 0%Construction Sites 29 133 162 18%Shore bases 45 77 122 37%TOTAL 715 2,745 3,460 21%

PermanentEmployeesvs.ContractEmployeesHeadcount

2009Total

headcountRatio %

Permanent Employees 3,460 64%Contract Employees 1,929 36%TOTAL 5,389

PermanentandContractEmployeesHeadcountbyLocation

2009Headcount

contract employees

Headcount permanent employees

Total employees headcount

Ratio of contract

employees

Schiedam, Netherlands 97 433 530 18%Houston, USA 97 490 587 17%Kuala Lumpur, Malaysia 13 334 347 4%Monaco 131 989 1,120 12%Marly, Switzerland 0 23 23 0%Worldwide Offshore Fleet 581 907 1,488 39%Construction Sites 955 162 1,117 85%Shore bases 55 122 177 31%TOTAL 1,929 3,460 5,389 36%



PermanentPartTimeEmployeesHeadcountbyLocation

2009Headcount permanent

part-time employees

% Female Employees

% Male

Schiedam, Netherlands 88 49% 51%Houston, USA 3 100% 0%Kuala Lumpur, Malaysia 0 0% 0%Monaco 34 88% 12%Marly, Switzerland 11 100% 0%Worldwide Offshore Fleet 0 0% 0%Construction Sites 0 0% 0%Shore bases 0 0% 0%TOTAL 136 64% 36%

PermanentEmployeesTurnoverbyCategory

2009Turnover

headcountTotal

headcountTurnover

rate

Voluntary 165 4.8%Dismissal 94 2.7%Retirement 34 1.0%Fatalities non work related 7 0.2%Fatalities work related 0 0.0%TOTAL 300 3,460 8.7%

Above figure excludes temporary employment contracts not renewed & transfers to sister companies (total 17 persons).

PermanentEmployeesTurnoverbyGenderforOnshoreOperations

2009Turnover

headcountTotal

headcountTurnover

rate

Female 65 686 9.5%Male 135 1,705 7.9%TOTAL 200 2,391 8.4%

Excludes offshore fleet and shore bases



PermanentEmployeesTurnoverbyLocation

2009Turnover

headcountTotal

headcountTurnover

rate

Schiedam, Netherlands 27 433 6.2%Houston, USA 75 490 15.3%Kuala Lumpur, Malaysia 16 334 4.8%Monaco 48 989 4.9%Marly, Switzerland 1 23 4.3%Worldwide Offshore Fleet 43 907 4.7%Construction Sites 57 162 35.2%Shore bases 33 122 27.0%TOTAL 300 3,460 8.7%

PermanentEmployeesTurnoverbyAgeforOnshoreOperations

2009Turnover

headcountTotal

headcountTurnover

rate

Age <30 41 1.7%Age 30-50 107 4.5%Age >50 52 2.2%TOTAL 200 2,391 8.4%

Excludes offshore fleet and shore bases

EmployeesTrainingHoursbyDivision

2009Total number

of training hours

Total headcount

Total training hours per employee

DiViSion Engineering 26,383 1,096 24.1Operations 33,534 848 39.5Services 3,454 228 15.1Administration 4,466 325 13.7Management 5,990 268 22.4Offshore Production 38,630 1,716 22.5TOTAL 112,457 4,481 25.1



EmployeesTrainingforOnshoreOperations/WhiteCollarEmployees

2009Total training hours for 2009 44,847Employees headcount 2,344Training indicator (hours / employee) 19.13

EmployeesTrainingforOffshoreProduction/BlueCollarEmployees

2009Total training hours for 2009 38,546Employees headcount 1,657Training indicator (hours / employee) 23.26

EmployeesTrainingforOnshoreOperations–ConstructionSector/BlueCollarEmployees

2009Total training hours for 2009 29,064Employees headcount 480Training indicator (hours / employee) 60.55

EmployeesPerformanceAppraisalsforOnshoreOperations

2009Performance appraisals 2,280Employees headcount 2,433Performance appraisal indicator 93.7%

EmployeesPerformanceAppraisalsforOffshoreProduction

2009Performance appraisals 870Employees headcount 909Performance appraisal indicator 95.7%



FiveyearEmployeeDataforSBMOffshore

2009

Indicator % 2 previous

years 2008 2007 2006 2005ToTAL WoRKFoRCe DiVeRSiTy (onSHoRe oPeRATionS & oFFSHoRe PRoDuCTion)Total number of employees worldwide permanent and contract 5,389 5% 5,151 4,402 3,824 3,164Total number of permanent employees 3,460 (4%) 3,617 2,909 2,458 2,479Total number of contract employees 1,929 26% 1,534 1,493 1,366 685Total percentage of women in permanent workforce 21% (6%) 22% 22% n/r n/r

ToTAL PeRMAnenT WoRKFoRCe WiTH PART-TiMe ConTRACTSTotal number of part-time employees 136 7% 127 116 n/r n/rTotal number of women working part-time 87 14% 76 72 n/r n/rTotal number of men working part-time 49 (4%) 51 44 n/r n/rPercentage part-time workforce 2.5% 2% 2.5% 1 2.6% n/r n/rPercentage part-time women 64% 7% 60% 62% n/r n/rPercentage part-time men 36% (10%) 40% 38% n/r n/r

ToTAL PeRMAnenT eMPLoyee TuRnoVeR (onSHoRe & oFFSHoRe)Percentage of permanent employee turnover 9% (21%) 11% 13% n/r n/rTotal headcount of employee turnover 300 (24%) 397 378 n/r n/rTurnover due to retirement 34 42% 24 17 n/r n/rTurnover due to voluntary resignation 165 (46%) 304 300 1 n/rTurnover due to dismissal 94 42% 66 58 n/r n/rDeath (natural causes – non work-related) 7 133% 3 3 0 0Fatalities (death resulting from a work-related incident or illness) 0 0 0 1 0

oCCuPATionAL HeALTH AnD SAFeTyAverage absence due to normal illness (percent-age days lost through illness per employee) 2.5% (4%) 2.6% 2.3% 1.8% 1.8%Consolidated million manhours (including Offshore Production Fleet) 12.36 12% 11.0 8.5 n/r n/rTotal million manhours Onshore Operations (excluding Subcontractors) 6.57 14% 5.76 4.9 n/r n/rTotal million manhours Offshore Production 5.79 9% 5.32 3.5 3.7 3.8

Continued on the next page1 2008 CSR indicator has been corrected from 3.5% to 2.5%.



2009

Indicator % 2 previous

years 2008 2007 2006 2005PeRFoRMAnCe APPRAiSALS (PeRMAnenT eMPLoyeeS)Performance appraisals for permanent employees – Onshore Operations 94% 2% 92% 92.5% n/r n/rPerformance appraisals for permanent employees – Offshore Production 96% 0% 96% 100% n/r n/r

CoMPeTenCy TRAininG inDiCAToRS (PeRMAnenT eMPLoyeeS)Training hours/employee Management (white collar) 22.4 40% 16 14.9 n/r n/rTraining hours/employee Engineering (white collar) 24.1 (4%) 25.1 41.6 n/r n/rTraining hours/employee Offshore Production Units (blue collar) 23.3 45% 16 2 49.3 n/r n/rTraining hours/employee Construction Yards (blue collar) 60.6 (57%) 141.1 n/r n/r n/r

2 2008 CSR indicator has been corrected from 27.2 to 16.

EnvironmentalEnvironmentalDataOffshoreProduction–RecordableSpills

2009 2008Offshore Production Units 12 15Contained Spills Onboard 16 22External Spills to Environment 7 4

ProductionofHydrocarbons2009

Offshore production by regionUnits MMbbls Number of

Offloads

Brazil 5 48,552,028 116Caspian 1 1,434,387 36Asia 1 3,494,826 10West Africa 5 89,089,562 151Total 12 142,570,803 313

FiveyearEmployeeDataforSBMOffshorecontinued



GHGEmissionsexcludingFlaring

2009Values are expressed in millions of tonnes CO2 equivalents CO2 CH4 N2O

BRAZiL Marlim Sul 0.235 0.002 0.006Brasil 0.166 0.001 0.004Espadarte 0.133 0.001 0.003Capixaba 0.166 0 0.004Espirito Santo 0.173 0.001 0.004CASPiAn MOPU Turkmenistan 0.002 0 0ASiA Yetagun 0.004 0 0WeST AFRiCA Xikomba 0.151 0.001 0.004Mondo 0.389 0.003 0.009Saxi Batuque 0.213 0.001 0.005Kuito 0.307 0.002 0.007Sanha 0.006 0 0Total 1.945 0.012 0.046

OtherAtmosphericEmissionsexcludingFlaring

2009Values are expressed in tonnes CO NOx SO2 VOC’s

BRAZiLMarlim Sul 254 545 7 5Brasil 180 390 6 3Espadarte 144 312 5 3Capixaba 357 1,445 148 45Espirito Santo 224 459 2 3CASPiAn MOPU Turkmenistan 4 18 2 1ASiA Yetagun 11 50 6 2WeST AFRiCA Xikomba 166 367 7 4Mondo 413 858 6 6Saxi Batuque 224 459 2 3Kuito 418 909 14 8Sanha 14 63 7 2Total 2,409 5,875 212 85



GreenhouseGasEmissionsComparisonValues are expressed in tonnes 2009 2008Number of Offshore Production Units 12 15N2O 148 133CH4 571 540CO2 1,944,962 1,737,389

Source: DEFRA - Environmental Key Performance Indicators; Reporting Guidelines for UK Business; Chapter 4. Page 28 4.1 Emissions to Air KPI 1 Greenhouse Gases

NonGreenhouseGasEmissionsComparisonValues are expressed in tonnes 2009 2008Number of Offshore Production Units 12 15CO 2,409 1,928NOx 5,875 4,327SO2 212 91VOC 85 46

RegionalCO2EmissionsValues are expressed in tonnes 2009 2008Number of Offshore Production Units 12 15Brazil 873,663 846,021Caspian 1,552 4,008Asia 4,393 142,904West Africa 1,065,354 739,331Russia - 5,125Total 1,944,962 1,737,389

IndirectEnergyConsumption2009 2008

Total electrical usage kWh 10,478,068 10,544,568Total tonnes CO2 equivalent 4,113 4,008

Calculated using World Resource Insititute Greenhouse Gas Protocol: www.ghgprotocol.org/calculation-tools

CommunityDonations

2009In US$ Total

Charity 206,324Cultural sponsorship 8,605Sport sponsorship 18,833University sponsorship 19,124Total 252,885



TotheBoardofManagementofSBMOffshoreN.V.

AssurancereportReportontheCorporateSocialResponsibilityReport

Scope and responsibilitiesWehavereviewedtheCorporateSocialResponsibilityReport2009(hereafter:‘theReport’)ofSBMOffshoreN.V.,Rotterdam,inwhichthecompanyrendersaccountofitsperformancerelatedtosustainabilityin2009.

Review: limited assuranceAreviewisfocusedonobtaininglimitedassurancewhichdoesnotrequireexhaustivegatheringofevidenceasinauditengagements.Consequentlyareviewengagementprovideslessassurancethananaudit.

Wedonotprovideanyassuranceontheassumptionsandfeasibilityofprospectiveinformation,suchastargets,expectationsandambitions,includedintheReport.

Comparativefigures,asincludedinthisReportfortheyearsbefore2007,havenotbeenexaminedbyus,unlessstatedotherwise.

ManagementofSBMOffshoreN.V.isresponsibleforthepreparationofTheReport.WeareresponsibleforprovidinganassurancereportontheReport.

Reporting criteriaSBMOffshoreN.V.developeditsreportingcriteriaonthebasisoftheG3GuidelinesoftheGlobalReportingInitiative(GRI)aspublishedinOctober2006,asmen-tionedinthesectiontitled‘CSRReportingScope’onpage27oftheReport.ThereportingcriteriaasdevelopedbySBMOffshoreN.V.containcertaininherentlimitationswhichmayinfluencethereliabilityoftheinformation.TheReportdoesnotcoverallleaseunitsofSBMOffshoreN.V.Thisisadequatelydisclosedinthesectiontitled‘CSRReportingScope’onpage29oftheReport.

Weconsiderthereportingcriteriatoberelevantandsufficientforourexamination.

Work performed WeplannedandperformedourworkinaccordancewithDutchlaw,includingStandard3410N‘Assuranceengagementsrelatingtosustainabilityreports’.

Ourmostimportantreviewprocedureswere:• performinganexternalenvironmentanalysisand

obtaininginsightintothebranch,relevantsocialissues,relevantlawsandregulationsandthecharacteristicsoftheorganization;

• assessingtheacceptabilityofthereportingpoliciesandconsistentapplicationofthis,suchasassess-mentoftheoutcomesofthestakeholderdialogueandthereasonablenessofestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationoftheReport;

• reviewingthesystemsandprocessesfordatagathering,internalcontrolsandprocessingofotherinformation,suchastheaggregationprocessofdatatotheinformationaspresentedintheReport;

• reviewinginternalandexternaldocumentationtodeterminewhethertheinformationintheReportissubstantiatedadequately;

• determiningwhetherthefinancialfiguresinthisReporthavebeencorrectlyderivedfromtheAnnualReport2009ofSBMOffshoreN.V.,inwhichanunqualifiedauditor’sreporthasbeenissuedbyKPMGAccountantsN.V.;

• assessingtheapplicationlevelaccordingtotheG3GuidelinesofGRI.

Webelievethattheevidenceobtainedfromourexaminationissufficientandappropriatetoprovideabasisforourconclusion.

ConclusionBasedonourproceduresperformed,nothinghascometoourattentionthatwouldcauseusnottoconcludethatinallmaterialrespectstheReportprovidesareli-ableandadequatepresentationofthepolicyofSBMOffshoreN.V.forsustainabledevelopment,oroftheactivities,eventsandperformanceoftheorganiza-tionrelatingtosustainabledevelopmentduringthereportingyear,inaccordancewithSBMOffshoreN.V.’sreportingcriteria.

Rotterdam, 31 March 2010 PricewaterhouseCoopersAccountantsN.V.

OriginalhasbeensignedbyA.F.WestermanRA



GRIIndexLevelC+GRI Page

ViSion AnD STRATeGy Sustainability, vision and strategy 1.1 9

oRGAniSATionAL PRoFiLe Name of organisation 2.1 10

Primary products 2.2 10, 14-16

Operational structure 2.3 11, 16-17

Location of HQ 2.4 11, 21, back cover

Countries of operation 2.5 20-21

Nature of ownership 2.6 16-17, 29

Markets served 2.7 14-16, 29

Scale of reporting organisation 2.8 27-30

Significant changes 2.9 none to report

Awards received 2.10 not reported

RePoRT PARAMeTReS Reporting period 3.1, 3.2, 3,3, 3.4 9, 27-30, back cover

Reporting boundaries 3.5, 3.6, 3.7 27-30

Basis for reporting incl. JV 3.8 14-16, 27-30

Re-statements 3.10 20, 69-70

Significant changes 3.11 none to report

PI tables 3.12 74

GoVeRnAnCe, CoMMiTMenTS, AnD enGAGeMenT Governance 4.1, 4.2, 4.3, 4.4 10-11, 14-19, 20, 22-23, 27-30

Stakeholder engagement 4.14, 4.15 9, 18

eConoMiCAL PeRFoRMAnCe inDiCAToRS Employees EC3 47

enViRonMenTAL PeRFoRMAnCe inDiCAToRS Direct energy and indirect energy EN3, EN4 71-72

Energy saved EN5 38, 55-56

Emissions, discharges and waste EN20 70-72

Number and volume of spills EN23 70

LABouR PRACTiCeS AnD DeCenT WoRK Employment LA1, LA2 46, 62-70

Labour / management relations LA3 43-47

Health and safety LA7 35-38, 62-64

Training and education LA10 47-51, 64-70

Diversity and opportunity LA13 47-51, 64-70



PerformanceIndicatorNotesNote1

FAT FatalityLTI LostTimeIncidentRWC RestrictedWorkCaseMTC MedicalTreatmentCaseNM NearMissTRI TotalRecordableIncidentsTRIFR TotalRecordableIncidentFrequencyRateDaysLost LTIDaysLostLTISR LostTimeIncidentSeverityRateLTIFR LostTimeIncidentFrequencyRate

Note2

Theexposurehours,incidentsandfrequencyratesshownbelowincludeallhoursrecordedonTREG(includingSBMPC)andanyincidentsrecordedatSBMOfficesandpremises.

Note3

TRI is calculated by: TRI=FAT+LTI+RWC+MTC

TotalRecordableIncidentsisthesumoftheFatalities,LostTime,RestrictedWorkCaseandMedicalTreatmentCaseincidents,butexcludeFirstAidCaseandNearMissIncidents.

TRIFR is calculated by: ND×200,000EHWhere:NI = thenumberofrecordableincidentsEH = totalhoursworkedbyallemployees200,000 = basefor100equivalentfull-timeworkers

(Working40hrsperweek,50weeksperyear)

LTIF is calculated by: ND×200,000EH

Where:NI = thenumberofrecordableincidentsEH = totalhoursworkedbyallemployees200,000 = basefor100equivalentfull-timeworkers (Working40hrsperweek,50weeksperyear)

Severity rates (LTISR) are calculated as: ND×200,000EH

Where:ND = thenumberofDaysLostEH = totalhoursworkedbyallemployees200,000 = basefor100equivalentfull-timeworkers (Working40hrsperweek,50weeksperyear)


DisclaimerSomeofthestatementscontainedinthisreportthatarenothistoricalfactsarestatementsoffutureexpectationsandotherforward-lookingstatementsbasedonmanagement’scurrentviewsandassumptionsandinvolveknownandunknownrisksanduncertaintiesthatcouldcauseactualresults,performance,oreventstodiffermateriallyfromthoseinsuchstatements.Suchforward-lookingstatementsaresubjecttovariousrisksanduncertainties,whichmaycauseactualresultsandperformanceoftheCompany’sbusinesstodiffermateriallyandadverselyfromtheforward-lookingstatements.Shouldoneormoreoftheserisksoruncertaintiesmaterialize,orshouldunderlyingassumptionsproveincorrect,actualresultsmayvarymateriallyfromthosedescribedinthispresentationasanticipated,believed,orexpected.SBMOffshoreNVdoesnotintend,anddoesnotassumeanyobligation,toupdateanyindustryinformationorforward-lookingstatementssetforthinthispresentationtoreflectsubsequenteventsorcircumstances.

Colophon

DesignMattmoConcept|Design,Amsterdam

PrintingB.V.DrukkerijDeEendracht,Schiedam


SB

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SBM Offshore N.V.Postal addressP.O. Box 313100 AA SchiedamThe Netherlands

Street addressKarel Doormanweg 663115 JD SchiedamThe Netherlands

Telephone +31 (0)10 232 0900Telefax +31 (0)10 232 0999E-mail: [email protected]

www.sbmoffshore.com

Documents

Corporate Social Report 2009 - SBM Offshore · SBM Offshore – CSR Report 2009 9 CEO Message This is SBM Offshore’s third separate Corporate Social Responsibility (CSR) report