Powering Ahead - SPC

A Quarterly SPC NewsletterApril 2008Powering Aheadp3FROM THECEO’S DESK...p4SPC Wins “Best ManagedBoard” awardp6 Caring forTomorrow, Todayp11SRC’s StellarSafety milestone

A SPC NewsletterFrom the CEO’s desk...SPC powers ahead with a new ROARTo mark one year since its inaugural issue, ROAR revamped itself with a new look. The dynamicand vibrant design exemplifies SPC’s aptitude for continuous change and innovation. Therenewed ROAR seeks to power SPC ahead to realise its vision to be a strong, integrated oil andgas company with a premium brand in the Asia-Pacific region.The bright red colour of the new ROAR masthead symbolises the Company’s passion forexcellence while evoking a sense of national pride as a Singapore company. Its slightly tiltedlettering complements the majestic leaping lion of the SPC logo. It signifies SPC’s ability toadapt swiftly to change. Additionally, it represents a company that is progressive with the drivingforce to advance its businesses. The turquoise colour represents the Company’s commitment toresponsible environmental practices and good corporate citizenship.Together, all the elements of the revamped ROAR symbolises SPC’s dynamism and innovation.All encapsulated in the new look that sets pace for SPC’s future growth.Continuous improvement is a process we all need to do. Asthe Chinese saying goes, “Doing well is like moving against thecurrents. You either progress, or lose ground”.We ended 2007 on a high note with solid revenue and recordprofits and entered the new year with fervour and optimism. Letus not lose ground. 2008 is shaping up to be a very challengingand volatile year. It is therefore vital that we improve constantlyand be agile all the time. We must continue to do our very best asa team in 2008.We have revamped our newsletter ROAR on the theme “PoweringAhead”. This is particularly appropriate. Not only is “PoweringAhead” our corporate motto, it also leads the way to maintainingand extending SPC’s strategic stance in an increasinglycompetitive and uncertain global environment. In the ensuingpages, you will see that this resolve to progress and betterourselves in everything we do has already won us recognition,particularly with SPC being awarded the “Best Managed Board” atthe recent Singapore Corporate Awards. We have also achieveda third place Corporate Governance award at the SIAS’ InvestorsChoice Awards 2007 and a merit award for “Most TransparentCompany”. These accolades reflect the collective passion of theBoard and the staff to excel in all that we do.Continuous improvement at the operating level means aligning andhoning our HR recruitment process to attract and retain talent. Wesuccessfully concluded our collective agreement (CA) for anotherthree years with the United Workers Petroleum Industry. This CAcontinues to build on and improve the strong relationship we havewith our workers over the years. Deserving staff members receivedtheir promotions recently; we are happy to share their joy. Welldone. Keep powering ahead as a cohesive team.To improve ourselves as a Company, we have restructured certaindivisions and appointed able personnel to provide stewardshipat the helm of these strategic units. We have also initiated anew Risk Group to sharpen our focus on risk management andmitigation strategies as we continue to grow all our businesses.These corporate improvements will enable SPC to better respondto new challenges in the business arena. As we progress, we alsowant to be aware of the legal framework within which we operate.In the article Competition Law, not only do we want to do the rightthings, we want to make sure we do them in the right way. Let thisbe part of the fine 39-year tradition SPC has built up.Our SPC logo bears the mark of a majestic leaping lion. Have youever thought what this signifies? Not many companies in Singaporeare privileged to bear the nation’s emblem. We are honoured tobear the national symbol that represents steadfastness, drive,stature and high standards. Let us remind ourselves what ourcorporate logo represents, and be worthy of all it stands for.As we power ahead, let us not forget our corporate socialresponsibility (CSR). We have established a cross-functional CSRteam to champion our cause toward the environment, communityengagement, health, safety and human rights. Our communityoutreach programme to help the elderly and needy is a traditionwe are proud of, and one that we seek to improve. Let us bean organisation with a lion’s heart. Let us keep doing better ineverything we do.Mr Koh Ban HengChief Executive Officer23

A Quarterly SPC NewsletterSPC wins “BestManaged Board” awardSPC roared into 2008 with news that the Company has won a jointthird placing for the “Best Managed Board Award for 2007” at theSingapore Corporate Awards. This esteemed award is testimonyto SPC’s corporate values and efforts to build trust and confidenceas a strong and sustainable enterprise.In SPC, we believe that corporate governance is not merelycompliance. It is the bedrock on which we build our cultureand mindset. Yet, ultimately, it is the people – from the Board,management to every single staff member – who drive thecollective behaviour that distinguishes SPC.Dr Audrey Chin receives award from Mrs Lim Hwee Hua, Minister of State forFinance and Transport.Congratulationson your promotion/upgrading!Alex Ho Wah FongAllan Tan Yang ChongAng Boon YenAngeline Lieon Ah GuatCeline Chen Soh LernChin Yoong FahDeon Tan Li KiangEdmund Poh Boon LengElaine AngEvelyn Khoo May GeokGan Dong LeeGerald Tan Wee HanJasmine Lim Boon EngJennifer Lee Siew KuanJoey Ho Jong-WeeLong Tuck FattMarcus Ng Hwee ChengMelvin Foo Seck HimMichael Kang Ann AnnMohammed Fahmy HashimPauline PehRina Lim Lay ChooSharon Ho Li ChooSoon Boon HoeTan Ho KheongToh Bee YenAs part of the Company’s ongoing career andleadership development initiative, SPC announcedthe promotion of four leaders in 2008.1 23 41.2.3.4.Ms Foo Jang See, Senior Vice-President(Crude & Products Trading)Jang See joined SPC in 1982 as a Supply Executive in the then Supply& Transportation Department. During her 26 years service withthe Company, Jang See’s career extends across tanker charteringoperations, trading, derivatives, distillates and risk management. JangSee took on the position of VP, Trading & Risk Management in 2005before leading the newly created Crude & Products Trading Group.Mr Gan Tiong Aik, Vice-President (Risk)Tiong Aik joined SPC in 1980 as Internal Auditor in the InternalControl and Systems Department. In his 28 years in SPC, he hasbeen involved in the review of the control systems, procedures andoperational audits of the SPC Group of companies. As VP Risk, heheads a newly created Risk Group.Mr Brian Boslaugh, Vice-President(Exploration & Production)As a geophysicist by training, Brian has over 20 years in oil andgas exploration, appraisal and project management in SoutheastAsia, Africa, UK and US. His experience spans across explorationasset management, project planning and execution, well planning,permitting, operations, risk, reserves and portfolio management,geology and geophysics. Brian takes over the portfolio of Dr Tony Tan(SVP, E&P), who has resigned. Brian is responsible for SPC’s worldwideoil and gas exploration and production operations and acquisitions.Mr Vincent Tay, General Manager (Marketing)Vincent joined SPC in 1990 as Operations Engineer in the MarketingDivision. He took on portfolios in marketing development, retailsales & development and commercial sales. Vincent was alsoinvolved in various overseas marketing joint ventures. As part of thecompany’s career development initiatives, Vincent was involved incrude sourcing and purchasing before assuming his current positionof GM (Marketing).4 55

Left page:SPC holds an annual Green Day where employees do their part for the preservationof nature. Since planting 35 trees at the Bukit Timah Nature Reserve in 2004, SPCreturns every year to prune and upkeep these trees. Going green has become adeep-rooted SPC value.Above:As a home-grown Singapore company, SPC has been an avid supporter of theSingapore Symphony Orchestra, continuously contributing to and enriching thelocal arts culture.Right and bottom:SPC’s community efforts go beyond donations and sponsorships. Today, thecompany has inculcated a strong culture of employee volunteerism. In March,SPC and the Singapore Women’s Association organised an Annual Lunar NewYear Lunch for senior citizens to share joy and festivities. SPC employees displayeddedication to voluntary social work. Sharing with others is well-supported in SPC.Over the years, SPC has continuously participated in community activities aspart of responsible corporate citizenry. As the Company powers ahead, SPC isstepping up its Corporate Social Responsibility initiatives.With a diverse outreach programme that includes cultural, environmental andphilanthropic causes, SPC strives to make a difference to the community. Livingup to its dictum – Caring for tomorrow, today.6

A Quarterly SPC NewsletterSPC strengthens positionas employer of choiceAgainst the backdrop of high demand for skills, knowledge, experienceand education, the talent market in the oil and gas sector is acompetitive one. SPC practises a multi-faceted human capital strategyto develop, motivate and retain our talents, to position the Companyas an ”Employer of Choice”. To this end, SPC continuously implementsnew initiatives to build and sustain its high performing talent pool.Nurturing Future TalentSPC has a close partnership with local tertiary institutions to develophome-grown petroleum and reservoir specialists. In 2006, the Companysponsored the first batch of two students from the National Universityof Singapore (NUS) to Texas A&M University on a six-month programmein Petroleum Engineering. The scholars, Nah Wenbin and Eugene Chiam,will graduate in July 2008 and will join the SPC Exploration & Production(E&P) business unit. Last December, SPC sponsored another two NUSstudents, Alex Goh and Lee Wei Ming, to pursue Petroleum Engineeringin Texas A&M University and University of Texas, Austin, respectively.Selected jointly by SPC and NUS, Alex and Wei Ming will be offeredinternships with SPC when they complete their studies.Strengthening partnerships, cementing cooperationOn 4 April 2008, representatives from SPC and the United Workers of PetroleumIndustry (UWPI) signed the SPC Employees’ Agreement 2008. The signing ceremonywas attended by members of the SPC’s Management Team and SPC staff.In his opening address, CEO Mr Koh Ban Heng highlighted the strong partnershipand collaborative efforts that SPC and the UWPI invested in the SPC Employees’Agreement 2008. Extending his appreciation to both parties for their efforts, heexpressed confidence that SPC and the UWPI will continue to work closely in aspirit of cooperation, trust and mutual respect.The strong partnership was also acknowledged by UWPI General Secretary MrK. Karthikeyan. He complimented SPC for its ongoing efforts to recognise thecontributions of unionised staff. Mr Karthikeyan also expressed his appreciation tothe SPC and UWPI representatives for continuingto uphold a spirit of trust, sincerity and mutualrespect throughout the discussions of SPCEmployees’ Agreement 2008.About SPC Employees’ Agreement 2008The SPC Employees’ Agreement 2008 sets outthe employment terms and conditions for theCompany’s unionised staff for the next threeyears from January 2008 to December 2010.SPC is proud to be the first company in Singapore to support NUSstudents to take up Petroleum Engineering as an area of specialisationfor studies overseas.Talent Building & Development – SPC ManagementProgrammeSPC partnered the Nanyang Business School of the NanyangTechnological University (NTU) to design, develop and deliver adevelopment programme for selected employees from variousdepartments to prepare them for higher levels of proficiency. Held on22, 23, 29 February and 1 March 2008, the programme introducedparticipants to business development, marketing, operations andlogistics, people management concepts, and how these can beintegrated to achieve strategic objectives. The programme wasdelivered by six NTU professors. The participants demonstrated theircreativity and strategic thinking skills via a project presentation at theend of the four-day programme.Above:Cultivating talents through internships. From left: Mr Brian Boslaugh (Vice-President, E&P), Mrs Doris Tan (General Manager, Human Resource &Administration), Dr Loh Wai Lam (Visiting Senior Scientist, NUS), Alex Gohand Lee Wei Ming.Bottom:SPC bolsters the skills of its staff with its Management Programme.8 9

A Quarterly SPC NewsletterFair Play, get it right with Competition LawHeard of match-fixing in sports and its graveconsequences? In business, bid-rigging is outlawedthe way match-fixing is. Bid-rigging occurs whencompetitors agree on who should win a tender. Tosupport the party who has been designated by thecompetitors to “win” a tender, the other partiesrefrain from submitting their bids, withdraw their bidsor submit their bids with higher prices for the project.The parties then take turns to “win” tenders. Such anact constitutes an anti-competitive agreement.Other forms of anti-competitive agreementsinvolve fixing prices, sharing markets or limiting theproduction or supply of goods or services. These areoffences under Section 34 of the Competition Act.Under the Competition Act, the CompetitionCommission of Singapore (CCS) has powers toinvestigate complaints of anti-competitive activities,including carrying out a raid on the office premises.CCS can also levy substantial penalties on errantcompanies.SPC strictly adheres to Competition Laws – laws that(apart from the above) also prohibit abuse of dominantposition, for example, raising entry barriers, slowinginnovation or predatory pricing.SPC requires that all staff members act withutmost integrity in internal and external meetings,discussions or communication. Consult SPC Legalwhen in doubt.After all, beyond compliance, we believe in fair play.Everyone should be given open access to competeand improve.SRC’s stellar safety milestoneOn 12 March 2008, the Singapore Refining Company (SRC) clocked five millionman-hours without a Day Away from Work. For 17 months, all 1,500 employees andcontractors returned home safely to their families without any lost time injury.To enhance SRC’s safety mindset and the effectiveness of its safety managementsystems, the refinery embarked on an initiative in July 2007 to foster an Incidentand Injury Free (IIF) safety culture. An external consultant was engaged to assistSRC in inculcating individual commitment to personal safety, as well as instil aconcern for the safety of others.SRC aims to instil safety as a value in everyone so that one voluntarily chooses tofollow the rules, regulations and procedures for the welfare of all.Since the implementation of IIF programme,fewer At-Risk Behaviour had been noted duringbehaviour-based safety site observations. SRCstaff and contractor workers are appreciative ofthe Management‘s ongoing efforts to improve theworking environment and to ensure safety in SRC.Below: Marking a safety milestone.10 11 3

Editorial CommitteeLee Chiang Huat (Chief Editor)Elaine AngGan Dong LeeHerman NgJoey HoKevin SiakNorashikin Mohamed ShaarifRaihanah MohdSoon Boon HoeSuresh Pitty SivanandamTan Yeen VoonSingapore Petroleum Company Limited1 Maritime Square #10-10HarbourFront CentreSingapore 099253Tel : 6276 6006Fax : 6275 6006http://www.spc.com.sgMICA (P) 224/11/2206Co. Reg No: 196900291N