Corporate Social Responsibility Report 2008 SBM Offshore · companies. SBM Offshore manages all...

SBM Offshore

Corporate Social Responsibility Report 2008

Sharing our future

www.sbmoffshore.com

SBM Offshore N.V.

Postal address

P.O. Box 31

3100 AA Schiedam

The Netherlands

Street address

Karel Doormanweg 66

3115 JD Schiedam

The Netherlands

Telephone +31 10 232 0900

Telefax +31 10 232 0999

E-mail: [email protected]

Full information regarding

SBM Offshore is available

on the Company’s website

at www.sbmoffshore.com

The Netherlands

P.O. Box 11, 3100 AA Schiedam

Karel Doormanweg 66

3115 JD Schiedam

The Netherlands

Telephone +31 (0) 10 2320 000

Telefax +31 (0) 10 2320 101

Malaysia

Block 2B – Level 9

Plaza Sentral

Jalan Stesen Sentral 5

Kuala Lumpur Sentral

50470 Kuala Lumpur – Malaysia

Telephone +60 (3) 2773 53 00

Telefax +60 (3) 2773 5399

Monaco

24 avenue de Fontvieille

P.O. Box 199

MC 98007 Monaco CEDEX

Principality of Monaco

Telephone +(377) 92 05 15 00

Telefax +(377) 92 05 85 00

USA

1255 Enclave Parkway, suite 400

Houston, TX 77077

USA

Telephone +1 (281) 848 6000

Telefax +1 (281) 848 6100

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SBM Offshore Corporate Social Responsibility Report 2008

Who We Are

SBM Offshore is a multinational group of companies servingthe oil and gas industry through the sale, lease, and/or theoperation of offshore production facilities, as well as relatedservices. The Company has been publicly listed on theEuronext Amsterdam Stock Exchange since October 11th 1965, originally under the name IHC Holland and afterwardslisted as IHC Caland. On May 1st 2005, IHC Caland N.V. was renamed SBM Offshore N.V.; and the shares weresubsequently listed under this name. The Company’s clients are mainly international oil and gas corporations, bothprivate and public sector organisations, including national oilcompanies. SBM Offshore manages all business, project, and engineering activities through four key execution centres.

In addition to these main centres, there are permanentestablishments in 15 countries for regional marketing and sales, local management of offshore operations andconstruction activities.


Appendices

GRI Index Level C+

GRI Index Report Page

Vision and Strategy Sustainability, Vision and Strategy 1.1 6, 7

Oganisational Profile Name of Organisation 2.1 2, 3, 8, 11

Primary Products 2.2 2, 5

Operational Structure 2.3 2 – 4, 10 – 14

Location of HQ 2.4 2, 3, 11, 27

Countries of Operation 2.5 2, 3, 27

Nature of Ownership 2.6 2, 3, 11

Market Served 2.7 2, 3, 5, 16

Scale of Reporting Organisation 2.8 2, 3, 16

Significant Changes 2.9 11

Awards Received 2.10 Not reported

Report Parametres Reporting Period 3.1, 3.2, 3.3 4, 6, 9, 16, 17

Contact point for questions regarding 3.4 49

the report or its contents

Reporting Boundaries 3.5, 3.6, 3.7, 3.8 16, 17

Basis for Reporting Including JV 3.8 9, 16

Re-Statements 3.10 13, 16, 42


PI tables 3.12 40 – 45

Governance, Commitments and Engagement Governance 4.1, 4.2, 4.3, 4.4 10 – 15

Stakeholder Engagement 4.14, 4.15 6, 12, 17

Employees benefit plans EC3 32

Environmental Performance Indicators Direct Energy and Indirect Energy EN3, EN4 16, 17, 24

Energy Saved EN5 24

Emissions, Discharges and Waste E20, E23 24, 25, 41, 42

Number and Volume of Spills E23 17, 22, 23, 41

Labour Practices and Decent Work Employment LA1, LA2 12, 16, 26 – 33

Labour/Management Relations LA3 12

Health and Safety LA7 7, 12, 14, 16, 18, 19, 40, 41

Diversity and Opportunity LA10 6 – 8, 26, 29, 33

Training and Education LA13 14, 17, 19 – 22, 30 – 33,

36 – 37, 45

Security Practices HR1 – HR9 7, 17, 19, 21

Social Society SO1 – SO8 7, 12, 34 – 37

Product Responsibility PR1 – PR9 Not reported

SATIMAT GREEN / MAINE GLOSS GREEN

Satimat Green is manufactured by Arjowiggins one of Europe’s leading makers of recycled coated

papers, who have a reputation for making products which meet the latest environmental standards.

Satimat Green contains a minimum of 60% recycled fibre and 40% FSC virgin fibre. The recycled fibre

content being mainly taken from office waste. The mills are ISO 9001, ISO 14001 and FSC mixed

source certified. Satimat Green is an FSC mixed source product. A full copy of the mill’s environmental

statement is available on request.

Disclaimer

Some of the statements contained in this report that are not historical facts are statements of future

expectations and other forward-looking statements based on management’s current views and

assumptions and involve known and unknown risks and uncertainties that could cause actual results,

performance, or events to differ materially from those in such statements. Such forward-looking

statements are subject to various risks and uncertainties, which may cause actual results and

performance of the Company’s business to differ materially and adversely from the forward-looking

statements. Should one or more of these risks or uncertainties materialize, or should underlying

assumptions prove incorrect, actual results may vary materially from those described in this

presentation as anticipated, believed, or expected. SBM Offshore NV does not intend, and does not

assume any obligation, to update any industry information or forward-looking statements set forth in

this presentation to reflect subsequent events or circumstances.

Photography: SBM Offshore N.V.

Photo Serge-Henri, Valbonne, France (CEO Photo)

Lithography and printing: B.V. Drukkerij De Eendracht, Schiedam

Binding: Boekbinderij van Wijk B.V. Utrecht

� www.sbmoffshore.com

The CSR Report can be downloaded at www.sbmoffshore.com, whose

Corporate Social Responsibility section provides additional information.

Contacts

To let us know what you think of the report and the issues covered in it.

Please send your comments to [email protected]

This report has been issued by the Corporate Communications Department

at SBM Offshore.

Designed and produced by Radley Yeldar (London) www.ry.com

Contents

01SBM Offshore Corporate Social Responsibility Report 2008Who We Are

Who We Are 02A Closer LookCorporate Activities 022008 Activities Worldwide 04CEO Message 06

Corporate Profile 2008 08Corporate Responsibilities 08Corporate Business Strategy 07Joint Ventures 08After Sales Services and Offshore Contracting 08Reported Lease and Operate Fleet for 2008 09

Principles and Corporate Governance 10Corporate Governance and Management Systems 11Stakeholders 11Compliancy Management Status 12CSR Commitments and Performance 14

CSR Reporting Scope 16Reporting Segments 16Occupational Health and Safety Reporting 16Environmental Management Systems 17Employees 17Social and Community 17Stakeholder Engagement 17

Health, Safety, Security and Environment (H.S.S.E.) 18SBM Group Health and Safety Performance 20Health and Safety – Onshore Operations 21Health and Safety – Offshore Operations 21Security 21Environmental Management 22

Responsibilities Towards Employees 26Total Global Workforce 27Developing Capabilities 30Performance and Career Development 31Employee Benefits 32

Local Communities 34Tamatakaw Village Project, Myanmar 35Community Engagement 36

Renewable Energy Services 38Green Power Generation 39Reducing the Ecological Impact 39Research and Long-Term Development 39

Performance Indicators 40Economic 40Health Safety, Security and Environment (H.S.S.E.) 40Human Resources 43Community 45Suppliers 45

Appendices 46Glossary 46PricewaterhouseCoopersAssurance Report 48GRI Index Level C+ ibc

In 1965, a number of Dutch shipyards, eachfounded in the course of the 19th century,established under the name N.V. IndustrieeleHandels Combinatie Holland a limited liabilityCompany listed on the Amsterdam stockexchange. The main yards in the Companywere at that time Gusto in Schiedam, Smit in Kinderdijk and Verschure in Amsterdam.Prior to the creation of IHC Holland, the Gusto yard had already made a first move into offshore oil and gas related activities in the1950’s. In 1959, the Gusto yard constructedthe first Single Point Mooring (SPM) facilityunder a license agreement with Shell.

The decision was taken in 1969 to create a separate Company for the marketing and further development of SPM systems. Single Buoy Moorings Inc. (SBM) was foundedas a wholly-owned subsidiary of IHC Holland N.V.On May 1st 2005, IHC Caland N.V. wasrenamed SBM Offshore N.V.; and hereafterlisted as SBM Offshore N.V. on the EuronextStock Exchange, Amsterdam.

Short History of SBM Offshore N.V.

02

A Closer Look

Execution/Corporate Centres

Shore Bases

Lease Units

Future Lease Units

Laid-up Units


Who We Are

SBM Offshore’s activities integrate engineering, supply, offshore installation,and operation of offshore facilities for the production, storage, and export of crude oil and gas. The offshore facilities consist of the following systems:Floating Production Storage and Offloading systems (FPSOs), FloatingStorage and Offloading systems (FSOs), Tension Leg Platforms (TLPs),Monohull and Semi-submersible Floating Production Units (FPUs), self-elevating Mobile Offshore Production Units (MOPUs) and systems based on the weathervaning or fixed heading principle used for the permanent,disconnectable or temporary mooring of ships.

In addition to the supply of these systems on a turnkey basis, the Company is also in the business of owning and operating offshore production units.These units are, as a rule, contracted as long-term charters on alease/operate basis to clients worldwide.


For more information please visit our website

13073_SBM_2008CR 13/5/09 13:00 Page 02

03

es

SBM Offshore has four Main Execution Centres

Malaysia Monaco The Netherlands USA


Who We Are

SBM Offshore Group companies

SBM Offshore N.V

Management:

D.H. Keller, Managing Director and CEO until May 15th 2008

A. J. Mace, Managing Director and CEO from May 15th 2008

M.A.S. Miles, Managing Director from May 15th 2008 and CFO

D.J. van der Zee, Director, CTO and President SBM PC

F. Blanchelande, Director, COO

�www.sbmoffshore.com

Single Buoy Moorings Inc (SBM)

Marly (Switzerland) and Monaco

Management: A Mace, D J van der Zee, F Blanchelande

Activities: SBM Systems: mooring technology, process

engineering, project management, construction supervision,

technology development; SBM Production Contractors

management of the lease fleet; SBM Services: offshore

contracting, spare parts, after-sales services; SBM Gas

and Power: offshore technology applications in the LPG

and LNG industry.

�www.singlebuoy.com

SBM Atlantia

Houston (USA)

Management: B van Leggelo, President

Activities: mooring technology, process engineering, project

management, after-sales services, design and supply of

deepwater production systems (TLPs, semi-submersibles),

design and supply of semi-submersible drilling units.

�www.sbmatlantia.com

SBM Malaysia

Kuala Lumpur (Malaysia)

Management: I Replumaz, Director

Activities: mooring technology, process engineering,

project management.

�www.sbmmalaysia.com

Marine Structure Consultants (MSC) BV

Schiedam (The Netherlands)

Management: C J Mommaas, Managing Director

Activities: offshore design, engineering and consultancy

services, naval architecture, process engineering.

�www.gustomsc.nl

GustoMSC

Schiedam (The Netherlands)

Management: S A W Janse, Managing Director

Activities: offshore design, engineering and consultancy

services, naval architecture, process engineering.

�www.gustomsc.nl

SBM Offshore highlights

5,151Total Employees WorldwideAs per December 31st, 2008(including part-time and temporary staff)

4Main Execution CentresKuala Lumpur, Malaysia;Fontvieille, Monaco;Schiedam, The Netherlands;Houston, USA

5.7Total man hours (Million)Onshore OperationsGroup Worldwide(excluding Subcontractors)

11Main ClientsLease and Operate Mostly Major IOCs and NOCs

$228mNet Profit (US$ Million)Compared to US$ 267m in 2007

$3.060mTurnover (US$ Million)Compared to US$ 2.871m in 2007

13073_SBM_2008CR 13/5/09 13:00 Page 03

04

2008 Worldwide Activities


Who We Are

The Company has been very busy in 2008 with many

contracts and turnover increased to a record level and

was 7% higher than the prior year. All operating units

contributed positively to the results of the Company in

2008. The execution of many of the contracts has benefited

from the synergy between the operating units and from

the complementary nature of the different disciplines and

specialisations available in the respective Group companies.

The Company’s execution capacity has stabilised after

several years of substantial growth. Risk and cost control

systems have been further improved in all operating units

during the year to increase control on project costs and

delivery schedules.

Selected Financial Results 2008

2008 2007 2006

US$m US$m US$m

Net profit 227.9 266.8 216.3

Operating profit (EBIT)* 275.1 302.0 254.3

EBITDA 530.1 548.3 477.5

Capital expenditure 999.8 551.0 309.0

Total equity at December 31st 2009 1,240.9 1.337.7 1,119.0

Turnover 3,060.3 2,871.2 1,989.7

Total assets at December 31st 2009 4,344.9 3,634.6 2,940.4

Shareprice (€) December 31st 2008 9.35 21.60 26.05

AEX-Index at December 31st 2009 245.9 515.8 495.3

Market capitalisation US$

at December 31st 2009 1,902.4 4,557.6 4,830.6

* 76% of EBIT is generated from lease and operate activities (60% in 2007)


For further information please see the SBM Offshore Annual Report

2008 published on our Company website

Financial and Sales Highlights for 2008

• New orders totalled US$4,355 million (US$3,822 million in 2007)

• Turnover up to US$3,060 million (US$2,871 million in 2007)

• Investment in fixed assets of US$1,000 million (US$551 million in 2007)

• New 12 year lease contract from Petrobras for the existing FPSO

Capixaba on the Cachalote field in Brazil

• Turnkey supply contract for FPSO P-57 with Petrobras for Brazil

• Turnkey supply contract for FPSO OKHA with Woodside Energy Ltd

for Australia

• A call off frame contract for the supply of FPSOs for Angola with BP Angola.

Corporate Developments

In 2008, the Company focused on several initiatives:

• Higher safety performance with aim for zero accident and incidents;

• Continued improvement of the SIRS (Single Incident Reporting System)

for H.S.S.E. statistics both for offshore production and land-based

operations including our subcontractors’ construction yards;

• Accomplish our nationalisation programmes wherever we operate;

• Progress the renewable energy development programme.

Lease/Operate Fleet 2008

At the end of 2008 the Company’s fleet of production units operating under

lease and operate contracts, fully or partially owned and fully or partially

managed by the Company consisted of 15 Floating Production Storage

and Offloading Systems (FPSO), three Floating, Storage and Offloading

Systems (FSO) and one Mobile Offshore Production Unit (MOPU).

New additions to offshore production fleet in 2008

• In January, start of operation of the FPSO Mondo in the Kizomba ‘C’ field

offshore Angola under the 15 year lease contract with Exxon Mobil;

• In July, start of operation of the FPSO Saxi-Batuque in the Kizomba ‘C’

field offshore Angola under the 15 year lease contract with Exxon Mobil;

Lease/operate Contracts ending in 2008

Four vessels ended lease operations in 2008:

• The FPSO Mystras was purchased by our client AENR in July.

• FPSO Tantawan Explorer in Thailand was purchased by our client;

Chevron Offshore Thailand Ltd in July.

• FPSO Rang Dong I was redelivered to the Company by our client Japan

Vietnam Petroleum Company Ltd (JVPC) in October at the end of the

confirmed lease period, including a short extension. The unit has been

disconnected and decommissioned and is currently laid up.

• FSO OKHA was decommissioned at the end of October and will be

converted in 2009 for Woodside’s FPSO at the Cossack Field in Australia.

13073_SBM_2008CR 13/5/09 13:00 Page 04

SBM Offshore activities

Turnkey SupplySBM Offshore has been involved in the supply of a great number of

tanker loading and offloading mooring points. SBM Offshore provided

the first system to permanently moor a tanker based Floating Storage

and Offloading System (FPSO). We also supply seabed pre-tensioned

Tension Leg Production (TLP) units, Semi-submersible Production

Units and seabed fixed Mobile Offshore Production Units (MOPU)

on a turnkey basis. � www.sbmoffshore.com

Lease and Operate SBM Offshore provides the offshore oil and gas industry with

high quality production services through the leasing and operation

of Floating Production Storage Offloading (FPSO) units, Floating

Storage and Offloading (FSO) units, Mobile Production Units

(MOPU) and Semi-Submersible Production units (Semi-sub).


Equipment SupplySBM Offshore supplies critical components in different types of

offshore terminals. The above mentioned critical components have

all been engineered in house using SBM Offshore specifications

and know-how.


Technology Development New Technology forms an essential element in SBM Offshore’s

growth for the specific offshore needs of our clients. The Product and

Technology Development group is equipped with powerful analytical

tools to simulate and predict the behaviour of very complex systems

in an offshore environment, providing assistance at the conceptual

stage of an offshore field development or other developments.


Our ServicesSBM Offshore provides three types of services:

– Product Services

– Offshore Contracting

– Fabrication Services


05SBM Offshore Corporate Social Responsibility Report 2008

Who We Are

5.3mTotal man hours (Millions)Offshore Production Units19 offshore systems for Offshore Production

19Offshore Production FleetTotal Lease and Operate FleetAsia, Brazil, West Africa, Russia and the Caspian

156.4mHydrocarbons Throughput MMbbls (Million barrels of oil) Reported Lease and Operate Fleet – 15 UnitsAsia, Brazil, West Africa, Russia and the Caspian

Design and EngineeringThe company offers design, engineering, procurement, project

management and consultancy services primarily to the offshore oil

and gas sector, covering the: exploration, construction and production

markets. In addition, it has designed some systems in the civil

construction sector. GustoMSC is the specialist of all types of mobile

offshore units: jack-ups, semi-submersibles, ship and barges, heavy

lifting cranes and a range of deck-mounted and associated equipment.


13073_SBM_2008CR 13/5/09 13:00 Page 05

06

CEO Message


Who We Are

Tony Mace

This is SBM Offshore’s second separate CSR report

for non-financial activities during the year of 2008.

The products we develop and the systems we sell or lease

are used to provide a means for the world’s oil and gas

companies to generate the energy for the modern world,

thus helping economies grow and nations prosper. In SBM

Offshore we believe that our Company fills an important

place in the development of energy needed for the world’s

growth. We do this by designing efficient, robust, fit for

purpose, safe to operate and environmentally conceived

systems utilised offshore for the transportation and production

of oil and gas products. All the Company’s personnel are

aware of this mission and are aware of our place in the

energy chain. The Company continually strives to develop

the technology and systems that our Clients will require in

the future to continue to supply the world’s energy needs.

Our commitment to responsible business management is

stated in our Code of Conduct, in which our responsibilities

towards all stakeholders are declared. This code forms

the basis for the operational performance of our business

activities. We strongly support and enforce equal opportunity

principles and the company does not differentiate between

nationality, gender, race or religion.

SBM Offshore is committed to perform our business

in a responsible, reliable and sustainable manner.

SBM Offshore places high importance on long-term

relationships for sustainable business with our clients,

suppliers and other business partners. We aim to do this

by providing reliable, quality service to our clients and

by developing responsible equitable relationships with

our suppliers and partners.

13073_SBM_2008CR 13/5/09 13:00 Page 06


Who We Are

The Company has been developing technology for the

evolving gas and liquid natural gas or ‘LNG’ energy market

in order to sustain the company in the future. Gas is a more

acceptable form of fossil fuel and also environmentally more

acceptable. Wind and wave energy solutions are being

developed in-house leveraging on SBM Offshore’s extensive

knowledge and experience in providing systems in the

offshore environment.

Looking back, 2008 has been a year with both positives and

negatives. Input costs on certain of SBM Offshore’s major

projects exceeded the provisions required to deliver the

facilities. Risk and cost control systems have been further

improved in all operating units during the year to increase

control on project costs and delivery schedules.

Nevertheless, despite these setbacks, we also can report

progress. In January, the successful start-up and operation

of the FPSO Mondo in the Kizomba ‘C’ field offshore Angola.

In July, the start of operation of the FPSO Saxi Batuque

also in the Kizomba ‘C’ field; and the end of December

hook up of the FPSO Espirito Santo in the BC-10 field

offshore Brazil. In 2008 the offshore production fleet

achieved good environmental performance by means

of stringent environmental management systems, legal

compliance and through responsible operations. ISO 14001

certification of the entire offshore production fleet is an

important future goal. The Brazilian fleet, consisting of

four offshore production systems, all obtained external

certification in the course of 2008.

We place a continuous high focus on industrial safety.

Safety awareness is continually enhanced at our

constructions sites and on our offshore production units and

we can report improved safety performance results in 2008.

Security is always on the agenda. In the course of the

last three years a joint-venture offshore production facility,

located in Nigerian waters, has been a concern for us and

our JV partner. This installation has endured severe security

problems due to frequent terrorist attacks, however, the

unit was purchased by our client in 2008. The security issue

also impacts the safe operation of the company’s DSV

construction vessel often deployed in the Niger delta where

the militants are constantly active. This has required a

heightened safety plan for continued operations.

In May 2008 cyclone Nargis struck Myanmar and caused

catastrophic destruction in the Ayeyarwady Delta area

and Yangon division. As we have an offshore operation in

the country, SBM Offshore purchased emergency supplies

and also donated emergency funds to the Marie Stopes

International Cyclone Nargis Relief Support. The cyclone

aid was focused on providing basic health needs to the

affected communities in the delta.

This report provides details on our Social Responsibility

initiatives and we hope you find it interesting and helpful.

Tony Mace

May, 2009

US$600kDonations to Local Communities

13073_SBM_2008CR 13/5/09 13:01 Page 07

08 SBM Offshore Corporate Social Responsibility Report 2008

Corporate Profile 2008


Corporate Responsibilities SBM Offshore recognises its corporate responsibility as a

valid and legitimate challenge in a changing world where

both private and public companies have control and

influence over their ‘impact’ on society at large. For SBM

Offshore, Corporate Social Responsibility means good

corporate governance practices; a sound Code of Conduct

incorporating an anti-corruption guiding principle, equal

opportunities and sustainable business development in

the locations where we operate.

Corporate Business StrategyThe Company has the integrated competence to manage,

design, supply, install, and operate complete, complex

offshore oil and gas production facilities. The strategy of

SBM Offshore is to place the development of technology

at a high priority level with the objective to generate

and develop cost-effective solutions for ultra-deepwater

developments, the growing gas industry and future green

energy production.

The strategy necessitates the creation and maintenance

of a comprehensive pool of engineering resources available

within the Group companies covering all aspects of the

company’s products. It is the opinion of SBM Offshore

management that one of the main risk-control principles

is to avoid having to subcontract competence when

promoting state-of-the-art or innovative ideas.

Joint VenturesSBM Offshore considers a Joint Venture (JV) partnership in certain

circumstances to be an efficient way of developing sustainable business.

In the lease/operate sector of our business, our partners are in general

responsible for a pre-defined part of the project. SBM Offshore only engages

in a JV when it both enhances the opportunity to secure business and

ultimately adds value to the Company’s performance.

Joint Ventures are those entities over whose activities the Company has

joint control, established by contractual agreement. Several of our Offshore

Floating Production Units under lease/operate contracts are Joint Ventures

and the offshore production and/or storage units are wholly or partially

operated by SBM Offshore.

This report will account for those Joint Ventures where SBM Offshore

controls 50% or more of the shares.

After Sales Services and Offshore ContractingThe Company owns and operates two dynamic positioning offshore

construction vessels, the older smaller vessel 100 percent owned by the

Company and the newer larger vessel owned by a 50/50 JV SBM Offshore

and Solstad. The larger vessel was designed for and has been engaged in the

installation of the Company’s deepwater moorings, whilst the smaller vessel

has been engaged in many different types of offshore construction work.

The supply of spare parts and engineering and inspection services for the

Company’s existing 400 plus terminals has also been a very important activity.

Business Policy

To support the Mission Statement and the achievement of the

objectives, the SBM Offshore NV Companies, collectively referred

to as the Group, have formulated and are committed to a Business

Policy in which all employees will endeavour to:

• Maintain and enhance the position of the Group as one of the global

leaders in the offshore oilfield service industry by supplying innovative

technical solutions for engineering, engineered products, vessels,

systems, offshore installations, after-sales services and oil and gas

production services

• Execute projects and operational activities in conformity with

contractual and Group requirements

• Continually satisfy Clients by creating and producing high quality

and reliable products and services

• Continually improve Group business processes within their own

functional area and within supporting functions utilising the

Management System as the means of process definition

• Individually and collectively ensure the Group is an industry leader

in the implementation of health, safety, environmental and security

protection requirements integral to all areas of operation

• Efficiently utilise Group resources to achieve the most effective

business solutions for our Clients and the Group.

Quality Charter

To support the Mission Statement, and in the pursuit of excellence,

the SBM Offshore NV Companies have formulated and are committed

to a Quality Charter in which all employees will endeavor to:

• Execute projects and operational activities in conformity

with contractual and Group requirements

• Continually satisfy Clients by creating, producing and supplying

high quality, reliable products and services, within time and budget

and according to client specifications

• Continually improve Group business processes within their

own functional area and within supporting functions utilizing the

Management System as the means of process definition

• Individually and collectively utilize Group resources to efficiently create

the most effective business solutions for our Clients and the Group

• Define and implement quality objectives based on this policy

statement at appropriate levels of the organization.

13073_SBM_2008CR 13/5/09 13:01 Page 08



Reported Lease and Operate Fleet for 2008Ownership and Joint Ventures Partnerships – Offshore Production

The following table lists the lease units in which SBM Offshore holds a 50% or greater ownership and is therefore included in the reporting scope.

Unit name in Operationaloperation 2008 J.V. Partner and ownership level J.V. ownership title management Client

Angola

1 FPSO Kuito SBM Offshore 50% Sonangol 50% Sonasing Kuito SBM Offshore Chevron

2 FPSO LPG Sanha SBM Offshore 50% Sonangol 50% Sonasing Sanha LTD SBM Offshore Chevron

3 FPSO Xikomba SBM Offshore 50% Sonangol 50% Sonasing Xikomba LTD SBM Offshore Exxonmobil

4 FPSO Mondo SBM Offshore 50% Sonangol 50% Sonasing Sanha LTD SBM Offshore Exxonmobil

5 FPSO Saxi Batuque SBM Offshore 50% Sonangol 50% Sonasing Saxi Batuque LTD SBM Offshore Exxonmobil

Brazil

6 FPSO Espadarte SBM Offshore 100% N/A SBM Offshore Petrobras

7 FPSO Brasil SBM Offshore 51% Misc Berhad 49% FPSO Brasil Venture S.A. SBM Offshore Petrobras

8 FPSO Marlim Sul SBM Offshore 100% N/A SBM Offshore Petrobras

9 FPSO Capixaba SBM Offshore 80% Star 20% FPSO Capixaba Venture S.A SBM Offshore Petrobras

Thailand

10 FPSO Tantawan** SBM Offshore 100% N/A SBM Offshore Chevron

Vietnam

11 FPSO Rang Dong** SBM Offshore 70% Mitsubishi 30% SBM Diamond Venture S.A. SBM Offshore J.V.P.C.

Myanmar

13 FSO Yetagun SBM Offshore 75% Mitsubishi 25% South East Shipping Co. Ltd SBM Offshore Petronas

Russia

14 FSO Okha** SBM Offshore 100% N/A SBM Offshore SEIC Sakhalin Energy

Investment Co. Ltd

Turkmenistan

14 FSO Oguzhan SBM Offshore 100% N/A SBM Offshore Petronas

15 MOPU Turkmenbasy SBM Offshore 100% N/A SBM Offshore Petronas

**Lease/ operate contracts which expired in 2008.

NOTE: The financial statements in the Annual Report 2008 generally include the Company’s proportionate share of the Joint Venture entities’ assets, liabilities, revenue, and expenses, with items of a similar

nature on a line-by-line basis, from the date that joint control commences until the date that joint control ceases.

The following joint Ventures Partnerships 2008 are excluded from the report.

SBM Offshore does not exercise operational management and where SBM Offshore does not hold JV majority ownership.

Unit name in Operationaloperation 2008 J.V. Partners J.V. ownership title management Client

Congo (D.R.)

1 FSO LPG Nkossa II Maersk Limited 51% Anchor Storage Limited Gas Management Total (Congo) LTD

Nigeria

2 FPSO Mystras Saipem 50% FPSO Mystras – Saipem Agip

Produção de Petroleo LTDA

Malaysia

3 FPSO Kikeh Misc Berhad 51% Malaysia Deepwater Floating Malaysia Deepwater Murphy

Terminal (kikeh) Limited Production Contractors

SDN BHD

13073_SBM_2008CR 13/5/09 13:01 Page 09

10

Corporate Principles and Practices

Our commitment to responsible business management isexpressed in our Code of Conduct. Here our responsibilitiestowards all stakeholders are declared. The Code of Conduct is the basis for the daily performance of our business activitiesand all employees are actively accountable for compliance with this Code.

SBM Offshore realises that it is essential to work in asustainable way. The Company is very concerned about theconsequences of our actions either in the form of positive or negative impact on society at large and is committed tooperate our business openly and honestly, guided by theprinciples laid down in the Company Code of Conduct.




The Code of Conduct is available on the Company website, the Corporate

Governance Section in addition to the Corporate Intranet Site

13073_SBM_2008CR 13/5/09 13:01 Page 10



Corporate Governance and Management SystemsCorporate Governance Structure

SBM Offshore is a Naamloze Vennootschap (Public Limited Company)

incorporated under Dutch law with its statutory seat in Rotterdam, the

Netherlands. The Management Board consists of two statutory directors,

the CEO and the CFO. The statutory directors and non-statutory directors

form together the Board of Management.

Duties of the Board of Management

The Company is managed by the Board of Management, under the

supervision of a Supervisory Board. Each year the Board of Management

presents to the Supervisory Board, the operational and financial objectives

of the Company, the strategy designed to achieve the objectives and the

parameters applicable in relation to the strategy. The operational Plan

2009 has been discussed and approved in the Supervisory Board Meeting

of December 9th 2008.

Supervisory Board

The Supervisory Board consists of six members. The Supervisory Board

has established an Audit Committee, a Remuneration Committee and a

Selection and Appointment Committee.

Duties of the Supervisory Board

The Supervisory Board supervises the effectiveness and integrity of the

internal control and risk management systems and procedures implemented

by the Board of Management and the general conduct of affairs of

SBM Offshore and its businesses. The Supervisory Board assists the

Management Board with advice in accordance with the best practices of

the Dutch Corporate Governance Code. In the performance of their duties

the Supervisory Board is guided by the interests of the Company, and

the enterprises connected therewith.

Dutch Corporate Governance Code

SBM Offshore is obliged to comply (or explain any non-compliance) with

the Dutch Corporate Governance Code, also known as Code ‘Tabaksblat’.

The Corporate Governance Monitoring Committee has published the

amended Dutch Corporate Governance Code on December 10th 2008

(hereafter; Amended Code). SBM Offshore is currently studying the Amended

Code. In the Annual Report 2009, SBM Offshore will report on its compliance

with the principles and best practices of the Amended Code or explain why

principles and best practices are not applied. For the Annual Report 2008,

the principles and best practices of the Corporate Governance Code 2003

(hereafter: Code) are applicable, including best practice provisions of the

Corporate Governance Monitoring Committees until December 2008.


For further information please see the SBM Offshore Annual Report 2008

published on the Company website

The Rules of Conduct relating to Suspected Irregularities or better known as

the ‘Whistleblowing’ rules are an example of this. The Code Tabaksblat states

that a company must establish a set of rules which indicate to employees

how they should report internally any suspected irregularities of a general,

operational, or financial nature. The Whistleblowing rules have been

developed to observe the Tabaksblat requirements. They are there to protect

the interest of the whistleblower and to formalise a reporting process.


The ‘Whistleblowing’ rules are available on the Company website,

the Corporate Governance Section, in addition to the Corporate

Intranet Site, CIS (available only for employees).

SBM Offshore CSR Reference Documents and Monitoring

SBM Offshore has Policies and Rules in place which govern its activities

in the various business segments that are ISO 9001:2000 certified.


All Rules and Policies are available on the Corporate website,

the Corporate Governance Section, in addition to the Corporate

Intranet Site, CIS (available only for employees).

Corporate MissionTowards Clients

• To provide superior products and services through innovative, fit-for-

purpose and competitive solutions for the offshore oil and gas industry

• To design, construct, install, maintain and operate such facilities in a

safe and environmentally sound manner.

Towards Employees

• To generate an attitude of enthusiasm and pride throughout the Company,

through promoting high-technology products and providing a most

favourable environment for professional and personal development,

and to highly reward it.

Towards Shareholders

• To constantly improve our know-how and efficiency, with the objective

to generate returns well above cost of capital

• To maintain a high degree of transparency and reliability

• To provide double digit yearly EPS growth.

StakeholdersShareholders – Attendance and Voting Rights

With reference to the articles of association, all Shareholders are entitled to

attend the General Meetings, to address the General Meeting and to vote.

At the General Meeting each Ordinary Share shall confer the right to cast

one vote. Each Protective Preference Share shall confer the right to cast four

votes, when issued. Unless otherwise required by the law and articles of

association, all resolutions shall be adopted by an absolute majority of votes.

The Company maintains active communications with its shareholders on

several different occasions, events or meetings in order to keep them

informed on the general and specifically financial aspects of the business.

The information is communicated in writing in the Annual Report, in the

minutes of meeting of the annual general meeting of shareholders

(AGM), in press releases and in presentations for financial analysts and

distributed electronically on the website, via email and in hardcopy format.

The Company also addresses shareholders verbally during the AGM,

at investor meetings, investor presentations (which are webcast), and

conference calls.

The Annual Report consists of several sections in which the Company

presents its financial results among other information on its activities,

developments in general and strategy for the future. The report is audited

by an external accounting firm. The Annual report is printed in hardcopy

for distribution and can also be downloaded from the SBM Offshore

website electronically.

At the AGM the Management Board with consent of the Supervisory Board

present the annual report to the shareholders for adoption. The meeting is

an annual event and a large percentage of shareholders are either present

or represented.

From Left to right

1. M.A.S. Miles, Managing Director from May 15th 2008 and CFO

2. D.J. van der Zee, Director, CTO and President of SBM Production Contractors

3. A. J. Mace, Managing Director and CEO from May 15th 2008

4. D.H. Keller, Managing Director and CEO until May 15th 2008

5. F. Blanchelande, Director, COO

13073_SBM_2008CR 13/5/09 13:01 Page 11

SBM Offshore Group Stakeholders

12

2,500SuppliersPurchase oreders placed US$ 1.7 Billion

Investor Relations

The Company has an active investor relations program which consists

of providing information to the market by press release followed by direct

dialogue with the investor community via a teleconference for the preliminary

full year results analyst presentation and webcast of full and half-year results

as well as meetings with individual investors at conferences or at the

investor’s premises. In 2008, the Company also organized a visit for financial

analysts to ongoing construction projects in the United Arab Emirates.

In January 2008, preliminary full year results for 2007 were released,

followed by a teleconference for financial analysts with a question

and answer session following the introduction of the CEO.

Approximately 58 people participated in the call.

In March 2008, audited full year results were released, followed by a

presentation from the CEO and CFO to the analysts in Amsterdam.

The presentation and following Questions and Answers (Q and A) have been

webcast and made available on the Company’s website. The presentation

was attended by approximately 25 participants and around 100 people

logged on to the live webcast.

The period after the full year results is dedicated to visits to investors

in so called ‘road shows’ in which the Company visits investors at their

premises and conferences where investors gather and meet the Company

representatives on that location.

On July 14th 2008 a special conference call by the CEO and CFO was

held to explain the information released on July 11th, in which the Company

guided lower net profit for 2008. The call was attended by 196 people.

In August the mid-year results were released, followed by a presentation

from the CEO and CFO to the analysts in Amsterdam. The presentation

and following Q and A have been webcast and made available on the

Company’s website. The presentation was attended by approximately

25 participants and 100 people logged on to the live webcast.

In September, the Company organised a two day visit for analysts to

construction works in Abu Dhabi and Dubai. A total of 20 analysts participated

in the event.

The Company also meets with investors in Monaco and Schiedam offices,

but this is more limited and does not exceed 10 meetings on a yearly basis.

Telephone calls with investors and analysts are held on a regular basis.

A total of 20 road shows took place in the course of 2008.

Other

SBM participated in the Carbon Disclosure Project for the Netherlands

50 in 2008 and intends to participate again in 2009.

Compliancy Management StatusCorporate Management Systems are built on the basis of the following

internationally recognised standards:

• Quality Management System Standard ISO 9001:2000;

• Environment Management System Standard, ISO 14001;

• Occupational Health and Safety Management System Standard,

OHSAS 18001;

• SBM Offshore Social Accountability Manual (compatible with SA 8000

Standard);

• MARPOL Regulations 2002;

• ISM/ISPS Codes (International Safety Management/ International

Ship and Port Facility Security)

In 2006 SBM Offshore planned to achieve a fleet-wide accreditation of the

Social Accountability Standard ‘SA 8000’.

Whilst the implementation of SA 8000 was being planned, Social

Accountability International [SAI] directed the SA 8000 Advisory Board that

verification of the standard was disallowed in Myanmar, until the International

Labour Organisation (ILO) lifted its sanctions Therefore, the decision was

taken to continue the implementation for an in-house Social Accountability

standard manual, based on the precedent set by the SA 8000 Framework.

The Company seeks to give all our employees the best employment

standards as possible as per our Company Code of Conduct and Social

Accountability Policy. SBM Offshore operates with standards that in most

cases exceed international human rights and international labour guidelines.

This commitment implies in particular the continuous and traceable checking

in Myanmar of the Company’s suppliers and sub suppliers in relation to forced

labour and child labour in compliance with Social Accountability standards

set-out in the Company’s Social Accountability manual. SBM Offshore further

audits all suppliers and agencies against these internal procedures. It is

important to note that SBM Offshore cannot be audited against the actual

SA8000 Social Accountability standard due to the owners of the standard

(SAI Inc. of New York) prohibiting its use in Myanmar. Therefore the Company

and its suppliers in Myanmar are measured against SBM Offshore’s own

internal Social Accountability standards and procedures – which also meets

the requirements of SA8000.

Human Rights and Labour Standards

The Company engages all senior and national staff for the offshore fleet

operations under direct employment. The complement of the crews is

currently employed through approved manning agencies with the objective to

gradually fill these positions with national staff. In order to ensure compliance

with the UN Universal Declaration of Human Rights, the ILO Conventions,

and the OECD Guidelines for multinational enterprises (as addressed in the

Code of Conduct), the Company is in the process of certifying all operations

outside OECD countries in accordance with the standards issued in our Social

Accountability manual. The Company does not support or work with companies

that sustain forced and compulsory labour. Child labour and forced labour is

not tolerated by SBM Offshore and the Company actively implements the

Social Accountability norms as best it can into administrative practices.

This framework applies worldwide, wherever SBM Offshore operates.

The reason why SA 8000 cannot be applied offshore onboard the units, is

because its principles require each person to be given at least one day off

work in every seven days, which is not practical for an offshore operation.

The SA standard does not take into account aggregate days off work earned

after four weeks offshore, which is essentially what SBM Offshore does.

Extension of the implementation and certification of management systems

are presented in the updated Compliancy management systems table.

ISO 14001 accreditation in Angola: This is a voluntary implementation which

was piloted in Brazil in 2008, taking until the end of the year to accomplish.

In accordance with the implementation programme the targets for Angola

were therefore readjusted in to 2009.



SBMOffshore

Society andCommunities

Public Sector

Environment

Shareholders

Clients

Suppliers

Employees

Corporate Principles and Practices continued

13073_SBM_2008CR 13/5/09 13:01 Page 12

Status Mandatory Voluntary Social

December 31st 2008 ISM Code ISPS code ISO 9001 ISO 14001 OHSAS 18001 Accountability

Execution centres

GustoMSC – Schiedam, The Netherlands N/A

SBM Atlantia – Houston, USA N/A

SBM Malaysia – Kuala Lumpur, Malaysia N/A

Single Buoy Moorings – Monaco

Shorebases

Angola 1

Brazil 1

Malaysia 1

Myanmar 1

Nigeria 1

Thailand (Shorebase closed August 2008) 1 N/A N/A

Turkmenistan 1

Vietnam (closed) 1 1 1

Lease Operate Offshore Production Fleet

Angola

FPSO Kuito

FPSO Xikomba

EPSO Sanha

FPSO Mondo

FPSO Saxi Batuque

Brazil

FPSO Expadarte

FPSO Brasil

FPSO Marlim Sul

FPSO Capixaba

FPSO Espirito Santo

Myanmar

FSO Yetagun

Russia

FSO Okha

Contact completed December 2008

Thailand

FPSO Tantawan Explorer N/A N/A

Contract completed in August 2008

Turkmenistan

FSO Oguzhan

MOPU Saparmyrat Turkmenbasy

Vietnam

FPSO Rang Dong 1 N/A N/A

Contract completed November 2008

(Unit currently laid-up)



Key

Compliant according to external audits

Target for 2008 met

Target for 2009

Target for 2010

Not currently operated by SBM Offshore

1 Management standard not applicable to the offices

Note: Due to an inconsistency, the version of this matrix in the 2007 CSR Report contained a

misstatement with regard to OHSAS 18001 compliance. This has been rectified in the above

matrix for 2008.

Based upon the successful audit carried out by ABS Quality Evaluations against BS OHSAS 18001

in the Macae Shorebase in Brazil and also one of our Brazilian FPSOs in 2008, the Company

is confident that compliance in all areas will be established – however ABS have signalled that they

intend to audit all the Company’s shorebases and FPSO’s worldwide and this audit schedule will

take some time to conclude.

The intention is to expand this accreditation throughout all regions in 2009 and 2010.

• Quality Management System Standard ISO 9001:2000;

• Environment Management System Standard, ISO 14001;

• Occupational Health and Safety Management System Standard, OHSAS 18001;

• SBM Offshore Social Accountability Manual (compatible with SA 8000 Standard);

• MARPOL Regulations 2002;

• ISM/ISPS Codes (International Safety Management/ International Ship and Port Facility Security)

Management System Compliance Table

13073_SBM_2008CR 13/5/09 13:01 Page 13

CSR Commitments and Performance

Priorities Commitments Accomplishments Future targets 2009 +

Recycling programs Recycling of office waste • Recycling is performed but

not monitored

• Commence a systematic approach

to manage office waste and

implement recycling procedures

Health at Work Ensure better health of employees • Implementation of anti-smoking

workshops

• Implementation of two ‘sports’

physical education training

centres for employees

• Encourage employees to get

fit by offering a very low

subscription fee to join

company training facilities

Health, Malaria and Aids Policies Available to all SBM offshore

personnel and contractors

• Health and Safety Policy on

Corporate Intranet site

• Publish Policy on company

website 2009

Reduce accidents where

we have control and direct

influence

Keep track of all incidents –

both for our own people and

our subcontractors

• New reporting system in

place SIRS

• Improved consolidated database,

improved reporting statistics

Single Incident Reporting

System (SIRS)

Implement SIRS wherever

SBM Offshore is present

• Already implemented on

80% of Offshore Floating

Production Units

• Two New Conversion projects

to have SIRS

Environment

Strengthen the Environmental

Management System

ISO 14001 EMS system

progressively in place for

full fleet

• Brazil fleet certified by ABS • Due to major workload

implementing the standard in Brazil,

the preparations for the ISO 14001

certification were delayed. West

African Fleet is targeted for 2009

Familiarise all employees,

contractors, and temporary

staff with our principles

and practices

Ensure the proper application

of the Code of Conduct

• Expanded Code of Conduct

revised in May 2007

• Whistleblower Policy published

on CIS and website

• To create further awareness of

the revised Code of Conduct to

be made to all our employees

• Establish an internal contact

for reporting on moral issues

Safety



Health

OHSAS 18000 A formal Health and Safety

Manual, inclusive of policies

and procedures

• To date compatible with OHSAS

18001, but not yet externally

certified according to OHSAS

standard

• Target to become certified in

accordance with OHSAS 18001.

• Four operating production units in

Brazil to obtain external verification

for the OHSAS 18001 standard

in 2009

Emissions monitoring

for offshore production

CO2 registers to be kept for all

Floating Offshore Production Units

• Brazilian fleet report to Client

annual emissions

• Two New FPSOs installed 2008

in Angola commenced monitoring

of air emissions

Keep Lost Time Accident

(LTA) to a zero

Zero accidents • Good performance result • Maintain our progress and

target on zero accidents

Code of Conduct

Principles and Corporate Governance

Health, Safety, Security and Environment H.S.S.E.

Corporate Principles and Practices continued

13073_SBM_2008CR 13/5/09 13:01 Page 14



Priorities Commitments Accomplishments Future targets 2009 +

Brazilian Offshore Units

Nationalisation program

75% staff onboard all four of our

FPSOs are Brazilian nationals

• Four out of four FPSOs now

employ 75% nationals offshore

• Target for remaining of fleet was

met in 2008. Target for the FPSO

that will be located in the Cachalote

Field in 2010

Paenal Fabrication Yard,

Porto Amboim, Angola

Development of a Fabrication

yard that can boost local

Angolese community

• Phase one implemented • Due to a delay of future FPSO

contract awards in this region;

this community project has

been slowed down until contract

awards are obtained

Social Accountability

Implementation

Protect the interests of our

employees and those of our

subcontractors working in

non-OECD countries and

socially unstable communities

• Social Accountability Manual

implementation and certification

• Myanmar still ongoing with

implementation due to cyclone

catastrophe in May 08, target

for 2009. The Brazilian Macae

shorebase has Social

Accountability implemented

and passed compliance audits.

Angola is target for 2009+

Community Involvement

Human Resources

Responsibilities Towards Employees

Local Communities

13073_SBM_2008CR 13/5/09 13:02 Page 15

CSR Reporting Scope

This is the second separate CSR report issued by SBM

Offshore based on Global Reporting Initiative (GRI) G3

on a C+ level. In this report, SBM Offshore will present

the Company’s performance during the full calendar

year of 2008 from January 1st to December 31st.

The reported performance indicators are in line with

the GRI Guidelines and form part of the non-financial

reporting scope. Our first separate CSR report was

issued in 2008 for our 2007 activities.

SBM Offshore recognises the critical importance of providing factual

sustainability performance data and has sought external assurance

from PricewaterhouseCoopers. Our CSR reporting is under continuous

development. SBM Offshore is increasingly aware of best practices and

the practical implications of truly living up to the GRI reporting principles.

As a result, we have carried out a few modifications in this report which

also influence our past 2007 reporting:

• A change in methodology for calculating the carbon footprint of the

electricity consumption in the execution centres and corporate offices;

• Some delayed targets in the compliance management status table –

as not all of our ambitions stated in last year's report have proven to

be realistic with respect to timing – and a restatement with regard to

OHSAS 18001 compliance;

• Exclusion from the reporting scope of all air emissions resulting

from flaring.

Reporting SegmentsThe reporting scope for 2008 will be the same as for 2007 and is divided

into two core business segments;

Onshore Operations and Offshore Production

• Health and Safety: Workforce and Employee reporting will report on all

activities from both Onshore and Offshore segments

• Environmental performance is limited to Offshore Production activities only

(Construction yards’ environmental management systems are controlled

by our subcontractors)

Occupational Health and Safety ReportingPerformance Indicators cover the entire SBM Offshore Group for Onshore

Operations and Offshore Production. Indicators take into account all

permanent employees, part-time employees, local employment staff from

agencies and lastly the crew onboard the Offshore Production fleet for the

entire year of 2008.

Total manhours are published at Group-level as a whole and for each

segment separately. Each site submits its reporting to the relevant business

through the in-house corporate database Single Incident Reporting

System ‘SIRS’.

In 2008, the Group safety reporting scope covered 11 million hours to

generated by around 5,000 employees.

Onshore Operations reports on the performance of the four execution

centres and corporate functions offices.

Construction sites that report on Occupational Health and Safety

(OHSA) activities are reported separately from the SBM Offshore Group

performance indicators.

The safety statistics are reported as ‘The Lost Time Incident Frequency

(LTIF)’ and based on the U.S. Department of Labor’s Occupational Safety

and Health Administration (OHSA) International Industry Standards.

All statistical data for all incidents reporting on H.S.S.E. is registered and

managed through the SIRS database.


CSR Reporting Scope

Offshore productionOnshore operations

H.S.S.E. reporting

Employee reporting

Community

H.S.S.E. reporting

Employee reporting

Production and Storage units

Environmental

Community

13073_SBM_2008CR 13/5/09 13:02 Page 16

Environmental Management Offshore Production reports on the performance from the 15 production

and/or storage systems that were partially or fully active during 2008.

The environmental performance data reports on the units that fall within the

following boundary settings:

• SBM Offshore’s leased fleet producing and/or storing hydrocarbons under

lease and operate contracts during 2008;

• SBM Offshore exercises full operational management control; and

• SBM Offshore has full ownership or participates in a Joint Venture (JV)1

partnership, where the Company controls 50% or more of the shares.

Offshore Production activities cover environmental statistics resulting from

offshore production according to the chosen performance indicators relative

to GRI. This includes greenhouse gases referred to as GHG, which are:

N2O, CH4 and CO2, in addition other non GHG air emissions; such as

CO, NOX, SOX and VOC. The air emissions calculation from the offshore

production units is performed using as the basis for the calculation the

method from the UK Offshore Operators Association limited (UKOOA).

All air emissions are reported in accordance to the GRI. The environmental

spills are also recorded, even if they are insignificant volumes. All reported

air emissions exclude flaring, as this factor is reported by our Clients.

Contained and/or accidental spills to the environment are also included,

although the volumes are far below the International IPIECA2 /API Standard

for Oil and Gas Industry Guidance on Voluntary Sustainability Reporting.

The chosen performance indicators covering economic, H.S.S.E., workplace

and community are also consolidated in the appendices at the end of

the report.

1 Please see table: Overview of 2008 Offshore Production/Storage Units, including Joint Venture

Ownerships in 2008. See Page 9.2 IPIECA core indicator ENV-1: Hydrocarbon Spills to the Environment: Number and volume of

hydrocarbon liquid spills greater than 1 barrel (159 litres) that reach the environment.

EmployeesThe Corporate Human Resources data covers 100% of the SBM Offshore

group workforce worldwide in order to produce a breakdown of the workforce

by gender, age category and nationality for the entire year 2008.

It includes all our staff who are assigned on permanent and fixed-term

contracts, employee hires and departures, total locally employed staff from

agencies and all crew working onboard the offshore production units.

SBM Offshore’s subcontractors’ performance executed at the construction

yards is also reported.

As for the CSR report of 2007, the CSR 2008 reporting for the Human

Resources section is once more divided in two categories: White Collar

and Blue Collar.

White Collar is defined as: Employees working at our corporate and

engineering offices and four execution centres. The H.R. reporting indicators

includes our permanent and part-time workforce ratio, broken down into

workforce ratio of female versus male.

Blue Collar is defined as: Employees working in project execution and

construction activities, including the personnel of our subcontractors and

offshore personnel employed onboard the offshore production units.

Performance Reviews and Training

Every year, SBM Offshore conducts annual performance reviews for

employees. Globally, the Company utilises the Hay system to grade and

evaluate all permanent staff.

Total training hours for all Company staff, both Blue Collar and White

Collar, are included in the report.

Employee Benefits

SBM Offshore has an attractive pension benefit system for all employees.

As a multi-national company, SBM Offshore operates various pension

schemes dependent on the country in which operations take place.

The schemes are funded through payments to insurance companies or

are defined as multi-employer plans.

The Company has both defined benefit and defined contribution plans.

Social and CommunityThe Social and Community section reports on 2008 relations between

SBM Offshore and the local communities where we operate.

Social and community reporting includes issues such as human rights and

active contribution to community well-being, creating interdependency

and scrutinising the impacts we have as a company on the environment;

and endeavouring to improve these impacts by use of the Company’s

in-house expertise.

Stakeholder EngagementTo date, SBM Offshore has not yet engaged in any stakeholder dialogue

specifically related to its overall CSR performance and reporting.

The Company has throughout its growth at all times encouraged an open

and respectful engagement with all our stakeholders. This takes place at

annual shareholders meetings; with our Company Employee delegates,

with our Clients and lastly with NGOs.

Main stakeholder groups identified in this report are our employees, client

and business partners, capital providers, shareholders, suppliers and

NGOs, local authorities and local host communities in the countries where

we have a presence.


CSR Reporting Scope

13073_SBM_2008CR 13/5/09 13:02 Page 17

Health, Safety, Security and Environment (H.S.S.E.)


Health, Safety, Security and Environment (H.S.S.E.)18

The SBM Offshore NV Group of Companies, are committed to supporting, implementing and continually improving the Health, Safety, Security and Environment (H.S.S.E.)requirements within the Group’s business activities set out in the H.S.S.E. charter.

13073_SBM_2008CR 13/5/09 13:02 Page 18

On the 1st of July 2008, the SBM Offshore H.S.S.E.

(Health, Safety, Security, and Environment) organisation was

restructured to reflect the expanding growth of the company

operations within the construction yards and offshore in the

fleet of FPSOs. The new position of Corporate Head of

H.S.S.E. was introduced.

The Corporate Head of H.S.S.E. has the overall responsibility

for ensuring that a high level of H.S.S.E. excellence is

developed, promoted and achieved within the Group

Companies and all business activities. He is responsible for

all health, safety, security and environmental support within

the SBM Offshore Group, covering fleet operations as well

as worldwide construction and installation activities, and

has a direct reporting line to the Group CEO.

The Group H.S.S.E. managers in the execution centers are

responsible to their own line management for an effective

H.S.S.E. support. They also have a reporting line to the

Corporate Head of H.S.S.E. that ensures he is aware of the

current key H.S.S.E. issues, and if necessary he can advise,

or take any remedial actions that may become necessary.

The new Corporate H.S.S.E. reporting structure ensures that

an enhanced fit for purpose Group H.S.S.E. management

system is in place, and complements the direct responsibility

of line management to ensure an effective and high standard

of H.S.S.E. excellence throughout the SBM Offshore Group.

The Corporate H.S.S.E. strategy is to continually enhance,

develop and nurture the Group H.S.S.E. management

system, so that the Company continues to be a world leader

in H.S.S.E. performance.

The SBM Offshore NV Charter is very specific in the intent

to ensure a safe place of work driven by top level procedures

under the management and implementation of competent

personnel. There are five key essentials for the safe operation,

i.e. Competency, Effective Procedures, Commitment from

management, from the work force, and a proactive approach

all within an effective management culture.



H.S.S.E Charter

The SBM Offshore NV Group of Companies, are committed to

supporting, implementing and continually improving the Health, Safety,

Security and Environmental (H.S.S.E.) requirements within the Group’s

business activities by ensuring the following:

• All Group personnel will safeguard persons and assets associated

with our business activities by identifying all known hazards and

enacting measures to eliminate the risk that they occur

• H.S.S.E. will never be compromised in order to achieve any other

business objective

• The active participation and input from Group Personnel in H.S.S.E.

matters will be encouraged by Group Management

• All Managers within the Group have the responsibility to promote and

provide training to personnel on H.S.S.E. and to verify the compliance

of the Group to the H.S.S.E. Requirements

• All Personnel within the Group must strive to thoroughly understand

implement the H.S.S.E. requirements pertaining to their work

• H.S.S.E. Regulations applicable to all Group operations will be

understood and met

• The responsibility for ensuring that a high level of H.S.S.E. excellence

is provided to the Board of Management, and to the Company line

management, rests with the Corporate Head of H.S.S.E.

13073_SBM_2008CR 13/5/09 13:02 Page 19

20

Heath and SafetySBM Group Heath and Safety Performance

The Health and Safety section is split into two parts for

reporting purposes. These are the engineering design and

construction phase of a product (referred to as Onshore

Operations), including installation services and the fleet of

offshore production units that are leased and operated on

long-term contracts (referred to as Offshore Production).

The reporting scope will cover Onshore Operations and Offshore Production.

Health and Safety awareness relative to both parts of SBM Offshore’s

activities has always been a key element of the Company’s Management

System. The system is continuously driven and enhanced by line

supervision, both onshore and offshore. The Company endeavours to

continuously improve the quality of the implemented Health and Safety

procedures and to mitigate all Health and Safety risks. SBM Offshore sees

this as a duty of care to protect all personnel within each and every type

of operation from potential health hazards. Our goal is for no harm to come

to any of the workforce, either to SBM Offshore employees or the personnel

belonging to our contractors and sub-contractors working on our projects.

The most important target is zero accidents and zero incidents and the

highest standards of environmental protection.

The Health and Safety performance of SBM Offshore was better in 2008

than the industry average as reported by IMCA (International Marine

Contractors Association) survey of 100 peer company statistical records.

The key parameter, i.e. the TRIFR (Total Recordable Incident Frequency

Rate) for SBM Offshore being below the average TRIFR as recorded in

the IMCA records for our colleagues in the industry, i.e. SBM Offshore is

experiencing on average less injurious accidents to the workforce per

number of hours worked, than our peers. Table 2 illustrates the Onshore

Operations manhours and frequency rates during 2008. Table 1 reflects

23 construction yards covering the Far East, Middle East, USA, Africa,

and Europe covering an average of 36 projects during 2008. Table 3

shows the results from the Offshore Production fleet.

SIRS (Single Incident Reporting System)

The SIRS application has continued to expand within the Group activities

covering the construction yards, shore bases, and offshore in the fleet. SIRS

training sessions have been held and this has resulted in a professional and

effective use of the system. The regular Monaco office SIRS meetings have

ensured a continuing development and enhancement of the system based

on the experiences of those using the application.

* H.S.S.E. performance in this section includes all 19 offshore systems

TASK (Total Application of Safety Knowledge)

The TASK system was established at the Singapore Keppel construction

yard, in the first instance for the Shell Espirito Santo FPSO project and it has

been well received. The TASK initiative commences in the construction yards

and continues through the operating life cycle of the FPSO. TASK initiative

implementation has also commenced in the Abu Dhabi construction yards.

TASK essentially concentrates upon key H.S.S.E. elements that must be

effectively established for the generation of the safe working environment.

To ensure that this objective is satisfied, H.S.S.E. subjects are discussed in

safety meetings; audits of working procedures are established; with further

support by the implementation of TASK safety posters.

Onshore Operations

The SBM Offshore Group hours are calculated from the main execution

centres and the corporate functions offices. These include manhours worked,

incidents and frequency rates and are calculated from all hours recorded

on TREG (Time REGistration) and any incidents recorded at SBM Offshore

Offices and premises are shown.

Regional Subcontractors 2008 Performance

Yard fabrication – Construction Operations Total Manhours

Asia 13,093,944

Middle East 19,345,350

Americas 1,094,799

Africa 619,024

Europe 175,730

TOTAL 34,328,847

Exposure Hours and Incidents Frequency Rates

Onshore Production Subcontractors

January 1st – December 31st 2008 (All Group Offices) (Conversion Yards)

Total Manhours 5,766,269 34,328,847

Fatalities 0 0

Lost Time Incidents (LTI) 4 20

Restricted Work Cases (RWC) 0 38

Medical Treatment Case (MTC) 2 18

Total Recordable Incidents (TRI) 6 76

*International Marine Contractors

Association IMCA TRIFR 0.61

Total Recordable Incident Frequency Rate (TRIFR) 0.21 0.44

Near Miss Incidents (NMI) 2 86

Days Lost (LTIs) 28 348

LTI Frequency Rate (LTIFR) 0.13 0.11

TRIFR calculation

F + LTI + RWC + MTC x 200,000 :– Manhours Worked

IMCA Statistics based on the International Marnine Contractors Association

Safety Statistics for 2007 Report: IMCA SEL 09/08

11mTotal ManhoursSBM Offshore GroupGroup Offices and Offshore Production Fleet

Health, Safety and Security



Exposure hours and Incidents frequency rates

SBM Group All Group offices

Onshore Operations Offshore Prodcution

IMCA

SBM Offshore Group

5,766,269 0.21

0.44

0.60

Offshore Prodcution

5,320,943

SubcontractorsConversion yards

34,328,847

13073_SBM_2008CR 13/5/09 13:02 Page 20

21

5.7mTotal Manhours

Onshore Operations (All Group Offices)

5,766,269 (2007: 4,912,362)



5.3mTotal Manhours

Offshore Production (Offshore Production Fleet)

5,320,943 (2007: 3,557,995)

34mTotal Manhours

Main subcontractors

Yard Fabrication Construction Operations

34,328,847 (2007: 44,153,500)

Offshore Production

This section covers the Health and Safety performance of the Company’s

Offshore Production Units where SBM Offshore has operational

management of production as well as the responsibility for onboard

personnel (SBM Offshore’s management personnel, ship-crew, and

short-term visitors onboard; such as sub-contractors for maintenance).

The TREG system is not utilised for the Offshore Production Fleet.

Exceptional Health and Safety performance is recognised as an indicator

of the effective overall management of SBM Offshore.

Exposure Hours and Incidents Frequency Rates

January 1st – December 31st 2008 Offshore Production

(Offshore Production Fleet)

Total Manhours 5,320,943

Fatalities 0

Lost Time Incidents (LTI) 1

Restricted Work Cases (RWC) 5

Medical Treatment Case (MTC) 10

Total Recordable Incidents (TRI) 16

*International Marine Contractors

Association IMCATRIFR 0.94

Total Recordable Incident Frequency Rate (TRIFR) 0.60

Near Miss Incidents (NMI) 81

Days Lost (LTIs) 5

LTI Frequency Rate (LTIFR) 0.04

TRIFR calculation

F + LTI + RWC + MTC x 200,000 :– Manhours Worked

SecuritySecurity remains a high priority item within the SBM Offshore

Group both onshore and offshore.

The threat to the Group activities is countered by well proven procedures that

are based on good practice risk assessments. The ISPS (International Ship

and Port Facility Security) Code is implemented for the offshore fleet activities.

This Code is now well implemented and effective. Journey management

procedures are also well established covering the safety of SBM staff and

subcontractors when travelling in the Company areas of operation worldwide.

SBM Offshore hosted a security forum in Monaco during 2008 attended

by representatives from the industry. This forum was organised following

the First Security Forum held by Technip in October 2007.

This resulted in a good dialogue and transfer of ideas and procedures for the

enhancement of security. It was agreed that an annual event should be held

covering security issues both onshore and offshore. The conclusion was that

this forum added value and knowledge to our offshore locations that could

face heightened levels of security risk.

SBM Offshore operates in some of the more hazardous regions of the world,

which necessitates a more rigorous approach to the safety and security of

people and assets in those countries. A specialist security advisor was

engaged at the beginning of 2007 to address these specific security concerns.

Security has been enhanced by the introduction of more appropriate security

procedures and training for personnel who work in or visit the more hostile

environments and by improved internal auditing and management of security.

Related training is being provided to local staff, including guards and drivers,

in these regions.

13073_SBM_2008CR 13/5/09 13:02 Page 21

22

Environmental Management

Environmental ManagementResponsible Offshore Production Operations

Our Clients are increasingly concerned that the activities

carried out by SBM Offshore on their behalf are conducted in

the most environmentally friendly manner and do not result

in damage to any of the fragile local ecological systems.

SBM Offshore Production Operations

SBM Offshore is aware of the potential environmental impacts associated

with the handling of hydrocarbons offshore and is fully committed to safe

operations and protection of the environment. Within the broad scope of

environmental aspects related to its operations, special attention is paid

to avoidance of oil leakages, to the prevention of unnecessary flaring or

emissions to water and air, and to minimising the use of energy.

Our Company standards and code of practice tailored for each production

unit provides detailed requirements for the control of the work and

integrity management onboard the vessel:

• To comply with local environmental laws;

• To comply with MARPOL, the international marine environmental

convention to minimise pollution of the seas;

• To ensure high standard Environmental Management Systems (EMS),

meeting the requirements of ISO 14001;

• To control and reduce pollution emissions and to minimise waste

production;

• To comply with Company procedures for the safe handling, storage,

and disposal of hazardous waste;

• To raise environmental awareness through training and instruction.

Offshore Production Activities and the Environment (ISO 14001)

The Environmental Management Systems (E.M.S) for the fleet of offshore

production units comply with international ISO 14001 requirements.

Environmental Management Systems and stringent codes of practices

are in place onboard each of SBM Offshore’s production units where SBM

Offshore controls the operational management for the offshore production.

The offshore production sites, including their respective shore-bases, are

all operating under SBM Offshore Management Systems.

Emissions Reporting

We report on environmental performance indicators where the Company

is in charge of the operational management for the offshore production.

SBM Offshore is not the owner of the well stream fluids and gas forming the

product that is produced offshore and all emissions stated are for the direct

energy consumption of the 15 offshore production/storage units’ to keep the

systems operating. Emissions from flaring are excluded as this subject is

normally reported on by Clients.

SBM Offshore is not only committed to record emissions which have a

direct impact on the environment, but to also consolidate its preventative

measures and identify emission points which may increase the possibility

of an environmental release. SBM Offshore has planned the integration

of new environmental reporting criteria within SIRS in order to provide

more accurate and detailed environmental reports on any released

effluents whenever technically achievable, together with the location of

the environmental loss, the identification of the affected media, as well as

contained or not. The Company is engaged in achieving more sustainable

objectives and in complying with international oil industry commitments.

This is illustrated by the plan to certify the Angolan Fleet with the ISO 14001

standard by the end of 2009, following on from the certification obtained for

the Brazilian Fleet in 2008.

Fleet Environmental Loss Statistics

SBM Offshore measures all unintentional and intentional emissions to

land, sea, and air on a regular basis, with registration being implemented

in the SIRS database. In 2008 the offshore production fleet experienced

26 recordable environmental events, of which 22 were contained within

the marine unit spaces, without any release to the sea, however there were

four minor releases to the sea. The discharges to sea were all reported as

‘sheen’ as per visual observation and were generated by produced water

and oil effluents. This excludes the environmental incidents statistics from

the production floating units that are in Joint Venture ownership and where

operational control is not managed by SBM Offshore.

It should be noted that in all other incidents involving leakage of oil, such

leakage has been contained on board the units via drain systems, which

form an integral part of the facilities design.



156.4Total production of hydrocarbons from

the 15 Offshore Production Units 156.4 Million

barrels of oil (MMbbls)

13073_SBM_2008CR 13/5/09 13:02 Page 22



Contained Spills Offshore Production – 16 units 2008 Total number of Environmental events (Actual and Potential)

In 2008 the total production of hydrocarbons from the 15 offshore production systems totalled 156,4 MMbbls

26 22 contained 4 minor releases

Kuito

5

3 3 3

2

1

22

4

1

0 0 0 0 0 0

Xikomba Sanha Mondo Saxi-Batuque

Espadarte Brasil Marlim Sul

Capixaba Espirito Santo

Tantawan Rang Dong

Yetagun Okha Oguzhan

Total Production of Hydrocarbons

Offshore Production by Region

Units MMbbls Offloads

Asia 3 15,7 49

Brazil 4 57,8 94

Caspian 2 2,1 54

Russia 1 6,8 11

West Africa 5 74 135

Note: the Espirito Santo’s two incidents occurred at the conversion yard in 2008. Offshore production will commence in 2009.

13073_SBM_2008CR 13/5/09 13:03 Page 23

24

Environmental Management continued



Offshore Production Fleet Emissions to Air

The primary emission sources for Offshore Production are the Greenhouse

Gases (GHG) from combustion and from flaring, which occurs during

offshore operations. Flaring represents approximately 50% of these

emissions. For oil and natural gas operations resulting from our offshore

production units, carbon dioxide (CO2) and methane (CH4) are usually the

most significant components of produced greenhouse gas emissions (GHG).

Nitrous oxide (N2O) is emitted in very small quantities from the combustion

of fossil fuels and may be insignificant compared to CO2. Direct emissions

include any emissions associated with the production of energy by the entity,

such as steam or electricity used by the entity’s facility. Main sources of the

combustion GHG are emissions from gas usage for boilers and turbines,

diesel usage for engines, boilers and turbines. The following figures exclude

flaring as previously mentioned. Comparison data from 2007 and 2008

illustrates the CO2 emissions to air, mainly from combustion emissions as

explained above. In 2008 the CO2 emissions from the West African offshore

production fleet increased due to two new FPSOs starting production.

Offshore Production Emissions to Air 2007 2008 Change

CO2 from other sources tonnes 13 Units 15 Units +/- %

Asia 111,547 142,904A

28

Increase in CO2 emissions due to lower production from vessels and increased

usage of Marine Gas Oil for Boilers and Turbines etc.

Brazil 831,629 846,021A

2

Although CO2 emissions from flaring have decreased in 2008, emissions from other sources

e.g. turbines, boilers, etc have increased slightly over the 2007 figure; this is due to an increase

in usage of Marine Gas Oil (MGO) as produced gas available for fuel has reduced.

Caspian 3,798 4,008A

8

Increase in CO2 emissions from other sources due to increased fuel gas consumption to boilers

during 2008 and increase in Marine Gas Oil (MGO) consumption to vessel utilities e.g. Cranes,

Fire pumps etc in 2008.

Russia 7,176 5,125G

29

Decrease in CO2 from other source, i.e. boilers due to 135 days reported activity in 2008

as opposed to 178 days reported activity in 2007.

West Africa 342,551 739,331A

116

Increase in CO2 emissions from other sources in 2008 again due mainly to new FPSO’s

Saxi and Mondo coming on stream during 2008.

COMBINED 1,296,735 1,737,389 34%

The overall increase is mainly due to the two new additions to the offshore production fleet which started up in 2008.

Indirect Energy Consumption by Primary Source – Electricity

Onshore Operations: Four Execution Centres and Corporate Offices 2007 2008

Total electric usage kWh 10,056,021 10,554,568

Total metric tonnes CO2 equivalent 3,925 4,009

The Indirect electricity consumption CO2 equivalent stated in CSR report for 2007 was calculated based on DEFRA methodology.

For 2008 a change in methodology for calculating the onshore CO2 equivalent for the kWh data was adopted. The WRI Greenhouse Gas Protocol

(GHG Protocol) conversion was chosen as a new method, since its conversion factors is country specific rather than one factor for everything irrespective

of geographical location.

For more information on the GHG protocol and country specific calculation methods, please see their website: www.ghgprotocol.org/calculation-tools

13073_SBM_2008CR 13/5/09 13:03 Page 24



Greenhouse Gas Emissions in 2008

2008 Greenhouse Gas Air Emissions from Offshore Production Activities Excluding Flaring

Values expressed in millions of tonnes CO2 equivalents

CO2 CH4 N20

Brazil

Marlim Sul 0.236 0.002 0.006

Brasil 0.167 0.001 0.004

Espardate 0.175 0.001 0.004

Capixaba 0.268 0.002 0.006

Caspian

MOPU Turkmenistan 0.004 0.0000 0.0001

Thailand

Tantawan Explorer 0.093 0.0006 0.0022

Vietnam

Rang Dong 1 0.046 0.003 0.001

Myanmar

Yetagan 0.005 0.0000 0.0001

Russia

OKHA 0.005 0.0000 0.0001

West Africa

Xikomba 0.103 0.001 0.002

Mondo 0.281 0.002 0.007

Saxi 0.049 0.000 0.001

Kuito 0.301 0.002 0.007

Sanha 0.006 0.000 0.000

TOTAL 1.737 0.011 0.041

Source: DEFRA – Environmental Key Performance-Indicators; Reporting Guideline for UK Business, Chapter 4. Page 28 4.1 Emissions to Air KPI 1 Greenhouse Gases.

Note: Carbon dioxide equivalency is a quantity that describes, for a given mixture and amount of greenhouse gas, the amount of CO2 that would have the same global warming potential (GWP), when measured

over a specified timescale (generally, 100 years). Carbon dioxide equivalency thus reflects the time-integrated radiative forcing, rather than the instantaneous value described by CO2e.

Other Atmospheric Emissions Excluding Flaring

All values are expressed in Tonnes

CO NOx SO2 VOC

Brazil

Marlim Sul 250 518 3 4

Brasil 184 407 8 4

Espardate 186 388 3 3

Capixaba 282 578 2 4

Caspian

MOPU Turkmenistan 9 35 4 1

Thailand

Tantawan Explorer 115 306 15 5

Vietnam

Rang Dong 1 51 113 2 1

Myanmar

Yetagan 11 49 5 2

Russia

OKHA 19 82 9 3

West Africa

Xikomba 117 275 8 4

Mondo 306 666 10 6

Saxi 55 128 3 2

Kuito 329 718 12 7

Sanha 15 64 7 2

TOTAL 1,928 4,327 91 46

Note: In the CSR report 2007, all air emissions except CO2 were stated as total from all offshore production activities which included flaring. For 2008, the CSR will report all emissions from offshore production

which excludes flaring.

13073_SBM_2008CR 13/5/09 13:03 Page 25



Responsibilities Towards Employees26

SBM Offshore prides itself in being an equal opportunityemployer. The Company considers that cultural diversity brings an extra dimension and added value to the business.SBM Offshore employs staff of more than 55 differentnationalities and the interaction of these varied cultures is seen to be beneficial in the understanding and resolution ofwork-related problems. SBM Offshore regards diversity as an advantage. Having a diverse workforce contributes to ourgrowth strategy, providing competitive power and the ability to build stable relations.

13073_SBM_2008CR 13/5/09 13:03 Page 26



Total Global WorkforceThe total headcount based on the number of employees registered on

December 31st 2008 was 5,151 employees.

The Global Workforce accounts for the entire SBM Offshore Group of

Companies, which consists of Onshore Operations and Offshore Production

segments. A survey of the worldwide workforces hired under permanent

and fixed-term contracts shows the breakdown of the workforce by segment,

employment type, region, gender, and age.

The workforce can be broadly divided into the two following categories:

White Collar and Blue collar employees.

White collar workers are occupied onshore with engineering design,

support, and managerial positions in addition to being responsible for the

management of the offshore production fleet.

Blue collar employees are either working as construction workers in the

Onshore Operations segment or employed in the Offshore Production

segment onboard the fleet of floating production and/or storage units.

SBM Offshore’s workforce is distributed geographically in our four execution

centres, the construction site locations and the offshore fleet as follows:

Permanent Employee Headcount by Location

Employment Contracts

SBM Offshore employs personnel either on a permanent contract or

temporary (agency) contract. At the end of 2008, the headcount for

permanent contracts totalled 3,617 employees representing 70% of the

total workforce and the headcount for temporary (agency) contracts totalled

1,534 employees representing 30% of the total workforce.

Total Workforce by Employment Type

The 3,617 permanent employees are distributed over diverse geographical

locations comprising of the 4 execution centres, corporate functions

office, shorebases, services, construction sites and the offshore production

fleet personnel.

Permanent Employees by Location and Gender

Ratio

Female Male Total Female

Onshore Operations

Schiedam, Netherlands 71 322 393 18%

Houston, USA 160 380 540 30%

Kuala Lumpur, Malaysia 85 214 299 28%

Monaco 294 666 960 31%

Marly, Switzerland 19 5 24 79%

Worldwide Construction Sites

and Shorebases 135 350 485 28%

Offshore Production

Worldwide Offshore Fleet 26 890 916 3%

TOTAL 790 2,827 3,617 22%

Schiedam,Netherlands

Houston,USA

Kuala Lumpur,Malaysia

Marly,Switzerland

Monaco WorldwideConstructionSites andShorebases

Employees by Location

Onshore Operations

Offshore Production

530643

1,050 1,025

1,562

317

24

WorldwideOffshore Fleet

5,151 +17% increase from 2007

Permanent vs Agency Contracts

2 Contract employees 1,534

TOTAL 5,151

1 Permanent employees 3,617

2

1

13073_SBM_2008CR 13/5/09 13:03 Page 27

Full-time and Part-time Employees

Full time staff comprise of 5,006 employees working a normal 40 hours week

and part-time staff of 127 persons working less than a 40 hour week. 3.5% of

the total permanent workforce in 2008 was employed on part-time contracts.

The part-time employees employed with SBM Offshore Group are distributed

as follows:

Part-time Employees by Location

Total % %

Part-time Male Female

Onshore Operations

Schiedam, Netherlands 83 49 51

Houston, USA 3 67 33

Kuala Lumpur, Malaysia 0 0 0

Monaco 27 19 81

Marly, Switzerland 10 0 100


and Shorebases 0 0 0

Offshore Production

Worldwide Offshore Fleet 4 100 0

TOTAL 127 40 60

Temporary Employees

The Company uses temporary employees to meet peak workloads;

however the policy is not to exceed a ratio of 1:2 of temporary employees

compared to permanent employees, in order to maintain efficiency and keep

core knowledge and expertise in-house.

The Company particularly limits temporary employees in sensitive areas

such as Research and Development, High Pressure Swivel Technology,

Marketing and Sales, Proposal Development, Project Management,

and Procurement.

The temporary employee breakdown is distributed over the six geographical

locations plus construction site locations as follows:

Temporary Employees by Location

Temporary TotalTotal % Group

Onshore Operations

Schiedam, Netherlands 131 25 530

Houston, USA 103 16 643

Kuala Lumpur, Malaysia 18 6 317

Monaco 417 30 1,050

Marly, Switzerland 0 – 24


and Shorebases 219 31 1,025

Offshore Production

Worldwide Offshore Fleet 646 41 1,562

TOTAL 1,534 30 5,151

Permanent Employee Turnover

A significant challenge for the company is to remain an attractive employer

providing competitive salaries and benefits which retain the employees for

the long term. In 2008 the employee turnover was 11%, which is fairly low

compared to the average for similar industries in Europe and the U.S.A. and

can be attributed to the Company providing equitable remuneration, good

working conditions, and very interesting technical challenges that provide

professional satisfaction.

The SBM Offshore Group’s turnover of permanent employee during 2008

was 397 employees (11%). This figure includes 122 people from the offshore

production fleet who are nationals from Angola and Brazil, where turnover of

staff is at much higher levels than in the more stable areas of employment in

Europe, the U.S.A., and Malaysia.

Turnover from Onshore Operations sector accounted for 217 employees

in 2008 (6.1%). This accounts for those employees who left to further their

careers at other companies, but also includes secondary reasons such

as married employees who left because their partner resigned. The latter

is noted as resignation for personal reasons and does not reflect in any

detrimental way the Company’s operations.


Responsibilities Towards Employees28

Responsibilities Towards Employees continued

Full-time and Part-time Employees

2 Part-time employees 127

TOTAL 5,151

1 Full-time employees 5,024

2

1

Part-time Employees by Location

Onshore OperationsOffshore Production

127FemaleMale

49%

51%83

67%33%

3 0 19%

81%

27

100%

10

Schiedam,Netherlands

Houston,USA

Kuala Lumpur,Malaysia

Marly,Switzerland

Monaco WorldwideOffshore Fleet

0

WorldwideConstructionSites andShorebases

100%4

13073_SBM_2008CR 13/5/09 13:03 Page 28

Permanent Employees Onshore Operations and

Offshore Production Turnover

Turnover TotalTotal % Group

Voluntary 304 8.4

Dismissal 66 1.8

Retirement 24 0.7

Fatalities non work related 3 0.1

Fatalities work related 0 0.0

TOTAL 397 11.0 3,617

Permanent Employee Turnover by Location

Turnover TotalTotal % Group

Onshore Operations

Schiedam, Netherlands 27 6.9 393

Houston, USA 80 14.8 540

Kuala Lumpur, Malaysia 24 8.0 299

Monaco 67 7.0 960

Marly, Switzerland 4 16.7 24


and Shorebases 73 15.1 485

Offshore Production

Worldwide Offshore Fleet 122 13.3 916

TOTAL 397 11.0 3,617

Onshore Operations Turnover by Gender – Permanent Employees

Turnover TotalTotal % Onshore

Male 157 8.1 1,937

Female 60 7.9 764

TOTAL 217 8.0 2,701

Onshore Operations Turnover by Age – Permanent Employees

Turnover TotalTotal % Onshore

Age <30 33 1.2%

Age 30-50 134 5.0%

Age >50 50 1.9%

TOTAL 217 2,701

Workforce Diversity

The offshore engineering business has long been dominated by male

staff, The Company has however since 15 years adopted a recruitment

strategy to increase the percentage of female employees in the onshore

segment. This initiative has been successful to some degree, although the

number of graduates coming out of engineering schools and universities is

still predominantly male, and this restricts the gender ratio in engineering

positions. At the end of 2008 the ratio of female to male permanent

employees from Onshore Operations and Offshore Production was

as follows:

Voluntary Resignation

SBM Offshore investigates every resignation by means of an interview

between the employee and the relevant H.R. department. The intention is

to understand the exact reason(s) for the resignation with the aim of gaining

knowledge and making appropriate changes, if necessary.

Monaco (7.0%) and Schiedam (6.9%) are quite stable areas where turnover

is low, but Houston (14.8%) is more dynamic and suffers from significant

market turbulence due to the large number of oil and gas related employers

in the Houston area.

Presently in Kuala Lumpur, SBM Offshore has relatively low statistics

(8.0%), but it should be noted that the Company has been operating in

this area for less than three years.

3,617 Total Group Permanent Employees (excluding temporary contracts)

127 Total Part-time Employees

5,151 Total Group Employees



Permanent Employee Diversity

2 Male 2,827 78%

TOTAL 3,617

1 Female 790 22%2

1

Permanent Employee Turnover by Location

2

11 Schiedam, Netherlands 27

2 Houston, USA 80

3 Kuala Lumpur, Malaysia 24

4 Monaco 67

5 Marly, Switzerland 4

6 Worldwide Construction Sites

and Shorebases 73

7 Worldwide Offshore Fleet 122

TOTAL 397

3

4

5

6

7

13073_SBM_2008CR 13/5/09 13:03 Page 29

30

Developing CapabilitiesIn 2008 the average number of training hours per

employee, calculated over the entire Company in the

Onshore Operations sector was 38 hours per employee.

SBM Offshore provides a range of development opportunities to enhance the

capabilities of our employees.

These include training courses, international assignments, mentoring, team

development days, workshops and seminars. The training programmes

for all permanent staff have continued throughout the Company in 2008.

For onshore staff, external training is promoted for specific technical subjects’

courses, attendance at seminars and conferences and management

development courses. For internal training, the main focus is on technical

courses, language lessons and MS Office classes.

The Training Indicators for SBM Offshore Group Onshore and Offshore

permanent employees by department are set out below:

Employee Training Hours Onshore Operations and Offshore Production

Total Total Total training

number of number of hours per

training hours employees employee

Engineering 26,653 1,062 25.1

Operations 72,967 923 79.1

Services 3,496 160 21.9

Administration 3,260 235 13.9

Management 3,078 192 16.0

Offshore Production 27,821 1,045 26.6

TOTAL 137,275 3,617 40.15

Onshore Operations Employees – White Collar Worker

White Collar workers are office-based staff in Europe, the U.S.A., and

Malaysia. The Training Indicator includes hours expended by Engineering,

Operations, Project Management staff, Services, Administration,

Management, and other onshore staff.

Permanent Employees Onshore Operations – Training

Training

indicator

White collar hours/

Total hours for training 2008 employees employee

43,898 2,087 21.03

This training covers both internal training, which is performed by Company

staff or consultants, and external training, which is performed outside the

Company’s work centres by specialist training organisations.

The participants are Engineering, Administration, Project Management,

and Production Management staff.

Both external and internal training requires careful management so that

project priorities are met, focusing and adapting training in accordance

with priorities that are linked to the market and projects.

SBM Offshore focuses training on young graduates and new staff who

have been employed from allied industries, ensuring that they are familiar

with the special risks and requirements of offshore floating systems.

The highest indicators are from the engineering division totalling 25.1 hours

per employee.

The lowest indicator is from administration division 13.9 hours per employee,

for which each office has a relatively stable and experienced staff population,

with adequate training at this level.



Responsibilities Towards Employees continued

13073_SBM_2008CR 13/5/09 13:03 Page 30

31

23.9 2008 Training Indicator

Offshore Production

Offshore Production Employees – Blue Collar Worker

SBM Offshore has a policy of nationalising its Offshore Production Fleet

crews and this requires in-depth training programs to be run to initially train

staff who have little or no offshore experience, so that they are competent

to work offshore. This training is accomplished in training schools in both

Angola and Brazil and concerns nationals who have been hired with little

professional offshore experience.

Permanent Employees Offshore Production – Training

Training

indicator

Blue collar hours/

Total training hours in 2008 employees employee

24,937 1,045 23.86

Onshore Operations Employees – Blue Collar Worker

The Company promotes several site-specific training programmes worldwide

at the shorebases and construction yards, as well as external courses and

on-the-job training on the units offshore.

Permanent Employees Onshore Operations –

Construction Sector Training

Training

indicator

Blue collar hours/

Total training hours in 2008 employees employee

68,440 485 141.11

The training school at the Paenal Fabrication Yard, Porto Amboim has again

operated to train Angolan Nationals to become welders, fitters and riggers,

providing competent staff for the construction operations that take place

there. The indicator is much higher as this is a full time school that operates

to train approximately 30 staff over a module period of four months,

i.e. three times per year.

Performance and Career DevelopmentThe introduction and implementation of the Competency System has started

to show positive results. The Company offers a wide range of work activities

and an increased response from the employees has been noticed to request

lateral transfers to functions which would be more suitable for their abilities.

This means that more people move into the right place without the Company

having to externally recruit. Performance appraisals have become more

meaningful and staff can see their career path possibilities in a more

transparent manner.

Onshore Operations Performance Appraisal

Performance Appraisals are organised by the Human Resources

Department and the results remain confidential.

All Performance Appraisals are made in accordance with the SBM Offshore

Competency System which is based on the assumption that competencies

are underlying characteristics which enable someone to perform a job

better in more situations, more often, with better results. Competencies

are not the tasks of the job; they are what enable people to do the tasks.

Competencies are a critical factor for successful performance of a job.

Performance Appraisals concerns permanent staff only and temporary

staff are not included.

The Performance Appraisal indicator for Onshore Operations is 92% in

2008 1,902 appraisals completed for 2,079 employees.

Onshore Operations – Performance Appraisals in 2008

Onshore

Operations Indicator

1,902 2,079 91.5%

Offshore Production Performance Appraisal

The annual appraisal of our offshore production staff covers all permanent

staff, nationals, and the shipping agency (contract) staff working offshore

onboard the production units. All offshore production staff are appraised in

direct accordance with the offshore work activities, differently focused to the

onshore staff appraisal mentioned above. This appraisal concentrates on

subjects that concern Safety, Teamwork, Professional Competence and

Skill levels, Attitude, Commitment, and Effectiveness. This appraisal is

performed offshore.

The Performance Appraisal indicator for Offshore Production is 96% in 2008

873 appraisals completed for 912 employees.

Offshore Production – Performance appraisals in 2008

Offshore

Operations Indicator

873 912 95.7%



141.1 2008 Training Indicator

Onshore Operations – Construction Sector

13073_SBM_2008CR 13/5/09 13:03 Page 31

Employee BenefitsPension obligations

Group companies operate various pension schemes. The schemes are

generally funded through payments to insurance companies or are defined

as multi employer plans. The payment contributors in each case are

determined by periodic actuarial calculations. The Company has both

defined benefit and defined contribution plans. A defined benefit plan is a

pension plan that defines an amount of pension benefit that an employee

will receive on retirement, usually dependent on one or more factors such

as age, years of service and compensation. A defined contribution plan is a

pension plan under which the Company pays fixed contributions to public or

private pension insurance plans on a mandatory, contractual or voluntary

basis. The Company has no legal or contractual obligations to pay further

contributions if the fund does not hold sufficient assets to pay all employees

the benefits relating to employee service in the current and prior periods.

The contributions to defined contribution plans and multi-employer plans

are recognised as an expense in the income statement as incurred.

ESOP

The Employee Share Ownership Plan (ESOP) continues to be offered to

staff with a contribution paid by the Company encouraging employees to

invest in SBM Offshore shares. SBM Offshore subsidises 40% of the share

purchase price.



Responsibilities to our employees continued

13073_SBM_2008CR 13/5/09 13:03 Page 32



40% ESOP

SBM Offshore covers 40 per cent of the share

purchase price

Four Year Employment Data – SBM Offshore Group

Indicator %

two previous

2005 2006 2007 2008 years

Total Workforce Employee Diversity (Onshore and Offshore)

Total number of employees worldwide permanent and temporary 3,164 3,824 4,402 5,151 A 17%

Total number of permanent employees 2,479 2,458 2,909 3,617 A 24%

Total number of temporary employees 685 1,366 1,493 1,534 A 3%

Total percentage of female employees in permanent workforce n/r n/r 22% 22% –

Total Permanent Employee with Part-time Contracts

Total number of part-time employees n/r n/r 116 127 A 9%

Total number of female employees working part-time n/r n/r 72 76 A 6%

Total number of male employees working part-time n/r n/r 44 51 A 16%

Percentage part-time workforce n/r n/r 2.6% 3.5% –

Percentage part-time females n/r n/r 62% 60% –

Percentage part-time males n/r n/r 38% 40% –

Total Permanent Employee Turnover (Onshore and Offshore)

Total amount of employee turnover percentage n/r n/r 13% 11.0% –

Total amount of employee turnover n/r n/r 378 337 A 5%

Due to retirement n/r n/r 17 24 A 41%

Due to voluntary resignation n/r 1 300 304 A 1%

Due to dismissal n/r n/r 58 66 A 14%

Death (natural causes – non work-related) 0 0 3 3 –

Fatalities (death resulting from a work-related incident or illness) 0 1 0 0 –

Occupational Health and Safety

Average absence due to normal illness

(percentage days lost through illness per employee) 1.80% 1.80% 2.3% 2.6% A 0.3%

Total consolidated million manhours SBM Offshore Group

(including Offshore Production Fleet) n/r n/r 8.5 11 A 29%

Total consolidated million manhours Onshore Operations

(excluding Subcontractors) n/r n/r 4.9 5.3 A 9%

Total million manhours Offshore Production 3.8 3.7 3.5 5.8 A 65%

Lost Time Accident Frequency Onshore Operations 0.1 0.05 0.0 0.0 0%

Lost Time Accident Frequency Offshore Production 0.1 0.05 0.0 0.0 0%

Appraisals (permanent employees)

Personnel appraisals completed for permanent employees Onshore Operations n/r n/r 92.5% 92% G 0.5%

Personnel appraisals completed for permanent employees Offshore Production n/r n/r 100% 96% –

Competency Training Indicators (permanent employees)

Training hours per employee Management (white collar) n/r n/r 14.9 16 A 7%

Training hours per employee Engineering (white collar) n/r n/r 41.6 25.1 G 40%

Training hours per employee Offshore Production Units Staff (blue collar) n/r n/r 49.3 27.2 G 45%

Training hours per employee Construction Yard, Angola (blue collar) n/r n/r 578 201.9 G 65%

n/r = not recorded

The 2005 and 2006 data entries have not been verified by our external assurance provider PricewaterhouseCoopers.

13073_SBM_2008CR 13/5/09 13:04 Page 33

Local Communities


Local Communities34

A long time before sustainable development was familiar as it is today, SBM Offshore focused on the social andeconomic benefits it could bring to client countries, in particularthe developing ones. This was not only consistent with thecompany’s ethical business principles, but it often provided theadditional benefit of obtaining more business in the countries in question. Our responsibilities towards society and localCommunities are to support and promote human rights and contribute to social welfare in the communities where we operate.

13073_SBM_2008CR 13/5/09 13:04 Page 34


Local Communities

Tamatakaw Village Project, Myanmar

SBM Offshore is concerned about the welfare of the people

of Myanmar, where we have a lease/operating offshore

unit under contract until 2015. SBM Offshore has been

supporting the Myanmar Business Coalition on Aids (MBCA)

since 2001. In 2008, support was in addition given to

Marie Stopes International.

After cyclone Nargis struck Myanmar in 2008, SBM Offshore

initiated these actions as follows:

• SBM Offshore donated additional funds to Marie Stopes

International for emergency medical relief and to support

their long-term programs in the country.

• SBM Offshore donated additional funds to the Myanmar

Business Coalition on Aids for emergency medical

relief and for the long term rebuilding of an affected

village (Tamatakaw).

• SBM Offshore purchased emergency supplies (enough

to fill two shipping containers) and shipped these directly

to Myanmar for distribution.

Marie Stopes International worked in many parts of the

country and due to the magnitude of the disaster; much of

their work was focused on providing basic health needs to

the affected communities in the delta.


Please visit our website for the full report

Project Name Marie Stopes International Australia

Cyclone Nargis Relief 2008

AusAID Reference Number 46162

Australian NGO Name Marie Stopes International Australia

Delivery Organisation’s Name Marie Stopes International Myanmar (MSIM)

Date Project Commenced May 2008

Date Project Completed December 2008

Report covers Project May 16th – December 31st 2008

activities implemented

in the period

An excerpt follows of MSI’s report, which was issued for the Australian

Government.

“On May 2nd 2008 Cyclone Nargis struck Myanmar and caused catastrophic

destruction in the Ayeyarwady Delta area and Yangon division, killing

over 140,000 people and injuring 20,000. The homes, communities and

livelihoods of around 2.4 million people were affected, with the damage

caused to infrastructure, commerce and agriculture estimated at US$4

billion. Access for the affected population, particularly rural communities, to

health services for communicable diseases, immunization, antenatal care

(ANC), delivery, emergency obstetric care (EmOC), postnatal care (PNC),

and supplies of essential medicines and contraceptives was been

severely disrupted.

‘The initial response to the Cyclone Nargis was unusual and disturbing:

slow government action and restriction of the international community's

involvement. In this context, the locally operating NGO response was

particularly important. MSIM was able to respond immediately using its

existing health personnel and resources, and in the weeks that followed

established an emergency response effort. Building on its a decade long

experience in direct reproductive health service delivery in Myanmar and

support from a range of donors, MSI Myanmar has been providing relief

and recovery assistance since May, initially encompassing a range of

services and goods distribution, and focusing over time on MSI’s expertise

in sexual and reproductive health.”

13073_SBM_2008CR 13/5/09 13:04 Page 35

36

€100,000DonationsEnvironment Charity Fund of HRH P-Albert II

Community EngagementsThe Company operates offshore facilities in a large number of countries

worldwide under long-term contracts and it frequently undertakes construction

activities in the fabrication yards of developing countries. Wherever SBM

Offshore operates in the world, its goal is to be responsive to community

needs and to maximise local content by utilising as much as possible in-

country resources and products and by making the maximum use of local

manpower. Skill-development and technology-transfer is pursued through

training programmes to improve the technical capabilities of the local

labour force. In this matter, SBM Offshore hereby confirms the policy it has

established for several years.

The Company has taken a number of initiatives to support social programmes

in countries where we have business activities. Regular meetings with these

organisations and review of their programmes continue to affirm both the

legitimacy and the effectiveness of the Company’s sponsorship.


For more information please visit our website, in the Corporate Social

Responsibility and Benefits to Local Communities Sections

Angola – ESSAIn 2003, SBM Offshore entered into a partnership to assume the

responsibility for the operation, management, marketing, and development

of all on-going and future activities of ESSA (Empresa de Serviços e

Sondagens de Angola Limitada), a training centre in Luanda developed

and owned by SONANGOL.

The participation of SBM Offshore in the ESSA training centre allows the

Company to increase the involvement of national resources in its operations.

In addition, the ESSA training centre which provides education and offers

workshop facilities focusing on basic mechanical and electrical training,

received a process control room simulator from the Company.

Padre HoracioSBM Offshore is financially supporting an institution run by an Argentinian

priest, Padre Horacio, who lodges and feeds street children. Education is

given to these children including tuition on technical subjects such as basic

mechanical and electrical knowledge. SBM Offshore is now committed to

incorporate some of the children from this institute in the ESSA project for

an enhanced electrical training and the creation of an electrical workshop.

Angola – Porto Amboim Training SchoolRecruitment from the local market of skilled workers is difficult, and is not

sufficient to meet the requirements of the yards’ expected work programme.

For this reason a training schools was established at the Porto Amboim yard,

in order to train locally hired (mostly) unemployed persons a temporary

location in Porto Amboim.

The first training programmes initiated at the school were welding, fitting,

rigging, and scaffolding. The newly trained workers will commence with

structural works and as they progress and gain experience, then they

will be moved to more complicated tasks such as Topside fabrication.

The envisaged training school will initially have a capacity of approximately

150 trainees per year. The courses have been made in groups of

30 students and generally last 12 weeks. Formal competence tests are

carried out and certificates are issued to successful graduates.

SONANGOL and SBM Offshore, through their Joint Venture company

‘OPS,’ already have extensive training programmes in place in Angola,

aimed at the skills needed for offshore positions. SBM Offshore has drawn

on this experience to set up the training program for the Porto Amboim

Training School. SBM Offshore also provides support to two projects:

‘Casa dos Rapazes do Palanca’, a school and workshop for boys in Luanda

and ‘Lar Nossa Senhora das Dores’, an orphanage for girls’ in Lubango.


Local Communities

Local Communities continued

13073_SBM_2008CR 13/5/09 13:04 Page 36

37

Brazil SenaiSBM Offshore invested in a process simulator for offshore production

operations in mid-2005 on the premises of Senai, in Macaé, Brazil. Senai

is a governmental Brazilian Training Institution which develops, together

with SBM Offshore Competence Assurance specialists, training modules for

our process operators. The training of our Brazilian employees working on

FPSOs is performed by the Senai instructors in Macaé. SBM Offshore has

twelve groups of eight trainees for periods of five days, which is almost one

hundred training sessions of five days per year. This training action has been

implemented to allow SBM Offshore to achieve its Nationalisation target,

which is 60% of its offshore crew in 2005, 70% in 2006, and 80% in 2008.

SBM Offshore and CASA do MENOR – 2008 Apprentices Program

The Brazilian government has issued recent laws determining that five

percent of the technical workforce from every company must be added by

filling these positions with apprentices. Apprentices are youngsters from

14 years old to 24 years old, who need a chance to a formal entry into the

labour market. The Ministry of Labour has an Inspection Division that visits

the companies to verify the compliance with the labour law. SBM Offshore

was recently inspected by the Ministry of Labour whose interest was the

Apprentices Program and it was found to be in compliance with the law.

SBM Offshore outsourced the Apprentices Program to Casa do Menor.

Casa do Menor is a non-governmental institution that has been accredited

by the government to deliver basic education and to prepare youngsters for

integration into organised society. Casa do Menor focuses on less favoured

groups, meaning family groups with a monthly income less than US$ 100.00

(one hundred dollars). Casa do Menor is sponsored by several companies

and institutions. Among them SBM Offshore sponsors the Maintenance

Course for 13 apprentices every year, which is the quota set by the Ministry

of Labour. The Maintenance Course has the objectives to transmit basic

theory and practice in the workshops for students in the areas of Mechanics

and Electricity. There are other subjects in the course content aimed at

ethical standards and citizenship that will serve as a reference for their stable

growth. Classes take place during the day and last one year. The students

are also obliged to attend classes in public schools in order to be kept in the

program, usually held in the evening.

SBM Offshore through Casa do Menor, trains annually 13 apprentices

and offers for the two top students an offshore assignment to introduce

them to offshore life and to allow them a solid start. Currently, we have

two apprentices following practices offshore. Both have expressed

their enthusiasm and willingness to join the maintenance team in the

instrumentation area, in the future. They are evaluated quarterly against

offshore induction program objectives that have been monitored by an

offshore employee.

The Apprentices Program prepares the youngsters for the working world

introducing them in the formal educational system and organised society

with basic tools to engage in productivity initiatives in order to generate

income and personal dignity.

Casa do Menor official campaign ‘Boys of Street Out of the Streets’ has been

supported by SBM Offshore in a successful partnership with concrete social

results for four years, since 2005.

Monaco – The Single Buoy Nursery, Principality of MonacoIn 2007 the Single Buoy Nursery was opened and is a professionally-run

nursery and pre-school for infants and toddlers between the age of two

months and four years. Single Buoy Nursery is unique, as it is the first

of its kind in Monaco being completely privately funded.


For more information please visit our website, in the Corporate Social

Responsibility and Benefits to Local Communities Sections

US$131,000Donations

Myanmar relief help


Local Communities

13073_SBM_2008CR 13/5/09 13:04 Page 37

Renewable Energy Systems


Renewable Energy Systems38

SBM Offshore is running several initiatives to leverage its in-house expertise to develop large scale equipment for the offshore renewables sector that is complementary toexisting marine based business. The Company continues to focus on helping reverse the negative impact of fossil fuel emissions through the supply of clean fuels – a strategy to help sustain and grow the supply of clean and ‘green’ (or ‘blue’ marine) energy.

13073_SBM_2008CR 13/5/09 13:04 Page 38


Renewable Energy Systems

Green Power GenerationThe sectors of the renewables market which are expected to have the largest

near term potential offshore are the wind and wave energy generation

sectors. SBM Offshore sees opportunities to provide support to the rapidly

growing wind sector through the provision of vessels both for transportation,

and for the installation and maintenance of wind turbines. Wave energy

conversion is very much a nascent industry, with no commercial farms in

place at all so far. The Company is working on a prototype wave energy

generator based on breakthrough technologies.

A new development theme is the generation of electricity in an

environmentally friendly manner. Offshore waters do contain an enormous

amount of potential energy and SBM Offshore has extensive knowledge

and experience in providing and installing systems to operate in the offshore

environment where waves and currents can be significant.

We therefore decided to explore ways of capturing a portion of that energy

in a sustainable manner: green power.

After reviewing various energy potential sources (current energy,

thermal/density, solar, etc.), we concluded that of the technically feasible

options, Wave Energy Conversion systems (WEC) offered the greatest

potential for commercial viability. A creative team of engineers has therefore

been working on a range of WEC concepts with the ambition to test the

first prototype by the end of 2009.

The concept of wave energy absorption is not new; it has been in

development for over 30 years. Today’s environmental objectives, backed

by political initiatives, have changed the economic case strongly in favour

of renewables.

SBM Offshore sees that a highly competitive clean energy production

system can be developed by combining our long expertise in design and

construction for operation in extreme environments with emerging power

take-off technologies.

Today, we wish to harness wave energy for mankind.

Reducing the Ecological Impact of Current OperationsThe reduction of the greenhouse gas emissions generated by process,

production, and manufacturing operations is a key concern for SBM

Offshore. In our day-to-day activities, SBM Offshore is constantly seeking

ways to reduce the impact of our activities, both in the supply of our systems

and in operation. Offshore facilities consume significant quantities of raw

materials, notably steel for the large structures employed. The Company

is a world leader in building lightweight topside production systems on

our facilities to meet high-capacity requirements.

FPSOs traditionally vent some hydrocarbon gas into the atmosphere each

time the cargo tanks are filled.

SBM Offshore is investigating technologies to recover the tank gases via

a compression system, thereby cutting emissions and improving both the

global and local environmental impact. When vented in calm weather, trace

levels of this vented hydrocarbon gas occasionally sink to the deck and

cause process plant shut-downs with corresponding flaring of the plant

inventory. Tank gas recovery removes this risk and increases process plant

uptime, which has a knock-on effect of reducing the number of such short

flaring events.

SBM Offshore has both the strategies and the expertise in place to help

create a sustainable supply of clean energy. With a clear view on the

renewable energy sector, our focus is to deliver ‘green’ technologies and

reduce our carbon footprint.

Sources:

Commission of the European Communities, DG XVII. ‘An Assessment of the State of Art, Technical

Perspectives and Potential Market for Wave Energy’.

Thorpe, T W. ‘An Overview of Wave Energy Technologies’, A report produced for the Office of

Science and Technology, AEA Technology

Research and Long-term DevelopmentsSBM is also working on research and long-term development projects aimed

at sustaining the company’s business well into the future. These projects

include deepwater production technology and liquid natural gas (LNG)

productions systems, which is a more environmentally friendly fossil fuel

than crude oil. The technology development focuses on system robustness,

reliability, safety in operation and environmental friendliness.


For more information please visit our website, in the SBM Offshore Annual

Report 2008, Product and Technology Development section, pages 70-81

US$25 millionIn 2008 SBM Offshore invested 25 million US$on Research and Development

13073_SBM_2008CR 13/5/09 13:04 Page 39

Performance IndicatorsSBM Offshore Group


Performance Indicators40

EconomicShareprice – Listed as SBM Offshore N.V. on the Euronext Stock Exchange, Amsterdam

2008 2007

Turnover as % of share capital 309.94 240.52

Highest share price in u 26.77 31.52

Lowest share price in u 8.72 19.85

Closing share price in u 9.35 21.6

Closing share price in US$ 13.07 31.8

Share prices for the years 2004 through 2006 are restated for the four for one share split effected on June 2nd 2006.

Total capital expenditure for 2008 (comprising of additions to property, plant and equipment plus capitalised R and D expenditure) amounted to US$ 999.8 million

(2007: US$ 551 million)

Health, Safety, Security and Environment (H.S.S.E.)Occupational Health and Safety for SBM Offshore Group

2008 2007

Average absence due to normal illness (percentage days lost through illness per employee) 2.6% 2.3%

Total consolidated million manhours SBM Offshore Group (including Offshore Production Fleet) 11 8,5

Total consolidated million manhours Onshore Operations (excluding Subcontractors) 5,76 4,92

Total consolidated million manhours Offshore Production 5,32 3,58

Lost Time Accident Frequency Offshore Production 0.04 0.04

Death during service (natural causes – non work-related) 3 3

Fatalities (death resulting from a work-related incident or illness) 0 3

Subcontractor Manhours 2008

Ongoing projects Completed projectsManhours Manhours

TOTAL 24,318,501 10,010,346

H.S.S.E. Accident Statistics for Onshore Operations

2008 2007

Total Manhours Onshore Operations 5,766,269 4,912,362

Fatalities F 0 0

Lost Time Incidents LTI 4 0

Restricted Work Cases RWC 0 1

Medical Treatment Case MTC 2 1

Near Miss Incidents NMI 2 0

Days Lost LTI 28 Not recorded

in 2007 report

LTI Frequency Rate LTIFR 0.13 0

Total Recordable Incidents TRI 6 2

Total Recordable Incident Frequency Rate TRIFR 0.21 0.08

13073_SBM_2008CR 13/5/09 13:04 Page 40


Performance Indicators

H.S.S.E. Accident Statistics for Offshore Production

2008 2007

Total Manhours Offshore Production 5,320,943 3,557,955

Fatalities F 0 0

Lost Time Incidents LTI 1 0

Restricted Work Cases RWC 5 7

Medical Treatment Case MTC 10 3

Near Miss Incidents NMI 81 64

Days Lost LTI 5 Not recorded

in 2007 report

LTI Frequency Rate LTIFR 0.04 0.09

Total Recordable Incidents TRI 16 10

Total Recordable Incident Frequency Rate TRIFR 0.60 0.51

Environmental Data Offshore Production – Recordable Spills

2008 2007

Offshore Production Units 15 13

Contained Spills Onboard 22 23

External Spills to Environment 4 2

2008 Offshore Production – Greenhouse Gas Air Emissions

Values below expressed in millions of tonnes CO2 equivalents

Production and/or Storage Unit CO2 CH4 N20

Brazil

FPSO Marlim Sul 0.236 0.002 0.006

FPSO Brasil 0.167 0.001 0.004

FPSO Espadarte 0.175 0.001 0.004

FPSO Capixaba 0.268 0.002 0.006

Caspian

FSO and MOPU Turkmenistan 0.004 0.0000 0.0001

Myanmar

FSO Yetagun 0.005 0.0000 0.0011

Russia

FSO Okha 0.005 0.0000 0.0011

Thailand

FPSO Tantawan Explorer 0.093 0.0006 0.0022

Vietnam

FPSO Rang Dong 1 0.046 0.0003 0.0011

West Africa

FPSO Xikomba 0.103 0.001 0.002

FPSO Mondo 0.281 0.002 0.007

FPSO Saxi Batuque 0.049 0.000 0.001

FPSO Kuito 0.301 0.002 0.007

FPSO LPG Sanha 0.006 0.000 0.000

TOTAL 1.737 0.011 0.041

13073_SBM_2008CR 13/5/09 13:04 Page 41

42

Performance Indicators continued

Health, Safety, Security and Environment (H.S.S.E.) continuedGreenhouse Gas Air Emissions Comparison

Air Emissions in tonnes 2008 2007*

Number of Offshore Production Units 15 13

N2O 133 149

CH4 540 10,488

CO2 1,737,389 1,296,735

Environment Data Offshore Production – Non Greenhouse Gas Air Emissions

Air Emissions in tonnes 2008 2007*


CO 1,928 5,241

NOX 4,327 4,202

SO2 91 100

VOC 46 1,150

Environment Data Offshore Production – Regional CO2 Emissions

CO2 in Metric tonnes 2008 2007*


Asia 142,904 111,657

Brazil 846,021 831,629

Caspian 4,008 3,722

Russia 5,125 7,176

West Africa 739,331 342,551

Total 1,737,389 1,296,735

*With exception of CO2, all GHG and Non-GHG emissions otherwise stated for 2007 include flaring. For 2008, all reported GHG and Non-GHG air emissions exclude flaring, as this factor is reported by our Clients.

Environmental Data – Indirect Energy Consumption by Primary Source – Electric Usage

Onshore Operations: Four Execution Centres and Corporate Offices

Indirect Energy Consumption 2008 2007

Total electric usage kWh 10,554,568 10,056,021

Total metric tonnes CO2 equivalent 4,008 3,924

The Indirect consumption of electricity stated as CO2 equivalent in CSR report for 2007 was calculated based on DEFRA methodology.

The calculated total by DEFRA published in 2007 was 5,184 CO2 calculated from 9.9 million kWh usage. The total kWh for 2007 was slightly lower

as the month of December was missing and the usage for December was based on an average calculation. This is rectified above.

For 2008 a change in methodology for calculating the onshore CO2 equivalent for the kWh data was adopted. The WRI Greenhouse Gas Protocol

(GHG Protocol) conversion was chosen as a new method, since its conversion factors is country specific rather than one factor for everything irrespective

of geographical location.



13073_SBM_2008CR 13/5/09 13:04 Page 42

43

Human ResourcesTotal Employee Headcount by Location

2008

Onshore Operations

Schiedam, Netherlands 530

Houston, USA 643

Kuala Lumpur, Malaysia 317

Monaco 1,371

Marly, Switzerland 24

Worldwide Construction Sites and Shorebases 704

Offshore Production

Worldwide Offshore Fleet 1,562

TOTAL 5,151

Permanent Employees by Gender2008

Female 790 22%

Male 2,827 78%

TOTAL 3,617

Permanent SBM Offshore Group Employees by Location and Gender Ratio

Female Male Total Female

Onshore Operations

Schiedam, Netherlands 71 322 393 18%

Houston, USA 160 380 540 30%

Kuala Lumpur, Malaysia 85 214 299 28%

Monaco 294 666 960 31%

Marly, Switzerland 19 5 24 79%

Worldwide Construction Sites and Shorebases 135 350 485 28%

Offshore Production

Worldwide Offshore Fleet 26 890 916 3%

TOTAL 790 2,827 3,617 22%

Permanent Contracts vs Agency Contracts

2008

Permanent Employees 3,617 70%

Contract Employees 1,534 30%

TOTAL 5,151

SBM Offshore Group Permanent and Part-time Employees by Location Total Permanentand Part-time Men Female

Employees % %

Onshore Operations

Schiedam, Netherlands 83 49% 51%

Houston, USA 3 67% 33%

Kuala Lumpur, Malaysia 0 0% 0%

Monaco 27 19% 81%

Marly, Switzerland 10 0% 100%

Worldwide Construction Sites and Shorebases 0 0% 0%

Offshore Production

Worldwide Offshore Fleet 4 100% 0%

TOTAL 127 40% 60%



13073_SBM_2008CR 13/5/09 13:05 Page 43



Human Resources continuedTemporary Employees by Location Total

Headcount headcount Percentage

temporary (permanent and of temporary

staff (temporary) workforce

Onshore Operations

Schiedam, Netherlands 131 530 25%

Houston, USA 103 643 16%

Kuala Lumpur, Malaysia 18 317 6%

Monaco 417 1,050 40%

Marly, Switzerland 0 24 0%

Worldwide Construction Sittes and Shorebases 646 1,562 21%

Offshore Production

Worldwide Offshore Fleet 219 1,025 41%

TOTAL 1,534 5,151 30%

Employees Turnover by Category Turnover Total Turnovercount count percentage

Voluntary 304 8.4%

Dismissal 66 1.8%

Retirement 24 0.7%

Fatalities non-work related 3 0.1%

Fatalities work related 0 0.0%

TOTAL 397 3,617 11.0%

Permanent Employees Turnover Onshore Operations by GenderTurnover Total Turnover

count count rate

Male 157 1,937 8.1%

Female 60 764 7.9%

TOTAL 217 2,701 8.0%

Permanent Employee Turnover by Geographical LocationTurnover Total Turnover

count count rate

Onshore Operations

Schiedam, Netherlands 27 393 6.9%

Houston, USA 80 540 14.8%

Kuala Lumpur, Malaysia 24 299 8.0%

Monaco 67 960 7.0%

Marly, Switzerland 4 24 16.7%

Worldwide Construction Sites and Shorebases 73 485 15.1%

Offshore Production

Worldwide Offshore Fleet 122 916 13.3%

TOTAL 397 3,617 11.0%

Permanent Employees Turnover Onshore Operations by AgeTurnover Total Turnover

count count rate

Age <30 33 1.2%

Age 30-50 134 5.0%

Age >50 50 1.9%

TOTAL 217 2,701

Performance Indicators continued

13073_SBM_2008CR 13/5/09 13:05 Page 44



Permanent Employees Training Hours Onshore Operations and Offshore Production

Total Totalnumber of Total training

training number of hours perDivision/Department hours employees employees

Engineering 26,653 1,062 25.1 hours

Operations 72,967 923 79.1 hours

Services 3,496 160 21.9 hours

Administration 3,260 235 13.9 hours

Management 3,078 192 16.0 hours

Offshore production 27,821 1,045 26.6 hours

TOTAL 137,275 3,617 40.15 hours

Permanent Employees Onshore Operations Training 2008Training

White indicatorcollar hours/

Total Hours for Training 2008 employees employee

43,898 2,087 21.03

Permanent Employees Offshore Production Training 2008

Blue collar Trainingemployees indicator

Offshore hours/Total Hours for Training 2008 Production employee

24,937 1,045 23.86

Permanent Employees Onshore Operations Construction Sector TrainingBlue collar Trainingemployees indicator

Onshore hours/Total Hours for Training 2008 Operations employee

63,440 485 141.11

Permanent Employees Onshore Operations Performance Appraisal

OnshorePerformance Appraisals Operations Indicator

1,902 2,079 91.5%

Permanent Employees Offshore Production Performance Appraisal

OffshorePerformance Appraisals Production Indicator

873 912 95.7%

CommunitySBM Offshore Group 2008 Donations $619,638.72

SuppliersIn 2008 SBM Offshore conducted business with approximately 2,500 suppliers and placed Purchase Orders for 1,724,666,912 US$.

13073_SBM_2008CR 13/5/09 13:05 Page 45


Appendices46

AGIP

Azienda Generale Italiana Petrol, established in 1926 is an Italian automotive

gasoline and diesel retailer. It is a subsidiary of multinational petroleum

company ENI.

API

The American Petroleum Institute is the primary trade association in the

United States representing the oil and natural gas industry, and the only one

representing all segments of the industry.

BOE

Barrels of oil equivalent.

CALM

Catenary Anchor Leg Mooring.A floating buoy that performs the dual function

of keeping a tanker moored on a single point and transferring fluids while

allowing the ship to weathervane.

CAPEX

Capital Expenditure.

Chevron

U.S. integrated energy, oil and gas company.

CIS

Corporate Intranet Site.

CO

Carbon Monoxide.

CO2

Carbon Dioxide, also a greenhouse gas.

CO2e

Carbon Dioxide equivalency is a quantity that describes, for a given mixture

and amount of greenhouse gas, the amount of CO2 that would have the

same global warming potential (GWP), when measured over a specified

timescale (generally, 100 years).

Contractor

An individual, company or other legal entity that carries out work or performs

services pursuant to a contract for service. This includes sub-contractors.

Crane vessel

A ship-shape vessel or semi-submersible vessel with one or two cranes

for lifting platform modules and structures at sea.

Cryogenic

Low temperature processing, generally sub zero. For LNG this can be

as low as minus 162˚C.

Deepwater

More than 300 metres water depth.

DSV

Diving Support Vessel. A dedicated vessel, most frequently dynamically

positioned, for assistance of subsea saturation diving and installation work.

EBIT

Earnings before interest and income taxes.

EBITDA

Earnings before interest, taxes, depreciation and amortisation.

E/P OR E&P

Exploration and Production.

EPCI

Engineer, Procure, Construct and Install A form of contracting that provides

for turnkey delivery of facilities.

ESOP

The Employee Share Ownership Plan.

ESSA

Empresa de Serviços e Sondagens de Angola. Services and Surveys

Company of Angola.

FEED

Front End Engineering and Design A study used to analyse the various

technical options for new field developments with the objective to define

the facilities required.

Flowlines

Pipelines carrying reservoir fluid on the seabed from wells to risers.

FPSO

Floating Production, Storage and Offloading system. An FPSO is a floating

facility installed above or close to an offshore oil and gas field to receive,

process, store and export hydrocarbons.

FSRU

Floating Storage and Re-gasification Unit. A floating vessel that is permanently

moored at a site where it can receive LNG from carriers, store and re-gasify

the LNG.

GHG

Greenhouse Gas Emissions. Gaseous emissions to the atmosphere

that may contribute to global warming.

GTL

Gas To Liquids conversion.

GRI

Global reporting Initiative. A multi-stakeholder process developing and

disseminating globally applicable sustainability reporting guidelines for

organisations to report on the economic, environmental and social

dimensions of their activities, products and services.

HSE Charter

The set of clearly defined HSE values applicable to each employee

of the Group.

Hydrocarbons

Oil, gas, and other chemical components carrying hydrogen and carbon atoms.

IOC

International Oil Company.

IMCA

International Marine Contractors Association.

IPIECA

The International Petroleum Industry Environmental Conservation

Association (IPIECA) is comprised of oil and gas companies and

associations from around the world.

IPIECA Standard

Oil and Gas Industry Guidance on Voluntary Sustainability Reporting.

ISO 9001

International standard for quality management. It is intended to help an

organisation enhance customer satisfaction by meeting customer and

applicable regulatory requirements and to improve its performance in

this regard.

ISO 14001

International standard for environmental management. It is intended to help

an organisation to minimise harmful effects on the environment caused by its

activities and to improve its environmental performance.

ISM/ISPS

International Ship Management.

ISPS

International Code for the Security of Ships and of Port Facilities.

Glossary

13073_SBM_2008CR 13/5/09 13:05 Page 46


Appendices

JVPC

Japan Vietnam Petroleum Co., Ltd. (JVPC).

LNG

Liquefied Natural Gas Natural gas (mainly methane) that is refrigerated to

minus 162˚C.

LPG

Liquefied Petroleum Gas Butane and propane, separated from well

fluid stream.

LTA

Lost Time Accident.

LTAF

Lost Time Accident Frequency.

LTI

Lost Time Injury.

LTIFR

Lost Time Injury Frequency Rate.

M.I.S.C Berhad

MISC Berhad incorporated in 1968 as Malaysia International Shipping

Corporation Berhad, is the leading international shipping line of Malaysia.

Its main shareholder is Petroliam Nasional Berhad (PETRONAS),

the national oil conglomerate of Malaysia. The principal business of the

Corporation consists of ship-owning, ship-operating and other logistics and

maritime transportation services. With a modern and well-diversified fleet of

139 vessels and a combined tonnage of 8 million deadweight tonnes (dwt).

MMBBL

Million Barrels of Oil.

MOPU

Mobile Offshore Production Unit. A jack-up platform carrying oil, gas and

water separation equipment.

NOC

National Oil Company.

Non-flaring operations

Operations where the produced gas from an oil field is not allowed to be

flared and therefore either has to be exported by pipeline, used as a fuel

source or re-injected into the well.

NO2

Nitrogen dioxide, sources are internal combustion engines and thermal

power stations.

NOx

Nitrogen Oxide. Any binary compound of oxygen and nitrogen,

or to a mixture of such compounds.

NGO

Non Governmental Organisation.

OPS

OPS-Serviços de Produção de Petroleo Ltda.

OHSA

Occupational Health and Safety.

OHSAS 18001

An international occupational health and safety management system

specification. It is intended to help an organisation to control occupational

health and safety risks.

Oil barrel

Standard measure for crude oil and other petroleum products 42 US gallons

or 158.9873 litres or 34.9723 Imperial (UK) gallons.

Onshore operations

All activities that take place in offices, engineering design and construction

on land.

PETRONAS

Petroliam Nasional Berhad (PETRONAS), the national oil conglomerate

of Malaysia.

RWC

Restricted Work Case.

SAI

Social Accountability International.

Sakhalin energy

Sakhalin Energy Investment Company Ltd.

SCR

Steel Catenary Riser A steel pipe hung in a catenary configuration from

a floating vessel in deep water to transmit flow to or from the sea floor.

SO2

Sulphur Dioxide.

SONANGOL

Sociedade Nacional de Combustíveis de Angola. Angolese State owned Oil

Company that oversees petroleum and natural gas production in Angola.

SPM

Single Point Mooring System.

Swivel

Mechanical component consisting of a fixed and a rotating part, connected

by means of a roller bearing and a sealing arrangement, allowing fluids to

pass between the stationary and the weathervaning part of a Single Point

Mooring system.

Stakeholder

The clients, employees, suppliers, shareholders and the local communities

where the Company operates of which the performance of SBM Offshore

has a direct effect.

Tablaksblat Code

Dutch Corporate Governance Code.

Task

Total Application of Safety Knowledge.

The Company

SBM Offshore Group of Companies.

TLP

Tension Leg Platform.A floating production platform positioned and stabilised

by at least three separated, vertical tendons anchored to the seabed.

TREG

Time Registration (Company online timesheet registration for working hours).

Turnkey supply

Design, construction, installation and delivery of an operational system.

TRIFR

Total Recordable Incident Frequency Rate.

Turret

The turret system is integrated into or attached to the hull of the tanker,

in most cases near the bow, and allows the tanker to weathervane around it

and thereby take up the line of least resistance to the combined forces

of wind, waves and current.

VOC

Volatile Organic Compound.

13073_SBM_2008CR 13/5/09 13:05 Page 47

PricewaterhouseCoopers Assurance ReportTo the Board of Management of SBM Offshore N.V.


Appendices48

Assurance report

Scope and Responsibilities

We have been engaged by the Board of Management of SBM Offshore N.V.

(‘SBM Offshore’), Rotterdam, the Netherlands, to review the content

of the Corporate Social Responsibility Report for the year ending

December 31st 2008 (hereafter referred to as the Report).

A review engagement is aimed at obtaining limited assurance for our

conclusions. The detail of review procedures is substantially less than audit

procedures and consequently a review engagement provides less assurance

than what would be obtained from an audit engagement.

We do not provide any assurance on the assumptions and achievability

of prospective information (such as targets, expectations and ambitions)

included in the report. Furthermore, we have not reviewed the performance

data for 2006 and prior years included in the report, and therefore do not

provide any assurance on those data.

The Report has been prepared under the responsibility of the Board of

Management of SBM Offshore. Our responsibility is to draw a conclusion

on the Report based on our review.

Reporting Criteria

SBM Offshore developed its reporting criteria on the basis of the G3

Sustainability Reporting Guidelines of the Global Reporting Initiative

(GRI) as explained in the Report in the section titled ‘Reporting scope’.

These reporting criteria include certain inherent limitations that can influence

the reliability of the information. We consider these reporting criteria to be

relevant and sufficient for our review engagement.

Work Performed

We planned and performed our work to obtain a basis for our conclusion

in accordance with Dutch law, including the Assurance Standard 3410N

‘Assurance Engagements relating to Sustainability Reports’, drawn up by

the professional body of Dutch accountants (‘NIVRA’).

Our most important review procedures consisted of:

• Improving our understanding of the activities and the organisation of SBM

Offshore;

• Analysing public information to gain insight into sustainability aspects

relevant to SBM Offshore and its industry during the reporting period;

• Evaluating the acceptability and application of SBM Offshore’s reporting

criteria, in relation to the information requirements of its intended

stakeholders;

• Conducting interviews with responsible officers and data suppliers on the

corporate level, aimed at understanding the data collection and reporting

process and at evaluating the completeness, accuracy and adequacy of

the qualitative and quantitative information in the Report;

• Evaluating the design and functioning of the systems and processes used

for data capturing, collation, consolidation and validation, including the

methods used for calculating and estimating results;

• Performing analytical procedures on a sample basis on the reported data

and accompanying notes;

• Reviewing the application of the G3 Sustainability Reporting Guidelines

of the GRI; and

• Evaluating the overall format and presentation of the Report, including

evaluating the consistency of the information, in line with the reporting

criteria of SBM Offshore.

We believe that the evidence obtained from our review procedures

is sufficient and appropriate to provide a basis for our conclusion.

Conclusion

Based on our review procedures performed, nothing has come to our

attention that would cause us not to believe that:

• The reporting principles of SBM Offshore are acceptable and have

been applied consistently;

• The reported information is material to SBM Offshore’s stakeholders;

• The events described took place during the reporting period and are

presented completely, accurately and timely; and

• The information is, in all material respects, presented completely,

accurately and adequately.

Amsterdam, May 14th 2009

PricewaterhouseCoopers Accountants N.V.

Original has been signed by J. van der Hilst RA

13073_SBM_2008CR 13/5/09 13:05 Page 48


Who We Are

SBM Offshore is a multinational group of companies servingthe oil and gas industry through the sale, lease, and/or theoperation of offshore production facilities, as well as relatedservices. The Company has been publicly listed on theEuronext Amsterdam Stock Exchange since October 11th 1965, originally under the name IHC Holland and afterwardslisted as IHC Caland. On May 1st 2005, IHC Caland N.V. was renamed SBM Offshore N.V.; and the shares weresubsequently listed under this name. The Company’s clients are mainly international oil and gas corporations, bothprivate and public sector organisations, including national oilcompanies. SBM Offshore manages all business, project, and engineering activities through four key execution centres.

In addition to these main centres, there are permanentestablishments in 15 countries for regional marketing and sales, local management of offshore operations andconstruction activities.


Appendices

GRI Index Level C+

GRI Index Report Page

Vision and Strategy Sustainability, Vision and Strategy 1.1 6, 7

Oganisational Profile Name of Organisation 2.1 2, 3, 8, 11

Primary Products 2.2 2, 5

Operational Structure 2.3 2 – 4, 10 – 14

Location of HQ 2.4 2, 3, 11, 27

Countries of Operation 2.5 2, 3, 27

Nature of Ownership 2.6 2, 3, 11

Market Served 2.7 2, 3, 5, 16

Scale of Reporting Organisation 2.8 2, 3, 16


Awards Received 2.10 Not reported

Report Parametres Reporting Period 3.1, 3.2, 3.3 4, 6, 9, 16, 17

Contact point for questions regarding 3.4 49

the report or its contents

Reporting Boundaries 3.5, 3.6, 3.7, 3.8 16, 17

Basis for Reporting Including JV 3.8 9, 16

Re-Statements 3.10 13, 16, 42


PI tables 3.12 40 – 45

Governance, Commitments and Engagement Governance 4.1, 4.2, 4.3, 4.4 10 – 15

Stakeholder Engagement 4.14, 4.15 6, 12, 17

Employees benefit plans EC3 32

Environmental Performance Indicators Direct Energy and Indirect Energy EN3, EN4 16, 17, 24

Energy Saved EN5 24

Emissions, Discharges and Waste E20, E23 24, 25, 41, 42

Number and Volume of Spills E23 17, 22, 23, 41

Labour Practices and Decent Work Employment LA1, LA2 12, 16, 26 – 33

Labour/Management Relations LA3 12

Health and Safety LA7 7, 12, 14, 16, 18, 19, 40, 41

Diversity and Opportunity LA10 6 – 8, 26, 29, 33

Training and Education LA13 14, 17, 19 – 22, 30 – 33,

36 – 37, 45

Security Practices HR1 – HR9 7, 17, 19, 21

Social Society SO1 – SO8 7, 12, 34 – 37

Product Responsibility PR1 – PR9 Not reported

SATIMAT GREEN / MAINE GLOSS GREEN

Satimat Green is manufactured by Arjowiggins one of Europe’s leading makers of recycled coated

papers, who have a reputation for making products which meet the latest environmental standards.

Satimat Green contains a minimum of 60% recycled fibre and 40% FSC virgin fibre. The recycled fibre

content being mainly taken from office waste. The mills are ISO 9001, ISO 14001 and FSC mixed

source certified. Satimat Green is an FSC mixed source product. A full copy of the mill’s environmental

statement is available on request.

Disclaimer

Some of the statements contained in this report that are not historical facts are statements of future

expectations and other forward-looking statements based on management’s current views and

assumptions and involve known and unknown risks and uncertainties that could cause actual results,

performance, or events to differ materially from those in such statements. Such forward-looking

statements are subject to various risks and uncertainties, which may cause actual results and

performance of the Company’s business to differ materially and adversely from the forward-looking

statements. Should one or more of these risks or uncertainties materialize, or should underlying

assumptions prove incorrect, actual results may vary materially from those described in this

presentation as anticipated, believed, or expected. SBM Offshore NV does not intend, and does not

assume any obligation, to update any industry information or forward-looking statements set forth in

this presentation to reflect subsequent events or circumstances.

Photography: SBM Offshore N.V.

Photo Serge-Henri, Valbonne, France (CEO Photo)

Lithography and printing: B.V. Drukkerij De Eendracht, Schiedam

Binding: Boekbinderij van Wijk B.V. Utrecht


The CSR Report can be downloaded at www.sbmoffshore.com, whose

Corporate Social Responsibility section provides additional information.

Contacts

To let us know what you think of the report and the issues covered in it.

Please send your comments to [email protected]

This report has been issued by the Corporate Communications Department

at SBM Offshore.

Designed and produced by Radley Yeldar (London) www.ry.com

SBM Offshore

Corporate Social Responsibility Report 2008

Sharing our future

www.sbmoffshore.com

SBM Offshore N.V.

Postal address

P.O. Box 31

3100 AA Schiedam

The Netherlands

Street address

Karel Doormanweg 66

3115 JD Schiedam

The Netherlands

Telephone +31 10 232 0900

Telefax +31 10 232 0999

E-mail: [email protected]

Full information regarding

SBM Offshore is available

on the Company’s website

at www.sbmoffshore.com

The Netherlands

P.O. Box 11, 3100 AA Schiedam

Karel Doormanweg 66

3115 JD Schiedam

The Netherlands

Telephone +31 (0) 10 2320 000

Telefax +31 (0) 10 2320 101

Malaysia

Block 2B – Level 9

Plaza Sentral

Jalan Stesen Sentral 5

Kuala Lumpur Sentral

50470 Kuala Lumpur – Malaysia

Telephone +60 (3) 2773 53 00

Telefax +60 (3) 2773 5399

Monaco

24 avenue de Fontvieille

P.O. Box 199

MC 98007 Monaco CEDEX

Principality of Monaco

Telephone +(377) 92 05 15 00

Telefax +(377) 92 05 85 00

USA

1255 Enclave Parkway, suite 400

Houston, TX 77077

USA

Telephone +1 (281) 848 6000

Telefax +1 (281) 848 6100

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