corporate social responsibility report 2010 - Thecorporatelibrary.net

public.thecorporatelibrary.net
  • No tags were found...

corporate social responsibility report 2010 - Thecorporatelibrary.net

CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201105Offshore Support (OSV) vesselsBumi Armada owns, operates and chartersvessels to provide support for exploration,development and production activities in theoffshore oil and gas (O&G) industry. Equippedwith in-house expertise, we are also able toproject-manage the construction of our vessels.We are one of the largest OSV owners andoperators in South East Asia with over 40vessels of various types, serving clients in over10 countries in Asia, Africa and Latin America.Transport & Installation (T&I)Bumi Armada provides pipelay, heavy lift, subseainstallation, floater and mooring installation andmarine spread support. Our derrick pipe lay barge(DLB), Armada Installer has been operationalsince 2010 off Turkmenistan in the Caspian Sea.As more offshore installations move intodeepwater, the demand for subsea installationwill continue to grow. In 2010, we have acquiredthe Armada Hawk, a cost effective DP2 subseainstallation vessel, which will also allow us tooffer SURF (subsea umbilicals, risers and flowlines)services in support of our synergistic service toFPSO installation as well as to third parties.Oil Field Services (OFS)OFS provides various specialized services requiredin the offshore mature/brownfield markets. Theseinclude, amongst others, marginal field productionsolutions such as Enhanced Oil Recovery (EOR),process modules to enhance the extraction ofhydrocarbons from the reservoirs as well asspecific services and assets offered on a risk-basedservice contract (RBC) basis for working in themarginal and mature/brownfield environment.Fleet Management System (FMS)The focus of our in-house FMS support unit isprimarily the manning and maintenance servicesfor our vessels, fleet and crew. Other items suchas scheduled maintenance and repairs of vesselsare also coordinated under our FMS unit. Our OSVsand FPSOs are managed centrally from Malaysiavia operational shore bases. All our vessels areconnected to the internet via satellite. This allowsfull ship-to-shore connectivity and communicationfor both our offshore crew as well as our shorebases.Safety is a vital factor in the offshore O&G industryand taking this into consideration, we maintain ouroperations in-house, taking a hands-on approachto the day-to-day activities on our vessels. We alsoview the management of our assets as a majorfactor in maintaining the integrity and operationalcapacity of our vessels.The information technology back-bone to our FMSunit is the Barber Ship Management System (BASS).This system is a critical operational componentas it coordinates our entire fleet which has accessto over 1,300 crew members in more than 10countries around the world.Engineering, Procurementand Commissioning (EPC)Our EPC unit provides Engineering, Procurement,Installation, Construction and Commissioning(EPICC) services for all our own assets andmajor projects and on a turn-key basis. We havesuccessfully established our in-house expertise todesign, procure and build on all major projects,such as FPSOs and the DLB, Armada Installer.We ventured into the OFS segment with theconversion and sale of a Floating Storage andOffloading vessel (FSO) to Petrofac E & C Sdn Bhd,for the Sepat field, off Terengganu, Malaysia.


06CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011OURPRESENCEA Malaysia-based international offshore servicesprovider with an expanding reach.LocationMALAYSIAFunctionsHeadquarters in Kuala Lumpur and three shorebases located in Miri, Labuan and Kemaman toprovide support and FMS for customers inSouth East Asia.SINGAPOREOffice to support the EPC unit.BRUNEIRepresentative office to support our operationsin Brunei.VIETNAMRepresentative office in Vung Tau to support ouroperations in Te Giac Trang field.INDONESIAShore base/office in Jakarta for our joint-venturewith Indonesia’s PT Gema Group for expansionand market development in Indonesia.AUSTRALIAINDIAUAEAustralian office supports Balnaves field operations.In addition, over medium term, technologyresources to support our international sales andoperations will also be developed in this office.An office in Mumbai. We have individual jointventureswith Forbes Campbell Finance Ltd,Forbes & Company Ltd, and Shapoorji Pallonji &Company Limited, offering services for the Indianoffshore O&G market.Marketing office in Dubai for our activities inthis region.MexicoVenezuelaTURKMENISTANShore base in Turkmenbashy and an office inAshgabat to support our operations in theCaspian Sea.AFRICAShore bases/offices in Angola, Congo and Nigeriato support our operations in West Africa and anoffice in Lagos, Nigeria for our joint-venture withNigeria-based Century Energy Services Limited(CESL) for projects in Africa.BRAZILRepresentative office in Rio de Janeiro to supportour expansion into this market.VENEZUELARepresentative office in Puerto la Cruz to supportour operations in Venezuela.MEXICORepresentative office to support operations inMexico.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201107FPSO Armada TGT 1DLB Armada InstallerFPSO Armada Sterling- under conversionTurkmenistanNigeriaUAECongoIndiaSouth East AsiaBrazilAngolaAustraliaFPSO Armada PerkasaFPSO Armada PerdanaFPSO Armada Claire- under conversion


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201109IOCIPOIRMISOKPILTIMOPUMSCINCRNOCO&GO&MOFSONGCOPECOperatingEBITDAOSVPAPPetrobrasPetronasPSVPTTEPPVEPRiserSEASGD orSingaporeDollarSURFTRIFTQMUSD orUS DollarInternational oil company, refers to large private or public oil companies that have upstream, midstream anddownstream capabilities, such as Royal Dutch Shell plc and The Exxon Mobil CorporationInitial public offeringInspection, repair and maintenanceInternational Organisation for StandardisationKey performance indicatorLost time injury, a work-related injury or illness that renders the injured person unable to return to work on thenext working day after the day of the injury or illnessMobile offshore production unitMorgan Stanley Composite IndexNon conformance reportNational oil company, O&G company owned or controlled by a national government, typically having specialrights or access to its local marketOil and gasOperations and maintenanceOil field services, refers to services required to maximise the extraction of hydrocarbons in the marginal fieldand EOR businessOil and Natural Gas Corporation in IndiaOrganisation of Petroleum Exporting CountriesProfit before finance cost, tax, depreciation, amortisation, fair value changes of call option andlisting expensesOffshore support vessel, refers to any vessel, boat or ship whose main function is to support the offshoreO&G operations, which includes movement of equipment or structures, as well as transportation of materialsand personnelPositive Attitude ProgrammePetróleo Brasileiro S.A.Petroliam Nasional BerhadPlatform support vessel, designed to supply offshore oil platforms and used for transportation of goods andpersonnel to and from offshore oil platforms and other offshore structuresPTT Exploration and Production Public Company LimitedPetrovietnam Exploration Production Corporationpipe or assembly of pipes used to transfer produce from the seabed to the surface facilities or to transferinjection fluids, control fluids or lift gas from the surface facilities to seabedSouth East AsiaSingapore Dollar, the lawful currency of SingaporeSubsea umbilicals, risers and flowlinesTotal recordable injuries frequencyTotal quality managementUnited States Dollar, the lawful currency of the US


10CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011VISION, MISSIONAND CORE VALUESVISION“To be the trusted premier offshore andmarine oil and gas services provider inevery corner of the world”MISSION“To own, lease and operate amodern oil and gas fleet safelyand in an environmentallyfriendly manner”CORE VALUES


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201111BUMI ARMADA BERHAD’SCORPORATE SOCIALRESPONSIBILITY CHARTERIntroduction:We are committed to becoming a truly responsible business and aim to achieve our company goals in afair, ethical, and responsible manner, whilst making every effort to positively impact the communitiesand environments in which we work. To achieve this, the company will strive to positively impact thefollowing key areas:Our Impact on the Environment:We will act responsibly towards the environment and seek to mitigate or reduce our impact; with theultimate aim of conducting our business in a sustainable way.Our Impact on Society:At all times act as a good corporate citizen and participate in the social development of communitieswhere our operations are based, and showing sensitivity and respect to the local laws, culture andcustoms.Our Respect for People:We will look beyond minimum legal requirements in terms of improving the personal health, wellnessand safety protection of our staff and visitors.In line with our HSSE Policy, we will act in a way that develops our employees’ skills, encourages themto be proactive in health and safety, and promotes awareness of health and safety objectives.Respect the rights of every individual we interact with and promote a good working environment forour employees and visitors.Responsibility for the Corporate Social Responsibility (CSR) Charter:The Bumi Armada Corporate Social Responsibility Charter is the duty of each and every member ofstaff to implement and maintain. Those holding supervisory, management or other senior positionshave additional and particular responsibilities to ensure the effectiveness of its application and thecommitment of all staff and others to it.Feedback and Contact Information:We welcome feedback from any section of the community. If you have a comment regardingour Corporate Social Responsibility Charter or the company, please contact us at:bumiarmada@bumiarmada.comHassan BasmaExecutive Director/Chief Executive Officer


12CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011MESSAGE FROM THE CEOAND PERFORMANCE REVIEWThis Corporate Social Responsibility (CSR) Report covers a period oftwo years, 2010-2011, following our inaugural report in 2009. Both yearsin question saw companies and countries across the globe struggle totackle a myriad of social-economic issues as the equilibrium of past yearswas shaken by the post Euro debt crisis, global recession, compoundedby a variety of natural and man-made disasters.The 2010 Icelandic volcanic eruption that shutdown European air travel together with the othernatural disasters like the 2011 tsunami that hitJapan have refocused our attention on disasterpreparation and recovery. The Macondo disasterin the Gulf of Mexico that cost BP more than USD21billion for clean-up and economic damage due tothe oil spill sends a strong message for safety andoperational excellence while the Arab Spring hasrevealed unhappy people who want thteir voicesto be heard; voices that ask for jobs, freedom anda good standard of living and the internet, withits wide reach, has become an enabler. All theseincidents have strong sustainability implications.A new era with new dynamics and a newequilibrium is emerging. An era where CSR is nolonger nice to have but a ‘must have’; where CSRpolicies are no longer just for brand imagingbut a reflection of good governance and ofoperational excellence. Indeed several worldclass organisations have been measuring CSR andsustainability indices of countries and companiesalike indicating beyond the shadow of doubt thatinvestors, both retail and corporate, see CSR andsustainability as a measure of how well companiesare run.As the CSR equilibrium and best practices evolve,we at Bumi Armada have taken several tentativesteps toward developing and implementing astrong CSR Charter and strategy. To begin with, webelieve that sustainable growth means “to use thisearth, human and material resources effectively toachieve our objectives in such a way that it allowsour children and grandchildren to surpass ourachievements and reach their goals.”Bumi Armada has established a CSR Committeewith a charter to spearhead the company’s CSRperformance. The Committee will be responsiblefor assessing economic, environmental and socialimpact of our business, identifying areas forimprovement for our OSV fleet and FPSOs andraising awareness levels amongst our employeesof the strategic importance of responsible andsustainable management.Moving forward, our focus will be on:1. Energy efficiency and emissions2. Local content as an integral part of“Global execution, local delivery”3. Equality and meritocracyWe have taken initial steps in this thousand milejourney. Whilst progress has been made, a lot ofhard work and major challenges remain ahead.Given our track record thus far, and the depth ofthe commitment and passion our people havedemonstrated, I feel confident we can succeedin making this world a better, more humane andmore compassionate and far more exciting placeto work and live in.Yours truly,Hassan BasmaExecutive Director/Chief Executive Officer


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201113KEY SUSTAINABILITYINDICATORS ANDFINANCIAL HIGHLIGHTSIn the past 2 years, we have made progress in expanding our datacollation to cover offices outside Malaysia and highlights of ourCSR performance are:30% increase in the Safety Observations Frequency76% reduction in the Total Recordable Injuries Frequency (TRIF)Reduction from 5 to 3 in loss of containment (contained on board)Zero fatality and zero LTI13 health, safety and environment (HSE) awards (2010-2011)13,750 manhours of training and developmentImplementation of video conferencing facilities across our operating offices globallyFuel consumption from our fleet is 95,824.92 cu/m.4.1% reduction in electricity consumption1.2% reduction in water consumption9.2% reduction in paper consumptionHSSEQ Performance 2010 -2011IncidentFatalityLost Time Injury Frequency (LTIF)Total Recordable Injuries Frequency (TRIF)First Aid Case Frequency (FACF)High Potential Near Miss Incident with potential severity ratingsof serious and very seriousFire / ExplosionLoss of containment (on board)Loss of containment (overboard)SecurityManhours2011000.0380.23203015.331 million201000.0430.0850.64015054.703 million


14CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011KEY SUSTAINABILITYINDICATORS ANDFINANCIAL HIGHLIGHTSConsumption of ResourcesResources201120102009Electricity (kWh)884,882879,224922,658Water (m3)1,4701,2581,488Paper (reams)6,6667,3416,415Bunker fuel (litres)56,922,51438,902,409Not AvailableProfit, Revenue and EBITDA, in RM (millions) 2009-2011:1800170016001500140013001200110010009008007006005004003002001000732.09277.44520.661,241.38350.75714.101,543.89365.332009 2010 2011899.63RevenueProfit for the financial yearEBITDA


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201115AWARDSAND RECOGNITIONCorporate Awards2011 Alpha Southeast Asia Deal & Solutions AwardsBest Equity/IPO Deal in SEA2011 Islamic Finance News AwardsIPO/Equity Deal in SEA2011 Finance Asia Achievement Awards: MalaysiaBumi Armada USD888 million IPO2011 Asia Money Plus Country Deal Awards: MalaysiaBumi Armada USD888 million IPOThe BrandLaureate Master Awards 2010-2011 For Best Brands In LogisticsOffshore and Marine Support Vessels by The Asia Pacific Brands FoundationFrost & Sullivan’s 2010 Malaysia Excellence AwardsOil & Gas Services Provider Of The Year


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201117ABOUTTHIS REPORTThis is our second Corporate Social Responsibility (CSR) Report whichcovers our responsibilities to our stakeholders and our ongoingcommitment to transparency and accountability. This report disclosesour performance on economic, social and environmental issues whichare most material to our business and stakeholders.We have made considerable progress in the last 2 years following our inaugural report in 2009 and wehave also identified key areas of focus for improvements which will enable us to track our performanceand coordinate our efforts across our operations worldwide more effectively. For this report, we haveconsolidated data from Bumi Armada Berhad’s head office, domestic and overseas offices and shorebases, 43 OSVs, 3 FPSOs and a barge. Data presented in this report will be in its basic form, such aslitres/cu metres of fuel and kWh of electricity, and we intend to explore conversion to carbon and GHGemissions as we move forward.We have engaged an independent consultant, OWW Consulting Sdn Bhd, to provide an external assuranceof this report.Reporting ScopeThis report covers all significant environmental, economic and social impacts resulting fromBumi Armada’s activities in the 2010/2011 period. Indicators and initiatives which are partial and relateto certain branches are labelled accordingly.Reporting PeriodThis report describes activities and achievements in FY2010/2011 (January 2010 to December 2011).In some cases, the report covers activities outside this period.Reporting CycleBiennialReporting FrameworkIn preparing this report, we have taken into consideration ISO 26000 principles of inclusivity, materialityand responsiveness, and the updated International Petroleum Industry Environmental ConservationAssociation (IPIECA) reporting guidance. We aim to align our approach to sustainability management andreporting with the following principal framework:Global Reporting Initiative (GRI) G3.1 GuidelinesWe are pleased to announce our achievement of an A+ GRI grade for our second consecutive CorporateSocial Responsibility Report, which is an indication of our comprehensive and transparent reportingapproach following GRI indicators.Distribution and Feedback of the ReportFeedback on our report is welcome. For further information and comments,please contact:Grace LowVice President, Corporate Communications and CSRBumi Armada Berhad, Level 21, Menara Perak, 24, Jalan Perak, 50450 Kuala Lumpur.Email: bumiarmada@bumiarmada.com


18CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011MATERIALITYANALYSISThe content of the report was determined by:(1) Bumi Armada’s sustainability charter;(2) issues material to our key stakeholders;(3) our sustainability self-assessment; and(4) the core GRI indicators that apply to our business.In this report, we address sustainability risks and opportunities identified as having low-to-high impacton our business and being of low-to-high interest to our stakeholders. These are either issues that exerta great impact on us or issues that we believe we can influence positively. At present, the topics of highlevel of relevance for us and our stakeholders are:LOW MATERIALITYHIGH MATERIALITY• Human Rights• Biodiversity• CorporateGovernance• ResponsibleProcurement• CommunityEngagement• Health, Safety,Security andEnvironment(HSSE)• EnvironmentalPerformanceIdentifying Key IssuesTo identify key issues, we conducted a materiality review that involved an in-depth look at Bumi Armada’sobjectives and risk factors, as well as media coverage, and internal newsletters that highlight importantevents throughout the year. Issues were also identified from ongoing dialogues where we highlight,discuss and address complex and significant material issues with a wide range of stakeholders who areimportant to our organisation and industry. The “Guidance on Defining Report Content” and the associatedPrinciples of the GRI G3.1 Reporting Guidelines provided a useful framework for determining what toinclude in this report.We have made use of the following sources in order to identify material fields of activities:• results of our Customer Satisfaction Survey 2011;• evaluations of the feedback from business partners;• corporate strategy priorities.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201119CORPORATEGOVERNANCEBumi Armada Berhad was incorporated in December 1995 as a publiclimited company (under the Malaysian Companies Act, 1965). The BumiArmada Group of companies now includes diversified subsidiaries as wellas joint venture companies. Bumi Armada was listed on Bursa MalaysiaSecurities Berhad in July 2011.Malaysian Code of Corporate GovernanceThe company aims to comply with the MalaysianCode of Corporate Governance (“The Code”)which sets out principles and best practicesthat companies may use in achieving an optimalCorporate Governance framework. The Codeoutlines the roles and responsibilities of theBoard, a remuneration system which coversthe relationship between compensation andeffectiveness of the Board, criteria for appointmentof Directors, the compensation of the Board ofDirectors, accountability and audit and the roleof a Nominating Committee. Independent Non-Executive Directors are expected to provide a moremeaningful and independent oversight function toThe Company’s Board, including the IndependentDirectors and Audit Committee meet on a regularbasis which provides mutually beneficial adviceand oversight, and direction for the company’sperformance.Board of ManagementThere are presently ten Directors on the Boardcomprising two Executive Directors and eightNon-Executive Directors, of whom three areindependent. The number of Independent Directorsprovides an effective check and balance in thefunctioning of the Board and is in compliance withthe Main Market Listing Requirements of BursaMalaysia Securities Berhad (“Bursa Securities”)which requires at least one third of the Board tobe comprised of Independent Directors.Collectively, the Directors bring to the Board awide and varied range of business, commercial,financial and technical experience for the effectivemanagement of the group’s businesses. TheDirectors’ profiles are presented on our website.The three Independent Non-Executive Directorson the Board play a pivotal role in corporateaccountability as they provide unbiased andindependent views, advice, opinions and judgementto safeguard the interest of minority shareholders.None of the Non-Executive Directors participate inthe day-to-day management of the group.Together, the Directors believe that the currentBoard composition fairly and satisfactorilyreflects the interest of its shareholders and isable to provide clear and effective leadership tothe Bumi Armada group.To date, the Board has not found it necessary todesignate a senior independent non-executive towhom concerns may be conveyed, mainly becausefull deliberation of issues affecting the BumiArmada group by all members of the Board andshareholders is encouraged.Division of Roles and Responsibilitiesbetween the Chairman andthe Chief Executive OfficerThere is a distinct division of roles andresponsibilities of the Chairman of the Board andthe Chief Executive Officer (“CEO”). The Chairmanwho is a Non-Independent Non-Executive Directorrepresents the Board to shareholders and togetherwith the Board, reviews and approves the strategicobjectives and policies of the company. TheChairman also ensures that management proposalsare deliberated and examined by Directors,executive and non-executive alike, taking intoaccount the interests of the company and itsshareholders.The CEO on the other hand as an executive, hasoverall responsibilities over the performance ofthe group’s operational and business units. Heis responsible for the implementation of Boardpolicies, directives, strategies and decisions.At the same time, the CEO functions as the


20CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011CORPORATEGOVERNANCEintermediary between the Board and Management,working with the Board in defining the strategicobjectives of the organisation, preparing itsoperational plans and seeing to its implementationincluding business and financial performance,organisation effectiveness, human resourcedevelopment, investor relations and building brandequity, striving for operational excellence,supporting health, safety, environment and qualityperformance initiatives as well as commitment tocorporate social responsibility.Principal Responsibilities of the BoardThe Board is responsible for the effective controlof the Bumi Armada group and has adopted thefollowing responsibilities for effective dischargeof its functions:• Reviewing and adopting a strategic plan forthe group;• Overseeing the conduct of the group’sbusinesses to evaluate whether the businessesare being properly managed;• Identifying principal risks and ensuring theimplementation of appropriate systems tomanage these risks;• Succession planning, including appointing,training, fixing the compensation and whereappropriate, replacing key management;• Developing and implementing an investorrelations programme or shareholders’communications policy for the group; and• Reviewing the adequacy and the integrity ofthe group’s internal control systems andmanagement information systems, includingsystems for compliance with applicable laws,regulations, rules, directives and guidelines.The Board has collective responsibility forpromoting the success of the company by directingand supervising its affairs. The Executive Directorsare directly responsible for business operationswhile the Non-Executive Directors are responsiblefor bringing independent judgement and scrutinyto decisions taken by the Board and providingobjective challenges to the Management.The Board has delegated specific responsibilitiesto four committees, namely, the Audit, Nomination,Remuneration and Executive Committees, whichoperate within approved terms of reference.These committees assist the Board in makinginformed decisions through in-depth deliberationon complex issues which would be impractical forthe entire Board to deliberate. The ultimateresponsibility for the final decision on all matters,however, lies with the entire Board afterconsidering recommendations by the committees.RemunerationDirectors’ remuneration are to attract and retainDirectors of the experience and calibre needed tomanage the group successfully. The componentparts of remuneration for the Executive Directorsare structured so as to link rewards to corporateand individual performance. In the case of Non-Executive Directors, the level of remunerationreflects the experience, expertise and level ofresponsibility undertaken by them and the roleplayed by them in Board Committees.The company has also incorporated an EmployeeShare Option Scheme (ESOS) in 2011. The purposeof the Scheme is to promote ownership of sharesin Bumi Armada Berhad by Executive Directors ofthe company and employees of the group, therebyreinforcing a mutuality of interest among directors,employees and shareholders to attract, retain,reward and motivate employees by permittingthem to share in its growth.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201121Board Effectiveness EvaluationAs part of the Board’s function, the Board reviewsthe effectiveness of the Board as a whole, Boardcommittees as well as the individual Directorsthrough a Board Effectiveness Evaluation Exercise.This includes a review of the required mix of skillsand experience of Non-Executive Directors.Audit CommitteeBumi Armada’s Audit Committee has 4 directors,of whom 3 are Independent Non-ExecutiveDirectors. Our Audit Committee has full accessto both internal and external auditors who inturn have access at all times to the Chairmanof our Audit Committee. The Company’s Board,Independent Directors and Audit Committeemeet on a regular basis which provides mutuallybeneficial advice and oversight, and directionfor the group’s performance.The formal terms of reference require that ourAudit Committee must consist of at least 3Non-Executive Directors, the majority of whomshall be Independent Non-Executive Directors.The Chairman of the Audit Committee must bean Independent Non-Executive Director, and isselected by the members of our Audit Committee.Our Board will review the composition, terms ofoffice, performance and effectiveness of our AuditCommittee annually.Risk Management PolicyThe Board of Directors places strong emphasis andcommitment to attaining the highest standardsin effective risk management in-line with “BestPractices in Corporate Governance of MalaysianCode of Corporate Governance (MCCG)” guidelines.An enterprise risk management approachaligns strategy, processes, people, technology,knowledge and culture with the goal of identifying,evaluating and managing risks to protect andpreserve not only business value but also thereputation and integrity of the company.Whistle-blowing PolicyWhistle-blowing is a specific means by which anemployee or stakeholder can report or disclosethrough established channels, concerns aboutunethical behaviour, malpractices, illegal acts orfailure to comply with regulatory requirements.The policy provides employees with a securechannel of reporting impropriety in the knowledgethat the matter will be treated confidentially.This policy covers the reporting of malpractice,the information that will need to be recorded andthe steps that need to be followed to ensure thatthe complainant does not suffer any recriminationsor victimisation.Internal Audit DepartmentThe group has its own in-house Internal Auditfunction, whose primary responsibility is toundertake regular and systematic reviews ofthe system of internal controls so as to providereasonable assurance that the system continuesto operate satisfactorily and effectively withinthe group.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201123MARPOLOur fleet and FPSOs comply with MARPOL Convention and country regulations wherever they operate.In the period under review we are pleased to say there were no violations recorded.Business SegmentArea of OperationsVessel NamesISMISPSInternational FleetArmada Tuah 102Armada Tuah 104Armada Tuah 105Armada Tuah 301Armada Firman 3MahakamYesYesYesYesYesVessel complies to BAN SMSYesYesYesYesYesWest Malaysian FleetArmada FirmanArmada Tuah 8Armada Tuah 10Armada Tuah 85Armada Tuah 25Venture Tuah 1Venture Tuah 2Armada AmanArmada Tuah 23Armada Tugas 3Armada Tuah 9Armada Tuah 24YesYesYesYesYesYesYesYesYesYesYesYesYesYesYesYesYesYesYesYesYesYesYesYesOSVEast Malaysia FleetArmada GoodmanArmada ImanArmada TopmanArmada Tuah 6Armada Tuah 21Armada Tuah 26Armada Tuah 80Armada Tuah 82Armada Tuah 84Armada Tugas 2Armada SalmanArmada Mutiara 2Armada Mutiara 3Armada Mutiara 4YesYesYesYesYesYesYesYesYesYesYesVessel complies to BAN SMSVessel complies to BAN SMSVessel complies to BAN SMSYesYesYesYesYesYesYesYesYesYesYesNigerian FleetArmada Firman 2Armada Tugas 4Armada Tuah 22Armada Tuah 81Armada Tuah 101Armada Tuah 83Armada Tuah 20Armada HydroArmada 5Armada 6Armada Tugas 1YesVessel complies to BAN SMSYesYesYesYesYesVessel complies to BAN SMSYesYesVessel complies to BAN SMSYesYesYesYesYesYesYesYesNigeriaArmada PerkasaVessel complies to FPSO unit SMSFPSONigeriaArmada PerdanaVessel complies to FPSO unit SMSVietnamArmada TGT 1Vessel complies to FPSO unit SMST&IIndonesiaTurkmenistanArmada HawkArmada InstallerVessel complies to T&I unit SMSVessel complies to T&I unit SMS


24CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011ETHICALOPERATIONSBumi Armada is committed to ensuring that it operates responsibly andwith integrity in all its locations of operation. In the international arena,our company operates with local joint-venture partners to ensuresuperior and seamless compliance with local laws and regulations andbetter service provision in the local context. It also ensures the hiringof local talent as far as possible.With regard to this, the company has a Code of Ethics, which lays down guidelines towards building anorganisation of trust, both individually and collectively. The Code of Ethics is broad in its scope ofapplicability – covering all Bumi Armada employees, contractors, suppliers and customers. The Codesets out guidelines for compliances with the law, integrity in business dealings, record keeping andon illegal and questionable payments. The Code also governs the ethics of gifts and entertainmentby employees.In addition, the company supports a whistle-blowing culture as part of its corporate governance,in line with the ISO 26000 guidelines on Ethical Behaviour. This is evidenced by its whistle-blowingpolicy which refers to the disclosure of relevant information internally or externally by employees whohave encountered malpractices as well as illegal acts or omission at work within the company.This policy provides employees with a secure channel of reporting impropriety in the knowledge thatthe matter will be treated confidentially. The aim is to achieve the highest possible standards ofcorporate governance and ethical performance.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201125HEALTH, SAFETY,SECURITY, ENVIRONMENTAND QUALITY (HSSEQ)CORPORATE OVERVIEWCompany Core Value: Safety Mindset“Proactively safeguard yourself, others, the environment and asset”Vision“Our vision is to deliberately and conscientiously work together with allstakeholders to eliminate risk of injuries to personnel, damage toproperty and harm to environment in all aspects of what we do,build or operate.”Mission“Our mission is to build a zero tolerance culture throughout our valuechain such that safety mindset becomes a way of life.”The Health, Safety, Security, Environment, and Quality (HSSEQ) department was established on the premisethat safety is everyone’s responsibility; to proactively safeguard oneself, our colleagues and businessassociates, the environment and our assets. The HSSEQ department works closely with each businessunit and the HSSEQ Vice President reports directly to the CEO. There are Health, Safety, Security andEnvironment (HSSE) Committees at various levels to increase the interface of joint management – workercooperation in monitoring and mitigating health, safety, security and environmental risks. The companyhas a robust HSSEQ development model framework with a 3 year HSSEQ Plan which is driving towardsHSSEQ excellence; maintaining Goal Zero target. Based on this Corporate HSSEQ Plan, the individualbusiness units develop their relevant operation-specific HSSEQ plans to support the corporate targets.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201126HEALTH, SAFETY,SECURITY, ENVIRONMENTAND QUALITY (HSSEQ)Our Corporate HSSEQ Plan incorporates health, safety, security, environmental and quality factors forall the company’s offices and associated facilities. The HSSEQ department also conducts formal officeinspections annually and where appropriate, develops remedial action plans with all parties.In addition, the department has continual ongoing HSSEQ competency training for all staff and organisespresentations on HSSEQ – related issues in order to increase staff awareness. The department is fullyequipped to identify all HSSEQ non-conformities in each office location such as ergonomics, lighting,noise and hygiene conditions.Regular annual office health hazard identification audits are conducted and addressed. Selected personnelare trained as first aid practitioners and their training is up-to-date.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201127HSSE Objectives1. Improve Bumi Armada’s culture, change towardscompliance issues, critical safety behaviourand HSSE leadership.2. Improve HSSE reporting, communication,and promotion processes.3. Improve HSSE Management Systemand Software.4. Develop “Processes & Tools” training modules.5. Improve sub-contractors management,HSSE perspective.6. Measure, control and manage ourenvironmental performance.7. Improve our standards in hygiene, personnelfitness for work and medical support.8. Manage and maintain marine security.Organisation Safety CultureOur commitment to safety is in our actions.Where a safety culture operates, there is zerotolerance for hazardous conditions, unsafepractices, short cuts that compromise safety,or non-compliance with safety procedures.Our safety culture is pro-active. Employees -from the Master to the deck / engine trainee onboard our vessels, from tea ladies to managementexecutives in our offices - are actively looking tospot hazards and unsafe practices both in theirown jobs and elsewhere on board the ship or inthe offfices. Once identified, these hazards canbe eliminated or mitigated. We encourage staff toreport their own errors and near misses. The vesselmanagement team shall foster such a climate bytheir leadership and example.A safety culture requires leadership, exampleand commitment to safe working practices andan incident-free environment from on-boardmanagement, plus the active participation ofall officers and crew. The corporate HSSEQdepartment provides guidance, support andassistance in driving the safety culture.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201128HEALTH, SAFETY,SECURITY, ENVIRONMENTAND QUALITY (HSSEQ)OUR 2010 AND 2011 PERFORMANCEHSSEQ Performance Statistics - 2010 and 2011Bumi Armada maintained a strong HSSEQ performance in all levels of our business meeting predeterminedkey performance indicators (KPIs) and targets. The company’s performance for 2011 in comparison to2010 improved as highlighted in the table below. In 2011 the Corporate HSSEQ department initiatedvarious initiatives which drove the HSSE performance to an improved level for the organisation.• Implementation of corporate HSSEQ action plan• Driving HSSE excellence in line with Bumi Armada’s HSSE Development Model.• Positive Attitude Programme implementation and training.• Hazardous Act Management implementation.• Reinforcing the vessel masters overall responsibilities.• Pre-joining HSSE Inductions being further developed.• Roll out of the OSV sector new Safety Management System• Supporting individual client’s HSSE Initiatives and driving it into the organisation standards.• Stop Work Policy being continuously driven for all senior officers.HSSEQ Performance 2010 -2011IncidentFatalityLost Time Injury Frequency (LTIF)Total Recordable Injuries Frequency (TRIF)First Aid Case Frequency (FACF)High Potential Near Miss Incident with potential severity ratingsof serious and very seriousFire / ExplosionLoss of containment (on board)Loss of containment (overboard)SecurityManhours2011000.0380.23203015.331 million201000.0430.0850.64015054.703 millionTotal Recordable Injury Frequency Rate (TRIFR) and Lost Time Injury Frequency Rate (LTIFR) for period 2008-2011:Frequency0.250.20.150.10.0500.2020.1310.0850.065 0.0510.0430.038 02008 2009 2010 2011Total Recordable InjuryFrequency Rate (TRIFR)Lost Time InjuryFrequency Rate (LTIFR)


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201129ENVIRONMENTAL PERFORMANCEElectricity ConsumptionOur electricity consumption has been a key areaof focus at Bumi Armada. We have implementedmeasures aimed at reducing by 5% the electricitywe consume in our facilities and other operations.We encourage our employees and crew memberson board our facilities to keep lights off when notin use. At our shore bases at all locations andbusiness units air-conditioning thermostats areset at 25 degree Celsius as part of our efforts forenergy conservation. We invested in the purchaseof ENERGY STAR qualified computers and laptopsas they use less energy than conventionalproducts.For 2011, our total Malaysian onshore electricityconsumption was 884,882 kilowatt-hours (kWh)– a decrease of 4.1% since 2009 – despite anincrease in number of employees.Water ConsumptionIn 2011, our water consumption across allMalaysian offices was 1,470 cubic metres (m3)– a modest 1.2% reduction in water use since 2009.A water conservation awareness programme hassince been implemented across the company witha target of reducing consumption by 5%.travel and by equipping our offices with stateof-the-arttechnology to enable our people tocommunicate and work together.As we had proposed in the 2009 CSR report, wehave now implemented video conference facilitiesin 6 locations - Kuala Lumpur, Kemaman, Miri,Labuan, Singapore and Turkmenistan end of year2011. Currently, internal meetings and trainingsbetween offices are conducted through videoconference. While we are unable to present exactnumber of air miles and time cost saved as wellas productivity improvements at work, we arepleased to note video or teleconferences occurringalmost on a daily basis. The HR Department as anexample, conducts interviews via Skype. With thisfacility we believe it has significantly reduced thetravelling of our employees.A system for tracking this usage and the resultantsavings is being assessed and we hope to be ableto report on that in the next report.Paper ConsumptionOur total Malaysian onshore paper consumptionreduced by 9.2% from 7,341 reams in 2010 to6,666 reams in 2011, driven largely by a decreasein the amount of printing at our Malaysian officesin 2011. Reducing overall paper usage is consistentwith our environmental vision, and our target of5% year-on-year reduction until August 2013.TravelAs a Malaysia-based international company, ouremployees often have to travel to locations wherewe operate around the world. One of the initiativesmoving forward will be an effective method oftracking international air travel and its resultantcarbon footprint. The past two years have beenfocussed around minimising the need for business


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201130HEALTH, SAFETY,SECURITY, ENVIRONMENTAND QUALITY (HSSEQ)A. FPSO BUSINESS UNITOperational Safety and HealthBumi Armada gives the highest priority to health,safety and environmental matters wherever weoperate. We are committed to reducing the risksand hazards to health, safety and environmentfrom our activities and services. We take thefollowing measures towards achieving this goaland preservation of the environment we work in:• On board the FPSOs, each Superintendent makesa weekly formal safety performance inspectionof a designated area (or work area of anotherSuperintendent) for the specific purpose ofidentifying hazards, unsafe conditions, unsafework habits or employees with weak safetyattitudes.SecurityAs with most oil and gas services companies, weoperate in some high risk locations and we havein place plans to ensure the wellbeing of ourpeople, assets and the integrity of operations inthose locations. The security of our personneland assets are regularly reviewed and updatedvia the processes contained within the company’smanagement system and our corporate riskmanagement guidelines. Our commitment tolocal content and local partners, and closecollaboration with our clients, the oil fieldoperators, play an important role as well.• The FPSO Offshore Installation Manager (OIM)makes a weekly employee safety performanceobservation of at least one work area on thejob. This is to evaluate the thoroughness ofthe superintendent’s safety programme and,also serves as a measure of employeeunderstanding, acceptance, responsivenessand knowledge of the programme.• Weekly safety meetings are conducted todiscuss near-miss incidents, accidentinvestigations, job safety audits and safetyproblems encountered or anticipated. Thisserves as a safety awareness training sessionwith an emphasis on improving and expandingthe supervisor’s or foreman’s safety knowledge,performance and awareness.• Once every two months, the company’s healthand safety representatives conduct a job-sitesafety performance inspection.• Procedures for security are followed as perInternational Ship and Port Facility Security(ISPS) regulations.• We ensure that employees are providedwith a job site free from hazards by usingaccepted engineering and work practicecontrol measures.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201131Environmental PerformanceFlaringDepending on the field, gas is a by-product ofoil production of an FPSO operation. Wherepossible, the FPSO is designed to export the gas,or re-inject it into the field. Where possible, theFPSO will utilize the gas for power generation.Disposal of excess natural gas into the atmospherecan be direct (venting) or by controlled burning(flaring). For safety and environmental reasons,venting is not preferred.On the FPSO Armada Perkasa, production revealedan unexpected significant amount of gas; this isan unfortunate situation as the reservoir is notcapable of receiving re-injected gas. The amountof gas flared on the FPSO Armada Perkasa hasincreased 35.5% from 4.71 million metric standardcubic feet per day (MMscf/d) in 2010 to 6.38MMscf/d in 2011.Oil Field Gas UtilizationMMsct/dTotal GasProducedGasInjectionGas LiftFuel GasFlared GasDaily47.4710.610.002.2034.66Monthly1,400.46213.720.0051.791,134.95Produced Gas UtilizationCumulativeYearly6,602.102,313.502.26383.613,902.734%From Start25,575.357,409.853.721,013.9817,147.79On the other hand, the extent of flaring on theFPSO Armada Perdana in 2011 was reduced by36.8% compared to 2010. This was achieved byincreased reliability of the gas compressionpackage on the facility that is used to re-injectthe gas back into the reservoir.The Armada TGT 1 just started its operationsin August 2011 and the facility has stabilizedconsiderably since start-up. The data will beincluded in the next report.Flared GasGas InjectionFuel Gas29%67%


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201132HEALTH, SAFETY,SECURITY, ENVIRONMENTAND QUALITY (HSSEQ)Produced Water‘Produced Water’ is waterextracted from the oilreservoirs and separatedfrom the hydrocarbon liquidsthrough a series of processesusually located on the offshorefacilities; a combination ofproduced formation watertypically containing smallvolumes of hydrocarbons,traces of minerals,production chemicals,dissolved salts and somesolid particles such as sand.Wastewater DischargeOur FPSOs produce a seriesof discharges including blackwater (kitchens and toilets)and grey water (from baths,shows or sinks)Water ManagementAs part of the production of oil and gas, large quantities of waterare also produced. Whether on land or at sea, it is generally acceptedthat produced water should be processed sufficiently that thequantities and concentrations ofpotentially harmful components arereduced to levels that are known or are deemed to be harmless tothe environment in which the water is discharged.After treatment, produced water still contains traces of oil andbecause of this; discharge into the sea is strictly controlled bylegislation. The current protocol limits the content of oil indischarged water to 40 parts per million (ppm) averaged overa calendar month.Bumi Armada strictly monitors oil concentrations in produced waterat all their production facilities on a daily basis and manages the oil/water separation process to meet their discharge compliance.Waste ManagementImplementing waste segregation at the source optimizes potentialrecycling and minimizes the environmental impacts from wastegeneration. Waste segregation is performed on all our FPSOinstallations according to requirements from the customer andlocal rules and regulations. A large variety of waste products aregenerated, which are segregated on board for further onshoretreatment, recycling and disposal.A local contractor is appointed to coordinate the staging andultimate disposal of hazardous and non-hazardous waste from theshore base, on a weekly basis, a supply boat will arrive at the FPSOto remove all waste products, segregated within two categories:hazardous and non-hazardous. Non-hazardous waste (glass, metal,paper and plastic) is removed for recycling where possible, whilehazardous waste materials (medical, chemical and toxic materials)are removed for disposal according to local regulation.Loss of ContainmentThrough continuous monitoring, adherence to procedures andplanning, our FPSOs strive to keep unplanned discharges to aminimum – aim to reach the target of zero spills.In 2010 FPSO Armada Perkasa reported an oil spill in the deck ofhe facility, caused by small leak from a crude oil wash line. Thiswas contained on board the FPSO and no oil was discharged to thesea. During 2011 a single oil spill was also reported on the sameFPSO, which resulted in a discharge of less than 0.31 barrel of oilinto the sea.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201133B. OSV BUSINESS UNITOperational Safety and HealthWith a fleet of over 40 vessels working all overthe world, we strive to minimize work andoperations-related risks to our employees tocompany assets as well as to our valued clients’assets and employees. This is done through avariety of proactive measures:• Various safety campaigns are rolled out to ourOSVs and company-wide to promote safetyawareness. These campaigns are developedand initiated through continuous studies doneby the HSSE team leaders and committeeanalyzing any weaknesses and identifyinghow to further improve HSSE performancefleet wide.• Managers and Superintendents carry outInternational Marine Contractors Association(IMCA) Inspections, International SafetyManagement (ISM) & International Ship andPort Facility Security (ISPS) Internal Auditsand Hygiene Inspections in line with anannual Audit Plan to ensure compliancewith management standards.• Procedures for shipboard security are compliedwith as per the ISPS Code. There is a CompanySecurity Officer (CSO) for each shore base andat least one Ship Security Officer (SSO) on everyOSV Vessel as required compliance with theISPS Code. The CSO and SSOs are trained incompliance to flag state and international laws.• A HSSE committee is in place to increase theinterface of joint management – workforcecooperation in monitoring and mitigating health,safety, security and environmental risks.Environmental PerformanceGlobal statistics show that the shipping industrycontributes about 4% of global CO 2 emissions toour environment. This comes mainly from burningof marine diesel fuel by vessels’ main engines,generators and other diesel operated machineriesduring sailing or on site operation at the offshoreoil fields.In 2010 and 2011 our OSV fleet fuel consumptionwas estimated to be 95,824.92 cu/m. It is difficultto reduce fuel consumption as vessels’ tasks andjob scope vary significantly from dayto day. However, we aim to improve efficiencythrough a variety of initiatives such as:• Optimizing vessels to operate on economicalspeed while sailing.• Utilizing standby buoys provided at specificoff-shore locations by oil majors.• If there are no standby buoys on location,then vessels steam on one main engine whilewaiting for further instructions from offshoreinstallations or drilling rigs.Vessels are required to provide detailed daily fuelmonitoring reports which are closely monitored. Inaddition, we have also embarked on a pilot projectto install a fuel monitoring system on board forselected vessels. The project results and feedbackhave been very encouraging.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201134HEALTH, SAFETY,SECURITY, ENVIRONMENTAND QUALITY (HSSEQ)Electricity and Consumption of PaperOSV targets for both electricity and paperconsumption have been set to reduce by 5% by31 December 2013. An action plan has been rolledout fleet-wide for its compliance in achieving thetargets.Generation of WasteAppropriate waste segregation and proper disposalto meet the respective country requirements arestrictly complied with on board the company fleet.Water ManagementAll of our workforce are trained in respect to thecompany’s Environmental Management System,and are encouraged to conserve water by turningoff taps and showers when not in use. Our vesselsare also equipped with reverse osmosis watermaking plants. The reverse osmosis overcomesnatural phenomenon by forcing seawater(under high pressure) through a semipermeablemembrane into potable water. This allows less orno water supplies required from shore based tovessels operating in the offshore oil fields throughsupply vessels. We have also fitted vessels withwater purification systems to purify water fit fordrinking. The filters are replaced regularly and thewater samples are sent for lab testing. This helpsreduce the supply and consumption of bottledwater thus reducing generation of plastic waste.Current MARPOL legislation stipulates thatseparated bilge water containing oil in water of15 parts per million (ppm) or below can bedisposed into international water. To ensure thewater meets this requirement, internationallyapproved “Oily Water Separators” have been fittedon board our OSVs to monitor the content of oil inthe water. A three-way valve operates such that inthe event that the oil content exceeds 15 ppm, thewater will be automatically redirected back to theholding tank and recycled for further cleaning. The“Oily Water Separators” also records the amount ofwater discharged, its content, and the date andtime of discharge.Anti-fouling SystemsOur OSVs comply with international conventionsrequiring anti-fouling systems and have receivedStatement(s) of Compliance for Anti-foulingSystems issued by respective classificationsocieties.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201135QUALITY ASSURANCE / AUDIT & COMPLIANCEQuality VisionTo establish a strong quality culture among all levels of employeesand senior management; to continually improve our quality managementsystem to world class standards.Quality Management System (QMS) Approach – Key ElementsBumi Armada’s Quality management system adopts a holistic total quality management(TQM) based approach which provides for multiple quality initiatives across all businessgroups. Bumi Armada QMS adopts progressive quality programmes that are includedin a broad based management system. This includes empowering staff throughimprovement workshop programmes, obtaining feedback from clients and contractorsthrough feedback workshops; Quality training in the form of quality leadershiptraining and quality concepts training. In addition Continuous Improvement and Auditand Compliance programmes are prioritized to ensure ongoing improvement andcompliance to international standards.ManagementReview andQualityCommitedAudit andComplianceProgrammeBusinessGroupOperatingProceduresDevelopmentCost ofPoor Qualityand ROQProgrammeCustomer/Vendor andStaff FeedbackProgrammeInternationalStandardsCertificationQualityManagement SystemIncluding 12 driversfor improvementHSSEQIntegratedSoftwareSystemQualityImprovementWorkshopsProgrammeQA / QCResourcesDevelopmentQualityLeadership andAwarenessTrainingProgrammeInternalAuditorProgrammeIntranetQuality SiteCommunicationsand E-learning


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201136HEALTH, SAFETY,SECURITY, ENVIRONMENTAND QUALITY (HSSEQ)Quality Assurance ProgrammesInternational StandardsCertification ProgrammeThis programme includes Bumi Armada’s QMSprogression to ISO 9001:2008 the latest versionof the Quality Management Systems InternationalStandard; as well as certification to internationalstandards; ISO 14001:2004 (EnvironmentalManagement Systems) and OHSAS 18001:2007(Occupational Health & Safety).Customer Satisfaction ProgrammeBumi Armada adopts a customer satisfactionmanagement programme which ensures weregularly measure and improve on ourmanagement systems performance on a projectby project basis; and for vessel fleet, on an annualbasis. We have received good feedback fromour client satisfaction programme with clientsatisfaction ratings exceeding 80%.Quality Training andAwareness ProgrammeEach year the company develops and implementsa training and awareness programme for all levelsof staff, from middle management to seniormanagement. This includes training in theconcepts of Quality Management such as ISO9001, Auditing, Continuous Improvement, RiskManagement, NCR, COPQ, etc. The benefits ofthese training sessions are evident in the increasedawareness of quality as a key driver for continuousimprovement.Audit and Compliance ProgrammeThe audit and compliance programme isdeveloped on an annual basis and has beenextended to cover all business groups andgeographical locations, including Kuala Lumpur,Miri, Kemaman, Labuan, offshore Malaysia,Singapore, West Africa- Lagos and offshore,Ashgabat base and offshore, Brazil and offshorevessels, India etc. Audit findings are identifiedfor all areas of the company and translated toopportunities for improvement. This includesoffice based as well as offshore operationsmanagement systems for vessels. During theaudit process we also measure compliance to theBumi Armada Quality Management System, policiesand procedures; as well as against the internationalstandards ISO 9001, ISO 14001 and OHSAS 18001.Risk Management ProgrammeThrough the process of assessing potentialrisks (possible impacts to safety, environment,quality etc.) Bumi Armada is able to consider thelikelihood and probability of such occurrences andmitigate these potential issues. Mitigations arethen translated to actions which are managed tothe point where the risk is effectively removed.These include Safety, Environmental and Healthrisk hazards identified through our ISO 14001and OHSAS 18001 systems. Every project andbusiness group is subject to the Risk ManagementProcess to ensure company wide compliance andmitigation that could otherwise adversely impactHSSEQ.Management SystemsDevelopment ProgrammeThe QMS is one of the key foundations of thecompany systems we implement. It is used toensure business excellence through the use ofsound engineered and efficient work processes.Bumi Armada has in place a certified QMS (ISO9001:2008) which has these key attributes.In addition, each business group as well asCorporate Management implements the QMSoperating procedures, developed specificallyfor it. This ensures ongoing compliance to ourbusiness excellence model.Management ReviewBumi Armada conducts regular managementreviews of the QMS (including Quality, Health,Safety, Security and Environment performance).Audit and non-conformance findings are reportedto the senior management team along withtrends in statistical performance data; Progress ofprogrammes and all performance, includingtraining and awareness programmes, continuousimprovement programmes and customer feedback.All of these are considered and senior managementimprovement actions identified. An example of akey improvement action has been the success ofthe company’s Intranet system and in particularthe HSSEQ Microsite where staff can easily accessHSSEQ data, events, programmes and bulletins.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201137OURSTAKEHOLDERSIn every location, there are key stakeholders among our customers,suppliers, business associates, employees, local communities,governments and regulators, media, investors as well as the financialcommunity that are significant. Engagements with these stakeholdersprovide a basis for long-term and mutually beneficial relationships. As aMalaysia-based international company with operations, offices and clientsaround the world, our in-country local managementtakes the lead in those relationships withthe appropriate support of BusinessUnit Heads from the Kuala Lumpurheadquarters.Investorsand FinancialCommunityCustomers.Suppliersand BusinessAssociatesEmployeesBumi ArmadaMediaLocalCommunityGovernmentandRegulatorsEmployees at a townhall section


38CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011OURSTAKEHOLDERSA. CUSTOMERS, SUPPLIERS AND BUSINESS ASSOCIATESCustomersBumi Armada’s business is structured to be flexibleand tailored to individual customer needs, andcollaboration is an integral element of theserelationships. A key topic of concern for customersis the solution for their production and oil fieldneeds. For example, our EPC teams work closelywith the project clients, like Hoang Long JointOperating Company, and a host of suppliers tobuild a FPSO that can withstand 100-year returnenvironmental conditions including cyclones andtsunamis prevalent offshore Vietnam.We worked closely with our client, Petrofac E & CSdn Bhd to meet a fast track project timeline forthe delivery of the FSO Sepat which was part ofthe Sepat offshore early production system off theEast Coast of Malaysia. Delivery of the FSO in alittle over 7 months was an important element toPetrofac’s and Petronas Carigali’s achievement ofFirst Oil in 12 months 9 days. This set a new recordfor the national oil company and industry in termsof being the fastest completed project.Shell Malaysia and Keppel Shipyard are examplesof business associates that we work with closely,especially in the area of Health, Safety, Securityand Environment (HSSE). Through joint workshops,exhibitions and other activities we exchange viewsand advance our joint goals. We have conductedregular customer satisfaction surveys to measureour customers’ responses, identify gaps and usethese to track our service performance. We arein regular communication with our existing andpotential customers to look into various areaswhich require our services. Customer retentionis an integral part of our marketing strategy.Over the years, we believe that our ability todeliver quality services has enabled us to buildour reputation in the marketplace. In addition,we protect and respect customer privacy anddo not disclose client details to any third-partyorganisation without prior consent from ourcustomers.Customer satisfaction survey forBumi Armada’s latest FPSO and OSVsfor period Jan-Dec 2011:908070605040302010080.770 7067TGT (49% TGTCompletion) (100%Completion)70 75OSVPlannedRatings (%)ActualRatings (%)*Te Giac Trang (TGT) refers to Bumi Armada’s FPSO Armada TGT 1


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201139SuppliersBumi Armada collaborates closely with oursuppliers across the entire supply chain. Weperform inspection and audit visits at suppliers’offices and premises as and when necessary.We have now developed a base of reliable andcapable suppliers with whom we work on a longtermbasis. Upon completion of each major project,we conduct random periodic supplier performanceappraisals on the services performed. Thisengagement helps us bring the best thinking tothe table, benefiting both our business and ouroperations. We actively seek business relationshipswith suppliers who share our values and promotethe high ethical values by which we do business.High quality, reliable suppliers are important to thequality and timely delivery of our projects and thecontinued efficiency of our operations. With EPICCprojects, the company has engaged proactivelywith suppliers and involved them early in theinitial design and engineering stage of ourprojects.It is the company’s policy that all purchasingactivities are carried out in a manner consistentwith professional, ethical, moral and legalstandards. All procurement activities made onbehalf of the company shall be made byauthorised personnel representing the interest ofthe company. Employees must declare their statusin relation to the potential suppliers and must befree from any conflict of interest. Any violationof the policy is subject to disciplinary actions asdeemed appropriate by the company.In addition to ensure that all procurementactivities within the company are consistentwith the “Best Management Practices”, we seekto procure goods and services at the mosteconomically favourable terms while meetingthe company’s expectations and requirements.We strive to ensure transparency in theprocurement activities by putting in place properdocumentation of procurement activities thatwill provide an audit trail for future referencesand review. The procurement policy aims toachieve excellence in the application of ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007standards.B. EMPLOYEESBumi Armada is committed to creating anenvironment in which our people can grow andattain the highest standards of professionalexcellence and integrity. We place priority onemployee diversity and inclusivity, local contentdevelopment, learning and career development,work-life balance and occupational health andsafety management – key areas of interest fromour employees’ perspective.We engage employees through the followingchannels:• Quarterly newsletter• CEO breakfast sessions• Quarterly townhall sessions connectingemployees worldwide• Department meetings and luncheons• Performance management reviews• Feedback mechanisms on engagement,360 degree, leadership, climate andorganisation effectivenessOur employees enjoy a good work-life balancewhere we extend a certain amount of flexibilityamong employees in arranging their workinghours according to their personal commitments.We encourage our employees to look after theirown wellbeing and provide regular healthawareness activities such as talks and articleson serious diseases such as cancer awareness,exercise and healthy eating.We conduct various surveys to understandemployees’ perceptions about the company, itswork environment, needs, as well as to identifyissues and areas of improvement. The feedbackhelps the company map its initiatives to improvetheir engagement with the company, satisfactionand commitment.


40CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011OURSTAKEHOLDERSDuring the years 2007, 2008 and 2009employee climate surveys were conducted andthe satisfaction ratings were 68%, 75% and 70%respectively. This translates to an averagesatisfaction level of 71% which is a respectablelevel. To benchmark ourselves against globalindustry players, given the organisation’s rapidgrowth in terms of business, financials andgeography we embarked on the EmployeeEngagement Survey in 2010. From the surveywe obtained an engagement level of 58% which isconsidered to be a satisfactory level for a youngorganisation like ours. This is close to the globalenergy employee engagement level of 60%.We have launched several initiatives to improveengagement levels through organisationaleffectiveness diagnosis, leadership developmentprofiling and implementing competitivecompensation and benefits programmes.Key BenefitsWe aim to support our employees by rewardingthem internally with equitable and externallycompetitive benefits. Over the years, we haveincreased the level of non-salary related rewardsand currently, we provide a total of 22 additionalbenefits which include improvements to;• Medical outpatient (employee and family)• Health and safety Insurance (employeeand family)• Maternity benefits• Optical and dental benefits• Group Personal Accident policy• Group Term Life policy• Sports/fitness club monthly membership• Car park allowance• Various allowances which includes per diem,living, offshore and hardshipIn order to maintain our diversity and inclusivity,we offer job opportunities to the local communitieswherever we operate. We also drive communitydevelopment initiatives in every location ofoperations.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201141IPO and Employee ShareOption Scheme (ESOS)To realize our vision it is imperative that thereis a strong alignment between shareholders,management and employees. In line with this andto achieve sustainable value creation and sharingof wealth with the employees, the company offeredpink forms to all its eligible employees working invarious offices and sites and ESOS was offered tothe management team.Learning and DevelopmentBumi Armada is an expanding organisation andis committed to attract, build capability andretain key professionals. Career developmentopportunities are made available for those whowish to gain international exposure.Over the past 3 years, our investments intodevelopment have increased steadily and wewill continue to do so. Similarly for the sea staff,we have developed six developmental trainingcourses specifically for Bumi Armada incollaboration with ALAM. We commenced thisactivity in 2011 for the first time and to date 16officers have undergone this training. This moduleis developed to assess and develop Masters andChief Engineers capabilities in real life situations byusing simulators and case studies. New hires andofficers identified for promotion are put throughthis assessment by qualified trainersand management psychologists.Cadetship ProgrammeTo offset the shortage of trained Malaysian crewmembers, we offered scholarships to 40 schoolgraduates from Malaysia in 2010. This is in additionto the 5 students we sponsored in 2007, 17 in 2008and 55 in 2009. Ten of the cadets are studying atthe Sarawak Maritime Academy (SMA), while therest are studying at Malaysian Maritime Academy(ALAM). The scholarships offered are for theDiploma in Nautical Studies (DNS) and a Diplomain Marine Engineering (DME). This is important forthe development of nautical and engineer officers.To date, we have sponsored a total of 138 cadetsin the system of which 5 graduated in 2010 andanother 17 will graduate in March 2012. Thesecadets will be offered employment opportunitieswith our company once they pass theirexaminations and obtain relevant certifications.Year20072008200920102011No ofCadets517534020Year ofGraduation20102012201320142015The total training and development manhours for2010 and 2011 was 13,750 hours.Total135


42CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011OURSTAKEHOLDERSThe simulator in ALAMFirst DP Training Programme in MalaysiaIn addition to a global shortage of trained crewthere is also a shortage of specially trainedDynamic Positioning (DP) officers. Together withALAM, we initiated a DP training programmein 2007 and provided funding and resourcesto establish the first DP training programme inMalaysia. The centre is now accredited by theNational Institute in UK as an international DP2training centre.To date we have a total of 12 Bumi Armadasponsored DP officers who have obtained full DPlicence and are serving in our fleet as DPOs. Wehave additionally trained another 6 DP officers in2012. Our future plan is to expand the pool of DPcertified officers to meet the future demands.Graduate Development ProgrammeUnder the Graduate Development Programme,fresh graduates are hired to undergo on the jobtraining for a period of 24 months. They areplaced on a development plan to equip them withfunctional and business skills. Their assignedmanager assumes the role of a mentor. Thegraduates are provided opportunities to workin different locations and disciplines during thisperiod. Our Graduate Development Programmecommenced in 2009. To date, we have successfullyhired 26 young graduates. We have also been ableto bring back Malaysians who have qualified fromoverseas institutions.Integral to career development is performancemanagement and appraisal process. The companyconducts regular reviews and for the two yearsunder review, about 80% of our employees haveundergone this process.C. LOCAL COMMUNITYWe have a local content philosophy whereverwe operate and this translates into job creation,training and career development and tappinglocally available resources for a variety ofsupport services.Where appropriate we have established jointventures with local partners, such as with theCentury Energy Group in Nigeria. Being anindigenous company with good understandingof cultural and social issues, they are a positiveinfluence on our operations in Nigeria. In return,we have shared our best practices in HSSEQ,finance and procurement practices.In 2011, we launched the Nigeria ExchangeProgramme where a group of professionals weredeputed for a two-week period to Bumi Armada’sKL office to undergo an orientation programmeas well as cultural integration. The second batchof participants are expected to come in April 2012and similarly a batch from KL is expected to go toNigeria in June 2012.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201143In our derrick pipe lay barge project inTurkmenistan, we hired 28 Turkmen to manbarge operations and another 10 were hired forthe office and shore base.We may plan for similar initiatives for our existingas well as new offices in Indonesia, India, Brazil,Venezuela, Mexico, Angola, Australia and Vietnam.In every community, there are the underprivilegedand social causes which require assistance andour employees are encouraged to identify causesthey wish to support. The company encouragesemployee volunteerism and enhances theseactivities with cash funding. A full report on theseactivities is provided at the end of this documentunder a section “Supporting the Local Community”.D. GOVERNMENT AND REGULATORSAs an international company, we respect andabide by local and international laws and workwith government and regulators in an appropriateand timely manner. These relationships are drivenby our local representatives and joint venturecompanies on the ground.An example, Malaysia, where we have engagedthe Marine Department, the local regulator, andinvited them to address our ship captains andleadership on regulations and changes in theregulatory environment. We have shared ourDynamic Positioning (DP) experience with themand offered them vessel visits.E. MEDIAAs a recently listed company on Bursa Malaysia,we have an obligation to disseminate informationthoroughly and in a timely manner to the publicand the media is a key communication channel.We interface regularly with the media, both localand international, providing them with accurateinformation about the company’s activities andreceiving in return, their perception andexpectations of the company and the brand.F. INVESTORS ANDFINANCIAL COMMUNITYAs of Bumi Armada’s listing in July 2011, investorsand the financial community from all over theworld became an important group of stakeholders.In the last six months of this reporting periodof 2010-2011, we have held meetings and madepresentations to over 70 financial and investmentinstitutions primarily via private meetings androadshows at major investment conferences,covering institutional investors from Asia, Europeand the United States.At Bumi Armada, we believe that stakeholderrelationships are important for a sociallyresponsible company that has internationaloperations. A good stakeholder engagementstrategy allows a company like ours to shareour vision and share in growth opportunitiesfor the mutual benefit of everyone concerned.Engaging analysts and media


44CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011HUMAN RIGHTSAND LABOUR PRACTICES“Human rights are rights inherent to all human beings, whatever ournationality, place of residence, sex, national or ethnic origin, colour,religion, language, or any other status. We are all equally entitled toour human rights without discrimination. These rights are all interrelated,interdependent and indivisible.”‘United Nation’s Commissioner of Human Rights, www.ohchr.org’Bumi Armada respects basichuman rights and has in place nondiscriminationand fair-processpolicies that guide our actions inhow we manage our business.EmployeesInside MalaysiaOutside MalaysiaTotal number20114021405422010309135444200933786423Although there is no union representation, thecompany provides an environment for positive staffengagement process as well as a set of the core valueswhich are enshrined in every business decision andaction relating to employees. Grievances are dealt withand there is a fair process for conflict resolutions.Our values – Customer Focus, Safety Mindset, Hands-On Execution, People Development, Brutal Opennessand Commercial Awareness - are simple and theyform the bond that holds our people together. We arecommitted to ensuring that our people receive theright guidance from their leaders, have the necessarycapability to deliver their KPIs and are encouraged toexplore their growth potential. The organisation thatwe developed is built on a foundation of teamworkand openness in our conversation.NationalityMalaysian 69%Singaporean 8%Indian 8%Others 15%Total = 25 NationalitiesGenderMale 65%Female 35%43 4183188375Bumi Armada is committed to providing a workenvironment in which every employee is treated fairly,respected, has the opportunity to contributeto business success and also to realise their fullpotential as individuals.354Labour PracticesOf the 542 staff, 56% of all the employees are on apermanent basis. 69% of those employed are locals,while 31% of the remaining employees are foreigners.Our recruitment strategy is to focus on locals first andthen expatriates. 65% of all the employees are maleand we are an equal opportunity employer striving toemploy both men and women based on their skills andtalent. 89% of those employed are executives and 11%are non-executives.Employment TypePermanent 56%Contract 44%239303


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201145SUPPORTINGTHE LOCAL COMMUNITYBumi Armada has the responsibility to ensure our activities andoperations have a positive impact on the local communities in andaround areas in which we operate. We believe when the communitiesprosper, so do we. Our community efforts focus on health, youthdevelopment, skills and education. In the last reporting period,we have tried to align our efforts to these areas both at home inMalaysia as well as abroad.The emergence of our voluntary groups Rafflesia in our headquaters in Kuala Lumpur and the “Rolling 10”in Kemaman, Terengganu are examples of employee volunteerism.We use every occasion of an FPSO launch to benefit a community-related cause. Our third FPSO,the “Armada TGT 1”, for example, set sail for Vietnam in July 2011 and to commemorate this joyousoccasion, Bumi Armada together with its partner in Vietnam, Vietsopetro, donated USD10,000 to theRehabilitation Centre in Nghe An Province and USD10,000 to the Centre of Art “Tin Thuong”, Central RedCross of Vietnam. This is in addition to the USD5,000, worth of scholarships made to the PetroVietnamManpower College.Following are a host of community-related activities conducted throughout our organisation:KUALA LUMPUR,PENINSULAR MALAYSIAThe Shri Lalithabigai Ashraman OrphanageAs we uphold our responsibilities of a good corporatecitizen, Rafflesia, our informal group of employeeshas been instrumental in ensuring Bumi Armada’scommunity efforts address the needs of variouscommunity groups, including the indigent and theunderprivileged. Rafflesia has, over the years,conducted a variety of community development workincluding visits to various homes, organising seasonalshopping trips for the less fortunate as well as otherphilanthropic activities.In December 2011, with an allocation of RM5,000, theRafflesia team wasted no time in organizing a visit tothe Shri Lalithabigai Ashraman, an orphanage run bya Hindu priest located in Puchong, Kuala Lumpur.The children of the home, aged between three and16, could hardly contain their excitement as theywelcomed us on 9 December with their warm andfriendly smiles. Material contributions such as schooluniforms, shoes, bags and clothes as well as RM1,500supermarket vouchers were donated to the home. Aswe spent time with the children, it dawned on us justhow fortunate we are and how much homes like theShri Lalithabigai Ashraman need our support. Someof the team have decided to share their thoughts:“I really feel for the young orphans as theyremind me of my own kids and how fortunatewe are. I have invited them to my house formy child’s birthday this year because I wantmy children to share the love and joy withthe less fortunate.”Komathi Arumugam,Chartering Department“These children are all so young and innocent.People from all walks of life should comeforward to lend their support whether in cashor in kind to help these little ones to have abetter education and life, for childrenare our future.Joanne Ng Yeok Ken,Offshore and Marine Department“It was a great experience with the childrenand staff who had participated in the Charityvisit at Shri Lalithabigai Ashraman. The supportwe received for this visit is marvellous. I wouldlike to thank all the volunteers who helped withthe collection; those who attended on the day toassist and especially to all the Rafflesia memberswho had made this visit successful. As part ofbringing some joy and positive spirits to thesechildren, lets us put our hands together tosupport these young and unfortunate children.Shamala Devi,Projects Department


46CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011SUPPORTINGTHE LOCAL COMMUNITYSri Tanjung Old Folks Home14 December 2011 marked the day we visited theold folks at Sri Tanjung Old Folks Home in Kluang,Selangor, to remind the residents that they havenot been forgotten by society. We brought alonguseful contributions such as new nursing beds,incontinence products, walkers and food. Many ofthe residents were eager to share moments fromtheir past with us and gave us much to laugh aboutwith their sense of humour.The residents’ sadness could be felt as the difficultmoment came when we had to bid farewell. Someshed a tear or two which was very touching for us.Knowing that our little time spent with them madetheir day a little brighter is treasured deeply.Al-Munirah Home for Orphans and the PoorOn 24 August 2011, our employees broughttwenty-four children from Al-Munirah Home forOrphans and the Poor on a shopping trip in timefor the Eid celebration. A sum of RM5,000 wasdonated to the Al-Munirah Home, which hasseventy-four children aged between seven andseventeen, for the rest of the children who wereunable to join the shopping trip and for basichome necessities.In the true spirit of Ramadhan, our people atBumi Armada were quick to respond and in ashort period of time, managed to raise a total ofover RM10,200 to be donated to Rumah NurKasih Bestari.KEMAMAN, TERENGGANU,PENINSULAR MALAYSIAIftar Ramadhan withSekolah Kebangsaan Seri GeligaOur Rafflesia-equivalent in Kemaman, the Rolling10 (R10) is a voluntary group of employees thatruns company gatherings and events in ourKemaman office. On 25 August 2011, the R10organised a fast-breaking event to celebrateRamadhan with the orphans of SekolahKebangsaan Seri Geliga. Held at the Resident Innin Cherating, the evening was one filled withactivities such as lucky draw, good food and alsoto encourage and motivate the children to practicethe teachings of Islam for all.Thirty-two children from Sekolah Kebangsaan SeriGeliga, fifty Kemaman Bumi Armada employeesas well as some of our suppliers and contractorsattended the event.Shopping with childrenRumah Nur Kasih Bestari, Ramadhan 2010Our Rafflesia team paid a visit to Rumah NurKasih Bestari, a privately-managed orphanage inSegambut during Ramadhan in 2010. With thirtychildren between the ages of four to twenty-oneto care for, Puan Nurul, one of the founders of theorphanage, shared with us their dependence onpublic donations to maintain the orphanage. Someof the residents are disabled and paralysed whilstone other suffers from a heart defect.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201147Kemaman Team Visit to an Old Folks HomeOn 19 March 2010, the R10 brought employeesof Bumi Armada on a visit to five homes of theunfortunate old folks from Kampung Ibok,Kampung Payoh, Kampung Melayu Air Jernih andKijal in Kemaman. The condition that the old folkswere living in was so heartrending in that BumiArmada employees decided to help with some ofthe repair works around their houses. Materialdonations such as electrical appliances, mattresses,beddings were also made much to the delight ofthese unfortunate old folks.ost their parents to accidents whilst others belongto very poor families who could not afford to carefor them. Relying solely on public donations forthe daily maintenance of the orphanage and thechildren’s expenses, PERYATIM needed RM20,000for the school fees of the children.Led by Assistant General Manager Captain AbdulGhani bin Talib, our colleagues from Miri madefull use of the time at PERYATIM to get to knowthe children better; playing games and tellingjokes to one another. A cheque for RM5,750,a sum pooled together by both the company aswell as employees, was presented to the managerof the orphanage, Ibu Hajah Julia who wasextremely grateful and appreciative of our visit.SINGAPOREThe R10 paid a follow-up visit to the old folks on2 April 2010 with some cash contributions fromthe employees and also to spend some time withthem. It brought us much pride and satisfaction aswe did a good deed and also managed to do someteam-building ourselves.EAST MALAYSIAA visit to the SingaporeChildren’s SocietyOur 2011 community initiative brought ourSingapore-based Bumi Armada employees tothe Singapore Children’s Society in Bukit Merahon 1 December. The Society provides nurture,protection and support to children and youthsregardless of race, colour or creed and reachesout to some 57,000 children and youths acrossthe country.Home Director Ms Kim Beng Hong and her staff,all volunteers, together with forty-two children,aged seven to twelve, met our team at the home.It was a fun afternoon with a magic show, gamesand gifts for all the children. Balance of the fundsfrom the company’s allocation of SGD 5,000 waspresented to Ms Kim in support of the activitiesand programs run by the Society.Sarawak Orphans WelfareAssociation (PERYATIM)Our colleagues in Sarawak were equallycommitted. A visit to the Sarawak OrphansWelfare Association (PERYATIM) was conductedon 15 December 2010. PERYATIM is home tosome 100 children between the ages of five to 17,many of whom have been abandoned, some had


48CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011SUPPORTINGTHE LOCAL COMMUNITYVIETNAMScholarship for PetroVietnam ManpowerTraining College StudentsIt is important to build a sustainable businessin the country where the company operates.Developing talents in the Vietnam O&G sector,through financial support and encouraging accessto high quality training, will in return producequalified local workforce that will add value to theVietnamese economy and one day may even comeonboard and join the Bumi Armada family.At the 11 June 2011 sail away event for FPSOArmada TGT at Keppel Shipyard in Singapore,Bumi Armada made a scholarship contribution ofUSD 5,000 to the PetroVietnam Manpower TrainingCollege (PVMTC). The scholarship is awarded tothe top students in the academic year 2010 – 2011.This is the second contribution from Bumi Armadain our effort to show continuous support toPetroVietnam Manpower Training College.TURKMENISTANInternational Children’s DayTo celebrate International Children’s Day 2011,Bumi Armada employees in Turkmenistanorganised a visit to the Nursing Home Number 43for Mentally Challenged Children. Together withthe students of Ashgabat School Number 53 whovolunteered and joined us in the visit, the teamentertained the residents with puppet theatre,dancing clowns and piano-playing. Snacks andfood were shared and games that could help toimprove the children’s mobility were played too.Whilst it was a day filled with joyful smiles andlaughter from the children, it reminded the teamjust how fortunate they are and how much a littleeffort means to the residents of the home.Educational SupportBumi Armada believes that it is important tocontribute, develop and invest in communitieswhere we operate and the importance ofeducation is emphasized in an official bookdonation ceremony of 194 maritime educationalbooks by Bumi Armada on 14 June 2011 for theTurkmenbashi Maritime Lyceum Number One atthe Charlak Hotel in Turkmenbashi. Attended byrepresentatives of the Maritime Authority, teachersand students of the Lyceum Number One and otherguests from other companies, the event includedan introduction to Bumi Armada in the form ofa video presentation of the construction of theArmada Installer and Bumi Armada’s project inthe Caspian Sea.This modest contribution of marine booksmarked the start of a close partnership with theTurkmenbashi Maritime Lyceum Number Oneand the State Service of Marine and RiverTransportation of Turkmenistan.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201149The Saz OrchestraIn most countries, the arts often struggle forsupport and survival. In Turkmenistan, ourUSD3,600 a year for a two-year sponsorship ofthe Saz Orchestra has helped the orchestra tomake a total of six performances in theatres andconcert halls in Ashgabat. The orchestra comprises20 members lead by conductor, MuhammedMommadov.The Orchestra made a wonderful effort in theirChristmas performance on the 17 December 2010at the “Vatan” Cinema Concert Centre. PerformingSymphony Number 45 by J. Haydn, the Orchestratreated an audience comprising diplomats,corporate leaders as well as the local communityto a grand concert, including several pieces bycandlelight.Unfortunately the orchestra was dissolved inyear 2011.The Boarding School of TurkmenistanTo mark the International Day of Knowledge on1 September 2011, our Turkmenistan employeesdonated some school material to the 188 childrenof the Boarding School of Turkmenbashi, someof whom are orphans, some with single parentswhilst others are boarding at the school becauseof medical conditions.“Thank you for remembering us”,The Old Folks Home of AshgabatHaving learnt of the needs of the Old Folks Homeof Ashgabat, the Turkmenistan team paid theresidents of the home a visit. Employees of BumiArmada pooled together some money to purchasefood and other supplies to contribute to the Home.During the visit, the team realised how lonelythe residents were and though that visit has notchanged their lives, they hoped it brought themsome joy.“My son came home from a school trip to an oldfolks home repeating a phrase he heard from theresidents, “Thank you for not forgetting us.”Lilya KadamovaBumi Armada, TurkmenistanNIGERIAEducation and Youth Developmentin NigeriaEducation and youth development are importantfor the future of Nigeria. As such, together withour joint venture partner, we developed a fewprojects that would bring added value to thecommunity. One project to fast-track the creativeeconomy of Nigeria was the sponsorship of theAvant-Garde Interface Foundation breakfastwhich provided a platform for young and aspiringNigerians to showcase their creative talents.To make education fun for children, we donatedsome 3,000 educational Lego sets to six schoolsin Lagos, Port Harcourt and Bayelsa to celebrateChildren’s Day 2011.


50CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011SUPPORTINGTHE LOCAL COMMUNITYFurther projects to promote education includedonation of school supplies, communityempowerment projects such as the provisionof skill acquisition training and scholarships tovarious schools in Nigeria which also helps tokeep the children off the streets.Our contribution continues with the donation offormer President of the Ijaw National Congress(INC) and incumbent President of the Conferenceof Ethnic Nationalities of the Niger Delta (CENND),Professor Kimse Okoko’s book to four universitiesin Nigeria.To encourage the young and aspiring writers ofNigeria, we also collaborated with Blue and Hills,Nigeria to sponsor the inaugural literary andwriting workshop in the Bayelsa State.Encouraging children to learn sometimes requiresimprovements in their surroundings and inthat light, a bore-hole was donated to the OdiCommunity Primary School in order for the2,000 students to have better access to gooddrinking water.perform self-examination and to be more awareof the ways of transmission of the diseases.In addition to renovating the cottage clinics aswell as replenishing general clinical supplies andas part of the Sebeccly Care Initiative, we alsosponsored the treatment and medication of fourchildren who are suffering from cancer.Health and EnvironmentDiseases remain a major concern in Nigeria andto help raise awareness on various diseases suchas malaria, HIV and AIDS as well as breast cancer,several campaigns to educate the population inNigeria on various ways of protecting themselvesfrom these deadly diseases were organised.A “high-end” ambulance was also donated to theFederal Medical Centre in Bayelsa State to help withthe growing needs of the local population.Breast and cervical cancer workshops were alsoconducted to help the women of the Lekki areaOther Community Development ProjectsThe company sponsored the Dorcas Generationinitiative as they pledge to improve the material,financial and emotional well-being of widows andVoiceless Women of Africa.Rice and other food supplies were donated to thecommunities of Rumuwoji and Ogu/Onne.Our concurrent sponsorship of two studentsfrom the Rumudaolu and Eligbam communitieson their educational projects and the traditionalwrestling competition underscores ourcommitment to improve and develop localcommunities where we operate.Other community projects include the developmentof the first Information Communication andTechnology laboratory for Odi Community.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201151CONCLUSIONAs you review this report, we hope you will see the steady progress we have made since 2009.Having said that, we are far from satisfied and we will continue to challenge ourselves to quicken thepace. Over the next three to five years, we expect sustainability to expand within our business througha few key areas – vessel design, engines and fuel efficiency initiatives - which we hope will makesignificant strides toward improving our fleet’s energy efficiency.As a Malaysia-based international company that will continue to expand its reach across the globe tocountries in difficult regions, our philosophy of local content, risk management and good governancewill hold us in good stead. We will continue to develop and strengthen mutually beneficial relationshipswith our customers, employees, business partners and investors as well as the communities around us.AcknowledgementWe take this opportunity to thank the Board, Management and our employees for their support andenthusiasm on this CSR journey and we look forward to sharing our progress with you in the next report.Thank you for your interest in our journey as a socially responsible company.“The journey of a thousand miles begins with one step”Lao Tzu


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201152


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201153GRI CONTENT INDEXGRI REPORTING AREASTATUSProfile DisclosuresStrategy and AnalysisOrganizational ProfileReport ProfileReport Scope and BoundaryGRI Context IndexAssuranceGovernanceCommitments to External InitiativesStakeholder EngagementAll ReportedAll ReportedAll ReportedAll ReportedAll ReportedAll ReportedReportedAll ReportedAll ReportedDMA AND PERFORMANCE INDICATORSSTATUSEconomicSocial Performance:Labour Practices & Decent WorkSocial Performance:Human RightsSocial Performance:SocietySocial Performance:Product ResponsibilityEnvironmentalReportedReportedNot ReportedReportedReportedReported


54 CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011GRI CONTENT INDEXG3 CONTENT INDEXSTANDARD DISCLOSURES PART I: PROFILE DISCLOSURES1. STRATEGY AND ANALYSISPROFILEDISCLOSURE DESCRIPTION STATUS CROSS-REFERENCE1.1Statement from the most seniordecision-maker of the organization.FullyP7, 9, 10-11, 17-18, 22-23, 24,Prospectus 96-971.2Description of key impacts, risks, andopportunities.FullyP22-23, 28-29,Prospectus 14-15, 1162. ORGANIZATIONAL PROFILEPROFILEDISCLOSURE DESCRIPTION STATUS CROSS-REFERENCE2.1Name of the organization.FullyFC2.2Primary brands, products, and/or services.FullyP4-52.3Operational structure of the organization,including main divisions, operatingcompanies, subsidiaries, and joint ventures.FullyP4-6 Prospectus 10-122.4Location of organization’s headquarters.FullyP62.5Number of countries where theorganization operates, and names ofcountries with either major operationsor that are specifically relevant to thesustainability issues covered in the report.FullyP62.6Nature of ownership and legal form.FullyProspectus P59-642.7Markets served (including geographicbreakdown, sectors served, and typesof customers/beneficiaries).FullyP6, Prospectus P93-95,1352.8Scale of the reporting organization.FullyP10-11, 13, 39 Prospectus P19,93-95, 237, 284-2852.9Significant changes during the reportingperiod regarding size, structure,or ownership.FullyP40-41, Prospectus P91-92, 96-972.10Awards received in the reporting period.FullyP12MAY2012-FINAL-V1


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011553. REPORT PARAMETERSPROFILEDISCLOSURE DESCRIPTION STATUS CROSS-REFERENCE3.1Reporting period (e.g., fiscal/calendar year)for information provided.FullyP133.2Date of most recent previous report (if any).FullyP133.3Reporting cycle (annual, biennial, etc.)FullyP133.4Contact point for questions regardingthe report or its contents.FullyP133.5Process for defining report content.FullyP133.6Boundary of the report (e.g., countries,divisions, subsidiaries, leased facilities,joint ventures, suppliers). See GRI BoundaryProtocol for further guidance.FullyP133.7State any specific limitations on the scopeor boundary of the report (see completenessprinciple for explanation of scope).FullyP13, 47-653.8Basis for reporting on joint ventures,subsidiaries, leased facilities, outsourcedoperations, and other entities that cansignificantly affect comparability fromperiod to period and/or betweenorganizations.FullyP13, Prospectus P61-643.9Data measurement techniques and thebases of calculations, including assumptionsand techniques underlying estimationsapplied to the compilation of the Indicatorsand other information in the report.Explain any decisions not to apply, or tosubstantially diverge from, the GRI IndicatorProtocols.FullyP23, 253.10Explanation of the effect of anyre-statements of information provided inearlier reports, and the reasons for suchre-statement (e.g.,mergers/acquisitions,change of base years/periods, nature ofbusiness, measurement methods).FullyP13, 47-653.11Significant changes from previousreporting periods in the scope, boundary,or measurement methods applied inthe report.FullyP133.12Table identifying the location of theStandard Disclosures in the report.FullyP473.13Policy and current practice with regardto seeking external assurance forthe report.FullyAssurance Statement


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201156GRI CONTENT INDEX4. GOVERNANCE, COMMITMENTS, AND ENGAGEMENTPROFILEDISCLOSURE DESCRIPTION STATUS CROSS-REFERENCE4.1Governance structure of the organization,including committees under the highestgovernance body responsible for specifictasks, such as setting strategy ororganizational oversight.PartiallyP9, 15-16, Prospectus P2064.2Indicate whether the Chair of the highestgovernance body is also an executiveofficer.FullyP8, Prospectus P206-2074.3For organizations that have a unitaryboard structure, state the number ofmembers of the highest governancebody that are independent and/ornon-executive members.FullyProspectus P206-2074.4Mechanisms for shareholders andemployees to provide recommendations ordirection to the highest governance body.FullyP39, Prospectus P242-2454.5Linkage between compensation formembers of the highest governance body,senior managers, and executives (includingdeparture arrangements), andthe organization’s performance (includingsocial and environmental performance).FullyProspectus P227, 2304.6Processes in place for the highestgovernance body to ensure conflictsof interest are avoided.FullyProspectus P258-2594.7Process for determining the qualificationsand expertise of the members of thehighest governance body for guidingthe organization’s strategy on economic,environmental, and social topics.FullyProspectus P2284.8Internally developed statements of missionor values, codes of conduct, and principlesrelevant to economic, environmental, andsocial performance and the status of theirimplementation.FullyP7, 15-16, 17-184.9Procedures of the highest governancebody for overseeing the organization’sidentification and management ofeconomic, environmental, and socialperformance, including relevant risksand opportunities, and adherenceor compliance with internationallyagreed standards, codes of conduct,and principles.FullyP9, 13, 17-18, Prospectus P144.10Processes for evaluating the highestgovernance body’s own performance,particularly with respect to economic,environmental, and social performance.FullyP94.11Explanation of whether and how theprecautionary approach or principle isaddressed by the organization.FullyProspectus P13


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011574. GOVERNANCE, COMMITMENTS, AND ENGAGEMENTPROFILEDISCLOSURE DESCRIPTION STATUS CROSS-REFERENCE4.12Externally developed economic,environmental, and social charters,principles, or other initiatives to whichthe organization subscribes or endorses.FullyP17-18, Prospectus P130-1314.13Memberships in associations (such asindustry associations) and/or national/international advocacy organizations inwhich the organization:* Has positions in governance bodies;* Participates in projects or committees;* Provides substantive funding beyondroutine membership dues; or* Views membership as strategic.FullyP17-18, Prospectus P130-1314.14List of stakeholder groups engagedby the organization.FullyP324.15Basis for identification and selectionof stakeholders with whom to engage.FullyP32-384.16Approaches to stakeholder engagement,including frequency of engagement by typeand by stakeholder group.FullyP32-384.17Key topics and concerns that have beenraised through stakeholder engagement,and how the organization has respondedto those key topics and concerns,including through its reporting.FullyP32-38STANDARD DISCLOSURES PART II: DISCLOSURES ON MANAGEMENT APPROACH (DMAS)G3 DMA DESCRIPTIONSTATUS CROSS-REFERENCEDMA ECDisclosure on ManagementApproach ECAspectsEconomic performancePartiallyP9, 10-11, 28-29, 33-35, 40-41Prospectus P14-15, 16-20Market presencePartiallyP39Indirect economic impactsPartiallyP22-23, 40-45


58CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011GRI CONTENT INDEXG3 DMA DESCRIPTIONSTATUS CROSS-REFERENCEDMA ENDisclosure on ManagementApproach ENAspectsMaterialsPartiallyP24EnergyPartiallyP22-23, 24, 28-29WaterPartiallyP24BiodiversityNotEmissions, effluents and wastePartiallyP24-25, 27Products and servicesPartiallyP23-29ComplianceNotTransportPartiallyP22-24OverallNotDMA LADisclosure on ManagementApproach LAAspectsEmploymentPartiallyP35, 39Labor/management relationsNotOccupational health and safetyPartiallyP35, 39Training and educationPartiallyP35-37, 38Diversity and equal opportunityPartiallyP39Equal remuneration for women and menNotDMA HRDisclosure on ManagementApproach HRAspectsInvestment and procurementpracticesNotNon-discriminationNotFreedom of association andcollective bargainingNotChild laborNotPrevention of forced andcompulsory laborNotSecurity practicesNotIndigenous rightsNotAssessmentNot


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201159G3 DMA DESCRIPTIONSTATUS CROSS-REFERENCEDMA HRDisclosure on ManagementApproach HRAspectsRemediationNotDMA SODisclosure on ManagementApproach SOAspectsLocal communitiesPartiallyP20-21, 32-33, 40-45CorruptionNotPublic policyNotAnti-competitive behaviorNotComplianceNotDMA PRDisclosure on ManagementApproach PRAspectsCustomer health and safetyNotProduct and service labellingPartiallyP30-31Marketing communicationsNotCustomer privacyNotComplianceNotSTANDARD DISCLOSURES PART III: PERFORMANCE INDICATORSECONOMICPROFILEDISCLOSUREDESCRIPTION STATUS CROSS-REFERENCEECONOMIC PERFORMANCEEC1Direct economic value generatedand distributed, including revenues,operating costs, employeecompensation, donations and othercommunity investments, retainedearnings, and payments to capitalproviders and governments.PartiallyP10-11, 33-35,40- 41 Prospectus P16-20EC2Financial implications and other risksand opportunities for the organization’sactivities due to climate change.FullyP9, 28-29, Prospectus P14-15EC3Coverage of the organization’s definedbenefit plan obligations.NotEC4Significant financial assistancereceived from government.Not


60CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011GRI CONTENT INDEXECONOMICPROFILEDISCLOSUREDESCRIPTION STATUS CROSS-REFERENCEMARKET PRESENCEEC5Range of ratios of standard entry levelwage compared to local minimum wageat significant locations of operation.NotEC6Policy, practices, and proportion ofspending on locally-based suppliers atsignificant locations of operation.NotEC7Procedures for local hiring andproportion of senior managementhired from the local community atsignificant locations of operation.FullyP39INDIRECT ECONOMIC IMPACTSEC8Development and impact ofinfrastructure investments andservices provided primarily forpublic benefit through commercial,in-kind, or pro bono engagement.PartiallyP40-45EC9Understanding and describingsignificant indirect economic impacts,including the extent of impacts.PartiallyP22-23, 40-45ENVIRONMENTALPROFILEDISCLOSUREDESCRIPTION STATUS CROSS-REFERENCEMATERIALSEN1Materials used by weight or volume.PartiallyP22EN2Percentage of materials used that arerecycled input materials.NotENERGYEN3Direct energy consumption by primaryenergy source.NotEN4Indirect energy consumption by primarysource.PartiallyP24EN5Energy saved due to conservation andefficiency improvements.PartiallyP24EN6Initiatives to provide energy-efficientor renewable energy based productsand services, and reductions in energyrequirements as a result of theseinitiatives.PartiallyP28-29EN7Initiatives to reduce indirect energyconsumption and reductions achieved.PartiallyP22-23


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201161ENVIRONMENTALPROFILEDISCLOSUREDESCRIPTION STATUS CROSS-REFERENCEWATEREN8Total water withdrawal by source.PartiallyP24EN9Water sources significantly affectedby withdrawal of water.NotEN10Percentage and total volume of waterrecycled and reused.NotBIODIVERSITYEN11Location and size of land owned,leased, managed in, or adjacent to,protected areas and areas of highbiodiversity value outside protectedareas.NotEN12Description of significant impacts ofactivities, products, and services onbiodiversity in protected areas andareas of high biodiversity valueoutside protected areas.NotEN13Habitats protected or restored.NotEN14Strategies, current actions, andfuture plans for managing impactson biodiversity.NotEN15Number of IUCN Red List species andnational conservation list species withhabitats in areas affected by operations,by level of extinction risk.NotEMISSIONS, EFFLUENTS AND WASTEEN16Total direct and indirect greenhousegas emissions by weight.NotEN17Other relevant indirect greenhouse gasemissions by weight.NotEN18Initiatives to reduce greenhouse gasemissions and reductions achieved.PartiallyP24-25EN19Emissions of ozone-depletingsubstances by weight.NotEN20NOx, SOx, and other significant airemissions by type and weight.NotEN21Total water discharge by qualityand destination.NotEN22Total weight of waste by type anddisposal method.PartiallyP27EN23Total number and volume ofsignificant spills.FullyP27


62CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011GRI CONTENT INDEXENVIRONMENTALPROFILEDISCLOSUREDESCRIPTION STATUS CROSS-REFERENCEEMISSIONS, EFFLUENTS AND WASTEEN24EN25Weight of transported, imported,exported, or treated waste deemedhazardous under the terms of the BaselConvention Annex I, II, III, and VIII,and percentage of transported wasteshipped internationally.Identity, size, protected status, andbiodiversity value of water bodies andrelated habitats significantly affected bythe reporting organization’sdischarges of water and runoff.NotNotPRODUCTS AND SERVICESEN26Initiatives to mitigate environmentalimpacts of products and services,and extent of impact mitigation.PartiallyP23-29EN27Percentage of products sold and theirpackaging materials that are reclaimedby category.NotCOMPLIANCEEN28Monetary value of significant fines andtotal number of non-monetary sanctionsfor non-compliance with environmentallaws and regulations.NotTRANSPORTEN29Significant environmental impactsof transporting products and othergoods and materials used for theorganization’s operations, andtransporting members of the workforce.PartiallyP22-24OVERALLEN30Total environmental protectionexpenditures and investmentsby type.Not


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201163SOCIAL: LABOR PRACTICES AND DECENT WORKPROFILEDISCLOSUREDESCRIPTION STATUS CROSS-REFERENCEEMPLOYMENTLA1Total workforce by employment type,employment contract, and region.PartiallyP39LA2Total number and rate of employeeturnover by age group, gender,and region.NotLA3Benefits provided to full-timeemployees that are not provided totemporary or part-time employees,by major operations.FullyP35LA15Return to work and retention rates afterparental leave, by gender.NotLABOR/MANAGEMENT RELATIONSLA4LA5Percentage of employees covered bycollective bargaining agreements.Minimum notice period(s) regardingsignificant operational changes,including whether it is specified incollective agreements.NotNotDIVERSITY AND EQUAL OPPORTUNITYLA6Percentage of total workforcerepresented in formal jointmanagement-worker health andsafety committees that help monitorand advise on occupational healthand safety programs.PartiallyP20-21LA7Rates of injury, occupational diseases,lost days, and absenteeism, and numberof work-related fatalities by region.PartiallyP10-11LA8Education, training, counseling,prevention, and risk-control programsin place to assist workforce members,their families, or community membersregarding serious diseases.PartiallyP34-35LA9Health and safety topics covered informal agreements with trade unions.Not


64CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011GRI CONTENT INDEXSOCIAL: LABOR PRACTICES AND DECENT WORKPROFILEDISCLOSUREDESCRIPTION STATUS CROSS-REFERENCETRAINING AND EDUCATIONLA10Average hours of training per year peremployee by employee category.PartiallyP35-37LA11Programs for skills management andlifelong learning that support thecontinued employability of employeesand assist them in managing careerendings.PartiallyP37-38LA12Percentage of employees receivingregular performance and careerdevelopment reviews.NotOCCUPATIONAL HEALTH AND SAFETYLA13Composition of governance bodiesand breakdown of employees percategory according to gender, agegroup, minority group membership,and other indicators of diversity.PartiallyP39EQUAL REMUNERATION FOR WOMEN AND MENLA14Ratio of basic salary and remunerationof women to men by employeecategory, by significant locationsof operation.NotSOCIAL: HUMAN RIGHTSPROFILEDISCLOSUREDESCRIPTION STATUS CROSS-REFERENCEINVESTMENT AND PROCUREMENT PRACTICESHR1HR2HR3Percentage and total number ofsignificant investment agreementsthat include human rights clauses orthat have undergone human rightsscreening.Percentage of significant suppliersand contractors that have undergonescreening on human rights andactions taken.Total hours of employee training onpolicies and procedures concerningaspects of human rights that arerelevant to operations, including thepercentage of employees trained.NotNotNot


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201165SOCIAL: HUMAN RIGHTSPROFILEDISCLOSUREDESCRIPTION STATUS CROSS-REFERENCENON-DISCRIMINATIONHR4Total number of incidents ofdiscrimination and actions taken.NotFREEDOM OF ASSOCIATION AND COLLECTIVE BARGAININGHR5Operations identified in which theright to exercise freedom of associationand collective bargaining may be atsignificant risk, and actions taken tosupport these rights.NotCHILD LABORHR6Operations identified as havingsignificant risk for incidents of childlabor, and measures taken to contributeto the elimination of child labor.NotPREVENTION OF FORCED AND COMPULSORY LABORHR7Operations identified as havingsignificant risk for incidents of forcedor compulsory labor, and measures tocontribute to the elimination of forcedor compulsory labor.NotSECURITY PRACTICESHR8Percentage of security personneltrained in the organization’s policiesor procedures concerning aspects ofhuman rights that are relevant tooperations.NotINDIGENOUS RIGHTSHR9Total number of incidents of violationsinvolving rights of indigenous peopleand actions taken.NotASSESSMENTHR10Percentage and total number ofoperations that have been subject tohuman rights reviews and/or impactassessments.NotREMEDIATIONHR11Number of grievances related tohuman rights filed, addressed andresolved through formal grievancemechanisms.Not


66CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011GRI CONTENT INDEXSOCIAL: SOCIETYPROFILEDISCLOSUREDESCRIPTION STATUS CROSS-REFERENCELOCAL COMMUNITIESSO1Percentage of operations withimplemented local communityengagement, impact assessments,and development programs.PartiallyP20-21, 32-33, 40-45SO9Operations with significant potentialor actual negative impacts on localcommunities.NotSO10Prevention and mitigation measuresimplemented in operations withsignificant potential or actual negativeimpacts on local communities.NotCORRUPTIONSO2Total number of incidents ofdiscrimination and actions taken.NotSO3Percentage of employees trained inorganization’s anti-corruption policiesand procedures.NotSO4Actions taken in response to incidentsof corruption.NotPUBLIC POLICYSO5Public policy positions andparticipation in public policydevelopment and lobbying.NotSO6Total value of financial and in-kindcontributions to political parties,politicians, and related institutionsby country.NotANTI-COMPETITIVE BEHAVIORSO7Total number of legal actions foranti-competitive behavior, anti-trust,and monopoly practices and theiroutcomes.NotCOMPLIANCESO8Monetary value of significant finesand total number of non-monetarysanctions for non-compliance withlaws and regulations.Not


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201167SOCIAL: PRODUCT RESPONSIBILITYPROFILEDISCLOSUREDESCRIPTION STATUS CROSS-REFERENCECUSTOMER HEALTH AND SAFETYPR1PR2Life cycle stages in which health andsafety impacts of products and servicesare assessed for improvement, andpercentage of significant products andservices categories subject to suchprocedures.Total number of incidents ofnon-compliance with regulationsand voluntary codes concerninghealth and safety impacts of productsand services during their life cycle,by type of outcomes.NotNotPRODUCT AND SERVICE LABELLINGPR3Type of product and serviceinformation required by procedures,and percentage of significant productsand services subject to such informationrequirements.NotPR4Total number of incidents ofnon-compliance with regulations andvoluntary codes concerning productand service information and labeling,by type of outcomes.NotPR5Practices related to customersatisfaction, including results of surveysmeasuring customer satisfaction.FullyP30-31MARKETING COMMUNICATIONSPR6PR7Programs for adherence to laws,standards, and voluntary codes relatedto marketing communications, includingadvertising, promotion, and sponsorship.Total number of incidents ofnon-compliance with regulations andvoluntary codes concerning marketingcommunications, including advertising,promotion, and sponsorship by typeof outcomes.NotNotCUSTOMER PRIVACYPR8Total number of substantiatedcomplaints regarding breaches ofcustomer privacy and losses ofcustomer data.NotCOMPLIANCEPR9Monetary value of significant finesfor non-compliance with laws andregulations concerning the provisionand use of products and services.Not


68CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-2011ASSURANCE STATEMENTIntroductionOWW Consulting Sdn Bhd (OWW) is a specialist in Corporate Social Responsibility (CSR) and Socially ResponsibleInvestment (SRI). We were engaged by Bumi Armada Berhad (“Bumi Armada”) to provide assurance services for theirCorporate Social Responsibility Report 2011 (the “Report”). This is the second year in which we have conductedassurance of Bumi Armada’s Corporate Social Responsibility Report.The Report and its contents are the exclusive responsibility of Bumi Armada. Our responsibility is to perform limitedassurance procedures over the Report and underlying processes within the scope set out below:• Economic• Social Performance: Labour Practices & Decent Work• Social Performance: Human Rights• Social Performance: Society• Social Performance: Product Responsibility• EnvironmentalIn each case verification was conducted through low-level assurance via information provided by Bumi Armada.It is agreed that Bumi Armada expects to be able to provide a response to each of the GRI-G3.1 Guideline Protocols andto provide an A+ Application Level which requires reporting on each of the GRI-G3.1 indicators, even if the report is anomission statement.Exclusions from the scope of our workExcluded from the scope of our work is information relating to:• Statements of commitment or intention to undertake action in the future;• Statements of opinion, belief or aspiration;• Information in internal or external documents referred to in the Report, except insofar as we have viewed theirexistence as part of the assurance process.Basis of our opinionIn conducting this engagement we have considered the principles of balance, comparability, accuracy, timeliness,clarity, relevance and reliability as in the Global Reporting Initiative (GRI) G3.1 Guidelines.We have also taken into account the principles of independence of assurance in the GRI-G3.1 Guidelines and have beenmindful of the AA1000AS and the International Standard on Assurance Engagements (ISAE 3000) although we have notbeen asked to apply these standards directly.We have conducted this engagement to provide a reasonable rather than an absolute level of assurance and we believethat the work conducted and described herein provides a reasonable basis for our conclusions. The assurance providedshould not be taken in isolation and should be evaluated in the context of other forms of verification, assurance andcertification used by Bumi Armada and described in the Report, the Bumi Armada Prospectus and other disclosures.Our review included the following activities:• Interviews and one-to-one meetings with relevant internal stakeholders related to Bumi Armada activities,including Head of Departments, offshore and onshore employees;• Documentary evidence was reviewed from communications meant for both internal and external circulation butemanating from within Bumi Armada. This comprised of manually generated internal reports, reports generatedfrom internal specialist management information systems, performance data, press releases, internal policies,established Code of Ethics, operating manual, corporate presentation, internal newsletters, and safety proceduresof Bumi Armada;• Observed related facilities and areas including notice boards, scaled models and management office;• A review of figures for all direct and indirect energy consumption (EN3 and EN4) as well as for economic valuegenerated (EC1) to ascertain the accuracy of the calculation of the figures reported;• Challenges to the Corporate Social Responsibility (CSR) related statements and claims made in the Report.


CORPORATE SOCIAL RESPONSIBILITY REPORT 2010-201169During our investigation we discussed the necessary changes in the Report with Bumi Armada personnel anddetermined that these changes have been adequately incorporated into the final version. We relied on representationsmade to us during the course of our assurance work by Bumi Armada personnel.Information in the Report that is directly sourced from Bumi Armada Prospectus is considered to be reliable basedon the audit statement of the Independent Chartered Accountant and Registered Auditor to these statements.We provided advice on which data is necessary and how this data should be compiled to comply with the GRI-G3.1Guidelines. All data and corrections were provided directly by Bumi Armada staff. In the same reporting period wehave not provided any other advisory work for Bumi Armada which may be material in determining our opinion.Conclusions1. In our opinion, the Report meets the content and quality requirements of the Global Reporting InitiativeSustainability Reporting Guidelines (Version G3.1);2. The Report provides a fair representation of Bumi Armada’s social accounting and reporting activity for theperiod covered by the Report;3. The information in the Report is reliable and free from significant bias;4. Bumi Armada has processes in place for identifying, understanding and managing its environmental andsocial responsibilities and for capturing, understanding and responding to the views of its main stakeholders;5. In our opinion, the Report contains new information in each domain which we believe is a fair and balancedreflection of the efforts of Bumi Armada to develop and improve their approach to sustainability and reporting.It also reflects the Company’s efforts in achieving better transparency, covering wider stakeholder groups.Considerations and limitationsIn relation to our assurance work and conclusions, the following considerations and limitations should be noted:• Certain information is excluded from the scope of our assurance work, as stated above and in the Report itself;• Due to its nature and the methods used for determining, calculating or estimating such data, environmental andsocial data are subject to inherent limitations. Therefore, this assurance statement should not be relied upon todetect all errors, omissions or misstatements in the Report.• The assurance statement cannot guarantee the quality of social accounting and reporting processes used byBumi Armada.10th January 2012OWW Consulting Sdn BhdDr Geoffrey WilliamsChief Executive OfficerStatement by OWW Consulting Sdn Bhd on Independence, Objectivity and CapabilityOWW Consulting Sdn Bhd (OWW) is a specialist in Corporate Social Responsibility (CSR) and Socially ResponsibleInvestment (SRI) with established experience in providing independent CSR advisory, reporting and assurance services.OWW Consulting has implemented a Code of Conduct in Assurance and Assessment and a Code of Ethics across ourcompany. Our Code requires that all of our employees maintain high ethical standards and makes explicit referenceto the independence and objectivity of our assurance and assessment engagements which we believe conform toemerging international best practice.Our assurance team conducting the work for this Report has experience in conducting engagements of this typefor sustainability reports, systems and processes. They are familiar with current guidelines and best practice andupdate their experience on a regular basis.


BUMI ARMADA BERHADLevel 21, Menara Perak,24, Jalan Perak,50450 Kuala Lumpur.Tel: +603 2171 5799Fax: +603 2163 5799MIRILot 2395, Block 4,MCLD, Jalan Bulatan Park,P.O. Box 122898000 Miri, Sarawak.Tel: +6085 661 118Fax: +6085 652 955Email: ban@bumiarmada.comLABUANBlock C, No.A11, Lot 1211,Manmohan’s Warehouse,Jalan Patau-Patau, P.O.Box 8022687012 Wilayah Persekutuan Labuan.Tel: +6087 412 327Fax: +6087 413 801Email: banlabuan@bumiarmada.comKEMAMANLot 13840,Jalan Penghiburan Chukai,24000 Kemaman,Terengganu.Tel: +609 8510 100Fax: +609 8510 111Email: bankerteh@bumiarmada.comANGOLABelas Business Park,Torre Cunene nº 205,Via 1, Talatona,Luanda, Angola.Mobile: 929243012 (Eveline Neto)DUBAIArmada Offshore DMCESTOffice No: 110 Sina Khoory 2,AlSuq AlKabeer,312-785 (Bur Dubai),P.O. Box No: 361027,Dubai, UAE.Tel: +971 50 9263743MUMBAIForbes Bumi Armada LimitedForbes Building,Charanjit Rai Marg,Fort, Mumbai 400001, India.Tel: +91 (22) 4074 9191Fax: +91 (22) 4074 9101Forbes Bumi ArmadaOffshore LimitedSP Centre, Office No.3,Courtyard, 41/44,Minoo Desai Marg, Colaba,Mumbai, Maharashtra400005 India.Tel: +91 (22) 67490000Fax: +91 (22) 66338176SINGAPOREHaven AutomationIndustries (S) Pte Ltd.84, Tuas Avenue 11,Singapore 639098.Tel: +65 6861 0880Fax: +65 6861 6628LAGOSCentury Bumi JV LimitedPlot 21, Prince AdelowoAdedeji Street, Off Admiralty Way,Lekki Phase 1, Lagos, Nigeria.Tel: +234 1 2715374Fax: +234 1 2717573ASHGABATArmada Marine ContractorsCaspian Pte LtdSuite 202, Level 2“Diamond International”Business CenterAndalyp Street (1958) * 15Ashgabat 744005, Turkmenistan.Tel: +993 12 945 990Fax: +993 12 947 198www.bumiarmada.com