Annual HSE Performance Report 2013

Member of the DEME Group Annual HSE Performance Report 2013 DEME: creating land for the future

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Annual HSE Performance Report 2013 Message from the Managing Director 4 Introduction 5 Our certificates 5 GeoSea s integrated management system 6 Environment 7 HSE performance 8 Monthly safety meetings 8 Toolbox participations 8 SHOC 9 QHSE inspections 10 Drills for emergency preparedness 11 Incident management 12 Frequency rate DEME Group 12 Frequency rate GeoSea 12 GeoSea project incident management 13 Vessel incident management 14 Environmental incident management 15 Focus on high potential incidents 16 HSE personnel and training 18 Ratio between number of employees and number of QHSE engineers 18 HSE inductions 18 BOSIET - STCW 19 Internal training 19 Employee safety award 19 Safety moment day 20 Projects in 2013 22 Document management system 24 Subcontractor management 25 3

Environment A better environment starts with yourself YAP_GeoSea_A3st_2013_GB.indd 1 19/02/13 08:16 Message from the Managing Director GeoSea stands for excellent, safe and high-quality design, procurement, construction, maintenance and installation of offshore structures. Our trademark is our determination to be successful in activities requiring the use of the most innovative techniques in usually challenging environmental conditions. GeoSea resolutely chooses for the delivery of sustainable projects for people and environment. We consider Quality-Safety-Health-Environment our key values. The underlying principle of the Zero accidents and zero environmental incidents slogan underlines our objectives. In the spirit of continuous innovation we want, together with our clients, authorities, subcontractors and our dedicated staff and crew, to share our HSE achievements and plans for the future. We are convinced that this HSE report will give you a clear and open insight into our constantly evolving and improving performances. Luc Vandenbulcke Managing Director GeoSea POLICY STATEMENT Quality, health, safety and environment 2013 YEAR ACTION PLAN For Quality, Health, Safety, Environment and Security Vision What we want to be GeoSea stands for the excellent high-quality execution of offshore projects. Our trademark is our determination to be successful in activities demanding the use of the most innovative techniques. GeoSea resolutely chooses for the delivery of sustainable projects for man and environment. The successful application of the most modern equipment, the use of prototypes, the development and use of new methods distinguish the way GeoSea finds solutions for every new challenge. GeoSea: Innovative Marine & Offshore Solutions! Values What we believe in As GeoSea management team we consider Quality - Safety - Health - Environment as our key values. The underlying principles of the Zero accidents and zero environmental incidents slogan constitute our objectives. We must do everything we can to provide the necessary means for achieving this target. Furthermore, every employee has the right and the duty to halt any activity whenever (s)he believes that the execution thereof involves unacceptable risks. We believe that good work preparation can avoid high risks. Policy What we want to achieve We aim for a constantly increasing QHSE level based on the relevant industrial standards used in the offshore industry. Our priority is and remains the well-being of our employees and subcontractors through the creation of a high-quality, healthy, safe, and environmentally friendly work environment. Every employee receives the necessary information, instructions and training needed to execute their tasks. The GeoSea management system processes are systematically assessed and constantly reviewed taking into account any improvements. Our QHSE system shall be in conformity with all statutory obligations and the requirements described in the following standards: ISO 9001 Quality assurance Management Systems; ISO 14001 Environmental Management Systems; VCA** Safety, Health and Environmental Checklist for Constructors; ISM International Management Code for the Safe Operation of Ships and for Pollution Prevention; ISPS International Ship an Port facility Security; OHSAS 18001 Occupational Health and Safety management Systems. The industrial standards for offshore activities of the IMCA (International Marine Contractors Association) and BWEA (British Wind Energy Association) serve as a reference for the execution of our activities. All applicable guidelines and standards recommended by the IMO Flagstate and Class shall be taken into account. DEME: creating land for the future Strategy How we will do it In order to deliver the above objectives GeoSea makes an inventory of all relevant risks on corporate level. Existing risks are assessed during project preparation and execution. Control measures are determined and followed-up. In practice this means that: clear agreements are made with our client(s); we meet the requirements of our clients; company processes are constantly optimized and adjusted; we constantly strive for improvement on the basis of measurable objectives; products and services supplied by third parties are followed-up; we strive to satisfy our clients, employees and stakeholders in every respect; an open communication exists, in which our partners are involved; we ensure a profitable and competitive market position. The QHSE department has the task and receives the means to verify the application and effectiveness of the global care system by means of audits and inspections of projects and ships. QHSE is a fixed item on the agenda of the Monthly Management Meeting and on that of the bimonthly Board of Directors. Within every level of the organization action lists are used. Action points can be transferred from one list to another. There are actions lists on board of the jack-ups as well as on Project Management Team and Process Owner level. Scorecards How we will measure it GeoSea uses multiple Key Performance Indicators - KPI s (SHOC, accidents at work, incidents, non-conformance, customer satisfaction, training, etc ), which are continuously monitored and adjusted where required. Plans & actions What we have to do Thanks to the use of action lists we can continuously adjust and assess our processes and organization. Our yearly Management Review will be the foundation for our next Year Action Plan (YAP). The action lists contain priorities for the different levels within the organization. This policy statement will be displayed on the notice board of every project, on board of every jack-up and is part of the introduction of every new GeoSea employee. Zwijndrecht, 18/02/2013 Bart De Poorter Koen Vanderbeke Luc Vandenbulcke Deputy General Manager Deputy General Manager General Manager Tenders - Commercial Operations GeoSea NV without U Sec_rity is not complete Security Quality Do it right the first time Health A sound mind in a sound body SafSafety ety from the start is your best award 1 Quality - Do it right the first time 1.1 Organisation of GeoSea DNA 1.2 Implementation of Impact QHSE-S data management system 2 Health - A sound mind in a sound body 2.1 Active participation in DEME on the move 2.2 Survey of psychosocial aspects 3 Safety - Safety from the start is your best award 3.1 Optimizing of incident management (IMPACT) 3.2 Manual handling (C.H.I.L.D. campaign 2013) 3.3 Managing safety of subcontractors and suppliers 3.4 Roll out the training program for offshore lifting 4 Environment - A better environment starts with yourself 4.1 SEEMP (Ship Energy Efficiency Management Plan) 4.2 Promotion of onshore power connection 4.3 Green energy providers 5 Security - Sec_rity is not complete without U 5.1 Improve data security 5.2 Improve site & office access control Karel Huybrechts Bart De Poorter Koen Vanderbeke Luc Vandenbulcke QHSE-S Manager Deputy General Manager Deputy General Manager General Manager GeoSea NV Tender - Commercial Operations GeoSea NV GeoSea NV GeoSea NV DEME: creating land for the future 4

Introduction Our certificates This annual report gives a clear and sound overview in which way GeoSea watches over the Health & Safety of every person and who is involved in our activities and cares for the environment; The GeoSea organisation possesses a comprehensive range of certificates. These are the signs on the wall of the efforts we make to improve our HSE level in a continuous way. GeoSea has developed an integrated management system that is constantly evolving according to the needs of our external clients and internal organisation. The environmental care and performance are inextricably linked with our Operations. HSE is periodically monitored by KPI s. The fundamentals of a good system are built on HSE meetings, Toolbox participations, Safety Observations, Inspections and Drills. GeoSea puts a lot of effort in incident management. We are convinced of the positive effects of our constant focus on high potential incidents. GeoSea and OWA management system standards VCA** & OHSAS 18001 for the execution of occupational health and safety ISM for the execution of safety at sea and marineenvironmental protection ISO 14001 for the execution of environmental protection ISPS for the execution of security on vessels ISO 9001 for the execution of quality assurance DEME Group Certificates CO 2 -Awareness Certificate (CO 2 Prestatieladder Certificatie v2.1 Niveau 3 published and owned by SKAO) ISO 14064 Greenhouse Gasses A large number of qualified HSE personnel and fully trained employees have become self-evident in our organisation. Notified Bodies Every year GeoSea is an active participant in the organisation of the DEME safety moment day. GeoSea awards projects and employees for their dedication and safety performance. A good document management system is crucial to share knowledge and to have up-to-date information at all times. Subcontractor management is and will always be essential to control our risks. 5

GeoSea s integrated management system GeoSea has developed an integrated management system which has been improved continuously according to the needs of our external clients and internal organisation. GeoSea speaks of an integrated system, because: The execution of our operational activities is based on a risk management system where the HS-hazards, E-aspects and Q-control are treated in an integrated way for every new project. Any possible risk is managed whether it is Q (quality), H (health), S (safety), or E (environmental) related. The various subjects, normally forming part of any management system standard, have been approached from a general QHSE perspective. Items like policies, damage control, legal and other requirements, organisational structures, resources, documentation requirements, communication, audits, monitoring & measurement, improvement actions and management review for QHSE aspects are treated in one single integrated management system. This results in a more compact system with improved efficiency and effectiveness. The risk control (QHSE) of the companies of GeoSea NV, GeoSea Luxembourg, GeoSea Australia and OWA is integrated in the one and only GeoSea QHSE management system. This system is based on one general QHSE GeoSea policy, a general action plan system to follow up all incidents, quality issues and non-conformities of every GeoSea company and all in line with the DEME expectations. Overall (QHSE) KPI s are implemented in the organisation. During the yearly management review a representative of every company in the GeoSea group is present. GeoSea is dealing with Engineering, Procurement, Construction and Installation (EPCI)-contracts. Project execution is the central element of GeoSea s management system. It describes the main project execution processes and activities and is based on the large experience in the DEME Group. The EPCI project execution processes are used as a base to manage the individual site and vessel specific projects. GeoSea manages the activities of subcontractors and suppliers in the same way it manages its own specific activities. 6

Environment GeoSea is increasingly concerned with achieving and demonstrating sound environmental performance by controlling the impacts of our activities, products and services on the environment, consistent with our QHSE policy and objectives. Nowadays, environmental care and environmental performance are already an integrated part of GeoSea s operations. For starters, the environmental legal requirements of MARPOL (marine pollution) and Vlarem are strictly adhered to. QHSE checks, audits, risk assessments, method statements, all take relevant environmental aspects into account. On their own, however, these checks and audits may not be sufficient to provide an organisation with the assurance that its performance not only meets, but will continue to meet, its legal and policy requirements. To be effective, they need to be conducted within a structured management system that is integrated within the organization. Hence, the plan of GeoSea to implement and to certify to the environmental management system standard ISO14001:2004 before the end of 2014. The implementation of an environmental management system specified by this International Standard is intended to result in improved environmental performance. 7

HSE performance During the Management Review meeting, the GeoSea departments, together with Management decided to use a list of KPI s (Key Performance Indicators) to monitor and (if necessary) adjust GeoSea activities. KPI s are placed at all levels of our organization, training, reporting, safety, In the graphs that follow, some of these KPI s are published and discussed more detailed. Monthly safety meetings Minimal 1 meeting per vessel / month objective Stimulate the communication about safety on board of the GeoSea Vessels between the (Barge) Masters and the crew by organizing a safety meeting on each vessel once a month. achieved 100 target 80 60 40 20 0 Q1 Q2 Q3 Q4 2013 Toolbox participations Minimal 1.200 Toolbox participations / 100.000 working hours Minimal 1 toolbox per employee per week objective Communicate safety topics throughout the company, by the registration of the number of toolbox participations on relation to the working hours. achieved 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 target 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL 8

SHOC Safety observations are recorded on board of each vessel and on each project. A Safety Hazard Observation Card (SHOC) is used in the entire company. Everyone is encouraged to send in SHOC s. SHOC cards objective Increasing safety awareness by promoting the receiving of enough SHOC cards per employee in relation to the working hours. Minimal 75 SHOC cards / 100.000 working hours Minimal 3 SHOC cards per employee per year achieved 150 135 120 105 90 75 target 60 45 30 15 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2013 Serge Vleminckx received an award for promoting the SHOC system. Thanks to his commitment, the most SHOC cards were written on his ship. Award: Best SHOC card of 2013 The essence of our QHSE Safety Hazard Observation Card system is to increase the safety, health, welfare and environmental awareness at work. The dynamic campaign that has been set up by the QHSE Department encourages own employees as well as subcontractors and suppliers on our project sites to use this system. The winning SHOC card, written by a subcontractor, reported an emergency exit being blocked by materials. These materials were immediately cleared after the SHOC card was received. Precisely because this SHOC cannot be linked directly to the project activities, but deals with the daily safety within the company, it shows that the message from DEME and GeoSea was well understood. 9

QHSE inspections Minimal 1 inspection per operational staff member / month (green) Minimal 1 inspection for every Master and every Chief Engineer / week (blue) Every project has the responsibility to control and inspect their work and workforce. This should be demonstrable and necessary actions should be taken in case of deficiency. Therefore, at GeoSea we highlight the importance of inspections conducted by each supervisor. Each superintendent up to Project Manager should perform one inspection per month; (barge) masters and chief engineers one per week. 250% objective Stimulate engagement of top, middle and vessel management by monitoring the number of inspections done. 200% 150% 100% target 50% 0% JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2013 10

Drills for emergency preparedness Minimal 1 drill on each vessel per week 500% 450% objective Prepare for emergencies by monitoring the number of drills. achieved 400% 350% 300% 250% 200% 150% 100% target 50% 0% JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2013 11

Incident management Frequency rate DEME Group Frequency rate DEME Group (as well as GeoSea) is calculated as follows: (Number of LTI > 200.000) Number of manhours worked Frequency rate GeoSea There was one lost time injury in 2013, which means that the LTI frequency rate was not at his minimal level for the first time in 4 years. 500 10 400 8 300 6 200 4 2 100 0 0 2008 2009 2010 2011 2012 2013 Frequency rate GeoSea Turnover Number of employees 12

GeoSea project incident management 0 Fatal accidents 1 Lost time accidents 0 Restricted work cases 4 Cases medical treatment 3 First aid cases 20 Near misses 45 Dangerous situations 2495 SHOC cards Type of reported incidents 2013 13

Vessel incident management GeoSea tracks the number of days each vessel has gone without a Lost Time Injury being sustained. The table below shows the results by vessel. The Zeebouwer leads the way with 2074 days without LTI s. There has never been an LTI on the Neptune, Arista and Aquata. The number of days mentioned is the actual number of days since they became operational. Vessel name Last LTI Days since last LTI Neptune 690 Goliath 29/08/2009 1562 Vagant 6/03/2013 295 Buzzard 15/11/2008 1846 Arista 364 Aquata 364 Zeebouwer 27/03/2008 2074 Fleet total fleet total 7195 days without LTI GeoSea fleet 14

Environmental incident management Incident statistics differentiate between severe and minor environmental incidents. Severe environmental incidents are those which involve restitution costs (consequence > 3 in GeoSea s Risk Matrix). No major environmental accidents were recorded in 2013, however 7 minor environmental incidents occurred. There were e.g. oil spills on the deck of a vessel, but without any spillage overboard. 2011 2012 2013 Severe environmental accident 0 0 0 Minor environmental incidents 10 3 7 15

Focus on high potential incidents During the analysis of the High Potential Incidents (HIPO s) of 2013, we saw a new trend occurring! The most risky activities of GeoSea switched from Lifting activities in 2011 & 2012 to Marine Activities in 2013 The amount of lifting HIPO s that occurred in 2013 is significantly lower than the years before. GeoSea will continue to focus on the organisation of tailor made in-house trainings about tasks and responsibilities of the lifting team and the quality of the lifting gear. It shows that we all have to be extremely vigilant when steel and cables, anchors and winches are used. The GeoSea Year Action Plan is adapted and launched, based on the final results of the HIPO evaluation of 2013. Lifting activies Working at height Marine activities 16

175 incidents in 2013 45 HIPO s Lifting activities 13 HIPO s Working at height 8 HIPO s Marine activities 14 HIPO s 17

HSE personnel and training GeoSea has competent persons with years of experience and correct training to stay up-to-date with innovations concerning techniques and safety subjects. They raise the quality and safety of the company by implementing these new improvements. Ratio between number of employees and number of QHSE engineers Safety is one of the core values of GeoSea. The importance of safety is showing in the personnel figures: 1 out of 10 is QHSE engineer. Besides these well-trained people in safety (a seminar called QHSE 4 Specialists is organized every year), all other employees receive several safety trainings, because everyone contributes to a safer work environment. HSE inductions New employees receive a company induction with QHSE items (company policy, risks related to the job, responsibilities, etc.) before they start working, on a project they receive a site and vessel induction. Number of induction meetings in 2013: 4516 18

BOSIET - STCW Every GeoSea employee working offshore follows the basic offshore safety introduction & emergency response training (BOSIET). 97 % of employees, working on projects and 100 % of persons working on board has BOSIET or STCW certificate. Internal training objective Every new employee must follow BOSIET/ STCW within the first month of employment. For 95% of new employees of 2013, this was done! achieved Since 2012, DEME introduced an internal safety awareness course, obliged for all operational employees. This course consists of 3 parts: Safety Awareness The goals of the safety Awareness training are to give attention to safety and to specify why safety is so important. Through knowledge in accidents, incidents and near-misses and their causes and root causes, employees must be able to recognize specific dangers in their work. Risk Management In a Risk Management training, employees are taught how to prepare adequate risk analyses of their jobs and functions. They are also taught how to prepare and test an adequate Emergency Response Plan (which is linked to the identified risks). Incident Investigation and Leadership In this part of the course, employees receive knowledge in the consequences of an incident and the estimation of the actual potential of an incident and how to perform an incident investigation. Employee safety award Arian Van der Linden, senior technical superintendent, received the Employee Safety Award of 2013. Every day he puts tremendous efforts in supervising the technical aspects of our projects, whilst never losing sight of the safety of our activities. In 2013 he continuously kept high risks under control by keeping a finger on the pulse and reacting immediately whenever necessary. Employee Safety Award Arian Van der Linden 19

Safety moment day 2013 On the 27 th of November we had our third annual safety moment day. During this day we reflect on a HSE topic concerning all of us and therefore this is done globally. This year s topic was Manual handling: mind your back. This isn t only a hazard that can be found in every imaginable environment i.e. workshop, vessel, office, etc. but it is also increasingly responsible for a larger portion of the lost time injuries. Furthermore, QHSE-corporate also arranged for an ergonomic specialist to give a presentation about the subject. After having received both the toolbox and the information session given by an ergonomic specialist, all employees of the GeoSea division of the Deme group were prepared enough to tackle the task of performing a workplace inspection of their own workspace. To achieve this goal the corporate QHSE department gathered and designed multiple tools usable for further development of the safety awareness on our various departments. These included but were not limited to short animated movies, several informative posters, a toolbox, a checklist and others. As a result we achieved an array of action items which lead to a safer work environment. DEME SAFETY MOMENT DAY 2013 20

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Projects in 2013 Baltic 2, Germany Northwind, Belgium Foundation works for offshore windfarm Prepiling of tripod foundations Tripod installation Piling and Installation of monopiles and transition pieces Haypoint, Australia Design and construction of offshore windfarm Design and fabrication of foundations, cables and scour protection Piling and installation of monopiles and transition pieces Installation of cables and scour protection Transport and installation of wind turbines Construction of coal export terminal Piling and drilling of foundations Jetty and berth construction Goliath on Baltic 2 Neptune on Northwind Zeebouwer and Buzzard on Haypoint 22

Belgian offshore grid, Belgium Thornton Bank, Belgium Offshore geotechnical soil investigation Thornton Bank, Belgium Offshore maintenance activities Alpha Ventus, Germany Installation of wind turbines Transport and installation of wind turbines Mechanical completion of wind turbines Belwind, Belgium Prepiling for jacket foundation Offshore maintenance activities Award for best safety performance of 2013 OWA: Thornton maintenance activities Neptune on Thornthon Bank Neptune on Thornton Bank Vagant on Belgian offshore grid Neptune on Belwind 23

Document management system In a quickly evolving company like GeoSea, it is crucial to share knowledge and to have up-to-date information at all times. Moreover, it is absolutely necessary to work with the right documents and to find these documents easily to increase the quality of our work. Therefore, GeoSea is using an intranet application. Microsoft SharePoint technology is used to manage and share information. in communication between project, vessel and corporate level, we are able to personalize and follow up all trainings better. Doing this, we are able to guarantee all of our clients competent and qualified personnel on our projects and vessels. And there is more to explore in SharePoint. After using the SharePoint technology as a document control tool, it was decided to explore more of the possibilities of the program. Since 2012 GeoSea integrated the entire training program and follow-up in SharePoint. This provided us with a general, complete and accessible database covering training in all its aspects. By taking out the delay 24

Subcontractor management GeoSea puts a lot of effort in managing its subcontractors. In 2013 we were able to reduce the amount of incidents during vessel maintenance, mobilisation and demobilisation of projects. We continue to report every dangerous situation. During major repairs, mobilisation and demobilisation phases of a project, GeoSea implements the Blue File. The Blue File manual describes the way to manage these subcontractor activities on the work floor. Stringent use of the PTW system, daily coordination and kick-off meetings, inductions, security control and toolboxes are the ingredients of a well-organised Blue File manager. A successful mobilization = Preparation & Communication 25

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GeoSea nv Member of the DEME Group Haven 1025 - Scheldedijk 30 B-2070 Zwijndrecht, Belgium T +32 3 250 53 12 F +32 3 250 55 41 info.geosea@deme-group.com www.deme-group.com/geosea GeoSea Luxembourg sa Member of the DEME Group Bâtiment ALTO 11, Route des Trois Cantons L-8399 Windhof Luxembourg T +352 26 39 30 55 F + 352 26 39 30 56 www.deme-group.com/geosea GeoSea Australia Pty Ltd Member of the DEME Group Level 1 Unit 7B 107 Miles Platting Road Eight Miles Plains QLD 4113 Australia T +61 7 3340 4040 F +61 7 3219 0758 www.deme-group.com/geosea OWA nv Member of the DEME Group Haven 1025 - Scheldedijk 30 B-2070 Zwijndrecht, Belgium T +32 3 250 53 12 F +32 3 250 55 41 info.owa@deme-group.com www.deme-group.com/owa DEME: creating land for the future 28