Sustainability Report 2010 - SBM Offshore

Sustainability 

Report 2010


Report 2010

2 SBM Offshore – Sustainability Report 2010 

FPSO P-57 in Brazil

Technology 

Creating 

Value 

SBM Offshore SBM Offshore – Sustainability – CSR Report 2010 3

SBM Offshore's 12 

Life-Saving Rules and 

Message of Corporate 

Head of HSSE 

Page 

40 

Renewable Energy Introduction 

Page 

90 

Interview of Tony 

Mace, CEO of 

SBM Offshore 

Page 

06 


Local Investments 

Page 

82 

Renewable 

Marine Energy 

Page 

91

Supply Chain 

Page 

86 

Interviews 

and 

Sustainable 

Initiatives 

Offshore Wind Energy 

Page 

92 

People Reviews and 

Message of Corporate HR 

Director 

Page 

58 

Local Content Introduction 

by Francis Blanchelande, 

COO of SBM Offshore 

Page 

76 

Local Workforce 

Page 

80 

Local Content 

Page 

84 

SBM Offshore – Sustainability Report 2010 5

Interview with 

CEO of SBM Offshore 

Tony Mace, 

CEO of SBM 

Offshore 


“ The importance of sustainable 

business to SBM Offshore” 

Sustainability is tied up with SBM 

Offshore’s business strategy as a whole. 

Concern for its employees is at the centre 

of the Company’s sustainability strategy. 

In an interview made by teleconference 

from the Company’s Dutch headquarters 

in Schiedam, with SBM Offshore’s CEO 

Tony Mace in Monaco, he emphasizes that 

“human capital is the Company’s greatest 

asset.” 

By Yvonne van der Heijden 

As an engineering contractor, SBM Offshore 

has been involved in the design, supply and 

leasing of offshore energy related equipment 

for over fifty years. Mace explains 

that “we aim to manage our operations 

in a manner that complies with the highest 

standards of business practice. We 

always had a policy of looking after the 

health and safety of our employees and 

have broadened this gradually to include 

subcontractors we do business with.” 

Compared to its competitors, according 

to Mace, SBM Offshore stands out 

in developing health, safety, and security 

Company policies. “We have top of the 

line procedures in place and we continue 

to introduce new safety initiatives.” 

For instance, in 2010, SBM Offshore 

internally adopted “12 Life-Saving Rules” 

for all of its more than 5,700 employees 

worldwide. This scheme identifies twelve 

types of activities which statistically have 

caused the most accidents for employees 

working in the offshore industry; whether 

those activities take place at work on a 

platform, office or construction site or 

driving to work. Mace stated that “these 

rules range from entering an enclosed 

space in a construction yard without first 

checking if the space is safe, to speeding 

while driving or not wearing your 

seatbelt.” 

The training of all personnel also focuses 

on the ability to look out for oneself. “Of 

course the Company provides the framework 

and processes for a healthy and 

safe work environment through safety 

training, design, equipment, and so on”, 

notes Mace. “But at the end of the day 

everybody has to be very much aware 

of their own safety as well. Eventually, 

every individual contributes to the overall 

achievement of our goal, which is of 

course to have zero accidents.”

Engage national crew 

Another aspect of SBM Offshore’s sustainability 

strategy is to engage national 

workers and small businesses in the countries 

in which it operates. In doing so the 

Company contributes to the development 

of local communities. SBM Offshore has 

local operations in Angola (with almost 50% 

national crew) and Brazil (with 75% national 

crew), and will start new facilities with local 

involvement in Equatorial Guinea and the 

Canadian province of Nova Scotia in 2011. 

Following the initial development, in line 

with Angolan wishes to also construct offshore 

facilities in Angola, the Company with 

its Angolan partners started to develop an 

FPSO integration and construction yard in 

an area of Angola which has low economic 

activity and high unemployment. Mace 

stated that “we were encouraged by the 

Angolan governmental policy that projects 

must take place in Angola itself. To show 

our commitment, we started building the 

construction yard ‘PAENAL’ in anticipation 

Human capital is the 

Company’s greatest asset 

Local content is developing into a key element 

of SBM Offshore’s growth strategy. 

Angola is a case in point. “For us, growth in 

Angola was in the first instance a business 

opportunity as the country requires Floating 

Production Storage and Offloading (FPSO) 

facilities to develop their offshore oil and 

gas production. 

SBM Offshore leases and operates these 

facilities for clients in joint venture with 

Angolan companies. 

This combination is the basis for long term 

local development of personnel working on 

the facilities offshore and at shore bases, 

but also the development of the local 

industries which support these operations. 

Angolans are continually trained by us in 

the operation of offshore systems and are 

gradually turning into a national workforce.” 

of potential new projects that will provide 

work to that yard. We employ Angolans and 

train them and have seen local industries 

in the region grow as the yard requires 

more and more local goods and services. 

Recently, the yard has managed to obtain a 

significant contract for work on an offshore 

project. Consequently, even more Angolans 

will be hired and trained. 

This illustrates how we have implemented 

local content policy and how this is beneficial 

both for us and the host country.” 

Reduction of emissions 

According to Mace, a tough sustainability 

challenge remains the “further reduction of 

greenhouse gas emissions from offshore 

facilities.” SBM Offshore tries to design 

and develop new technologies to create 



greener systems which it can then propose 

to its clients. Mace commented that in the 

oil and gas producing sector “an increasing 

number of our clients are becoming aware 

of the impact their operations have on the 

environment and are ready to consider the 

introduction of systems that 

are designed to reduce emissions wherever 

possible.” 

In addition to developing cleaner systems, 

SBM Offshore’s R&D Department is also 

working on the issue of energy shortage, 

and is looking for solutions in the offshore 

environment through generating energy 

from waves and ocean thermal conversion. 

Milestone 

In 2010, SBM Offshore reached a milestone 

when it was included in the Dow Jones 

Sustainability Index (DJSI). Mace states 

that “by achieving this, we have shown that 

we have a strong commitment to conduct 

business in a sustainable and transparent 

manner and this has been recognized by 

the DJSI. This proves that the reporting system 

we have developed is up to standard. 

Being part of this index is special to us also 

because only a few companies in our sector 

have been included.” 

Code of Conduct 

To conclude, Mace points out that SBM 

Offshore has a Code of Conduct which lays 

out in detail the Company’s responsibilities 

to its stakeholders and to society and the 

environment. Mace notes that “all of our 

employees receive training on how we conduct 

business and how employees should 

behave. The Code of Conduct is a strong 

pillar that supports SBM Offshore’s sustainability 

strategy.” 

Yvonne van der Heijden (1955) 

has been working as a 

journalist since 1979. 

She writes on economics and takes 

special interest in social, development, 

and sustainability issues. She 

began her career as a journalist at 

the parliamentary bureau of daily 

newspapers in The Hague. In the 

nineties, she was based for almost 

a decade in Beijing, China. There she 

worked as a foreign correspondent 

for the Dutch business newspaper- 

Het Financieele Dagblad as well as 

other publications. Since 1999 she 

has been a freelance writer based 

in the Netherlands concerned with 

topics such as Corporate Social 

Responsibility, engineering industry, 

pensions, social security, and China. 

Van der Heijden, a Nieman Fellow 

at Harvard University in 1986, has 

published two books on China. The 

first about doing business in China 

(March 2007) and the second on the 

400 year history of Sino-Dutch trade 

relations (July 2008).

SBM Offshore – Sustainability Report 2010 9 

SBM Offshore employee on the YME 

MOPUstor

1 

2 

The Company, 

Principles 

and Practices 

18 Introduction 

19 Company Profile 

21 Corporate Principles and Practices 

26 Snapshot 2010 

27 Vision, Mission and Code of Conduct 

28 Corporate Sustainability Strategy and Reporting transparency 

31 Corporate Management Systems and Compliance table 

34 People Map of SBM Offshore 

Health, Safety, 

Security and 

Environment (HSSE) 

40 SBM Offshore's 12 Life-Saving Rules and 

Message of Corporate Head of HSSE 


45 Health management 

45 Safety management 

49 Security management 

49 Environmental management 

3 Human 

Resources 

58 People Reviews at SBM Offshore and Message 

of Corporate HR Director 


64 Corporate activities 

65 Global workforce 

67 Employment and remuneration 

70 Performance and Career development 

10 SBM Offshore – Sustainability Report 2010

4 Sustainable 

Initiatives 

76 Host country Sustainability, 




78 Sustainable Initiatives Introduction 

80 Local workforce 

82 Local investments 

84 Local content 

86 Supply chain 

90 Renewable energy introduction 

91 Renewable Marine Energy 

92 Offshore Wind Energy 

5 Performance 

Indicators 

98 Sustainability Reporting Scope 

101 Performance Indicators 

111 PwC Assurance Report 

112 GRI Index Level C+ 

113 Notes 


Semi-Submersible 

Drilling Rig 

Tension Leg 

Platform 

FPSO 


Semi-submersible 

production platform 

MOPUstor

Our 

Product 

Line 

SBM Offshore designs and provides 

offshore energy systems on a lease 

or sale basis to our clients worldwide 

based on in-house engineering 

and project management expertise. 

CALM Buoy 

Terminal 

Heavy Lift Crane 

Vessel 

Turret Mooring 

System 

Wind Turbine 

Installation Vessel 

Jack-up 

Drilling Rig 


The Company, Principles and Practices 


Crew members onboard the FPSO 

Espirito Santo




The Company, 

Principles and 

Practices 


19 Company Profile 

21 Corporate Principles and Practices 

26 Snapshot 2010 

27 Vision, Mission and Code of Conduct 

28 Corporate Sustainability Strategy and Reporting transparency 

31 Corporate Management Systems and Compliance table 

34 People Map of SBM Offshore 


1

Mission, Vision and 


Page 

27 

Corporate Sustainability 

Strategy and Reporting 

transparency 

Page 

28 

Company Profile 

Page 

19 

Corporate 

Principles and 

Practices 

Page 

21 

Corporate 

Management Systems 

and Compliance table 

Page 

31 




Introduction 

The Sustainability Report 2010 presents an overview of 

the Company’s strategy and developments concerning 

Business Sustainability, Health initiatives, Safety 

and Security measures, Human Resources plan and 

Environmental protection implementation for the year 

2010 as well as key performance measure. 

In this year’s report a chapter on the Company’s 

sustainability strategy has been added to explain 

the Sustainability Business Objectives replacing the 

previous two-page commitments and performance 

overview. 

The reporting scope for the key performance indicators 

has been expanded with new indicators for Human 

Resources and has been adapted to meet the reporting 

scope of the Company’s current fleet of leased vessels. 

A selection of sustainable initiatives has been included 

in this report, providing more details on specific 

subjects which are presented as articles or case 

studies. Consequently, some more recent initiatives, 

which are still very early in their development, such as 

building an orphanage in Angola, CO2 sequestration 

technology and local content in Equatorial Guinea has 

not been reported on specifically. 

Interviews have been held with key SBM Offshore 

managers to highlight specific initiatives in their 

professional field and also to provide an internal 

personal view on these subjects. 

And finally, Yvonne van der Heijden, a Dutch journalist 

with 30 years of experience in the field of Sustainability 

in the Netherlands and China, conducted an interview 

with Tony Mace (CEO of the Company) on the 

Company’s sustainability strategy and presents her 

view as an introduction to this Sustainability report. 

The Company is proud to present this report in this new 

style and hopes you find it interesting, helpful and enjoy 

reading it. 


Company Profile 

Introduction 

SBM Offshore N.V. (SBM Offshore, ‘the Company’) 

designs and provides offshore energy systems on a 

lease or sale basis to our clients worldwide based 

on in-house engineering and project management 

expertise. The Company’s clients are mainly offshore 

oil and gas producing companies, both private and 

government owned. The Company has established its 

position as a specialised service provider in the middle 

to upper segment of the floating production industry 

where it is one of the market leaders. The Company 

operates globally under the name SBM Offshore with 

seven operating units. Each operating unit is among 

one of the leaders in its respective niche market. 

The Company currently employs over 5,700 people 

worldwide. 

Product line 

The Company’s activities include the engineering, 

supply and offshore installation of facilities for the 

production, storage and export of crude oil, gas and 

Liquefied Natural Gas (LNG). These comprise Floating 

Production Storage and Offloading systems (FPSOs), 

Floating Storage and Offloading systems (FSOs), 

Tension Leg Platforms (TLPs), monohull and semisubmersible 

Floating Production Units (FPUs), as well 

as self elevating Mobile Offshore Production Units 

(MOPUs). 

Over 30 years ago, the Company was the first to offer 

clients an integrated oil and gas service by providing 

turnkey supply of floating production vessels, as well as 

leasing options where the Company operates the facility. 

This concept is now considered as a mainstream 

production means by the oil industry, particularly in 

deep and remote waters, and the lease and operate 

business has become a major component of the 

Company’s activities. 

Included in the product line are all the systems, mostly 

based on the Single Point Mooring principle, used to 


moor crude oil and gas carriers in open seas for the 

purpose of loading or offloading cargoes. In 2009 SBM 

Offshore celebrated the 50th anniversary of the first 

CALM buoy, which was designed and delivered to 

Shell in 1959. Derived from the same technology are 

complex mooring systems, which anchor the floating 

production facilities in oil and gas fields and are the 

core products of the Company. There are various types 

of mooring systems such as fixed heading or weathervaning, 

permanent or disconnectable. 

In addition to these activities, the Company provides 

design and engineering services, and for certain opportunities 

enters into turnkey supply contracts, for crane 

vessels, pipelay barges and drilling units of all types, 

such as monohulls, jack-ups and semi-submersibles. 

In support of all the above, another steady activity 

which represents a substantial element in the 

Company’s business is the provision of specialised 

services such as maintenance, spare parts, repairs 

and offshore installation through the Company owned 

installation vessels. This forms an essential complement 

to the sales of facilities, offering clients a 

comprehensive and integrated service. 

The Company has added the LNG FPSO to its product 

line to respond to the expected future demand for offshore 

production of LNG from stranded gas fields and 

is also developing renewable energy systems for the 

marine environment. 



Organisation 

SBM Offshore currently operates from four main project 

execution centres with engineering and project management 

resources located in Schiedam (Netherlands), 

Monaco (Monaco), Houston (USA) and Kuala Lumpur 

(Malaysia). The Company has a corporate structure 

consisting of seven operating units, supported by 

corporate functions, which all report to the Board of 

Management. The organisation chart below shows the 

individual units, their location and their financial reporting 

segment. 

In addition to these main centres, the Company is 

present in several countries for regional marketing and 

sales, local management of offshore operations and 

construction activities. 

In respect of the Company’s activities, including both 

the supply of facilities on a sale basis and the lease 

and operate activities, there is a Group Management 

System defining the Company’s procedures. The 

Company’s Corporate Engineering Standards ensure a 

common design approach in the four centres and facilitate 

the optimal use of the skills and global resources 

available for the execution of large and complex 

projects. 

The Company sells or leases offshore facilities 

Company Organisation Chart 

Lease & 

Operate 


Corporate Functions 

Schiedam, Marly, Monaco 

SBM Offshore N.V. 

Netherlands 

Turnkey 

Systems 

generally by outsourcing all hardware components and 

construction services. Therefore, it does not own any 

manufacturing plant, construction yard or shipyard with 

the exception of a partially owned construction yard in 

Angola, which will be developed into an FPSO integration 

facility. One of the Company’s strengths is that it 

possesses all the engineering, project management 

and offshore installation competencies in-house to 

execute large complex systems, without having to rely 

on external resources, except for the liquefaction technology 

related to LNG FPSO topsides. 

Future focus 

19 

Units 

Under lease contracts 

The Company’s business direction is characterised by 

market-oriented technology innovation. The Company 

is a trendsetter in the development of new, cost effective, 

technologically fit-for-purpose solutions which 

optimally respond to clients’ changing needs. Today, 

the Company’s focus is on providing solutions for ultradeep 

water production, arctic environment floating 

production and Floating LNG (FLNG) developments. 

The Company is also engaged in development work 

for renewable energy systems in the marine environment. 

In order to protect and expand its leading market 

position, the Company devotes significant attention 

to research, development, and the protection of 

Intellectual Property. 

Turnkey 

Services

10 

10 main clients Lease & Operate 

Mostly major IOCs & NOCs 

Corporate Principles 

and Practices 

Corporate Governance 

SBM Offshore N.V. is a limited liability company 

(“Naamloze Vennootschap”) incorporated under 

the laws of The Netherlands with its statutory seat 

in Rotterdam. The Company has a two tier board, a 

Supervisory Board and a Management Board. Each 

Board has its specific role and task regulated by the 

Corporate Governance Code, laws, the articles of 

association and the Supervisory and Management 

Board rules. 

The Company will submit major changes in the corporate 

governance structure of the Company and in 

the compliance of the Company with the Corporate 

Governance Code (CGC) to the General Meeting of 

Shareholders under a separate agenda item. 

Duties of the Board of 

Management 

The Company is managed by the Management Board, 

under the supervision of the Supervisory Board. 

Each year the Management Board presents to the 

Supervisory Board, the operational and financial objectives 

of the Company, the strategy designed to achieve 

the objectives and the parameters applicable in relation 

to the strategy. The Operating Plan 2011 which 

includes the budget has been discussed and approved 

in the Supervisory Board Meeting of 10 December 2010 

and a special session was dedicated to the Company’s 

strategy on the same day. 

Supervisory Board 

1st 

CALM buoy 

delivered in 1959 

As per 1 January 2010, the Supervisory Board consisted 

of five members. At the Annual General Meeting 

(AGM) of 14 April 2010, Mr. L.J.A.M. Ligthart stepped 

down as the vice-chairman of the Supervisory Board 

and chairman of the Audit Committee and Mr. F.J.G.M. 


Cremers was appointed to the Supervisory Board and 

was elected as chairman of the Audit Committee. At 

an Extraordinary General Meeting of Shareholders held 

on 6 July 2010 Mr. F.R. Gugen was appointed to the 

Supervisory Board and was elected chairman of the 

Appointment and Remuneration Committee, dealing 

with remuneration matters. At the AGM the Supervisory 

Board also announced its intention to appoint a seventh 

member of the Supervisory Board taking into 

account the best practice of ensuring diversity in the 

composition of the Supervisory Board. A recruitment 

process for this seventh member of the Supervisory 

Board is ongoing. 

Until the AGM of 14 April 2010, the Supervisory Board 

had three sub-committees: the Audit Committee, 

the Remuneration Committee and the Selection and 

Appointment Committee. The Supervisory Board 

announced at the AGM of 14 April 2010 that it had 

resolved to merge the Selection and Appointment 

and the Remuneration Committees into one single 

Appointment and Remuneration Committee. In addition, 

the Supervisory Board resolved to create a new 

Technical and Commercial Committee to enable the 

Supervisory Board to have a better understanding of 

the Company’s exposure to technical risks and to facilitate 

its supervisory duties of technical and commercial 

matters. 

Duties of the Supervisory Board 

The Supervisory Board supervises the management of 

the Company and its businesses by the Management 

Board, the effectiveness and the integrity of the 

internal control and risk management systems and 

procedures implemented by the Management Board 

and the general conduct of affairs of SBM Offshore 

and its businesses. The Supervisory Board assists the 

Management Board with advice in accordance with the 

best practices of the Code and the Supervisory Board 

rules. In the performance of its duties the Supervisory 

Board is guided by the interests of the stakeholders of 

the Company, and the enterprises connected therewith. 

In addition, certain (material) decisions of the Managing 

Board, as stipulated in the law or articles of association 



or the Rules of the Supervisory Board, need prior 

approval of the Supervisory Board. 

Dutch Corporate Governance Code 

The Company is obliged to comply (or explain any noncompliance) 

with the Dutch Corporate Governance 

Code. A report on compliance with the Code can be 

found in the Corporate Governance section of the 

Annual Report 2010 which can be downloaded from 

the Company website http://www.sbmoffshore.com 

For more detailed information on Corporate 

Governance information, please refer to the Company’s 

2010 Annual Report. 


The Company has a Code of Conduct which was 

updated in January 2010 and is posted on the 

Company’s website. Each year the Supervisory Board, 

the Board of Management and a wide range of line 

managers and corporate staff are required to sign 

backward and forward looking compliance certificates. 

The Company also has a procedure allowing employees 

to report alleged irregularities with respect to the 

Code without jeopardising their employment position. 

The Board of Management decided to create a free 

phone or web-based reporting facility which employees 

will be able to use –anonymously if they wish- in 

their own language. The facility will be operated by an 

external provider, People Intouch, and is expected to 

be launched during the course of 2011 once all formalities 

required in the different jurisdictions where the 

Company operates, including data protection laws, 

have been satisfied. The Company has developed a 

number of anti-corruption initiatives including: 

• Guidelines for use of Agents and Commercial 

Relations with Public Officials; 

• Use of standards contracts and anti-corruption 

clauses in the Company's contracts; 

• Creating a Partner and External Relations 

Management (PERM) Team which performs due 

diligence on any new Agents, Consultants, Partners, 

Freight Forwarders and Custom Brokers contracts 

or relationships; 


Code of 

Conduct 

Updated 

in 2010 

• Conducting routine internal audit checks to monitor 

Code of Conduct compliance. 

Shareholders 

With reference to the articles of association, all 

Shareholders are entitled to attend the General 

Meetings (GM), to address the GM and to vote. At the 

GM each Ordinary Share with a nominal value of Euro 

0.25 each shall confer the right to cast one (1) vote. 

Each protective preference share with a nominal value 

of Euro 1.00 each shall confer the right to cast four 

votes, when issued. Subject to the approval of the 

amendment of the Articles of Association which will be 

submitted to shareholders’ approval at the AGM of 5 

May 2011, the nominal value of ordinary and protective 

preference shares shall be the same and each ordinary 

share or protective preference share (when issued) shall 

carry the same voting right. Unless otherwise required 

by the law and articles of association all resolutions 

shall be adopted by an absolute majority of votes. 

The Company maintains active communications with 

its shareholders on several different occasions, events 

or meetings in order to keep them informed on the 

general and specifically financial aspects of the business. 

The information is communicated in writing in the 

Annual Report, in the minutes of meeting of the AGM, 

in press releases and in presentations for financial analysts 

and is distributed electronically on the website, 

via email and in hardcopy format. The Company also 

addresses shareholders verbally during the AGM, at 

investor meetings, analyst presentations (which are 

webcasted), and conference calls. 

The Annual Report contains several sections in which 

the Company presents its financial results and other 

information on its activities, developments and strategy. 

The report is audited by an external accounting firm. 

The Annual Report is printed in hardcopy for distribution 

and can also be downloaded electronically from 

the Company’s website. 

At the AGM the shareholders in attendance vote on 

granting discharge to the Board of Management for 

the conduct of the Company’s businesses and to the 

Supervisory Board for its supervisory duties during the 

year under review.



Semi-Submersible Drilling Rig ‘Delba 

III’ in Abu Dhabi


For more details on Shareholder Information, please 

refer to the Company’s 2010 Annual Report. 

Investor Relations 

The Company has an active investor relations program 

which consists of providing information to the stakeholders 

by press releases followed by direct dialogue 

with the investments community via teleconference 

calls for the quarterly trading updates and an analyst 

presentation for full and half year results. Both the 

conference calls and the analyst presentation are webcasted. 

Meetings are also held with individual investors 

at conferences, at the investor’s premises or on 

Company premises. Telephone calls with investors and 

analysts are held on a regular basis. 

In September 2010, the Company organized two teachin 

sessions for financial analysts on lease accounting 

principles in Amsterdam and in London with the 

Company’s CFO, Mr. Mark Miles. 19 sell-side analysts 

attended the presentations on accounting principles of 

lease contracts. Detailed explanation of the accounting 

treatment of leases was deemed necessary as the 

impact of finance lease accounting in SBM Offshore’s 

financial statements is increasing. The teach-in presentation 

has been posted on the Company’s website. 

A total of 25 road shows and conferences were 

attended by the Company in the course of 2010. 

Stakeholder Engagement 

The Company encourages and maintains an open and 

respectful engagement with all our stakeholders. This 

takes place at annual shareholders meetings; with our 

Company employee delegates, our clients and Non 

Governmental Organisations (NGO). 

Main stakeholder groups identified in this report are 

our employees, clients and business partners, capital 

providers, shareholders, suppliers and NGOs, local 

authorities and local host communities in the countries 

where the Company has a presence. 


Dow Jones Sustainability 

Europe Index 

In September 2010, SBM Offshore was included in 

the Dow Jones Sustainability Index (DJSI) Europe. 

The Company has participated for the first time in 

2010, successfully becoming one of the four current 

members of the DJSI Europe Oil Equipment & Services 

sector. Integration in DJSI is a demonstration of the 

Company’s commitment to conduct business in a 

sustainable and responsible manner. 

Carbon Disclosure Project 

The Company participated in the Carbon Disclosure 

Project (CDP) for the Netherlands in 2009 and 2010 and 

intends to participate again in 2011. Carbon Disclosure 

Leadership Index assesses the quality and depth of 

a company’s response to the annual CDP questionnaire 

for its internal management of data related to 

GreenHouse Gases (GHG) emissions and understanding 

of the issues that climate change presents to the 

Company's business. 

For 2010, SBM Offshore has reached a CDP carbon 

disclosure score of 64, improving its 2009 level by 

18,5%. This midrange score (between 50 and 70) 

underlines the ability of the Company to measure its 

carbon footprint across global operations and its strong 

commitment to the importance of transparency. In 

2010, a new scoring method has been introduced in the 

Netherlands by CDP to measure carbon performance 

and the Company’s score is in band C.

Transparantie Benchmark 

The ”Transparantie Benchmark” is an initiative of the 

Dutch Ministry of Economic Affairs, launched in 2004 to 

improve transparency of corporate social responsibility 

reporting of Dutch companies. 

SBM Offshore is involved since the beginning in this 

initiative as a member of the 500 largest Dutch organizations 

and has improved its score. The Company 

scores well above its sector average. 

SBM Offshore's Transparantie Benchmark Score 

60 

50 

40 

30 

20 

10 

0 

SBM Offshore Score Sector average Sector maximum 

2005 2006 2007 2008 

2009 

In 2010, the Transparantie Benchmark scoring system 

has changed, but SBM Offshore succeeded in keeping 

almost the same level, 96.4 out of 200 in 2010 compared 

to 48 out of 100 in 2009. 




Snapshot 2010 

2010 2009 Movement % Comment 

FINANCIAL RESULTS 

Net profit (US$) 276.0 230.0 46.0 20.0% Turnkey Systems results up; 

MOPUstor & tankers impairment 

Per share (US$) 1.44 1.47 (0.03) (2.0%) Higher minority interest and average number 

of shares 

Turnover (US$) 3,055.8 2,956.5 99.3 3.4% Turnkey Systems revenues increased 

EBIT (US$) 362.4 293.4 69.0 23.5% Turnkey Systems results up; 

MOPUstor & tankers impairment 

EBITDA (US$) 688.4 613.3 75.1 12.2% Much higher Turnkey Systems contribution 

Net debt (US$) 1,711.1 1,464.0 247.1 16.9% Lease fleet investments 

Capital expenditure (US$) 519.0 655.9 (136.9) (20.9%) Excludes investments in finance leases 

New orders (US$) 4,531.9 3,739.9 792.0 21.2% Includes one large FPSO (finance lease) 

Backlog (US$) 

Share price 31/12 (€) 

11,501.5 10,032.3 

16.765 13.775 

1,469.2 

2.99 

14.6% 

21.7% 

Record Level 

_ 

AEX-index 354.6 335.3 19.3 5.7% _ 

Market capitalisation (€) 2,827.7 2,265.4 562.3 24.8% Share price rose and new shares issued 

Market capitalisation (US$) 

HSS 

3,783.5 3,248.9 534.6 16.5% US$ strengthened against € 

Fatalities 0 0 0 In line with target 

LTIFR Offshore Production 0.10 0.03 0.1 233% 

TRI Offshore Production 26 17 9.0 52.9% More robust reporting process 

TRIFR Offshore Production 0.87 0.59 0.3 47.5% Target of TRIFR < 0.20 

LTIFR Onshore Operations 0.06 0.0 0.1 

TRI Onshore Operations 6 1 5.0 500% More robust reporting process 

TRIFR Onshore Operations 

ENVIRONMENT 

0.18 0.03 0.2 500% In line with target of TRIFR < 0.20 

CO2 Emissions from Offshore 

Production in million of tonnes 1) 

GHG Emissions from Offshore 

Production in million of tonnes CO2 equivalent 1) 

Total hydrocarbon Production in 

million barrels of oil equivalent 


2.076 1.824 0.3 13.8% First full year production for Espirito Santo, 

more planned Shutdowns in 2009 

2.139 1.881 0.3 13.7% 

147.8 142.5 5.3 3.7% First full year production for Espirito Santo 

HUMAN RESOURCES 

Total Employees 5,758 5,389 369 6.8% Increase in permanent employees 

Total Offshore Employees 1,829 1,488 341 22.9% In line with changes in the fleet composition 

Total Onshore Employees 3,929 3,901 28 0.7% Increase mostly in permanent employees 

Contract / Permanent ratio 28.6% 35.8% (0.1) (20.1%) Target is 30% 

Offshore Production Training hours 

per eligible employee 

Onshore Operations Training hours 

per eligbile employee (including 

PAENAL) 

1) CO 2 Emissions from Offshore Production have been restated for 2009 

41.7 23.26 18.5 79.4% Training hours for Capixaba's crew 

(relocation) 

28.3 26.17 2.1 8.1%

Vision, Mission, Code of Conduct 

Vision 

The Company’s Vision for the long 

term is: 

“SBM Offshore will be the 

acknowledged leading company 

in the development of solutions for 

offshore energy production and the 

preferred supplier of these systems 

on a lease or sale basis”. 

Mission 

The Corporate Mission reads: 

“To provide safe, reliable and innovative 

offshore solutions for the 

energy industry”. 

The mission statement has 

changed from one focusing solely 

on the Oil & Gas sector into the 

broader statement of ‘energy 

industry’ to also include technologies 

for energy generation from 

Renewable forms of energy. 


The expression of this mission 

statement in a few major objectives 

with respect to the key 

stakeholders reads as follows: 

Towards Clients: 

• to provide superior products 

and services through innovative, 

fit-for-purpose and competitive 

solutions for the offshore energy 

industry; 

• to design, construct, install, 

maintain and operate such 

facilities in a safe and environmentally 

sound manner; 

• to provide satisfaction to our 

clients with reliable products 

and services so as to create 

long term relationships. 

Towards Employees: 

• to generate an attitude of enthusiasm 

and pride throughout the 

Company. 

Towards Suppliers: 

• to support fair competition and 

strive for long-term stability in 

the relationships; 

• to jointly improve social and 

environmental performance. 


Towards Society / 

Communities: 

• to support and promote human 

rights and contribute to social 

welfare in the communities 

where we operate; 

• to support and promote business 

practices free of bribery 

and corruption. 

Towards the Environment: 

• to minimise the negative impact 

and risks of our activities on the 

environment and co-operate 

with business partners to 

improve our performance. 

Towards Shareholders / 

Capital providers: 

• to constantly improve our 

know-how and efficiency, with 

the objective to generate returns 

well above cost of capital; 

• to maintain a high degree of 

transparency and reliability by 

providing accurate financial and 

non-financial information; 

• to achieve the highest standards 

of corporate governance; 

• to provide EPS growth ahead 

of the expected EPS growth of 

the relevant Oil & Gas Industry’s 

indices. 

The Company’s motto is: 

“Technology Creating Value”. 



Minimise 

Carbon foot 

print 

Corporate 


Strategy and 

Reporting 

Transparency 

This chapter of the Sustainability Report provides 

more detail on the Company’s Sustainability Business 

Objectives and transparency in reporting. 

The Company’s Sustainability Business Objectives are 

part of the new Corporate Strategy Plan for the time 

frame 2011-2015. Following its presentation to the 

Supervisory Board, this plan has recently been adopted 

by the Company. 

A summary of the Strategy Plan 2011-2015 can be 

found in the Company’s Annual report 2010. 

Transparency of reporting is considered an important 

part of the development of the Company’s 

Sustainability strategy and the Company’s approach 

towards reporting is highlighted in this chapter. 

Sustainability Business 

Objectives 

The Company aims to carry out its activities in such a 

way that will promote sustainable long term business, 

develop close interaction with the people, communities 

and local business in the countries in which it operates 

and safeguard the environment. Furthermore the 

Company will endeavour to utilise latest technologies 

to reduce GreenHouse Gases (GHG) emission where 

appropriate and aims to develop renewable energy 

solutions for the offshore and marine environment. 

The Company will focus on areas of its operations 

where it can have a sustainable effect within the supply 

chain. This includes the following objectives which are 

included in the Strategic Plan: 


Maintain high 

standards for 

HSSE and HR 

• Minimise the Company’s carbon foot print; 

• Maintain high standards for Health, Safety, Security 

and Human Resources; 

• Serve communities through local content; 

• Develop and promote renewable energy and 

environmental friendly technology. 

An analysis has been carried out to identify objectives 

and areas in which the Company can have an impact 

on sustainable business development and the focus 

will be on those areas for initiatives and reporting. 

Details on the objectives are presented below. 

Environment 

The Company’s objectives are to minimise the negative 

impact and risks of our activities on the environment 

and cooperate with business partners to improve our 

performance. Specific objectives are to reduce the 

Company’s carbon foot print, per unit of hydrocarbon 

produced in offshore operations and in absolute terms 

for onshore activities. 

The most substantial part of the Company’s carbon 

foot print results from GHG emission during operations 

of the lease fleet. The Company strives to continuously 

improve the production performance on the facilities 

to reduce emissions within the existing design limits of 

the systems. 

The onshore activities of the Company consist primarily 

of work in an office environment where the 

reduction of the carbon foot print can be achieved by 

actively promoting initiatives to achieve neutral emission 

offices. 

Health Safety and Security 

(HSS) 

The Company will continue to maintain high standards 

for HSS as described in the Code of Conduct. This 

is achieved by implementing HSS initiatives that are 

developed to promote awareness on health, safety and 

security issues both offshore as onshore. Please refer 

to section 2 for more detailed information

Human Resources (HR) 

The Company will continue to maintain high standards 

for HR as described in the Code of Conduct. 

In addition to ensuring the highest standards of 

employment for the Company’s employees, continuous 

training and personnel development programmes 

are also carried out. Please refer to section 3 for more 

detailed information. 

Business Sustainability 

Serve local 

communities 

Host Country Sustainability 

The Company has always operated in countries by 

engaging the local workforce in its operations. This 

requires investments in infrastructure (offices, training 

centres), local training and personnel development programmes. 

The Company will continue to support and 

promote these nationalisation plans. 

In recent years, the Governments of many of the countries 

in which the Company operates, have become 

more demanding specifying higher local content 

requirements for the construction of the Company’s 

products. The Company aims to achieve high local 

content by subcontracting work in the host country 

where possible or investing in the host country to 

develop local fabrication facilities as it has done in 

Angola. 

Supply Chain 

The main policy towards suppliers is to support fair 

competition, strive for long term stability in the relationships 

and to jointly improve social and environmental 

performance as described in the Company’s Code of 

Conduct. 

Develop and promote sustainable 

technology 

The Company’s clients generally specify the requirements 

for a complete oil and gas field development, 

including the production facility. This leaves relatively 

little opportunity for the Company to influence the 

design and supply of production facilities to further 

reduce operations-induced GHG emissions. 


Develop and 

promote 

sustainable 

technology 

Nevertheless, within these boundaries, the Company 

promotes the use of emission-friendly equipment 

and design during the development of the design of 

the facility where this can be done in a cost efficient 

manner. 

To reduce the GHG emissions on oil and gas producing 

facilities, the Company strives to implement emissionsreducing 

technology at the lowest reasonable costs. 

Renewable Energy 

The Company is pursuing several initiatives to leverage 

its in-house expertise to develop new technology for 

energy generation from renewable sources. Details of 

these developments can be found in the Sustainable 

Energy initiatives’ section of this report. 

Reporting Transparency 

The Sustainability Report is issued on a yearly basis 

concurrently with the Annual Report. 

The Sustainability Report will include key indicators 

which are calculated based on input from existing 

reporting systems within the Company. The indicators 

are then compiled and consolidated in an automated, 

web-based reporting system. Narratives on the implications 

of these results and the Sustainable initiatives 

throughout the Company are also detailed in the report. 

Currently the Company reports at GRI level C+, 

according to GRI guidelines. 

External Assurance 

An external auditor verifies the Sustainability data 

and provides an external limited assurance. The 

Sustainability Assurance process consists of an interim 

verification and the year end assurance procedure. 

Local verification procedures are part of the work. 

Strategic analysis 

The Dow Jones Sustainability Index (DJSI) World 

Universe identifies 40 potential candidates in oil 

and equipment services, but only six are included. 

In Europe, DJSI STOXX includes 19 potential candidates, 

but only four are included, of which SBM 

Offshore is one. None of the four are direct competitors 

of the Company. 



Disclosure 

External reporting consists in participating with the 

following initiatives: 

• Dow Jones Sustainability Index (DJSI); 

• Carbon Disclosure Project (CDP); 

• Transparantie Benchmark (Initiative of the Dutch 

Ministry of Economic Affairs). 

Stakeholder dialogue is an area in which the Company 

facilitates improved dialogue when the stakeholder and 

the Company agree this forum will add value to achieve 

the Company’s sustainability objectives. 


External reporting 

DJSI, CDP, 

Transparantie 

Benchmark 

FPSO Xikomba 

offshore Angola

Corporate 

Management 

Systems & 

Compliance table 

The Company’s Group Management System (GMS) 

is built on the following internationally recognised 

standards: 

• Quality Management System Standard ISO, 

9001:2008; 

• Environment Management System Standard, ISO 

14001:2004; 

• Occupational Health and Safety Management 

System Standard, OHSAS 18001; 

• SBM Offshore Social Accountability Manual (compatible 

with SA8000 Standard); 

• MARPOL Regulations 2002; 

• ISM/ISPS Codes (International Safety Management/ 

International Ship and Port Facility Security). 

Quality Management 

The GMS defines the Company’s management system 

and procedures and are applied consistently in all 

the project execution centres. All centres have been 

audited by the American Bureau of Shipping (ABS) in 

2009 and are compliant with ISO 9001:2008. It is the 

intention of the Company to also attain compliance 

with ISO 9001 for the operating unit SBM-Production 

Contractors (SBM-PC), which manages the fleet 

operations. 

Environment 

Group Management 

System in line with 

Standards 

ISO 9001 :2008 

ISO 14001 :2004 

OHSAS 18001 

ISO 14001 accreditation is voluntarily applied by the 

Company. Implementation started in Brazil in 2009 and 

continues to expand across the fleet. The most recent 

addition to the fleet in Brazil, FPSO Espirito Santo, 

commenced oil production in 2009 and the Company 

has obtained accreditation for this unit to ISO 14001 

in 2010. This standard is also being implemented in 

Angola, where accreditation on all units is ongoing and 


completion is expected in 2011 (audits forecasted 

in March 2011). 

Health and Safety 

The Company’s offshore fleet management is compliant 

with the International Safety Management 

(ISM) standard and the International Ship and Port 

Facility Security (ISPS) Code, which is a mandatory 

requirement. 

The Company has the objective to attain compliance of 

its operations with the Occupational Health and Safety 

Standard (OHSAS) 18001, on a voluntary basis, for all 

shore bases and operating units to verify Health and 

Safety practises. Accreditation was obtained in the 

shorebase in Brazil in 2009 and will be implemented in 

all other shorebase and operating units during 2011. 

Audits for all FPSOs in operation in Brazil were carried 

out successfully in 2010 by ABS Quality Evaluations 

against OHSAS 18001. 

Employment Standards 

The Company seeks to give all its employees the best 

employment standards as per the Code of Conduct 

and the Company’s Social Accountability Manual. The 

Company operates with standards that in most cases 

exceed international human rights and international 

labour guidelines. 

The Company does not tolerate child or forced labour 

and does not support or work with companies that sustain 

forced or compulsory labour. This is in compliance 

with the UN Universal Declaration of Human Rights, the 

ILO Conventions, and the OECD Guidelines for multinational 

enterprises and is addressed in the Company’s 

Code of Conduct. 

Social Accountability 

The Company is in the process of achieving compliance 

for its global shore bases in accordance with 

the Social Accountability Manual, based on SA8000 

standards. Implementation of the Social Accountability 

Manual standard was achieved in Brazil in 2009. 



For Equatorial Guinea and Malaysia, the Company’s 

goal to be compliant in 2010 has not been obtained, 

due to delays in the implementation as well as auditors 

availability issues. The Company has the objective to 

attain certification for all shore bases in 2011. 

In 2006, when the Company implemented the SA8000, 

Social Accountability International (SAI) directed 

the SA8000 Advisory Board that verification of the 

standard would not be allowed in Myanmar, until the 

International Labour Organisation (ILO) lifted its sanctions. 

Therefore, the decision was made to continue the 

implementation using an in-house Social Accountability 

Manual, based on the precedent set by the SA8000 

Framework. This requires the regular and transparent 

auditing in Myanmar of the Company’s suppliers and 

sub suppliers. 


Group Management 

System in line with 

Standards 

SA8000 

MARPOL 

ISM/ISPS 

The social accountability certificate for Myanmar was 

issued in February 2010 by Bureau Veritas, following its 

audits. 

The status of the implementation and certification of 

management systems is presented in the Management 

System Compliance table. 

Topsides of the FPSO Okha

Management System 

Compliance Table 

31 December 2010 


ISM ISO 

9001 

EXECUTION CENTRES 

GustoMSC – Schiedam, The Netherlands n/a 

SBM Atlantia – Houston – USA n/a 

SBM Malaysia – Kuala Lumpur, Malaysia n/a 

Single Buoy Moorings – Monaco 

SBM Production Contractors (Fleet) – Monaco 

n/a 

SHOREBASES 

Angola 

Brazil 

Equatorial Guinea 

Malaysia 

Myanmar 

Nigeria 

OFFSHORE PRODUCTION FLEET 

Angola 

FPSO Kuito 

FPSO Xikomba* 

FPSO Sanha 

FPSO Mondo 

FPSO Saxi Batuque 

Brazil 

FPSO Espadarte 

FPSO Brasil 

FPSO Marlim Sul 

FPSO Capixaba 

FPSO Espirito Santo 

Myanmar 

FSO Yetagun 

* Unit expected to be relocated after reconversion 

Compliant according to external audits 

(with date if achieved in 2010) 

Target for 2011 

No initiatives planned 

ISM OHSAS 

18001 

ISM ISPS ISO 

14001 

2011 2011 

2011 2011 

2011 2011 

2011 2010 

2011 

2011 

2011 

2011 

2011 

2011 

2011 

2010 2010 

2011 

Social 

Accountability 

OHSAS 

18001 

2011 

2010 



2011 



5,758 

employees 

worldwide 

USA 


Brazil 

55 

different 

nationalities 

People Map of SBM Offshore 

The Netherlands 

Switzerland 

Monaco 

West Africa 

Angola 

UAE 

Asia 

Malaysia 

Singapore

The Company, Principles and Practises 

Detail of the Riser Turret Mooring of 

the FPSO Okha showing the flexible 

production hoses

Health, Safety, Security and Environment 

Crew on the deck of an FPSO

Health, Safety, Security and Environment


Health, Safety, 

2 

Security and 

Environment 

(HSSE) 

40 SBM Offshore's 12 Life-Saving Rules and Message 

of Corporate Head of HSSE 


45 Health management 

45 Safety management 

49 Security management 

49 Environmental management 


Environmental 

Management 

Page 

49 

Safety 

Page 

45 

Health 

Page 

45 

Security 

Page 

49 

SBM Offshore's 

12 Life-Saving Rules 

Page 

40


SBM Offshore’s 



employees in 

Monaco during the 


Workshop 


A case Study and 

message of Corporate 

Head of HSSE 

SBM Offshore’s management delivered a 

strong message to personnel in 2010. In 

a fully-supported and endorsed directive, 

the Company is now implementing a campaign 

where all SBM Offshore employees 

are verbally briefed on the 12 Life-Saving 

Rules that aim to further protect the most 

valuable asset of the Company – the men 

and women responsible for the success of 

the Group. 

SBM Offshore continually strives to 

achieve the target of Zero Accidents in 

its operations both onshore and offshore. 

During the FPSO Espirito Santo project, 

SBM Offshore applied the Life-Saving 

Rules used by Royal Dutch Shell and 

was impressed with the results obtained. 

The robust application of the rules fully 

supports the Company’s existing Zero 

Accident initiative. 

This led to the SBM Offshore management 

decision to also implement these rules in 

conjunction with other industry best practice, 

which resulted in the creation of SBM 

Offshore’s 12 Life-Saving Rules. 

The SBM Offshore’s 12 Life-Saving Rules 

are subsequently being included in the 


operations of the Company in the Group 

offices, the construction yards, and 

offshore. 

The initiative targets work activities where 

failure to comply with the rules has the 

highest potential for serious injury or death. 

Compliance with the SBM Offshore’s 12 

Life-Saving Rules is mandatory for everyone 

in the Group while on business or 

on site, but the Company encourages all 

employees to apply these relevant principles 

in their home life as well. 

Training workshops have been held for staff 

in the Group Execution Centres and off- 

The company encourages 

all employees to apply these 

principles in their home life 

shore in the fleet, including the Company's 

vessel, the Dynamic Installer. There is a call 

to intervention, rendering personnel responsible 

for their actions, but also accountable 

to one another. 

By the end of the second quarter of 2011, 

SBM Offshore expects to have trained all 

onshore and offshore staff worldwide. The 

key responsibility of the training team is 

proactively protecting and educating the 

staff, as well as ensuring compliance. At the 

heart of the matter is safety and protecting 

assets, but here, we mean people. 



Stuart Holtby, 

Corporate Head 

of HSSE 


Stuart Holtby’s Message 

In any professional environment there are 

hazards and risks which can have dire 

consequences on the working population 

and secondary effects on close family that 

can last a life time. Our goal is to enhance 

and improve safety within the Group, and 

the development of the SBM Offshore’s 12 

Life-Saving Rules is based upon management 

and worker input and elements from 

SBM Offshore’s associates and clients 

worldwide. 

The Rules are best practice in the industry. 

They are not new, but what the Company 

is doing emphasizes their importance in 

keeping personnel on SBM Offshore business 

safe from harm or injury. By abiding by 

these simple and sensible procedures, SBM 

Offshore will maintain the standing it has in 

the industry for being a Company with personnel 

who work safely each and every day. 

The result is a continuous, excellent safety 

record. 

The SBM Offshore’s 12 Life-Saving Rules 

will continue to underpin the ongoing 

enhancement and development of the 

Company Group Management System. 

They are now a permanent and very essential 

HSSE positive driver, and they will 

assist in achieving the ultimate goal of the 

Company: the accident free workplace. 

SBM Offshore’s 

12 Life-Saving 

Rules 

Work with a valid Work Permit 

when required 

Conduct Atmospheric tests 

when required 

Verify isolation before work 

begins and use the specified 

life-protecting equipment 

Obtain authorisation before 

entering a confined space 

Obtain authorisation before 

overriding or disabling safetycritical 

equipment 

Protect yourself against a fall 

when working at height 

Do not walk under a 

suspended load 

Do not smoke outside 

designated smoking areas 

No alcohol or drugs while 

working or driving 

While driving, do not use your 

phone and do not exceed 

speed limits 

Wear your seat belt 

Follow the Travel 

Management Plan



Standard Safety equipment for climbing 

to heights


HSSE Introduction 

HSSE (Health Safety, Security and Environment) plans 

when effectively implemented in a work place, should 

satisfy the key objective of providing a safe working 

environment. These plans are complemented by comprehensive 

safe systems of work and are managed and 

supervised by competent personnel. 

Within SBM Offshore these key HSSE objectives are in 

place. They are constantly monitored for effectiveness 

and enhanced where necessary reflecting the developing 

technology of the Company. 


HSSE plans cover the full spectrum of the Company's 

activities from the onshore offices to the construction 

yards and on to the fleet of floating production facilities 

world wide. 

Of prime importance to the Company is the management 

of health, safety, security and the environment. 

To ensure that this commitment is constantly 

reinforced, HSSE initiatives such as TASK (Total 

Application of Safety Knowledge), and STOP (Safety 

Training Observation Program) have been implemented 

and fully underpinned by the SBM Offshore’s 12 Life- 

Saving Rules. 

Yard workers in 

Singapore preparing for 

vessel inspection on the 

Okha FPSO

TASK 

Total Application 

of Safety Knowledge 

Health Management 

General 

The health of the Company’s workforce is of prime 

importance and is given significant attention through 

various initiatives. The Company is proactive in its commitment 

to improve the standard of the implemented 

health procedures and to mitigate all health risks. 

Offshore Production 

All Company offshore employees must attend regular 

medical examinations which are dependent upon their 

age. Health and Well-being programs are in place on 

the marine units. All marine units are equipped with 

gymnasium equipment and employees are encouraged 

to use these facilities. 

All Company employees working in areas where 

malaria is present are advised of the appropriate 

malaria prevention measures, and are provided with 

prophylaxis medication. Vaccination recommendations 

when working in different locations worldwide are available 

to all employees. 

Onshore Operations 

STOP 

Safety Training 

Observation Program 

In regard to the health and well-being of the Company’s 

workforce in addition to the existing health promotion 

programmes, which have continued, a number of new 

initiatives have been introduced. 

Examples that demonstrate this commitment to provide 

high levels of health support include the following: 

Stress Management 

Appointment in Monaco of a workplace psychologist to 

assist employees suffering stress-related problems. 

Heat Stress 

In the summer of 2010 the Company supported the 

Management in the United Arab Emirates construction 

yards to decrease the working time of employees to 

reduce the effects of heat stress. 


Cool rooms were erected to allow shade for the workforce 

including the provision of cool water to assist in 

combating the effects of heat. 

Safety Management 

General 

The Company continues to support and invest in a 

number of developments to enhance the safety culture 

both onshore and offshore, with the aim to improve 

the Health, Safety, Security performance, and enhance 

Environmental protection. 

The Company HSSE Charter defines the foundation for 

promoting a safe place of work, these are: 

• competency at all levels; 

• effective communications; 

• commitment from management; 

• commitment from the work force; 

• a proactive approach to the work taking place. 

The Company has built in 2010 on the success of 

current safety initiatives with improvements and 

developments of the following programmes which are 

explained in more detail in this section: 

• SBM Offshore’s 12 Life-Saving Rules; 

• Permit-to-Work (Carros); 

• Total Application of Safety Knowledge (TASK); 

• Safety Training Observation Program (STOP). 

In 2010 a number of Group HSE seminars were held 

in Monaco to exchange good practices and issues 

relevant to the Health and Safety of the Company’s 

employees. 

In the Monaco-based execution centre other developments 

included a new Safety Manual, Office handbook, 

waste management and also a video relating to safety. 

ISO 14001 certification for 

Dynamic Installer 

The Company achieved ISO14001 certification for 

the Company’s owned installation vessel ‘Dynamic 

Installer’ on the 15th December 2010, with the 



management office achieving ISO 14001 certification 

on the 30th December 2010. 


Offshore Production recorded an increase in the Total 

Recordable Incident Frequency Rate (TRIFR) of 0.87 

in 2010 compared to 0.59 in 2009 and a Lost Time 

Incident Frequency Rate (LTIFR) of 0.10 in 2010 compared 

to 0.03 in 2009. 

The Offshore fleet operations recorded more incidents 

than last year. This increase is due to improved reporting 

as well as a relatively high level of incidents on the 

FPSO P-57 during the initial production start–up period, 

due to the learning curve effect. The Company expects 

this statistic to improve in the future. 


LTIFR 

TRIFR 

1.0 

0.9 

0.8 

0.7 

0.6 

0.5 

0.4 

0.3 

0.2 

0.1 

0.0 

0.03 

0.59 


0.10 


0.87 

The calculation methods for LTIFR and TRIFR are 

explained in the notes on page 113. 

A good indicator of safety performance is the elapsed 

operating time without an LTI. In 2010 certificates were 

awarded to the fleet for significant LTI free periods, one 

vessel, the Yetagun in Myanmar reaching 10 years LTI 

free during 2010. 

In pursuit of continual improvement, SBM-PC has 

attained compliance recognition by ABS, on a voluntary 

basis in Brazil for Occupational Health and Safety 

Assessment Series (OHSAS) 18001. The successful 

implementation in the Brazilian Shore Base and on 

board the FPSOs managed from this location will be 

followed by a program to complete compliance to this 

standard in Angola, and selected areas in the Rest of 

the World Fleet during 2011. 

Compliance to the mandatory International Safety 

Management (ISM) standard and the International Ship 

and Port Facility Security (ISPS) Code continues to be 

the cornerstone for effective fleet management. 

Being prepared for any offshore emergency continues 

to be a priority for the Company. In addition to the 

extensive documented procedures required to meet 

ISM certification, the Company’s marine units undertake 

regular emergency exercises at four levels: 

(i) marine unit level; 

(ii) marine unit including shore base; 

(iii) marine unit including shore base and Monaco 

Emergency Control Centre; 

(iv) exercises initiated by other authorities, 

including clients. 

The HSSE support for fleet operations was consolidated 

in 2010 where local HSSE positions were filled 

by an HSSE Manager and HSSE Engineers in the three 

main operating locations, Angola, Brazil and the Rest 

of World. 


Safety remains a priority across all four project execution 

centres and shore bases world wide. The following 

new Initiatives have been taken to further ensure a safe 

and healthy working environment, see below: 

Permit-to-Work (Carros) 

Safety is a high priority in the Company’s Test 

Laboratory based in Carros (France) where key activities 

take place such as (1) prototype validation carried 

out on seals and (2) operating pressure testing for 

Swivels.

Continual improvements to the Group Management 

System (GMS) have now included the development of 

a Permit-to-Work system to cover activities which are 

considered high risk or non-routine. 

Development of the Permit-to-Work system is now 

complete in Carros and the Company has introduced 

this into the Laboratory during the latter part of 2010. 

To assist the Company in introducing this system, a 

new training programme has been developed and was 

implemented in December 2010. This training involved 

class based theory sessions covering the role and 

function of the permit-to-work system and the main 

principles. 

A practical session in the Laboratory took place to 

allow the workforce to become familiar in the use and 

application of the PTW system. 

Safety Training Observation 

Program (STOP) 

During 2010, the Company enhanced safety training by 

implementing STOP in the following construction yards: 

GPC in Abu Dhabi and Keppel in Singapore. 

The SBM-PC fleet continue to apply STOP within the 

offshore fleet operations. 

It has been introduced to over 200 personal on-site 

including contractors and sub-contractors in order to 

support SBM Offshore’s commitment to reduce incidents 

and injuries. 

STOP stands for the DuPont Safety Training 

Observation Program. The goal is to train managers, 

supervisors, team leaders and the work force to eliminate 

incidents and injuries by addressing the safe and 

unsafe behaviors of people in the workplace. The key 

to doing this is to modify behavior by observing people 

as they work and talking with them to encourage safe 

work practices and eliminate at-risk behaviors. 

A person using the STOP system will complete a STOP 

Observation Card following the observation of an activity 

that is taking place, these observations may be 

negative, i.e. activities that need some improvement, or 


positive, where the observations illustrate good compliance 

with a procedure, safe working etc. The findings 

of the cards are discussed with the persons who have 

been observed. A data base of STOP findings is created 

and then analysed for any negative trends, or 

common negative occurrences, so that the appropriate 

remedial corrective actions can be put in place to correct 

the situation. 

A review of the program has been carried out during 

2010 with possible improvements suggested by the 

workforce being developed for use in the coming year. 

The improvements will include up-dating the observation 

cards to be more user friendly and improvements 

in the delivery of the training, based on course 

feedback. 

Total Application of Safety 

Knowledge (TASK) 

Another Company safety initiative (TASK) continues to 

demonstrate the commitment towards improvements in 

safety at all locations. 

The TASK safety initiative is applied on a project in the 

Conversion Yard and through to start up of production 

operations offshore and then continues during the 

operating phase. 

Over the past year a number of TASK themes have 

been suggested by the workforce to run for a given 

period of time. These themes typically cover a number 

of safety subjects, i.e. working at height, Permit to 

Work, Risk Assessment methods, effective Tool Box 

Talk sessions etc. 

The TASK safety initiative is driven by a TASK Team led 

by a senior Company Supervisor (TASK team Leader), 

who will be assisted by persons competent in the particular 

phase of a FPSO’s evolution, i.e. conversion, sail 

away, installation, start up and operations 

The Company supports this initiative providing materials 

and advice in delivery of these themes. 

During the year a Training Specialist has been 



appointed by the Company to continue supporting 

these projects related safety initiatives, as well as other 

developments in competence based training. 

Safety records for the construction yards are provided 

to the Company by the yards as part of the reporting 

requirements for construction activities. 

The Company believes the recognition of good safety 

performance is an essential part of the continuation of 

an effective Management System. There were no fatalities 

resulting from a work-related incident or illness on 

Company projects at any sub-contractor fabrication 

yards in 2010. In 2010, 15 certificates were issued by 

the Company in recognition of significant periods of 

time worked in the construction yards without an LTI. 

The Company awards certificates based upon millions 

of LTI free man hours. Certificates were awarded 

to the yards ranging from one to eight million LTI free 

man hours, demonstrating the high safety performance 

achieved. 

Onshore Operations in the offices recorded a TRIFR of 

0.18 in 2010 compared to 0.03 in 2009 and 0.06 LTIFR 

in 2010 compared to 0.00 in 2009. This is mainly due 

to the more robust incident reporting system introduced 

during 2010 using the Single Incident Reporting 

System (SIRS) centralised data base and also including 

the office incidents. 

Onshore construction yards activities recorded a TRIFR 

of 0.32 in 2010 compared to 0.22 in 2009 and an 

LTIFR of 0.07 in 2010 compared to 0.04 in 2009. Total 

Recordable Incidents (TRI) has increased in 2010 compared 

to 2009. 

The increase can clearly be attributed to a more 

robust reporting process as mentioned above. A 

higher presence of the Company’s safety personnel at 

construction yards has resulted in an increase in the 

reporting incidents onshore. Even though this is initially 

a negative trend it does allow the Company to focus on 

the problem areas and improve results and reduce the 

amount of people being hurt. 

The calculation methods for LTIFR and TRIFR are 

explained in the notes on page 113. 


15 

safety Awards for Yards 


LTIFR 

TRIFR 

0.20 

0.18 

0.16 

0.14 

0.12 

0.10 

0.08 

0.06 

0.04 

0.02 

0.00 

0.00 

Subcontractors 

LTIFR 

TRIFR 

0.35 

0.30 

0.25 

0.20 

0.15 

0.10 

0.05 

0.00 

0.04 

0.03 

0.06 


0.22 

1 to 8 

million LTI free 

man hours for yards 

0.07 


0.18 

0.32

Security 

Management 

General 

Security of the Company’s personnel in the operations 

and countries in which it operates remains a key subject 

and is given the full attention of management and 

supervisors alike. 

The Company’s Security Policy highlights the 

Company’s priority to assure the protection of its 

personnel wherever they may be in the world. The 

Company’s Corporate Head of HSSE, who reports to 

the CEO, is directly responsible for the effective execution 

of this Policy. 

World wide security issues for onshore and offshore 

locations are monitored by the Group Security Manager 

who is based in Lagos, Nigeria. He issues frequent 

reports covering security levels and standards around 

the world to the Company’s managers both onshore 

and offshore. 


Within the lease fleet, the ISPS (International Ship & 

Port Facility Security Code) is used as the basis of the 

system and procedures that will safe guard personnel 

onboard, and for the overall protection of the Company 

facilities. Security drills, exercises and audits have been 

carried out during 2010 to ensure that the security procedures 

in the event of a security incident offshore are 

well practiced, comprehensive and fit for purpose. 

For the operating fleet CSO – Company Security 

Officers- are designated covering the three main operating 

areas, Angola, Brazil and Rest of the World. 


The Company operates in several countries which are 

classified as potential high risk with respect to personnel 

security. The Company’s Group Security Manager 

makes regular visits to the Monaco offices to ensure 


that security briefings are provided where necessary, 

that the security files are updated, and to attend security 

risk assessment sessions where required. He will 

hold meetings with management on request where 

any security related questions have arisen. He has 

also visited SBM Atlantia during 2010 prior to carrying 

out a security audit in Mexico for a potential contract. 

Mid 2010, the Group Security Manager also visited 

the Brazilian construction yards as part of an external 

security audit. 

Journey management in all of the locations in which 

the Company operates has continued to receive a high 

priority throughout 2010. 

Discussions were held with risk consultancy companies 

during 2010 with the objective of agreeing a contract 

with SBM Offshore for Journey Management support. 

A contract has been signed with ISOS/Control Risks 

namely “Travel Security Services” subsequently. 

Such support covers the monitoring of Group personnel 

travel security and whereabouts when on Company 

business, evacuation co-ordination and the procedures 

that would come into force should a person have to be 

hospitalized locally, including medivac support. 

Environmental 

Management 

General 

The activities carried out by the Company on its own 

behalf and that of our clients continue to be conducted 

in the most environmentally sustainable manner to 

minimize any damage to the local ecosystems. 


Minimise 

any damage 

to the local 

ecosystems 

The Company is aware of the potential environmental 

impacts associated with the handling of hydrocarbons 

offshore and is fully committed to safe operations and 

the protection of the environment. Within the broad 

scope of environmental aspects related to its operations, 

special attention is paid to the avoidance of oil 



leakages, to the prevention of unnecessary flaring or 

emissions to water and air and to minimizing the use of 

energy and waste outputs. 

The Company Policies, Procedures and Codes 

of Practice tailored for each marine unit provides 

detailed requirements for the safe and effective 

control of work, i.e.: 

• to comply with local environmental laws; 

• to comply with MARPOL, the international marine 

environmental convention to minimise pollution of 

the seas; 

• to ensure high standard Environmental Management 

Systems (EMS), meet the requirements of ISO 

14001; 

• to control and reduce air and water pollution emissions 

and to minimise waste generation; 

• to comply with the Company procedures for the safe 

handling, storage, and disposal of all type of waste 

including hazardous waste; 

• to improve and increase environmental awareness 

through training and instruction. 

The EMS for the fleet of marine units complies with the 

international ISO 14001 requirements. EMS and stringent 

codes of practices are in place onboard each of the 

marine units. The Company is committed to identifying 

potential emission source points, implementing practical 

preventative measures and tracking emissions which 

have a direct impact on the environment. 

The Company has integrated new environmental 

reporting criteria within SIRS (the Company’s in house 

reporting application Single Incident Reporting System) 

in order to provide more accurate and detailed environmental 

reports on any released effluents. Full year data 

will be available in 2011. 

The Company complies with relevant international oil 

industry standards, which is illustrated by the plan to 

have the rest of the fleet covering Rest of the World 

and Angola with the ISO 14001 standard by the end of 

2011 following on from the certification obtained for the 

Brazilian fleet in 2008 and 2009. 


SBM Offshore’s target to be compliant with ISO 14001 

standard in 2010 for FPSOs Sanha, Mondo and Saxi 

Batuque was not achieved due to delays in the implementation 

as well as ABS availability issues. Audits 

are planned for March 2011. 

In 2011 the objective is to implement the ISO 14001 

Standard in the SBM-PC Shore Bases so as to obtain 

certification. SBM-PC Management System will be 

updated accordingly to meet onshore environmental 

requirements. 

The primary emission sources for the offshore fleet are 

the Greenhouse Gases (GHG) from combustion and 

flaring, which occur during operations. Flaring represents 

approximately 50% of these emissions. When 

producing oil and natural gas, carbon dioxide (CO2) 

and methane (CH4) are usually the most significant 

components of produced GHG. Emissions associated 

with the production of energy on the unit, such as 

steam or electricity required by the unit’s facility has 

been included in the Company’s emissions records. 

Main sources of the combustion GHG are emissions 

from gas usage for boilers and turbines and diesel 

usage for engines. 

Environmental Loss Statistics 

The Company measures all unintentional and intentional 

emissions to land, sea, and air on a regular 

basis. In 2010, the Offshore Production fleet experienced 

20 recordable environmental events, of which 

15 were contained within the marine unit spaces, 

without any release to the sea, however there were 

5 minor releases to the sea. 

The volumes reported are far below the required 

reporting threshold specified in the International 

IPIECA / API Standard for Oil and Gas Industry 

Guidance on Voluntary Sustainability Reporting 

(IPIECA core indicator ENV-1: Hydrocarbon Spills 

to the Environment: Number and volume of hydrocarbon 

liquid spills greater than 1 barrel- 159 

litres- that reach the environment).

Top: 

SBM Offshore workers on the 

Yme MOPUstor 

Bottom: 

Muster station on the 

Yme MOPUstor 




Emissions to Air 

The emissions to air as reported by the Company have 

increased by 14% due to first full year of production for 

the FPSO Espirito Santo and less planned shut-downs 

for Angolan FPSOs than occurred in 2009 for flare 

repairs. 

Offshore Production Emissions to Air 


2.07 

million tonnes of CO2 emissions 

2010 2009 

CO2 from other sources in metric tonnes 

BRAZIL 

Increase in CO2 emissions due to the first full year of production for FPSO 

11 Units 12 Units 

Change 

+/- % 

Espirito Santo * 

ASIA 

Emissions are for Yetagun only, which had in 2010 

857,694 752,314 14% 

less planned shutdowns than in 2009 

CASPIAN 

5,017 4,393 14% 

MOPU Turkmenistan contract finished 31st July 2009 

WEST AFRICA 

- 1,552 

Less planned shutdowns than in 2009 1,213,519 1,065,392 14% 

Total 2,076,230 1,823,651 14% 

* level reported in 2009 for Espirito Santo was overestimated and corrected

6 

Telepresence centres to 

decrease number of travels 


The Company has implemented a series of integrated 

measures and initiatives aimed to reduce the environmental 

footprint of its Onshore Activities as described 

below. 

Construction Sites 

Increasing Environmental performance during fabrication 

at all constructions sites is ensured by a careful 

choice of construction yards holding Environmental 

Management System (EMS) certifications (ISO 14001). 

This is complemented by constant supervision and 

monitoring of the implementation of regulatory compliance 

requirements and contractual HSSE standards 

during the entire project execution phase. 

Internal Environmental Audits are carried out when 

necessary to support the HSSE Management on site. 

For example, in October 2010 an extensive environmental 

audit was carried out on a construction yard 

in Norway where the Company is currently finalizing a 

major project. 

Offices 

Waste segregation programs have been established 

in the offices across the Company’s project execution 

centres. Since December 2009 in the Monaco offices, 

in line with the local authority (Societe Monegasque 

d’Assainissement) and with the support of the Monaco 

Government initiative, the Company has implemented 

waste segregation programs. 

The Schiedam office has a waste management program, 

which separates waste into different streams, 

paper waste and cardboard waste, residual waste, 

small chemical waste. All IT residual waste is disposed 

of in a specialized manner. 

The Houston office provides an IT computer recycling 

program that is extended to employees private 

computers. 

The Kuala Lumpur office sets specific objectives for its 

office recycling and efficiency, including reduction targets 

for energy and paper usage for the upcoming years. 


Energy efficiency measures and programs to enhance 

the employees’ environmental protection awareness, 

including a Company environmental comprehensive 

reporting system are being taken into the account for 

the future. 

Travel 

SBM Offshore continues to promote car sharing for 

the Monaco employees commuting to the office by 

supporting the existing car sharing scheme. The 

Company reimburses 50 % of the car parking fees 

to all SBM Offshore employees sharing their vehicles 

with other Monaco workers. This initiative contributes 

to reducing the global CO2 emissions due to work 

related travel by car. 

SBM Offshore has introduced a TelePresence network 

in the Company’s offices in 2009 to decrease amount 

of travel with the added benefit of reducing carbon 

emissions linked to its onshore activities. TelePresence 

centres are in Schiedam, Houston, Monaco and Kuala 

Lumpur. 

Success of this initiative has been impressive and so 

two new TelePresence centres have been opened in 

2010 in the Company’s offices in Macae (Brazil) and 

Luanda (Angola). In 2011, three new centres will open 

in Monaco, Singapore and Rio de Janeiro. 


Human Resources 


SBM Offshore employees 

at the yard in Norway




Human 

Resources 

58 People Reviews at SBM Offshore and Message of Corporate HR Director 


64 Corporate activities 

65 Global workforce 

67 Employment and remuneration 

70 Performance and Career development 


3

Employment and 

remuneration 

Page 

67 

Corporate activities 

Page 

64 

Performance and 

Career development 

Page 

70 

Global workforce 

Page 

65 

People Reviews at SBM 

Offshore and Message of 

Corporate HR Director 

Page 

58 




People Reviews 

Left and Right: 


employees on the 

Yme MOPUstor 

in Norway 


A case Study and 

message of Corporate 


Director 

Future-focused, strategic career planning 

allows SBM Offshore to identify in-house 

talent who demonstrates the potential 

to take on greater leadership roles. The 

Company actively anticipates its own 

organisational needs to ensure continued 

growth and success. 


In the first half of 2010, seven People 

Reviews were conducted across the 

Company in Monaco, Houston, Kuala 

Lumpur and Marly (in Schiedam, similar 

sessions have been held for several 

years). During this first cycle, a total of 711 

employees were reviewed. The second 

cycle is on-going, and the People Reviews 

process will continue on an annual basis. 

This most recent HR initiative includes 

reviews at the top Executive level and in 

all of the Company’s offices worldwide, 

thereby laying the groundwork for the 

The goal is to identify 

personnel who have high 

potential for growth in the 

Company 

A new pivotal process called People 

Reviews was commenced in 2010 in the 

Company’s worldwide Talent Management 

system, which was introduced by the 

Company in 2009. These day-long meetings 

which bring together a group of SBM 

Executives, Senior Line Managers and 

HR Managers encourage in-depth discussions 

on strengths, developmental needs 

and possible future career paths of SBM 

Offshore employees worldwide. 

The goal of People Reviews is to identify 

personnel who have high potential 

for growth in the Company for today and 

tomorrow. Adapted training, internal and 

international mobility, as well as development 

mapping skills are proposed to the 

individuals reviewed. 

career development of SBM Offshore 

employees to support the Company’s 

growth plans. 




Didier Beynet, 

Corporate Human 

Resources Director 

Didier Beynet’s Message 

Looking towards the future’ is a guiding 

principle of the Company’s Corporate 

Human Resources Department. 

Indeed, the Company has always paid 

close attention to its employees’ development 

through training programs for office 

staff, on-the-job training for offshore crew 

and technical education (in training schools) 

for construction yard personnel. 

Two years ago, SBM Offshore launched 

a corporate Talent Management and 

Succession Planning Project to face two 

organisational challenges: generational 

transitions in management and rapid 

growth of the Company. 

The following year, the People Reviews 

process was successfully applied to top 

management with the objective of targeting 

the next generation of managers. This initiative 

has been progressively implemented 

throughout the Company. 

In an organisation which depends on the 

innovation of its technology, the purposeful 

advancement of personnel necessitates a 

long-term HR perspective; this is the very 

cornerstone of the Company’s success.



View looking down from inside the 

Yme MOPUstor flare stack


Introduction 

Business sustainability includes constructive stewardship 

of all our resources, including our people, which 

are the Company’s greatest asset. 

This section provides a look into the Company’s specific 

HR practices and shows how the Company’s 

people evolve in their careers. The Company works 

hard to integrate social balance and equal opportunities 

and being an international organisation, the 

preservation of different cultures where the Company 

operates, is crucial. The Company also believes that 

social responsibility means investing in the well-being 

of the staff, maintaining a competitive compensation 

and benefits package and providing the tools necessary 

for success. This is accomplished with annual 

performance reviews, personalised training programs, 

and global talent management. 

The intention of Corporate Human Resources (HR), 

as described by SBM Offshore’s Group Management 

System, is “to develop and maintain an organisation 

in line with the Corporate Strategy and ensure that the 

Company’s Operating Units have the right people in the 

right position at the right time”. As such, the Company 

focuses on generating an attitude of enthusiasm and 

pride throughout the Company and on providing a most 

favourable environment for professional and personal 

development with high rewards. 

Employment is offered on competitive terms in a safe 

and healthy working environment with a personnel 

policy in which the Company makes the best possible 

use of each person’s skills in a mutually beneficial manner. 

The Company also provides appropriate training to 


Human 

capital is the 

Company’s 

greatest asset 

all employees and encourages personal development. 

The Company equally pursues an employment policy 

following the principles of equal opportunity, thereby 

preventing any discrimination on the basis of sex, age, 

race, religion, political or trade union affiliations, nationality 

or disability. 

For reporting purposes, the global workforce is divided 

into two segments: Onshore Operations and Offshore 

Production. The workforce is hired under permanent 

or fixed-term contracts and can be divided by segment, 

employment type, region, gender, or age. The 

Company also identifies White Collar and Blue Collar 

employees.

Equal 

opportunities 

SBM Offshore’s Code of Conduct 

Towards Employees 

Employees dedicate a considerable 

portion of their time, knowledge, 

and expertise to SBM Offshore. 

Accordingly, the Company has the 

following responsibilities: 

• pursuing a personnel policy in 

which the best possible use is 

made of each person’s skills 

and personal development is 

encouraged; 

• offering good and competitive 

terms of employment and safe 

and healthy working conditions; 

• pursuing an employment policy 

following the principles of equal 

opportunity, preventing any discrimination 

on the basis of sex, 

age, race, religion, political or 

trade union affiliations, nationality 

or disability; 

• minimizing risks for health and 

safety incidents by: 

– implementing internationally 

recognized industry standards 

such as OHSAS 18001; 

– providing appropriate training 

to all relevant personnel; 

– developing and using engineering 

and technology 

know-how to improve health 

and safety at the facilities we 

design, build or operate; 

– cooperating with clients, 

project partners and suppliers 

to improve health and safety 

performances; 

– measuring health and safety 

performance and communicating 

our progress on a 

regular basis. 

• preventing undesirable conduct 

such as intimidation, harassment 

and abuse of authority (further 

details of SBM Offshore’s 

Policy Against Harassment are 

available through the Human 

Resources department); 

• communicating in an honest and 

clear manner; 

• being open to suggestion, ideas 

and criticism; 

• avoiding conflicts of interest 

between private activities and 

the employee’s role in the 

Company’s business, particularly 

in their relations with clients, 

competitors and suppliers; 

• avoiding disclosure of inside 

information; 

• not asking anyone to break 

the law; 

• preventing, as far as possible, 

problems of conscience in the 

performance of their work and 

striving to find a proper solution 

to them where these still arise; 

• establishing the means for 

employees to report suspected 

irregularities; 

• applying anti-drug, anti-smoking 

and anti-alcohol abuse policies 

(further details of SBM Offshore’s 

policy against Drug and Alcohol 

Use at the Workplace and its 

No Smoking Policy are available 

through the Human Resources 

department); 

• striving for a good relationship 

with those who represent SBM 

Offshore employees; 


• providing a clear framework 

of operating procedures to 

promote efficiency and to 

prevent mistakes; 

• preserving employee privacy 

and confidentiality of employee 

records; 

• creating a climate in which 

employees are encouraged to 

adhere to this code; 

• adhering to applicable national 

and international human rights 

standards, including the United 

Nations Declaration of Human 

Rights and the OECD Guidelines 

for Multinational Enterprises; 

• adhering to the fundamental 

ILO conventions regarding 

child labour, forced labour, 

non-discrimination, freedom of 

association and collective 

bargaining, including among 

others: 

– preventing the employment of 

children under the minimum 

age of completing compulsory 

schooling and, in any 

case, the minimum age for 

employment shall not be less 

than 15 years old; 

– preventing the use of any 

form of forced labour; 

– respecting freedom of 

association and collective 

bargaining. 



Corporate Activities 

Further to the Company reorganisation described in 

the 2009 Annual Report, the SBM Offshore Executive 

Management Committee has been created. This 

Executive Committee is composed of all Board of 

Management members, each Operating Unit President, 

as well as the Corporate HR Director and General 

Counsel. 

Under the aegis of the Corporate HR Director, the 

HR Managers of each Operating Unit meet regularly 

throughout the year to share their best practices, capitalise 

on experiences, consolidate HR policy alignment, 

and follow-up on Corporate HR projects. 

The Lease Fleet HR activities are organised separately 

under the SBM-PC Operating Unit and specifically 

provide the adequate crew, their logistics, as well as 

suitable training, for the offshore activities. All data concerning 

these activities are reported under Worldwide 

Offshore Fleet. 


Focus on Talent Management 

& Succession Planning 

A series of programmes have been implemented with the 

Talent Management and Succession Planning process, 

which lay a solid foundation for the employees and the 

Company. In 2010, an initiative called People Reviews 

was introduced (please see more detailed information in 

article page 58). In addition to the long-established annual 

Performance Appraisal review, these recent programmes 

have the purpose of supporting business growth and 

securing key roles and competencies in line with the SBM 

Offshore Corporate Strategy. 

As a subsequent step to Talent Management, the 

Company has decided to implement a customised 

Leadership and Management Development programme. 

This programme intends to create and maintain a unique 

SBM Offshore leadership and management culture 

throughout the Company. The programme will be launched 

in 2011, starting at the highest Executive Level, with the 

intention of successively reaching all management levels. 

FPSO Topsides

4,114 

Permanent employees 

Global Workforce 

Information 

Headcount 

The total headcount is based on all Company employees 

registered on 31 December 2010 for Onshore 

Operations and Offshore Production. Headcount, 

therefore, equals 5,758 employees, an increase of 

nearly 7% compared to 2009. 

Total Employees over past 5 years with breakdown 

between contractors and permanent employees 

Total number of permanent employees 

Total number of contract employees 

7000 

6000 

5000 

4000 

3000 

2000 

1000 

0 

1366 

685 

2479 2458 

1493 

2909 

1534 

3617 

1929 

3460 

2005 2006 2007 2008 2009 2010 

Total Employee Headcount by Location 

A Schiedam, Netherlands 

B Houston, USA 

C Kuala Lumpur, Malaysia 

D Monaco 

E Marly, Switzerland 

F Worldwide Offshore Fleet 

G Construction Sites 

H Shorebases 

Total: 5,758 

C 

381 

E 

24 

A 

621 

D 

1,170 

B 

612 

F 

1,618 

1644 

4114 

G 

1,121 

H 

211 


The Company’s workforce is distributed geographically 

over the locations of each of the seven Operating 

Units, construction sites, shore bases and onboard the 

offshore fleet. 

The Company's Marketing, Sales, Treasury & Corporate 

Functions (MSTC Functions) are spread over the 

Execution Centres, with a total of 124 employees at the 

end of the year 2010. In 2009, the Marketing, Sales, 

Treasury & Corporate functions were indicated under 

each location, which explains the differences that 

can be found between 2009 figures below and those 

reported in SBM Offshore 2009 CSR report. 

The headcount in Monaco comprises the aggregate of 

the following three Operating Units: SBM-MC (Turnkey 

Systems), SBM-PC (Lease and Operate) and SBM- 

Services (Turnkey Services). 

The workforce in SBM-MC remained similar to 2009, 

with a total of 1,924 employees. This steady rate is 

confirmed by a similar level of activity on the construction 

sites, as well as in the Monaco offices. 

The headcount in SBM-PC rose by 10% to 1,850 

employees in 2010 compared with 1,675 employees in 

2009. The start-up and pre-operating phases of several 

production units explain this trend that is mainly 

related to the shore bases and offshore fleet personnel 

(belonging to a large extent to the FPSO P-57) of this 

Operating Unit. 

This upward curve was also seen by SBM-Services’ 

workforce, which increased by 7% to 266 employees in 

2010 compared with 249 employees in 2009, due to the 

increased volume of projects in this Operating Unit. 

The Schiedam execution centre’s workforce showed 

the highest increase with +18% bringing last year’s 

figure of 523 employees up to 616. This was due to the 

major projects in progress, including FPSO Cidade de 

Paraty, while SBM-MSC’s headcount went up by 8% 

due to increased workload. 

In Houston, SBM-Atlantia’s staff numbers grew by 

4.5% to 601 employees in 2010 compared with 575 

employees in 2009, thereby reflecting the upturn in 



activity created by several on-going major projects, 

namely the three drilling rigs and the relocation of 

FPSO Espadarte to the Baleia Azul field. 

In Kuala Lumpur, there was a 10% increase to attain 

a total workforce of 377 in 2010 compared with 344 in 

2009. This increase can be attributed to the execution 

of large projects this year, particularly related to the 

supply of the FPSO Aseng. 

At year end 2010, the headcount for permanent contracts 

totalled 4,114 employees representing 71% 

of the Company workforce and the headcount for 

contract employees totalled 1,644 employees representing 

29% of the workforce. The yearly average ratio 

of contractors to staff was 32%, which was below the 

maximum desired level of 33%. The reduction of the 

ratio compared with the 36% of year end 2009 can 

be explained by the fact that prior years percentage 

was only a snapshot of the situation at 31December 

2009, whereas the yearly average would have been a 

few points lower. Also, recruitment efforts have been 

directed at increasing the permanent proportion of 

employees in order to maintain efficiency and keep 

core knowledge and expertise in house. 

Workforce diversity- Permanent Staff 

900 

800 

700 

600 

500 

400 

300 

200 

100 

0 

349 

American 

484 

528 

Angolan 

Brazilian 

333 

British 

51 

Chinese 

495 

Dutch 

48 

Filipino 


818 

French 

45 

152 

1,644 

Contract employees 

338 

Malaysian 

Italian 

Indian 

48 

Polish 

157 

South African 

268 

Others 

Workforce diversity 

7% 

increase in Company employees 

compared to previous year 

Over the decades, with its business spreading over 

6 continents, the Company has embraced the challenges 

offered by different environments and adapted 

to this cultural mosaic. This need for adaption and 

in-country development has generated flexibility and 

diversity at all levels of the Company’s workforce. 

Indeed, the Company has managed to turn this diversity 

into strength, building complementarities and 

synergies amongst its employees. 

The Company’s policy to recruit local-based employees 

whilst at the same time maintaining competency 

requirements through training, has led to the employment 

of more than 55 different nationalities. This is 

demonstrated in the chart, with a high percentage 

of French, Dutch, Brazilian, Angolan, American, 

British and Malaysian nationals, which is a natural 

consequence of our offices, shore bases and units’ 

locations. In 2010, the proportion of Angolan nationals 

has experienced the most significant increase, followed 

by the Malaysian nationals. This is due, on the 

one hand, to the employment of Angolan workers at 

the PAENAL construction yard, and to the nationalisation 

programmes onboard the operating fleet, on the 

other hand. 

Absenteeism and turnover 

The average rate of absenteeism due to normal illness 

remains steady at 2.6% in 2010 (2.5% in 2009). 

Voluntary departures have been the main trigger for 

the Company’s slight increase in turnover rate, which 

has risen from 9% in 2009 to 10% in 2010 and can 

be related to the economic up-turn. Nevertheless, the 

percentage of turnover remains low compared to the 

average rate given for similar industries in Europe and 

the USA. This can be attributed to the Company providing 

a competitive equitable remuneration package, 

good working conditions and overall professional satisfaction 

to its core resource: its employees.

21% 

of women in permanent workforce 

Total manhours over 4 years with breakdown 

between offshore and onshore 

Total million manhours Onshore Operations (excluding contractors) 

Total million manhours Offshore Production 

Absenteeism rate 

2.70% 

2.60% 

2.50% 

2.40% 

2.30% 

2.20% 

2.10% 

4.9 

3.5 

2007 

5.76 

5.32 

2008 

6.57 

5.79 

2009 

6.49 

5.95 


Total permanent employees turnover over past 4 years 

with breakdown between causes and turnover percentage 

15% 

12% 

9% 

6% 

3% 

0 

Percentage of permanent employee turnover 

Turnover due to retirement 

Turnover due to voluntary resignation 

Turnover due to dismissal 

Death (natural causes - non work-related) 

Fatalities (death resulting from a work incident) 

2007 2008 2009 2010 

15% 

management positions held 

by women onshore 

500 

400 

300 

200 

100 

0 

14 

12 

10 

8 

6 

4 

2 

0 

Employment and 

Remuneration 

Equal opportunities 


At SBM Offshore, employment conditions are strictly 

driven by the principle of equal opportunities. The salary 

scales are in line with a competency matrix and 

take into account qualifications and professional experience. 

The Company considers this as an attractive 

element of the recruitment strategy. 

The offshore engineering business has long been 

male-dominated; however, the Company has adopted 

a recruitment strategy to increase the percentage of 

women employees in the onshore segment over the 

past 15 years. This initiative has been successful to a 

certain degree, even though the number of graduates 

coming out of engineering schools and universities are 

still predominantly male, and this limits the gender ratio 

in engineering positions. Moreover, the operating crew 

onboard production units remains very much masculine 

as is the case for all operators in this area of business. 

The total percentage of female/male permanent 

employees from both Onshore Operations and Offshore 

Production was 21% women- 79% men in 2010, which 

is similar to the previous year. 

This being said, the feminine population is indeed 

represented in the Management positions of the SBM 

Offshore Group, with 15% of these positions being held 

by women (onshore). 

The basic salary ratio of 71% has been obtained by 

taking the average basic salary earned by female 

employees and dividing it by the same average earned 

by male employees. This percentage is satisfactory 

taking into account the strong technical bias of a large 

majority of positions in the Company’s field of business 

with associated higher salary which are filled by a high 

percentage of male employees (as opposed to higher 

percentages in the services industry). 



Compensation and Benefits 

The compensation and benefits package offered to the 

Company’s personnel remains one of the major elements 

in employee attraction and retention. 

During the annual cash remuneration review (basic salary 

and bonus) of the individual staff members, the key 

factors of local market, annual inflation and individual 

performance are taken into account. 

Salary benchmarking analysis was performed in 2010 

to verify the competiveness of the Company’s compensation 

package compared with peers in the oil and 

gas industry. The results confirmed that the Company’s 

remuneration package, where the variable and performance-related 

element is high, is well above market 

average, and remains competitive and attractive to 

potential new employees. 

Permanent employees over past 4 years with breakdown 

between part time/ full time and men / women 

Total percentage of women in permanent workforce 

Total number of women working part-time 

Total number of women working full-time 

Total number of men working part-time 

Total number of men working full-time 

22,5% 

22,0% 

21,5% 

21,0% 

20,5% 

20,0% 

2007 2008 2009 2010 


Attractive 

compensation 

package 

5000 

4000 

3000 

2000 

1000 

0 

The Employee Share Ownership Plan, which encourages 

employees to invest in SBM Offshore shares, 

remains an attractive staff benefit, thanks to a significant 

contribution being paid by the Company. 

A Restricted and Performance Share Unit Plan is in 

place and constitutes the Long-Term Incentive Plan for 

senior staff and other high potential staff. 

The Company has an attractive pension benefit system 

for all its employees. As a multi-national company, 

it operates various pension schemes depending on 

the country of activity. The majority are “definedcontribution” 

plans, with a minor portion being 

“defined-benefit” plans. 

Employee Well-being 

Focus on 

Well-being of 

employees 

Conscious of the need to protect its most important 

asset, the Company is continuously focused on the 

well-being of its personnel and provides a pleasant 

work environment. In this respect, several initiatives 

have been implemented during the past few years 

across the Company’s Operating Units, namely: 

• Stress management presentations to managers 

(Monaco, Houston, & Schiedam); 

• Employee care officer consultations available to 

employees (Schiedam & Monaco); 

• Stop smoking campaigns in Monaco; 

• Fitness rooms in Houston and Monaco; 

• Organisation of social events at all locations to 

favour interaction throughout the organisation; 

• Bicycle plan in Schiedam; 

• Life cycle based personnel policy in Schiedam; 

• SBM Nursery: this Monaco-based professionally-run 

nursery and pre-school structure has increased its 

capacity by 10% at mid-year. 

This comes on top of the safe work environment that 

the Company considers as a priority, as described 

under the HSSE section.

SBM Offshore employees on the 

‘Delba III’ Drilling Rig in Abu Dhabi 




95% 

performance appraisals 

completed in 2010 

Performance and 

career development 

Employees’ performance review 

To ensure business continuity, personnel satisfaction 

and efficiency are key factors on which the Company’s 

Management maintains a keen focus. To help monitor 

those crucial indicators, the annual employee performance 

appraisal exercise (permanent employees) has 

proven to be a valuable tool. It is a long-established 

process at SBM Offshore and has been modernised 

over the years in order to take into consideration the 

Company’s strategic objectives and the employee’s 

career expectations. 

All performance appraisals under Onshore Operations 

are made in accordance with the Company’s 

Competency System whereby employees are 

appraised against specific competencies related to 

their position, as well as the fulfilment of set objectives. 

This year, emphasis has been placed on the purposeful 

setting of individual career development objectives, in 

line with the overall needs of the Company. 

Since its successful introduction in 2009, the intranet- 

based electronic performance appraisal system was 

extended to all Operating Units in 2010. The tool has 

proven to be highly beneficial to the process; it enables 

the punctual tracking of the completion progress, and 

provides statistics for reporting, training and development 

purposes. 

The annual performance reviews are one of the sources 

of valuable input information for the Talent Management 

and Succession Planning processes. 

Offshore Production appraisals are performed for all 

permanent and contract employees working onboard 

the production units. All employees are appraised in 

direct compliance with the offshore work activities and 

the assessments cover the fields of safety, teamwork 

and professional competence. This exercise is done via 

SBM Offshore HR crew management system. 


33 

Training hours 

per employee in 2010 

The performance appraisal completion rate remained 

high this year at 95%, confirming overall awareness of 

the great importance of this exercise. 

Training and development 

Development of competencies of employees through 

general and specific programmes is crucial to the 

Company’s business continuity and changing environment. 

It is also a necessity for employees to be able to 

picture themselves as part of the Company’s future. 

The Company provides a range of training and development 

opportunities to enhance the skills of its 

employees worldwide. The total training days recorded 

for 2010 was 18,600 days, equal to 148,987 hours, and 

averages 33 hours of courses per person, representing 

a 31% increase compared with 2009. This upward 

trend in training hours is visible for both offshore and 

onshore. 

White Collar Staff 

Training is based on the Company’s objectives. The 

need for training is discussed during the annual 

Performance Appraisal session and a training plan is 

developed for execution during the following year. The 

actual results are closely analysed to identify areas for 

improvement. 

Training covers both internal training, which is performed 

by Company staff or consultants, and external 

training, which is performed outside the Company’s 

work centres by specialist training providers. 

Training during 2010 was mainly technical-related, 

followed by managerial- leadership and behavioural 

training. Attendance at conferences and seminars was 

high on the agenda, indicating the desire to remain 

in touch with new developments in specific fields of 

study. Safety courses, language lessons and computer 

software trainings were well attended. 

Internal training for management continues with the 

now long-established Gusto Management School. Its 

programme focuses on specific project management 

courses with a target group of staff who are envisaged

148,987 

Training hours 

in 2010 

to have lead, supervisory or managerial positions in 

the future. For the 2010 session, 24 participants from 

the Schiedam and Monaco offices attended the programme, 

totalling 2,240 hours of customised courses. 

As a complementary approach to training and development, 

student internship programmes continue to 

function well and enable judiciously-selected graduates 

to obtain their first work experience in the Company 

and, in many cases, successful employment. 

Performance appraisal offshore 

and onshore over past 4 years 

performance appraisals for permanent employees - Onshore Operations 

performance appraisals for permanent employees - Offshore Operations 

100% - 

- 

90% - 

- 

80% - 

- 

70% - 

- 

60% - 

- 

50% - 

Permanent employees training hours over past 4 years 

with breakdown between white and blue collar Staff 

white collar staff 

blue collar staff 

180,000 

160,000 

140,000 

120,000 

100,000 

80,000 

60,000 

40,000 

20,000 

0 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

685 

2479 

2005 2007 2008 2009 2010 

685 

2479 

2005 2007 2008 2009 2010 


Blue Collar Staff 

Given the significant technical and safety requirements 

of the operations onboard the production units and 

work at construction yards, the Company considers onthe-job 

training and external courses to be of utmost 

importance for all its personnel, whether permanent or 

contractor. 

This principle applies not only to long-standing crew 

and technicians but also to the additional workforce 

available locally, which needs to familiarize itself with 

the specifics of the Company’s activities. To meet 

this need, the Company supports nationalisation 

programmes, namely in Brazil, Angola & Malaysia, 

an initiative which is complemented by the PAENAL 

Construction Yard Training School in Porto Amboim 

(please see local workforce in sustainable initiatives 

article page 80) 


Renewable Energy Systems 


SBM Worker in Abu Dhabi




Sustainable 

Initiatives 

76 Host country Sustainability, 




78 Sustainable Initiatives Introduction 

80 Local workforce 

82 Local investments 

84 Local content 

86 Supply chain 

90 Renewable energy introduction 

91 Renewable Marine energy 

92 Offshore Wind Energy 


4

Supply chain 

Page 

86 

Local content 

Page 

84 

Renewable energy 

introduction 

Page 

90 

Local workforce 

Page 

80 

Local investments 

Page 

82 




Host country 





“Because of its multiple projects executed and/or operated 

in emerging countries, SBM Offshore has always 

been willing to develop the skills of the national workers 

employed to support the Company's projects and 

operations, onshore and offshore. 

This process has started by implementing 'on the job' 

training by the Company skilled personnel, then by 

organising specific technical training in local organisations 

and then by setting up training schools managed 

by SBM Offshore’s staff. Finally, some national employees 

have been sent to foreign technical schools and/or 

to foreign universities. 

After 40 years of this continuous practice, the Company 

now employs more than 2,000 national managers, engineers 

and skilled personnel. The average percentage 

of national employment in SBM Offshore worldwide 

operations is 65%, with peaks up to 95% in specific 

countries. 

One particular example of this successful strategy is 

the PAENAL yard in Angola: SBM Offshore has been 

directed in 2007 by the Angolan Authorities to establish 

in a remote place, Porto Amboim 200 km south 

of Luanda, an FPSO integration yard and to employ 

people from the province of Kwanza Sul. After 3 

months of establishing the first base, a school was 

opened in Porto Amboim and started training fishermen, 

unskilled workers and unemployed people to 

become scaffolders, pipe fitters and welders. One year 

later, the first CALM buoy built in PAENAL was delivered 

to Chevron Angola: the yard then employed 120 

Angolans. Five years later, the PAENAL yard will receive 

the first FPSO to integrate process modules on board, 

modules entirely built in the yard: the yard will then 

employ 600 Angolans. 

In 2010 - this is an example of a win win situation 

between SBM Offshore and its national suppliers – 

the Company has supplied to Petrobras the FPSO P57, 

the first Unit to be contracted with a 65% local content. 


Not only did SBM Offshore use national suppliers, but 

in order to enable the use of certain local equipment, 

the Company modified its design to suit the capabilities 

of these suppliers. Equipment from these suppliers is 

now being used on other FPSOs in Brazil. 

In certain countries where SBM Offshore operates, 

the Company also supports or drives Social projects. 

In Brazil, as an example, we help fund a home for 

homeless children with drug related problems in poor 

areas of Rio and promote to give them education: the 

Company has organised mechanical and electrical 

courses in Rio, given by its own offshore specialists, 

and has organised periods of apprenticeship for the 

best students, with their national suppliers in Macae; 

the next step is to organise apprenticeship periods on 

board the Company's FPSOs in Brazil. 

Also to be mentioned is another similar initiative with 

street children in Luanda (Angola), the support (local 

and from SBM Offshore’s offices) of an orphanage on 

Sakhalin Island, the distribution of drinkable water makers 

in Myanmar and the construction of a complete 

orphanage complex in Lubango (Angola), paid for by 

the Company, built by a national Contractor with the 

works supervised by SBM Offshore's staff. 

Local content is a policy from emerging countries, is an 

opportunity for foreign Contractors and is a worldwide 

success story for SBM Offshore.”


Towards Society / Communities 

Society provides SBM Offshore 

the social and physical infrastructure 

for entrepreneurship. 

Accordingly, we have the following 

responsibilities: 

• not doing business in countries 

subject to international and relevant 

national embargoes and 

respecting the export and import 

control regulations of countries 

where we work and operate; 

• respecting human rights as formulated 

in the Universal Declaration 

of Human Rights; 

• not undertaking commercial activities 

in countries where it is made 

impossible to adhere to this code; 

• not granting a cash gift or noncash 

gift for the purpose of 

obtaining a contract or any 

improper business advantage; 

• In general, the giving of gifts is 

only acceptable if such practice 

is not for an improper purpose, if 

such practice is accepted locally 

and in the industry as a token of 

appreciation, and if such practice 

is in compliance with applicable 

laws; 

• not offering or giving money or 

anything of value, whether directly 

or indirectly, to any public official, 

political party, or candidate to 

obtain or retain business or to 

direct business to any person; 

• not engaging agents and commercial 

representatives in violation 

of SBM Offshore’s guidelines for 

the use of agents (further details 

are contained in Annex I hereto); 

• not entering into joint venture or 

similar relationships that would 

violate SBM Offshore’s guidelines 

for commercial relationships with 

foreign officials (further details are 

contained in Annex I hereto); 

• not engaging in insider trading 

or other acts prohibited by SBM 

Offshore’s Regulations Relating to 

Insider Trading (for further details 

Code of Conduct); 

• preventing security personnel 

from infringing on the liberty and 

security of others; 

• taking all reasonable measures 

to avoid involvement or complicity 

in human rights violations in its 

relationships and interactions with 

state security forces; 

• supporting initiatives that, within 

the framework of our possibilities 

and aims, contribute to the 

improvement of social welfare; 

• striving for a constructive relationship 

with non-governmental 

organizations; 

• not accepting any proceeds of 

crime or terrorism and taking 

appropriate measures to prevent 

money-laundering including the 

reporting of suspicious transactions 

(e.g. high value cash 

transactions, payments between 

unknown entities or through 

excessive intermediaries, payments 

made by/ received by 


suspicious entities or involving 

high risk counties); 

• striving for fair competition 

by respecting tangible and 

intellectual property rights of 

competitors and respecting 

the relevant competition laws 

(including the obligation not to 

engage in bid rigging, price fixing, 

or other similar arrangements 

designed to improperly undermine 

competition); 

• assessing the social, environmental 

and economical impact of our 

intended operations prior to the 

commencement of our operational 

activities, including the 

impact on local communities and 

human rights; 

• (in cooperation with or on behalf 

of our clients) assessing local 

needs for social, economical and 

environmental improvements in 

all areas where we operate, and 

providing support to local communities 

in order to realize these 

potential improvements, using our 

skills and capabilities, within the 

legal and cultural constraints of 

these local communities. 


Introduction 

Forging a path for any business in the twenty-first 

century requires a global perspective, social consciousness, 

a collaborative attitude and a focus on 

technological innovation. SBM Offshore pursues 

all of these goals, and recognises the key role the 

Company’s stakeholders play in helping to realise 

them. Stakeholders include host countries around 

the world with their local content requirements, including 

the men and women of local communities that 

become the Company specialised workforce. 

Thanks to these sustainable relationships, the 

Company has been able to promote economic growth 

in developing countries through knowledge transfer 

and infrastructure creation. The Company requires its 

suppliers to be compliant with the Company’s Code of 

Conduct. Through strategic partnerships the Company 

has also engaged in the development of key enabling 

technologies for more ecological fossil fuels like 

liquefied natural gas and Renewable Energy like wave 

energy conversion and offshore wind farms. 

The Company is constantly evaluating a wide range of 

developments and ideas related to its business which 

could develop into sustainable initiatives if they meet 

the Company’s strategic sustainability objectives. 

In this section of the report a selection of the 

Company’s sustainable initiatives has been highlighted 

as they are on-going, well developed and, in 

the Company’s view, interesting to focus and report on 

in more detail. The selection focuses on the following 

objectives: SBM Offshore’s host country sustainability, 

the supply chain and Renewable energy. 


Workers at the PAENAL yard

Host country Sustainability 

Angola 

SBM Offshore has been present in Angola since 1968. 

Over the last four decades, activities have included 

FPSO leasing, offshore installation and the construction 

of buoys, steel structures for turrets and topsides 

modules. A continuous engagement and strong relationships 

have enabled the Company to promote the 

local community through job creation and training. 

In 1997, SBM Offshore formed a joint venture with 

Sonangol, the Angolan National Oil Company. From 

this union came Sonasing, a company established to 

promote Angolan participation in oil and gas activities, 

acquire FPSOs and FSOs and charter them to the 

Angolan oil industry. 

Soon thereafter, in 2003, SBM Offshore and Sonangol 

created their OPS Serviços de Produção de Petróleos 

Ltd (OPS) joint venture. This second collaboration 

permitted both companies to operate and manage the 

Angolan fleet together. OPS also introduced training 

programmes which provided craft skills, safety training 

and offshore practical skills to an entirely new generation 

of Angolan workers. 

An expanding pool of skilled local labour was essential 

to maximise Angolan economical development 

resulting from the oil and gas sector. With a third joint 

venture, the Porto Amboim Estaleiros Navais Lda 

(PAENAL) yard, the companies extended the existing 

training programme with the creation of a dedicated 

training facility in addition to the much needed fabrication 

and integration yard. This training school was 

established in Porto Amboim to train locally hired, 

primarily unemployed persons. The first training programmes 

initiated at the school were welding, fitting, 

rigging and scaffolding. 

Newly trained workers begin with structural works. As 

they progress and gain experience, they move to more 

skilled labour related to topsides fabrication. The Porto 

Amboim Training School has a capacity of approximately 

150 trainees per year. The courses generally last 

for twelve weeks for groups of thirty students. Formal 

competency tests are carried out and certificates are 

issued to successful graduates. All intakes commence 

with two weeks of HSE training. Success rate of trainees 

is above 80%. 


Local 

Workforce 

The SBM Offshore, Sonangol and the new partner 

DSME (Daewoo Shipbuilding & Marine Engineering) 

announced investments in the development of the 

PAENAL yard will increase the scope of training, 

dramatically growing the size of the workforce and a 

variety of technical skills. PAENAL will become the only 

yard in Angola capable of fabricating topsides modules 

with a quayside large enough to accommodate a VLCC 

and a heavy lift crane to facilitate integration, hook up 

and commissioning of large FPSOs. 

Once fully operational, PAENAL will provide Angolan 

workers with approximately two million man-hours 

of work annually. Already, the Porto Amboim Training 

School has recorded a total of 202,736 hours of training 

for PAENAL’s employees where the ratio of expatriates 

to Angolans has remained stable all along its development 

at 1:3. 

Brazil 

The Company signed a first contract with Petrobras 

in 1996 for the lease and operate contract of FPSO II 

in Campos Basin. Since this date, SBM Offshore has 

delivered seven FPSOs to clients, including Chevron 

and Shell, for operation in this country. 

In 2005, the Company organised Competency 

Assurance training programme comprising a dedicated 

facility in Macaé, Brazil to support its FPSO operations. 

SBM Offshore implemented the training programme to 

achieve its nationalisation targets of over 70% Brazilian 

employees within its expanding fleet. 

The Computer Based Training (CBT) training module, 

available in Portuguese, provides detailed information 

about FPSO equipment and operations, but also safety. 

The Company trains approximately seventy Brazilian 

employees per year, from the fundamentals of petroleum 

production activities to the advanced process 

simulator course, using its own FPSO process control 

room simulator. The purpose of the DCS Simulator 

training centre is to improve operational performance 

offshore by exposing trainees to a wide variety of simulated 

process upset conditions that demand operator 

response. This ensures that employees are well prepared 

to properly deal with any situation.

Moreover, the Brazilian government recently issued 

laws requiring that apprentices must fill five percent 

of the technical workforce of every company. SBM 

Offshore supports the Brazilian Apprentice Program 

with Casa do Menor a non-governmental organisation 

which is accredited by the government to deliver 

basic education. The Company directly sponsors a 

maintenance course for thirteen apprentices every 

year. The objectives of the course are to teach basic 

theory and practice to students in the areas of mechanics 

and electricity. Apprentices are evaluated quarterly 

against offshore induction programme objectives. 

The Company offers the top two students an offshore 

assignment. In 2010, three apprentices expressed their 

enthusiasm and desire to join the maintenance team. 

Equatorial Guinea 

A very motivated group of young trainees from 

Equatorial Guinea has been selected by Noble Energy 

to be part of the nationalisation plan for the FPSO 

Aseng. SBM Offshore is privileged to be working with 

them. The trainees are taking English language training 

in Equatorial Guinea and are becoming familiar with 

basic oilfield equipment and systems. 

The next step is a big change from the Company’s 

standard national training programmes. The trainees 

have been assigned to Aberdeen Skills and Enterprise 

Training Centre (ASET), in Scotland, where they are 

consolidating their knowledge over an 18-month practical 

programme. The difference between this centre and 

usual vocational training colleges is that all the training 

is Oilfield Practical training with a strong focus on the 

use of typical Safety Management System tools such 

as Risk Assessment, Permit to Work, COSHH, and 

Toolbox Talk. They have already learned the NEBOSH 

Safety Diploma material. The progress of the trainees 

is monitored regularly by the ASET centre Senior 

Instructor and the SBM Training Department, who also 

keep the trainees up to date on the progress of the 

actual FPSO conversion project in Singapore. Aseng‘s 

trainees from Equatorial Guinea will benefit from 49, 

000 training hours. 


% of national crew in SBM Offshore fleet at end 2010 

80% 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0 

Brazil Angola Malaysia Overall 


Renewable Host country Energy Sustainability Systems 

The PAENAL (Porto Amboim Estaleiros Navais Lda) 

FPSO integration yard is one of the most significant 

investments ever made in fabrication in Angola and 

provides a distinct competitive advantage to its partners, 

SBM Offshore, Sonangol and their new associate 

DSME (Daewoo Shipbuilding & Marine Engineering). 

The association with DSME will facilitate the PAENAL 

Joint Venture’s investment capacity for phase II as well 

as further improve the production and construction 

expertise of the yard. 

PAENAL is an ambitious and groundbreaking joint 

venture aimed at further developing Angola’s ability to 

support its growing offshore oil and gas sector. It will: 

• Increase the fabrication capacity in Angola; 

• Provide training and create job opportunities for 

Angolan workers; 

• Offer the capability to build complex topsides modules 

and other steel structures; 

• Provide 490m of quayside with 10m water depth 

for Very Large Crude Carrier (VLCC) berthing and 

a heavy lift crane specially designed for lifting 

process modules for integration and FPSO commissioning 

work; 

• Encourage global service companies to establish 

themselves in Angola. 

PAENAL’s development has been planned in two 

phases allowing for a steady increase in capability and 

capacity. 

• Phase I (operating status since 2008): a small module 

and general steelwork fabrication facility. This 

initial phase comprises a training facility, 80 metres 

of quayside with a water depth of 7 metres allowing 

the importation and customs clearance of equipment 

and raw materials directly at PAENAL, as well 

as the exportation of any products built by PAENAL. 

PAENAL currently has the capacity to produce 

between 2-3,000 tonnes per year. 

• Phase II: The full phase development encompasses 

the completion of a 490m deepwater quayside 

suitable for berthing a VLCC-sized FPSO, the completion 

and commissioning of a heavy lift crane with 

a minimum of 2,000 tonnes lifting capacity (designed 

by SBM-GustoMSC) and the erection of all of the 

remaining warehouses, pipe shops and storage 

facilities. 


Local 

Investments 

Once the expansion plans are complete, PAENAL will 

become the only yard in Angola capable of fabricating 

topsides modules with a quayside large enough to 

accommodate a VLCC and a heavy lift crane to facilitate 

integration, hook up and commissioning of large 

FPSOs. The ultimate fabrication capacity will then 

be in the range of 8-10,000 tonnes per year. Through 

strategic partnerships and secured projects, Phase II is 

now underway. 

The progress of the PAENAL yard demonstrates SBM 

Offshore’s continuous engagement with the PAENAL 

Joint Venture partners Sonangol and DSME to benefit 

the local community through job creation and training 

(please see article on local workforce page 82). 

Once fully operational, PAENAL will provide Angolan 

workers with approximately two million man-hours 

of work annually. There are several FPSO prospects 

identified for offshore oil production in Angola in the 

next few years but the current fabrication facilities in 

Angola will be limited to handling only a portion of 

this workload. The PAENAL yard addresses some of 

this shortfall in fabrication capacity and provides the 

opportunity for a substantial increase in the Angolan 

content around future projects. 

The PAENAL yard should encourage other international 

contractors and service providers to establish a 

presence near Porto Amboim. PAENAL provides a significant 

stimulus for the local economy by using small 

and medium-sized companies in the region to serve 

the needs of the yard. It is anticipated that support services 

in the Porto Amboim area will also grow to meet 

new demands associated with PAENAL activities. 

PAENAL is perfectly positioned to serve the growing 

Angolan offshore sector. It is located approximately 

300 km south of Luanda and has direct access to 

deepwater blocks which are just over 200 nautical 

miles from the yard. 

Since fabrication activity began in 2008, the yard has 

already successfully completed two shallow water 

CALM buoys for Cabinda Gulf Oil Company (part of the 

Chevron Corp.) to form part of the new export terminal 

offshore Malongo. PAENAL is additionally undertaking

a number of fabrication projects for Heerema and 

Technip for developments on Block 31. 

But once the expansion of the yard has been completed, 

PAENAL will have the capacity to accommodate 

a much larger work scope. The CLOV FPSO will be the 

first mega FPSO to berth at a quayside in Angola for 

the integration, hook-up and commissioning of topsides 

components also built in Angola. PAENAL intends 

to launch the project mid-2011 and the CLOV FPSO is 

expected to arrive at PAENAL yard during 2013. 

PAENAL yard in Porto Amboim, Angola 




In October 2010, SBM Offshore delivered the FPSO 

P-57 to its client Petrobras, two months ahead of 

schedule and on budget. With commissioning of the 

vessel now complete and first oil achieved, SBM 

Offshore will operate the P-57 for a period of three 

years. 

Since the engineering, procurement and construction 

contract for the P-57 was signed between SBM 

Offshore and Petrobras on 01 February 2008, the project 

has achieved a number of significant milestones: 

• it is the first contractor designed & supplied FPSO 

to achieve over 65% local content on Brazilian 

contracts; 

• it is the first FPSO sold to Petrobras to be built to 

SBM specifications; 

• it is SBM’s largest ever FPSO and 8th supplied for 

Brazilian waters; 

• it is the first turnkey FPSO to be supplied by SBM 

Offshore to Petrobras; 

• it is the largest FPSO for oil throughput, off the 

Espirito Santo coast. 

Given the success of P-57, both in design and cost, 

Petrobras has said that the P-57 will serve as a model 

for the design of future FPSOs intended for use in the 

Santos Basin pre-salt area. 

The FPSO will operate in the Jubarte field, in the 

Espírito Santo portion of the Campos Basin, 80 km off 

the Espírito Santo coast. It is anchored at a water depth 

of 1,260 metres and will produce oil of 17 degrees 

API. Once on stream, the P-57 will be connected to 22 

wells, 15 of which are producers and 7 water injectors. 

With its ability to process heavy oil, the P-57 will be the 

first unit of this complexity to operate on the Espírito 

Santo coast. The P-57 FPSO is a spread moored vessel 

and has the possibility to offload both forward and aft. 

With a daily production capacity of 180,000 barrels of 

oil per day and 2 million cubic metres of gas per day, it 

is the largest FPSO that SBM Offshore has ever built. 

The topsides are of an impressive size weighing 14,500 

tonnes and the spread mooring arrangement was an 

achievement in technical design with 21 mooring lines 

of varying lengths. 


Local 

Content 

In order to complete this complex project, SBM 

Offshore engaged team members from each of its four 

global execution centres (Monaco, Schiedam, Houston 

and Kuala Lumpur) as well as a large Brazilian team in 

the Rio, Alphaville, Macaé, and Vitória offices. 

Between October 2008 and March 2010, the hull 

was converted from the Accord oil tanker at Keppel 

Shipyard in Singapore. While the refurbishment of the 

hull was underway, fabrication of the oil and gas processing 

modules (topsides) was completed in Brazil at 

the UTC Engenharia site in Niteroi and at the BrasFELS 

shipyard in Angra dos Reis. In April 2010 the P-57 

FPSO arrived at the BrasFELS shipyard for the final 

integration and commissioning phase. 

During the development of P-57, SBM Offshore 

achieved a level of local content surpassing 65%, a first 

for a contractor-supplied unit in Brazil. To do so, SBM 

Offshore developed relationships with an extensive list 

of Brazilian subcontractors, resulting in a substantial 

amount of local contracts going to Brazilian suppliers 

and over 5 million local manhours logged on the 

project. It is SBM Offshore’s strategy to prioritize the 

procurement of goods and services in Brazil in order to 

contribute to the expansion of the domestic industry. 

These efforts resulted in the generation of an estimated 

2,000 direct jobs in the country. 

The P-57 design was simplified and its equipment 

standardized pursuant to the highest operating safety 

standards. This strategy ensured greater efficiency both 

in project management and in areas of procurement, 

construction, assembly and testing. Additionally, the 

new strategy resulted in a lighter, easier-to-maintain 

platform offering the client significant economic, managerial, 

and technical gains.


Crew member onboard the FPSO 

Espirito Santo

Renewable Supply Chain Energy Systems 

Actively present and producing in 18 countries worldwide, 

SBM Offshore also works with suppliers from 

37 countries. The Company’s principal suppliers are 

mainly located in Europe, the United States, Singapore 

and Brazil; 26% of the Company’s volume of business 

in procured deliverables or services in 2010 has been 

achieved with developing countries. 

Through the Vendor Relationship Management (VRM) 

internet portal, the Company manages an internal vendor 

pre qualification process. 

The Company standards, such as business ethics 

and insurances, are covered in the Special Terms & 

Conditions. Those are systematically sent to vendors 

or suppliers from the bidding stage onwards for each 

and every project. 

Compliance with the Company’s Code of Conduct 

is mandatory for suppliers, their subcontractors and 

agents. 

During 2010, the Company audited 60 of its suppliers 

using a product classification system ranking from A 

(main suppliers, such as construction yards) to D (less 

critical equipment or service). All Vendors supplying A 

to C products are submitted to a quality process and 

A and B criticalities are audited every 3 years. 114 corrective 

action reports were issued in 2010 following 

these audits. 


Supply Chain 

in focus 

Vendor Relationship 

Management 

Suppliers are selected upon compliance with the industry 

standards and market conditions. The Company’s 

VRM portal is publicly listing the documents required 

to enter the pre qualification process hence needed for 

the evaluation of the supplier and proposed equipment. 

1. Standard Vendor Qualification Questionnaire 

2. ISO certifications 

3. Quality manual 

4. HSE manual 

5. Reference lists 

6. Organization charts (company and group) 

7. Brochures, company profile, products 

descriptions, etc. 

8. All QA documentation 

(SQR forms, CAR’s, audit, etc.) 

VRM product pre qualification confirms that SBM 

Offshore may start business with the vendors for 

selected equipment or services. Vendors have been 

approved as potential candidates to work with the 

Company. 

The prequalified vendors for equipment or services are 

then referenced in the Supply Chain system tool as 

approved suppliers. 

In December 2010, more than 11,000 products or 

services had been referenced.

Supply Chain 

Supply Chain 

SBM Offshore worker onboard the 

MOPUstor in Norway

Renewable Supply Chain Energy Systems 


Towards Suppliers 

SBM Offshore's Code of Conduct 

subscribes to the United 

Declaration of Human Rights, the 

OECD Guidelines for Multinational 

Enterprises, ILO conventions and 

the UN Global Compact. Code 

applies to all employees, agency 

personnel, officers, and directors 

of SBM Offshore and its controlled 

subsidiaries (including Joint 

Ventures). 

The Company responsibilities to 

suppliers are described in SBM 

Offshore's Code of Conduct: 

• Selecting suppliers on the basis 

of generally accepted market 

considerations; 

• Systematically offering host 

country suppliers, as a minimum, 

a fair chance to provide 

products and services and making 

material effort to enhance 

their capabilities through guidance 

and transfer of know- how; 

• Paying market prices and making 

reasonable demands; 

• Striving for long-term stability in 

the relationship, in exchange for 

value, quality, competitiveness 

and reliability; 

• Paying suppliers on time, 

according to the agreements 

made; 

• Being open and reliable in all our 

activities; 


• Not accepting cash gifts or 

any substantial non-cash gifts 

(including entertainment). In 

general, gifts may only be made 

in strict accordance with the 

employee guidelines; 

• Selecting suppliers who do 

adhere to the applicable national 

and international standards and 

to the principles set out in this 

Code; 

• Selecting suppliers that apply 

sufficient focus to working 

conditions for their employees 

in accordance with 

ILO ( International Labour 

Organization) conventions; 

• Monitoring compliance with 

this Code by suppliers. In 

instances where the results of 

assessments are found to be 

unsatisfactory, SBM Offshore 

will engage with the business 

partner in developing improvements 

to facilitate compliance 

with these standards. However, 

if a supplier repeatedly demonstrates 

a lack of interest to 

improve its standards, SBM 

Offshore will take appropriate 

action which could eventually 

mean withdrawal from the 

relationship.

Topsides of an FPSO 

Supply Chain


Introduction 

After more than 50 years of continuous innovation in 

the handling and processing of hydrocarbons in the offshore 

environment, SBM Offshore has put its expertise 

in the design, installation and operation of marine systems 

to work for new energy resources, in line with the 

drive to reduce carbon emissions and to anticipate the 

changing mix of energy sources. 

Already a few years back, the Company had begun an 

active market entry strategy for both Liquefied Natural 

Gas (LNG) and Renewable systems in response to the 

rising importance of alternative energy resources. To 

enhance the Company’s in-house knowledge, SBM 

Offshore began to pursue several initiatives including 

the development of various new technologies focused 

on natural gas and sustainable energies. 

The important resources dedicated to Liquefied Natural 

Gas solutions have paid off in a leading market position 

for the Company in this promising sector. SBM 

Offshore’s booked progress regarding floating LNG can 

be found in the Annual Report, section 3 under Product 

and Technology Development. 

The Company’s goal in Renewable Energy is to develop 

technically robust and commercially sound sustainable 

energy systems operating in the marine environment 

where the Company's competitive edge in offshore 

engineering is greatest. The waters of the world contain 

an enormous amount of potential energy. Capturing this 

energy successfully requires extensive knowledge and 

experience in the offshore environment. Accordingly, 

fields of potential interest for the Company are wave 

energy, offshore wind energy and Ocean Thermal 

Energy Conversion. 

Energy generation achieved through these key enabling 

technologies demonstrates SBM Offshore’s commitment 

to remain at the forefront of offshore energy 

innovation tomorrow, as the Company continues to 

strive for energy efficiency in its own operations today. 


Renewable 

Energy

“ Wave Energy Converter - 

like a snake in the water” 

Technology development is the foundation for SBM 

Offshore’s future and includes a substantial R&D 

budget. In 2010, as was already the case in 2009, the 

majority of the R&D budget designated to Renewable 

Energy continued to fund the Wave Energy Converter 

(WEC) programme,as the Company believes this offers 

the greatest potential for bulk electricity supply at commercially 

viable prices. 

Wave energy is very much a growing sector. No commercial 

projects have been completed to date, as it is 

one of the more difficult technologies to master due to 

the marine environment. The Company is working on a 

prototype wave energy generator based on emerging 

power take-off technologies. In 2009, the Company 

entered into a cooperation agreement with a large 

industrial player to develop this technology. 

The WEC technology will permit the production of 

clean energy in the future, harnessing the untapped 

resources of seas. To demonstrate the WEC, a development 

programme has been set up with the plan 

to have an offshore grid-connected prototype in the 

medium term. 

In the Company’s application, the WEC will transfer the 

energy contained in the movement of seawater caused 

by waves directly into electrical power, in a high efficiency 

process. By using this technology, more energy 

can be significantly converted into electricity than is 

possible with a conventional generator. 

SBM Offshore and its industrial partner believe that 

this combination of converter design and electroactive 

polymer is a promising approach to leverage 

the wide spectrum of wave conditions. More importantly, 

it avoids fatigue and maintenance issues which 

represent a major cost factor. It is expected that the 

WEC technology will be of particular interest to the 

utility companies worldwide aiming to extend their 

Renewable Energy portfolio. 

Renewable 

Marine Energy 

Renewable Renewable Energy Systems Energy 

The growth of the Marine Renewables sector will 

depend on a complex array of factors including: 

• Security of supply which includes fossil fuel prices; 

• Cost of energy development; 

• Technology development; 

• Quality and versatility of electricity networks; 

• Environmental and regulatory requirements. 

Nevertheless, SBM Offshore believes that the growing 

popular and legislative support for Renewable Energy 

will continue to underpin demand for clean forms 

of energy to which the Company wishes to respond 

proactively. 



“ Oil Industry technology used 

for Wind Turbine Installation” 

Benefitting from a very solid market outlook, the wind 

energy industry is rapidly expanding to wind farms 

offshore, primarily in Europe. Even conservative predictions 

indicate that ten years from now, 1,500 turbines 

will be installed offshore every year, not including the 

developments outside Europe. 

The Company is successfully supporting the development 

of the offshore wind industry by transferring its 

knowledge of offshore construction vessels to the 

contracting firms building the wind farms in open sea. 

Multiple orders have been obtained for the design of 

Jack-up vessels and the delivery of essential equipment 

for these vessels, such as jacking systems and 

cranes. Jack-ups offer reliable construction facilities for 

the 20-45 metres water depth range where most of the 

wind turbines are projected. 

Offshore wind farms 

Typically, offshore wind farms are developed in a grid 

of 50-100 units. Speed is critical for the installation of 

this number of units, especially considering weather 

window restrictions. 

Average sizes of the turbines are: rotor diameters of 

80 to 125 metres, turbine weights (nacelle + rotor) of 

200-450 tonnes, nacelle elevations 90-110 metres 

above sea level. It is expected that 3.6 MW and 5 MW 

machines will be the standard for the coming years, 

and most new installation equipment is being designed 

for these sizes. 

Currently foundations are bottom fixed, with the majority 

comprising of monopoles. However, gravity-based 

foundations are also being used; and for deeper water, 

tripods and jackets are being developed. Turbine installation 

generally occurs in separate pieces: foundation, 

transition piece, column, nacelle, rotor/blades. 


Offshore 

Wind Energy 

Equipment for installation and 

maintenance 

The Company has provided Jack-up technology for 

oil and gas applications, since the first delivery of the 

Seashell in 1959. Also, contractors specialised in civil 

construction in coastal waters have used that technology 

in the past. This valuable expertise has been 

recognised by contractors active in the installation of 

offshore wind farms. 

Based on the bright market outlook, many contractors 

have decided to invest in new, dedicated installation 

equipment. The specification of the Jack-up units has 

been tuned to match the exact requirements of wind 

turbine installations for deck space, payload capacity 

and stability. And, of course, the lifting capabilities in 

terms of weight and height of reach are unique for this 

type of unit. 

The recent Gusto-MSC NG9000 unit, with its updated 

fast continuous jacking systems, and a powerful crane 

of 800 tonnes with a boom length of 94 metres appears 

a market favourite. The vessels are self-propelled. They 

collect the turbines to be installed from the shore base 

(eight of the larger turbines in one go). Once arrived in 

the field, they are dynamically positioned when lowering 

the legs to the seabed. After lifting themselves out of the 

water, they become a stable construction platform. The 

specially developed crane is arranged around one of the 

aft legs to make most efficient use of the deck space. 

Over the past years, including 2010, a total of ten contracts 

were placed with the Company for Jack-ups 

dedicated for installation of offshore wind turbines. 

Generally these contracts comprise the basic design 

package for the unit and the supply of jacking systems 

and cranes. Furthermore, some twelve multi-purpose 

Jack-ups designed by the Company have found 

employment in the offshore wind industry.

Top: 

Piping on the FPSO Okha 

Bottom: 

Technician onboard the 

FPSO Okha in Singapore 

Renewable Energy 


FPSO The Deep Capixaba Panuke at Production anchorage Field in 

Singapore Centre in dry following dock in upgrade Abu Dhabi 

for 

the Cachalote field requirements

Performance Indicators 

Performance 

Indicators 

98 Sustainability Reporting Scope 

101 Performance Indicators 

111 PwC Assurance Report 

112 GRI Index Level C+ 

113 Notes 


5


Reporting Scope 

Page 

98 

PwC Assurance 

Report 

Page 

111 

GRI Index Level C+ 

Page 

112 

Performance 

Indicators 

Page 

101 

Notes 

Page 

113 SBM Offshore – Sustainability Report 2010 97



Reporting Scope 

Reporting Segments 

The reporting scope is divided into two main segments, 

Onshore Operations and Offshore Production. 

Depending on the performance indicators being 

reported, the segment can be split further. 

The results are reported as performance indicators and 

are presented for both 2009 and 2010 to facilitate comparison. 

To highlight medium term trends, the Company 

has in some cases decided to show multiple years of 

reporting. 

Health, Safety and Security 

Reporting 

Performance indicators are applied to the Company 

for both Onshore Operations and Offshore Production. 

Indicators take into account all permanent employees, 

part-time employees, local employment staff from 

agencies on the construction sites, offices and onboard 

the offshore production fleet, i.e. all people working for 

SBM Offshore. 

HSSE incident reporting is registered and managed 

through the Single Incident Reporting System (SIRS) 

database for the Company. 

SIRS is a reporting system that is used to collect data 

on all incidents on all units operated by the Company. 

The system is a web based application and is accessible 

worldwide from all the locations to facilitate data 

entry. 

The Company also reports on any incidents at subcontractor’s 

construction facilities if the incident occurs 

while working on one of the Company’s projects. 

Manhours are calculated in three different ways 

depending on the segment; Offshore Production, 

Onshore Operations and Onshore construction. 


The Company records manhours for Offshore 

Production based on the unit POB (Persons on Board). 

Onshore, the Company personnel record their manhours, 

using an internal Time REGistration system 

(TREG). Onshore construction yard manhours are 

reported to the Company by the yards themselves as 

total manhours worked. 

The Company uses manhours records and SIRS data 

to calculate Health and Safety performance indicators. 

The safety statistics are reported based on the incident 

classifications defined by OSHA, (Occupational 

Safety and Health Administration) International Industry 

Standard. 

The SIRS system will also record an incident that is 

classed as environmental, i.e. any unwanted release of 

pollutants to the environment. 

In addition to the SIRS monitoring application; the 

Monthly HSSE Report issued by the Corporate Head of 

HSSE, consolidates HSSE records and events for the 

Group, covering onshore and offshore. 

Environmental Reporting 

Environmental performance of the 11 production and/or 

storage units is reported taking into account the following 

reporting boundaries: 

• units in the Company's fleet producing and/or storing 

hydrocarbons under lease and operate contracts 

during 2010; 

• units in which the Company exercises full operational 

management control; 

• units in which the Company has full ownership or 

participates in a Joint Venture (JV) partnership, 

where the Company controls 50% or more of the 

shares. 

Offshore Production environmental performance results 

are chosen according to the performance indicators 

relative to GRI. This includes greenhouse gases 

referred to as GHG, which are N2O, CH4 and CO2, in 

addition to other non-GHG air emissions, such as CO, 

NOx, SO2 and VOC. The air emissions calculation from 

the offshore production units are performed using as

the basis for the calculation the method from the UK 

offshore operators association (UKOOA). 

The Company uses the Greenhouse Gas Protocol 

(GHG Protocol) method to calculate CO2 equivalents. 

Carbon dioxide equivalency is a quantity that 

describes, for a given mixture and amount of greenhouse 

gas, the amount of CO2 that would have the 

same global warming potential (GWP), when measured 

over a specified timescale (generally, 100 years). 

Reporting scope for Environmental performance 

Unit name 

in operation 

Country of 

operation 

Jv partner and 

ownership level 

1 FPSO Kuito Angola SBM Offshore 50% 

Sonangol 50% 

2 FPSO LPG Sanha Angola SBM Offshore 50% 

Sonangol 50% 

3 FPSO Xikomba Angola SBM Offshore 50% 

Sonangol 50% 

4 FPSO Mondo Angola SBM Offshore 50% 

Sonangol 50% 

5 FPSO Saxi Batuque Angola SBM Offshore 50% 

Sonangol 50% 

For more information on the GHG protocol and country 

specific calculation methods, please see their website: 

http://www.ghgprotocol.org/calculation-tools. 

Environmental spills to air, water or land for the units 

are reported. 

All reported air emissions exclude flaring, as this factor, 

related to the produced fluids from the oil/gas reservoirs, 

is reported by the Company’s clients. 

Jv ownership title Operational 

management 

Client 

Sonasing Kuito Ltd SBM Offshore Chevron 

Sonasing Sanha Ltd SBM Offshore Chevron 

Sonasing Xikomba Ltd SBM Offshore ExxonMobil 

Sonasing Mondo Ltd SBM Offshore ExxonMobil 

Sonasing Saxi Batuque 

Ltd 

SBM Offshore ExxonMobil 

6 FPSO Espadarte 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% 

10 FPSO Espirito Santo Brazil SBM Offshore 51% 


11 FSO Yetagun Myanmar SBM Offshore 75% 

Mitsubishi 25% 

FPSO Capixaba Venture SBM Offshore Petrobras 

S.A. 

Brazilian Deepwater 

Production Ltd 

South East Shipping 

Co.Ltd 

SBM Offshore Shell 


SBM Offshore Petronas 



Excluded from reporting scope 

Unit name in operation Country of 

operation 

JV partner and 

ownership level 

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

Maersk Ltd 51% 

2 DeepDraft Semi 

Thunder Hawk* 

United States 

of America 

3 FPSO Kikeh Malaysia SBM Offshore 49% 


* not operated by SBM Offshore 

Human Resource Reporting 

The Company’s Human Resource data covers the 

worldwide workforce and is broken down into segments 

of operating units, employment type, gender, 

and age. The performance indicators report the workforce 

status at year end on the 31st December 2010. 

It includes all staff who were assigned on permanent 

and fixed-term contracts, employee hires and departures, 

total number of locally-employed staff from 

agencies and all crew working onboard the offshore 

production units. The performance indicators continue 

to report using the categories of White Collar and Blue 

Collar staff in 2010. White Collar is defined as staff 

working at the Company’s corporate and engineering 

offices and four project execution centres. Blue Collar 

is defined as personnel working in project execution 

and construction activities onshore at construction 

yards, as well as offshore personnel employed onboard 

the offshore production units. 

New performance indicators have been added in 2010, 

reporting on gender equality, seniority, skills management 

and lifelong learning processes in place at SBM 

Offshore. 


JV ownership title Operational 

management 

Anchor Storage Ltd Gas 

Management 

(Congo) Ltd 

Client 

Total 

SBM Offshore 100% n/a Murphy Murphy 

Malaysia Deepwater 

Floating Terminal (Kikeh) 

Ltd 

Malaysia 

Deepwater 

Production 

Contractors 

Sdn Bhd 

Murphy 

Performance Reviews / Skills management 

/ Training 

In order to ensure people development and optimal distribution 

of resources within the Group, the Company 

conducts annual performance reviews for all employees. 

Globally, the Company uses the Hay Competency 

system to grade and evaluate all permanent staff. 

As a complementary parallel to this long-established 

annual performance review, the Talent Management 

and Succession Planning programs have been 

launched in 2009. A process called “People Reviews” 

is in place to discuss the strengths, development needs 

and potential future career paths of SBM employees, 

taking into account a certain number of criteria, and 

identify those who have the potential to take on greater 

leadership roles today and tomorrow. New indicators 

report on number of people reviewed in 2010. 

The total training hours for all Company staff, for both 

Blue Collar staff and White Collar staff, are included in 

this report.

Performance 

Indicators 

Economic 

Share price 

Listed as SBM Offshore N.V. on the Euronext Stock Exchange, Amsterdam 2010 2009 

Turnover as % of share capital 161.38 193.60 

Highest share price in € 17.16 15.13 

Lowest share price in € 11.41 9.16 

Closing share price in € 16.77 13.78 

Closing share price in US$ 22.43 19.75 

Financial results 


In million of US$ (unless stated otherwise) 2010 2009 

Net Profit 276.0 230.0 

EBIT 362.4 293.4 

EBITDA 688.4 613.3 

Capital expenditure 519.0 656.0 

Total equity at year end 2,123.4 1816.8 

Turnover 3,055.8 2,956.5 

Total assets at year end 5,091.0 4,658.4 

Shareprice (€) at year end 16.77 13.78 

AEX-Index at year end 354.6 335.3 

Market Capitalisation US$ at year end 3,783.0 3,196.80 

Production of hydrocarbons 

Offshore Production by region Units MMbbls 


Number of 

Offloads 

Brazil 5 67,274,783 146 

Asia 1 3,943,024 11 

West Africa 5 76,588,423 146 

Total 11 147,806,230 303 



Health, Safety, Security (H.S.S.) 

Occupational health and safety 


Average absence due to normal illness (percentage days lost through illness per employee) 2.6% 2.5% 

Total consolidated million manhours SBM Offshore (including Offshore Production Fleet) 12.45 12.36 

Total consolidated million manhours Onshore Operations (excluding Subcontractors) 6.49 6.57 

Total consolidated million manhours Offshore Production (excluding installation vessels) 5.95 5.79 

Lost Time Accident Frequency Onshore Operations 0.06 - 

Lost Time Accident Frequency Offshore Production 0.1 0.03 

Death during service (natural causes- non work-related) 2 7 

Fatalities (death resulting from a work-related incident or illness) 0 0 

Subcontractors manhours 

Manhours 2010 

Projects 29,817,880 

Exposure hours by location 


SBM-Monaco 2,431,338 

SBM-Atlantia 1,308,080 

SBM-Malaysia 766,047 

SBM-PC 221,397 

SBM-Services 422,117 

SBM-Gusto & SBM-MSC 1,345,171 

Dynamic Installer 205,047 

Subcontractors 29,817,880 

Total 36,517,077 


HSS Accident Statistics 



HSS ACCIDENT STATISTICS ONSHORE OPERATIONS 

Exposure Hours 6,494,150 6,572,753 

Fatality FAT 0 0 

Lost Time Incident LTI 2.00 0 

Restricted Work Case RWC 1.00 0 

Medical Treatment Case MTC 3.00 1.00 

Near Miss NM 1.00 0 

LTI Days Lost Days Lost 57.00 0 

Lost Time Incident Severity Rate LTISR 1.76 0 

Lost Time Incident Frequency Rate LTIFR 0.06 0 

Total Recordable Incidents TRI 6.00 1.00 

Total Recordable Incident Frequency Rate TRIFR 0.18 0.03 

HSS ACCIDENT STATISTICS OFFSHORE PRODUCTION 


Fatality FAT 0 0 

Lost Time Incident LTI 3 1 

Restricted Work Case RWC 8 4 

Medical Treatment Case MTC 15 12 

Near Miss NM 74 89 

LTI Days Lost Days Lost 64 91 

Lost Time Incident Severity Rate LTISR 2.15 3.14 

Lost Time Incident Frequency Rate LTIFR 0.10 0.03 

Total Recordable Incidents TRI 26 17 


HSS ACCIDENT STATISTICS FOR SUBCONTRACTORS 

(FABRICATION/CONVERSION YARDS) 


Fatality FAT 0 - 

Lost Time Incident LTI 10.00 6.00 

Restricted Work Case RWC 20.00 16.00 

Medical Treatment Case MTC 17.00 16.00 

Near Miss NM 82.00 65.00 

LTI Days Lost Days Lost 170.00 70.00 

Lost Time Incident Severity Rate LTISR 1.14 0.41 

Lost Time Incident Frequency Rate LTIFR 0.07 0.04 

Total Recordable Incidents TRI 47.00 38.00 




HSS Accident Statistics for Dynamic Installer 


Exposure Hours 205,047 

Fatality FAT 0 

Lost Time Incident LTI 1 

Restricted Work Case RWC 0 

Medical Treatment Case MTC 1 

Near Miss NM 5 

LTI Days Lost Days Lost 20 

Lost Time Incident Severity Rate LTISR 19.51 

Lost Time Incident Frequency Rate LTIFR 0.9754 

Total Recordable Incidents TRI 2 

Total Recordable Incident Frequency Rate TRIFR 1.951 

Environmental data 

Offshore production - Recordable Spills 


Offshore Production Units 11 12 

Contained Spills Onboard 15 16 

External Spills to Environment 5 7 

GHG Emissions excluding Flaring 

Values expressed in millions of tonnes CO2 equivalent CO 


2 CH4 N2 BRAZIL 

O 

Marlim Sul 0.26 0.002 0.006 

Brasil 0.15 0.001 0.003 

Espadarte 0.12 0.001 0.003 

Capixaba 0.11 0.001 0.002 

Espirito Santo 

ASIA 

0.22 0.001 0.005 

Yetagun 

WEST AFRICA 

0.005 0 0 

Xikomba 0.17 0.001 0.004 

Mondo 0.47 0.003 0.011 

Saxi Batuque 0.24 0.002 0.006 

Kuito 0.33 0.002 0.008 

Sanha 0.004 0 0 

Total 2.08 0.013 0.049 


Other Atmospheric Emissions excluding Flaring 

Values expressed in tonnes CO NOx SO 


2 BRAZIL 

VOC's 

Marlim Sul 294 684 19 8 

Brasil 156 329 3 3 

Espadarte 138 319 9 4 

Capixaba 165 541 43 14 

Espirito Santo 

ASIA 

243 531 8 5 

Yetagun 

WEST AFRICA 

13 57 6 2 

Xikomba 181 382 3 3 

Mondo 492 1005 3 6 

Saxi Batuque 256 526 2 3 

Kuito 377 890 27 12 

Sanha 10 45 5 1 

Total 2325 5310 128 61 

GHG Emissions Comparison 

Values expressed in tonnes 2010 2009 

Number of Offshore Production Units 11 12 

N 2 O 159 148 

CH 4 640 571 

CO 2 2,076,229.8 1,823,651* 

* level reported in 2009 for Espirito Santo was overestimated and corrected 

Source: DEFRA - Environmental Key Performance Indicators; Reporting Guidelines for UK Business; 

Chapter 4. Page 28 4.1 Emissions to Air KPI 1 Greenhouse Gases 




Non GHG Emissions Comparison 



CO 2,325 2,409 

NOx 5,310 5,875 

SO 2 128 212 

VOC 61 85 

Regional CO 2 Emissions 



Brazil 857,694 752,314* 

Caspian - 1,552 

Asia 5,017 4,393 

West Africa 1,213,519 1,065,392 

Total 2,076,230 1,823,651 

* Level reported in 2009 for Espirito Santo was overestimated and corrected 

Indirect Energy Consumption 


Total electrical usage kWh 10,339,123 10,478,068 

Total tonnes C0 2 equivalent 4,063 4,113 

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


Human Resources (H.R.) 

Permanent Employees Headcount by Operating Unit and Gender 


Female Male Total Ratio of females 

SBM-Gusto 78 324 402 19% 

SBM-MSC 5 58 63 8% 

SBM-Atlantia 150 347 497 30% 

SBM-Malaysia 104 265 369 28% 

SBM-Monaco 334 884 1218 27% 

SBM-Services 41 169 210 20% 

SBM-PC 113 1124 1237 9% 

SBM Offshore- MSTC Functions 56 62 118 47% 

Onshore 91% 66% 72% 27% 

Offshore 9% 34% 28% 7% 

Total 881 3233 4,114 21% 

MSTC Functions: Marketing, Sales, Treasury and Corporate Functions 

Permanent and Contract Employees Headcount by Operating Unit 

Headcount 

permanent 

employees 

Headcount 

contract 

employees 

Total 

Headcount 

employees 



Ratio of 

contract 

employees 

SBM-Gusto 402 133 535 25% 

SBM-MSC 63 18 81 22% 

SBM-Atlantia 497 104 601 17% 

SBM-Malaysia 369 8 377 2% 

SBM-Monaco 1218 706 1924 37% 

SBM-Services 210 56 266 21% 

SBM-PC 1237 613 1850 33% 

SBM Offshore- MSTC Functions 118 6 124 5% 

Blue collar 41% 76% 51% 42% 

White collar 59% 24% 49% 14% 

Total 4,114 1,644 5,758 29% 



Permanent Employees Headcount by Age Bracket 


Under 30 Years 30-50 Years Above 50 Years 

SBM-Gusto 67 267 68 

SBM-MSC 16 37 10 

SBM-Atlantia 67 298 132 

SBM-Malaysia 86 261 22 

SBM-Monaco 357 724 137 

SBM-Services 34 137 39 

SBM-PC 161 682 257 

SBM Offshore- MSTC Functions 13 79 26 

Total 801 2485 691 

SBM-PC excludes some staff members (total 137 persons) for who data are not available. 

Permanent Employees Headcount by Seniority 

Under 5 Years Between 5 to 

10 Years 

Between 10 to 

15 Years 


Above 15 Years 

SBM-Gusto 220 109 41 32 

SBM-MSC 28 13 10 12 

SBM-Atlantia 285 175 27 10 

SBM-Malaysia 361 4 4 - 

SBM-Monaco 906 182 66 64 

SBM-Services 117 54 16 23 

SBM-PC 745 244 86 25 

SBM Offshore- MSTC Functions 49 27 18 24 

Total 2711 808 268 190 

SBM-PC excludes some staff members (total 137 persons) for who data are not available. 

Permanent Part Time Employees Headcount by Operating Unit 

% Part Time 

employees 

% Female 

Employees 


% Male 

Employees 

SBM-Gusto 20% 50% 50% 

SBM-MSC 24% 27% 73% 

SBM-Atlantia 0% 0% 0% 

SBM-Malaysia 0% 0% 0% 

SBM-Monaco 2% 91% 9% 

SBM-Services 3% 100% 0% 

SBM-PC 0% 100% 0% 

SBM Offshore- MSTC Functions 10% 100% 0% 

Total 3% 62% 38% 


Permanent Employees Headcount Turnover by 

Operating Unit 

Turnover 

headcount 

Total headcount 


Turnover rate 

SBM-Gusto 23 402 6% 

SBM-MSC 3 63 5% 

SBM-Atlantia 65 497 13% 

SBM-Malaysia 32 369 9% 

SBM-Monaco 103 1,218 8% 

SBM-Services 11 210 5% 

SBM-PC 160 1,237 13% 

SBM Offshore- MSTC Functions 18 118 15% 

Total 415 4,114 10% 

Permanent Employees Headcount Turnover by 

Category 

Turnover 

headcount 

Total headcount 

Permanent 


Turnover rate 

Voluntary 272 6.6% 

Dismissal 112 2.7% 

Retirement 29 0.7% 

Fatalities non work related 2 0.0% 

Fatalities work related - 0.0% 

Total 415 4,114 10.1% 

Permanent Employees Turnover by Age Bracket 

Turnover 

Headcount 

Total permanent 

headcount 



Turnover rate 

Age 50 85 

Total 415 



Employees Training Hours by Operating Unit 

Total number of 

training hours 


Total training 

hours per eligible 

employee 

SBM-Gusto 17,302 43.0 

SBM-MSC 1,171 18.6 

SBM-Atlantia 6,261 12.6 

SBM-Malaysia 4,111 11.1 

SBM-Monaco 42,538 39.4 

SBM-Services 5,439 23.1 

SBM-PC 70,595 40.2 

SBM Offshore- MSTC Functions 1,570 13.3 

Offshore 70,563 41.7 

Onshore 78,424 28.3 

Total 148,987 32.9 

Eligible employee scope includes all permanent employees+ some contractors (Fleet)+ PAENAL staff 

Employees Training Hours for Fleet only 


Total training hours for 2010 68,647 

Training indicator hours/ eligible employees 42.4 

Eligible employee scope includes all permanent employees + some contractors 

Permanent Employees Performance Appraisals and 

skill mapping and developping process 


Employees headcount eligible to Performance Appraisals 4,243 

Performance appraisals completed 95.1% 

Employees headcount eligible to People Review 711 

People Review indicator 100.0% 

All permanent employees are eligible to performance appraisal+ some long term contractors 

Women Men Equality 


% of Women in management position 10% 

% of Women in management position Offshore 3% 

% of Women in management position Onshore 15% 

Ratio basic salary women/ men for Onshore 71% 

Donations 

In US$ Total 

Total 438,994.2 


To the Board of 

Management of SBM 

Offshore N.V. 

Assurance report 

Report on the Sustainability 

Report 

Engagement and responsibilities 

We have reviewed the Sustainability Report for the year 

2010 (hereafter: ‘the Report’) of SBM Offshore N.V., 

Rotterdam in which the company renders account of its 

performance related to sustainability in 2010. 

Review: limited assurance 

A review is focused on obtaining limited assurance 

which does not require exhaustive gathering of evidence 

as in audit engagements. Consequently a review 

engagement provides less assurance than an audit. 

We do not provide any assurance on the assumptions 

and feasibility of prospective information, such as 

targets, expectations and ambitions, included in the 

Report. 

The Management Board of SBM Offshore N.V. is 

responsible for the preparation of the Report. We are 

responsible for providing an assurance report on the 

Report. 

Reporting criteria 

SBM Offshore N.V. developed its reporting criteria on 

the basis of the G3 Guidelines of the Global Reporting 

Initiative (GRI) as published in October 2006, as mentioned 

in the section titled reporting transparency on 

page 29 of the Report. The reporting criteria as developed 

by SBM Offshore N.V. contain certain inherent 

limitations which may influence the reliability of the 

information. The Report does not cover all lease units 

of SBM Offshore N.V. This is adequately disclosed in 

the section titled ‘Sustainability Reporting Scope’ on 

page 99 of the Report. 

We consider the reporting criteria to be relevant and 

sufficient for our examination. 

Scope and work performed 

We planned and performed our work in accordance 

with Dutch law, including Standard 3410N ‘Assurance 

engagements relating to sustainability reports’. 

Our most important review procedures were: 

• performing an external environment analysis and 

obtaining insight into the branch, relevant social 

issues, relevant laws and regulations and the characteristics 

of the organization; 

• assessing the acceptability of the reporting policies 

and consistent application of this, such as assessment 

of the outcomes of the stakeholder dialogue 

and the reasonableness of estimates made by 

management, as well as evaluating the overall presentation 

of the Report; 

• reviewing the systems and processes for data 

gathering, internal controls and processing of other 

information, such as the aggregation process of data 

to the information as presented in the Report; 

• reviewing internal and external documentation to 

determine whether the information in the Report is 

substantiated adequately; 

• assessing the application level according to the G3 

Guidelines of GRI. 

We believe that the evidence obtained from our examination 

is sufficient and appropriate to provide a basis 

for our conclusion. 

Conclusion 

Based on our procedures performed, nothing has come 

to our attention that would cause us to conclude that 

the Report, in all material respects, does not provides a 

reliable and adequate presentation of the policy of SBM 

Offshore N.V. for sustainable development, or of the 

activities, events and performance of the organization 

relating to sustainable development during the reporting 

year, in accordance with the SBM Offshore N.V. 

reporting criteria. 

Rotterdam, 24 March 2011 

PricewaterhouseCoopers Accountants N.V. 

Original signed by: A.F. Westerman RA 




GRI Index Level C+ 

VISION AND STRATEGY 

ORGANISATIONAL PROFILE 

REPORT PARAMETRES 

GOVERNANCE, COMMITMENTS, AND ENGAGEMENT 

ECONOMICAL PERFORMANCE INDICATORS 

ENVIRONMENTAL PERFORMANCE INDICATORS 

LABOUR PRATICES AND DECENT WORK 

SOCIETY 


GRI Page 

Sustainability, vision and strategy 1.1 28 

Name of organisation 2.1 19 

Primary products 2.2 12, 19 

Operational structure 2.3 20 

Location of HQ 2.4 20 

Countries of operation 2.5 34 

Nature of owmership 2.6 22 

Markets served 2.7 19, 34 

Scale of reporting organisation 2.8 20, 26, 98 

Significant changes 2.9 none to report 

Awards received 2.10 not reported 

Reporting profile 3.1, 3.2, 3.3, 3.4 26, 116 

Reporting boundaries 3.5, 3.6, 3.7 22, 24, 98 

Basis for reporting including JV 3.8 20, 98 

Re-statements 3.10 52 

Significant changes 3.11 none to report 

GRI tables 3.12 112 

Governance 4.1, 4.2, 4.3, 4.4 19-24, 28-30 

Stakeholder engagement 4.14, 4.15 24, 30 

Employees EC3 68 

Direct and indirect energy consumption EN3, EN4 106 

Initiatives and reductions in energy 

requirements EN6 28-30, 53 

GHG and non GHG Emissions EN16, EN17, EN20 52, 104-106 

Number and volume of spills EN23 50, 104 

Employement LA1, LA2 62-71, 107-110 

Labour/ Management relations LA4 70 

Health and Safety LA7, LA8 45-48, 67, 103-104 

Training and Education LA10, LA11, LA12 58, 70-71, 110 

Diversity and Equal opportunity LA13, LA14 66-67, 110 

Community S01 22, 76-88

Notes 

Note 1 

The exposure hours, incidents and frequency rates 

shown below include all hours recorded on TREG 

(including SBM-PC) and any incidents recorded at 

SBM Offices and premises. 

Note 2 

FAT: Fatality 

LTI: Lost Time Incident 

RWC: Restricted Work Case 

MTC: Medical Treatment Case 

NM: Near Miss 

Days Lost: LTI Days Lost 

LTISR: Lost Time Incident Severity Rate 

LTIFR: Lost Time Incident Frequency Rate 

TRI: Total Recordable Incidents 

TRIFR: Total Recordable Incident Frequency Rate 

Note 3 

The Total Recordable Incidents is the sum of the 

Fatalities, Lost Time, Restricted Work Case and 

Medical Treatment Case incidents, but exclude First 

Aid Case and Near Miss Incidents. 

TRI = FAT+LTI+RWC+MTC 

TRIFR = TRI x 200,000 

EH 

Where: 

TRI = Total Recordable Incidents 

200,000 = base for 100 equivalent full-time 

workers (Working 40hrs per week, 50 

weeks per year) 

EH = Exposure Hours, total hours worked 

by all employees 

LTIFR = LTI x 200,000 

EH 


Where: 

LTI = the number of Lost Time Incidents 






LTISR = Days Lost x 200,000 

EH 

Where: 

Days Lost = LTI Days Lost 








Yme MOPUstor in Norway




SBM Offshore N.V. 

Postal address 

P.O. Box 31 

3100 AA Schiedam 


Street address 

Karel Doormanweg 66 

3115 JD Schiedam 


Telephone +31 (0)10 232 0900 

Telefax +31 (0)10 232 0999 

E-mail: sbm@sbmoffshore.com 

www.sbmoffshore.com 

Colophon 

Design 

Mattmo Concept | Design, Amsterdam 

Printing 

B.V. Drukkerij De Eendracht, Schiedam 

Disclaimer 

Some of the statements contained in this report that are not 

historical facts are statements of future expectations and 

other forward-looking statements based on management’s 

current views and assumptions and involve known 

and unknown risks and uncertainties that could cause actual 

results, performance, or events to differ materially from those 

in such statements. Such forward-looking statements are 

subject to various risks and uncertainties, which may cause 

actual results and performance of the Company’s business 

to differ materially and adversely from the forward-looking 

statements. Should one or more of these risks or uncertainties 

materialize, or should underlying assumptions prove incorrect, 

actual results may vary materially from those described in 

this presentation as anticipated, believed, or expected. SBM 

Offshore NV does not intend, and does not assume any obligation, 

to update any industry information or forward-looking 

statements set forth in this presentation to reflect subsequent 

events or circumstances.

Sustainability Report 2010 - SBM Offshore

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