Annual Report 2010 - SBM Offshore

the consequences of the Deepwater Horizon incident
in 2010 have focused the industry’s attention on pollution
risk even more than before. The management of
pollution risk starts with careful hull selection, conversion
and refurbishment, and continues with a formal
interrogation of the marine, oil and gas process system
design to demonstrate integrity in safety, reliability and
operability. All units presently owned by the Company
have design service lives that extend beyond their contractual
commitments.
Once in service the general integrity of the fleet is maintained
through the application of:
• strict operating and Risk Management procedures,
and preventive maintenance programmes;
• careful selection and intensive training of high-quality
personnel and direct employment of all positions
of responsibility aboard the units;
• continuous survey programme of Hull and Topsides
by the Classification Society;
• management system accreditation and compliance
with the requirements of the International Safety
Management (ISM) Code 2002;
• proactive regulatory compliance.
It should be noted that oil and gas offshore production
activities have been subject to very strict regulatory
regimes for many years, and that the Company is
not active in the ownership or operation of drilling
facilities, for which major new regulatory changes can
be expected.
Protection and Indemnity Club pollution insurance is
purchased for the maximum necessary and available
cover. Indemnities effectively capping the exposure well
below the insured amount are usually obtained from
clients. All of the offshore units are also insured under
comprehensive Hull and Machinery insurance packages
protecting against loss or damage to the unit itself.
Insurance for named windstorm damage in the Gulf of
Mexico is limited to that available for a reasonable price
considering the risk probability and likely impact.
Performance
Lease rates may not be paid or only partially paid by
clients if a unit does not perform as per the contract
requirements in some cases and in other cases incentives
may be reduced or lost. System uptime is assured
Report of the Board of Management
by a design process matured from experience, reliability,
availability and maintainability (RAM) modelling,
planned and preventive maintenance as well as condition-based
monitoring. The Company has operated
F(P)SOs for over 200 vessel years with a total operating
downtime of less than 1%, which is well below typical
contractual allowances and above industry median
performance. Insurance coverage for loss of earnings
is contracted only if considered appropriate or as is
sometimes required in relation to debt obligations.
Offshore health & safety
The Company has a duty of care to protect the personnel
within its operations from the potential health
hazards posed by hydro-carbon processing and toxic
substances in an offshore environment. Internal expertise
supported by a robust management system and
vessel-specific design and Operational Safety Case
studies are important elements in evaluating and mitigating
risks.
Furthermore, management system codes of practice
covering benzene and mercury management as well as
other hazardous substances, apply onboard F(P)SOs.
Crisis management
The Management System includes Emergency
Contingency Planning which describes the procedures
for responding efficiently and in a predetermined way to
an emergency on board an offshore unit.
In case of an emergency, a Monaco Emergency Control
Centre (MECC) is ready to be activated, consisting of:
• Emergency Control Room, under the responsibility
of the Production Operations Manager;
• Infrastructure to enable direct lines of communication
between all relevant parties;
• Relative Response Room, to facilitate direct communication
with the families of the offshore crew;
• Media Response Room.
Corresponding emergency management arrangements
are provided in the overseas management offices.
Emergency response simulation exercises are held regularly
involving the offshore units and the ‘in country’
management offices, the MECC, local facilities, and clients.
A debriefing takes place immediately following the
termination of the exercise which is fully documented
SBM Offshore – Annual Report 2010 91