2012 Sustainability selection - SBM Offshore

Compliance Officer (CGCO) to lead this investigation among other tasks.
The Group has disclosed this internal investigation to appropriate authorities and has taken remedial action to
enhance its compliance programme. Good progress has been made during the year but the investigation is still in
progress; typically these types of investigation take 12 to 18 months to conclude.
During 2012, many of the pieces have been put in place to make the cultural transformation successful over the
coming periods. A new organisation structure, strategy and ways of working have been implemented and a new
management team is in place.
Restoring the risk/reward balance is among the first priorities as the there is a structural imbalance in the industry
resulting in disappointing financial results over the last couple of years for all FPSO players. A structural
redressing of the balanced risk/reward should lead to less downside risk in the execution of the projects and
eventually lead to superior financial returns at historic levels.
In line with the Group’s strategic focus on FPSOs and associated products, divestments were made in non-core
assets. GustoMSC was sold for approximately US$ 189 million and the Dynamic Installer, a diving support vessel
was sold for US$ 15 million.
Financing was successfully obtained for two lease projects during the year. A total of US$ 1.08 billion was
secured with a Limited Recourse Project Loan from a consortium of banks to finance the construction of FPSO
Cidade de Ilhabela. The Group also successfully priced its first US Private Placement Project Bond of US$ 500
million to refund investments made in FPSO Cidade de Anchieta.
The liquidity in the market to secure close to US$ 1.7 billion in difficult times through diversified funding has
improved the risk profile for the Group to secure funding for future projects.
The Group established a 3 Year Plan in line with the new organisation structure in which Execution Centres will
be held responsible for their performance. The plan sets the objectives for performance indicators for financial,
commercial, development and human resources in line with the Group objectives.
3.1.1 Organisation
The changes to the organisational structure in order to maximise the capacity to execute large and complex
projects has been successfully implemented during the year. The delegation of a broad range of responsibilities,
for delivery and performance is in place and operational.
The focus now for 2013 has shifted to improving the performance of the Execution Centres within the context of
the Group's principles, rules and guidelines. Each project or FPSO unit constitutes a ‘building block’ within an
Execution Centre and each such project or FPSO, is managed by a fully integrated project team.
With consistency in the organisational structure at each Execution Centre, one way of working is in place, which
ensures the same processes, systems and objectives are used throughout the Group.
The Group's strategy, values, and brand have now been implemented Group wide and reflect the new
organisational structures which promote a one-Group culture, focused on delivering uniform future successes.