DEFINITIVELY KEPPEL - Keppel Offshore & Marine
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KEPPEL
DEFINITIVELY
REPORT TO STAKEHOLDERS 2011
OUR VISION IS TO BE THE
PROVIDER OF CHOICE AND
PARTNER FOR SOLUTIONS
IN THE GLOBAL OFFSHORE
AND MARINE INDUSTRY. 1
Keppel Offshore & Marine is a global
leader in offshore rig design, construction
and repair, shiprepair and conversion, and
specialised shipbuilding. We harness the
synergy of 20 yards worldwide to be near
our customers and their markets.
CONTENTS
1 Key Figures 2011 64 Sustainability Report
2 Chairman’s Statement Sustaining Growth
8 Interview with CEO and COO 66 – Productivity, Quality and
14 Group Financial Highlights Eco-consciousness
16 Group at a Glance 68 – Business Continuity
18 Board of Directors Empowering Lives
22 Key Personnel 70 – People Development
32 Special Feature – Safety is Nurturing Communities
Everyone’s Business 78 – Community Development
38 Operations Review & Outlook 86 Global Network
58 Technology & Innovation 92 Corporate Structure
KEY FIGURES 2011
$10b $9.4b
NEW ORDERS SECURED NET ORDERBOOK
The total value of new contracts secured The balance as at end-2011 in our
for 2011 hit a record high. orderbook with deliveries extending
to 2015.
41 $160m
MAJOR DELIVERIES INVESTMENTS IN PRODUCTIVITY
The number of major projects delivered The amount of investments to improve
on time and within budget worldwide. facilities and capabilities worldwide
during the year.
0.24 74 2
ACCIDENT FREQUENCY RATE TRAINING HOURS
The latest accident frequency rate, down The average number of hours each
from 0.29 in 2010. employee spent on training during
the year.
1. Harnessing the synergy of its businesses
and core competencies in the Offshore,
Marine and Specialised Shipbuilding divisions,
Keppel O&M is the provider of choice and
partner for solutions in the industry.
2. Keppel FELS is focused on excellent execution
of its current orderbook which extends to 2015.
Key Figures 2011
1
CHAIRMAN’S STATEMENT “WITH INCREASING COMPETITION IN THE INDUSTRY, KEPPEL OFFSHORE & MARINE IS FOCUSED ON HARNESSING ITS COLLECTIVE STRENGTH SO THAT IT CAN COMPETE EFFECTIVELY AS ONE STRONG TEAM.”
$992m
ECONOMIC VALUE ADDED
Grew 5% in 2011 compared to 2010.
2011 saw record new orders of
23 jackups, with the majority for
Keppel FELS’ proprietary designs.
DEAR STAKEHOLDERS, vessels. This surpassed the previous the year. On 3 June 2011, Brazilian
While 2011 was an eventful year, the high of $7.4 billion of new orders President Dilma Rousseff witnessed the
fundamentals of the offshore and achieved in 2007. As at end-2011, christening of the Floating Production
marine industry remained intact. The our net order book stood at $9.4 billion, Unit (FPU) P-56, which is the first
global energy sector continued with with deliveries extending to 2015. semisubmersible to be completely built
investments despite macro headwinds in Brazil by Keppel. Measuring 125m
like the Eurozone debt crisis, economic Financially, Keppel O&M recorded long, 110m wide and 137m high and
uncertainties in the US and concerns of a revenues of $5.7 billion with a net profit with a displacement of 50,000 tonnes,
China with a moderated pace of growth. of $1.1 billion, and raised Economic P-56 is the world’s largest FPU. The
Value Added by 5% to $992 million. project achieved nine million man hours
The resilience of the offshore and marine without lost-time incidents. This
industry is due to two key factors. Firstly, RELIABLE EXECUTION accomplishment has further fortified
the Macondo incident in the Gulf of In 2011, a total of 41 major projects the position of our BrasFELS yard as the
Mexico in April 2010 continues to cast its were successfully delivered, backed leading offshore yard in Latin America.
influence, sharpening the focus of the oil by enhanced productivity, meticulous
and gas industry on safety and quality. project management and the In Singapore, Keppel FELS completed
This has caused owners to relook at their commitment of our project teams. a rig which has been chartered by
aging fleets of rigs and vessels. Secondly, Petrobras for six years to support
unrest in the Middle East region and Of these, the Offshore Division delivered exploration and production (E&P)
natural disasters around the world eight newbuild rigs, comprising three activities in offshore Brazil. Alpha
sustained an elevated oil price which jackups, three semisubmersibles, and Star, the second of two DSSTM38
averaged US$95 per barrel for the year. two drilling tenders, together with semisubmersibles, was delivered to
As a result, strong interest was ignited one rig completion and one drillship Brazilian company Queiroz Galvão Óleo
in new rigs, most notably in the first half upgrade. Our Marine and Specialised e Gás, four months ahead of schedule
of 2011. Shipbuilding Divisions converted and and with zero lost time incidents. In
upgraded seven FPSO/FSO units and recognition of our execution excellence,
At Keppel Offshore & Marine delivered 11 vessels, as well as an QGOG awarded Keppel FELS a bonus
(Keppel O&M), we benefited from this outfitting job for a drillship, among other of US$8 million.
trend and achieved healthy performance repair jobs.
in 2011, with a record $10 billion worth These two deliveries in 2011 added to
of contracts secured for 24 jackups, We are particularly proud of some of our track record for Brazil, and we are
three semisubmersibles, six the significant projects which were poised to deliver and contribute towards
conversion jobs and 17 specialised completed and delivered during Brazil’s aggressive E&P programme.
Chairman’s Statement
3
CHAIRMAN’S STATEMENT
Apart from Brazil, we also strengthened jumped to 443 man days lost per million
our relationships with our key man hours worked, from 139 in 2010.
customers in Vietnam and the Middle This was due to an increased number of
East. In the last quarter of 2011, fatalities across the Group, including a
Keppel FELS delivered Vietnam’s first serious incident which happened at one
semisubmersible drilling tender (SSDT) of our shipyards in the Philippines. We
ahead of schedule, within budget and are greatly saddened by the loss of lives,
with a perfect safety record. This and have gleaned useful lessons so that
marks yet another milestone in we can continue to enhance our safety
the longstanding partnership which systems and practices.
Keppel has had with Vietnam over
the last 25 years. Towards this end, we are reinforcing our
Keppel Workplace Safety and Health
Since its opening in November 2010, 2018 strategy, and through this, we
Nakilat-Keppel Offshore & Marine are putting in place a common set of
in Qatar has established itself as the safeguards, strengthening accountability
region’s premier offshore and marine and promoting safety ownership. The
yard, with over 40 repair projects journey to an incident-free workplace
completed in its first year of operation. demands strong determination and
A milestone project it has undertaken unwavering commitment to stay
was the first LNG carrier, Simaisma, focused. We will continue to foster open
to drydock in Qatar. The yard also communication, support one another
undertook critical repair, modification and share best practices.
and upgrading works on Gulf Drilling
International (GDI)’s jackup rig, Al-Doha. COMPETITIVE DESIGNS
Our record new orders secured in 2011
VIGILANCE IN SAFETY can be attributable to our competitive,
With safety firmly imbibed as a Keppel innovative and cost-effective solutions
core value, we have continued to invest for our customers. During the year,
significant resources over the past year we launched a number of enhanced
to inculcate a robust safety culture rig designs, including the DSSTM38E
across the Group. As Chairman, I am semisubmersible design for Brazilian
rallying the leadership team to send out drilling contractor Sete Brasil.
a strong message to all our employees An enhancement from the DSSTM38
that safety is everyone’s business, and semisubmersible design, our proven
we must stand firm in our belief that all fifth generation deepwater solution,
accidents can be prevented. the DSSTM38E is rated to drill to depths
of 10,000 metres below the rotary
Reflecting this firm commitment, we table in 3,000 metres water depth.
invested around $16 million in 2011 With improved capability and operability,
on safety infrastructure upgrades, it is suited to the stringent requirements
process improvements, training and of the deepwater “Golden Triangle”
communication, with the aim of promoting region, comprising Brazil, Africa and
safe work behaviour and practices. the Gulf of Mexico.
Our efforts in this area were recognised Apart from the DSSTM38E, we also
by Singapore’s Workplace Safety introduced the Keppel FELS Super A
and Health (WSH) Council and the Class jackup design in 2011. Customers
Ministry of Manpower, which accorded welcomed this new design, with five
the Keppel O&M Group with 20 awards units ordered by established drilling
last year. operators like Ensco and Discovery
Offshore. What differentiates this jackup
While we are encouraged by the rig from the rest is its versatility. It is
accolades, 2011 was a challenging year able to operate in water depths of 400 ft
for us. Our accident frequency rate and drill up to 35,000 ft, and is suitable
improved from 0.29 reportable cases for various parts of the world like the
for every million man hours worked, to UK, Danish and Dutch sectors of the
0.24. However, our accident severity rate North Sea.
Keppel Offshore & Marine Ltd
4 Report to Stakeholders 2011
Mr Choo Chiau Beng (centre), CEO of Keppel Corporation
and Chairman of Keppel O&M, and senior management
during a safety walkabout with consultant company,
DuPont.
With the growing demand for floating offered for bareboat charter or sale
accommodation units, we offered a when completed.
new design, SSAUTM4000NG, to Floatel.
This new design, capable of operating We will continue to drive our R&D efforts
alongside fixed platforms, floating to bring innovative and cost-effective
platforms and FPSOs, meets the designs to the market. Over the past
stringent UK HSE requirements for work year, our proprietary products have
in the UK sector of the North Sea as well been gaining market acceptance. The
as the Gulf of Mexico, Brazil and Western three KFELS N Class jackups, designed
Australia. The unit, called Floatel Victory, specifically for the harsh environment in
is currently being constructed and will the North Sea, have commenced drilling
be completed by the first quarter of 2014. operations. The first multi-purpose self-
It has secured a contract from BP for its elevating platform secured a charter for
Clair Ridge Development project in the wind farm foundation work in the North
UK Continental Shelf. Sea. The KFELS Super A Class jackup for
Ensco and a semisubmersible drilling
In Brazil, Petrobras has articulated tender for Seadrill, both ordered in 2011,
its need for over 100 Brazilian-built have already been awarded charters.
offshore support vessels by 2020.
To meet this demand, our technology Moving ahead, we are confident that
unit Marine Technology Development has our proprietary designs will continue to
a number of new designs which cater to meet the evolving needs of the industry.
the Brazilian Continental Shelf. They are
the MTD9045-DE, a 4,500 deadweight INVESTING IN THE FUTURE
tonne Platform Supply Vessel (PSV), According to research reports, global
and MTD80210A, an 18,000 horsepower demand for oil is projected to continue
Anchor Handling Tug Supply (AHTS) to rise. Major oil companies have
vessel, capable of bollard pull in excess announced increased budgets for
of 210 tonnes. Keppel Singmarine exploration and production to address
Brasil, our new 7.6-ha yard in Santa the decline in production capacity and
Catarina, is currently building two replace depleting reserves. Dayrates
PSVs for our ship owning arm Guanabara are strengthening for both jackups and
Navegacao. These vessels will be semisubmersibles. The prospects for
Chairman’s Statement
5
CHAIRMAN’S STATEMENT
10-Year Growth in Revenue and Net Profit ($ million)
10,000 1,100
8,000 880
6,000 660
4,000 440
2,000 220
0 0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Revenue 1,889 1,442 2,394 4,068 5,743 7,258 8,569 8,273 5,577 5,706
Net Profit 180 110 192 232 464 542 688 862 1,062 1,144
10-Year Growth of our Global Workforce
35,000
28,000
21,000
14,000
7,000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
13,819 15,363 17,927 19,638 24,613 27,268 30,144 27,119 27,567 30,490
Keppel Offshore & Marine Ltd
6 Report to Stakeholders 2011
our deepwater solutions will continue offshore wind turbine installation and the Group. We are pleased that Peng
to improve as offshore drilling moves support vessels. Sang has agreed to remain on the Board
towards deeper waters. of Keppel O&M, to help us mentor the
These strategic moves into niche areas younger leaders within the Group.
Keppel O&M is focusing on executing are expected to translate into steady and
the orders that have been secured, recurring earnings for the Group in the Lastly, I would like to thank our Board
maintaining our track record for on time, years ahead. of Directors, all our valued customers,
on budget deliveries and extracting business associates, class societies,
maximum value from each project. With BOOSTING BENCH STRENGTH vendors, suppliers, contractors and
increasing competition in the industry, it As part of the continual efforts by the union leaders for their continuous
is of paramount importance to harness Group to build up our next generation of support and confidence in Keppel
the collective strengths of the Group so leaders, several key appointments were O&M. I also wish to acknowledge the
that we can compete effectively as one made during the year. assistance and support of all local,
strong team. state and federal authorities in the host
Chow Yew Yuen, who was instrumental countries where we operate.
Looking into the near term, the next few in establishing and growing
years will be busy for us as we deliver Keppel O&M as a credible solutions 2012 marks the 10th anniversary of
our orderbook of close to $10 billion. provider in the Americas, has been the formation of Keppel O&M. We have
In 2013 alone, we expect to complete appointed Chief Operating Officer of much to celebrate as we have enjoyed
20 jackup rigs. Meeting this demanding Keppel O&M. In this new role, healthy growth over the last 10 years.
workload will require us to raise our he supports CEO Tong Chong Heong Our net profit in 2002 was $180 million,
productivity. We have therefore set up a in driving the growth and development generated by a workforce of around
productivity improvement taskforce to of Keppel O&M’s businesses. 14,000. As at end 2011, our net profit has
look into ways to improve our operational reached over $1 billion and our global
efficiencies and skills training for our Following the completion of his workforce has increased to 30,500.
workforce. In all, $160 million was secondment as CEO of our N-KOM yard
invested in 2011 to expand our global in Qatar, Yong Chee Min has returned The sterling performance achieved by
yard facilities and boost capabilities. to Singapore to assume the position Keppel O&M over the years would not
These investments will position us of General Manager (Projects). have been possible without dedicated
strongly to capture more opportunities Chee Min is also resuming his previous and loyal Keppelites with their passion
as we continue to respond to market portfolio as General Manager (Health, and Can Do! spirit. I am confident that
demand and deliver on our promises. Safety & Environment), taking over Keppel O&M is well poised to grow
from Chandru Sirumal Rajwani, who further and deliver sustained value to all
Aiming to equip ourselves to better is posted to Azerbaijan to head Caspian our stakeholders.
serve our customers, we continued to Shipyard. There are also changes
invest in adjacent businesses. Our 27.8% at our technology R&D arm, KOMtech. Yours sincerely,
stake in SGX-listed topside module Aziz Amirali Merchant, Executive
fabricator, Dyna-Mac, is strengthening Director (Engineering) of Keppel FELS
Keppel O&M’s capabilities as a core and Executive Director of Deepwater
solutions provider in floating production Technology Group, will co-head
systems such as FPSOs. KOMtech with Dr Foo Kok Seng.
Aziz will be Executive Director,
Early this year, we also expanded our Deepwater Technology, while Kok Seng CHOO CHIAU BENG
suite of solutions for offshore wind will be Executive Director, Shallow CHAIRMAN
farm installation with the acquisition Water Technology. 28 March 2012
of a 49.9% stake in leading offshore
wind turbine jacket foundation designer ACKNOWLEDGEMENTS
OWEC Tower. To-date, OWEC Tower is During the year, Mr Bjarne Hansen and
the only company with a track record of Professor Neo Boon Siong stepped down
having its proprietary jacket foundation from the Board of Keppel O&M.
design installed for offshore wind I would like to thank them for their
farms. Besides getting a slice of the invaluable contributions and wise
offshore wind foundation business, this counsel to the Board during their tenure.
investment will allow us to tap OWEC
Tower’s expertise to provide further I would also like to record my sincere
value-added solutions to our customers appreciation to Sit Peng Sang, Executive
in the offshore wind market, in addition Director of Keppel O&M, who has retired
to the design and construction of after 40 years of dedicated service to
Chairman’s Statement
7
INTERVIEW WITH
CEO AND COO
CEO MR TONG CHONG HEONG AND
COO MR CHOW YEW YUEN ARE
FOCUSED ON LEADING AND RALLYING
THE GROUP TO STRENGTHEN ITS
COMPETITIVE EDGE AND STAY AHEAD
IN THE INDUSTRY.
as investing in and driving adjacent
WHAT IS KEPPEL businesses to widen the range of
Q O&M DOING TO STAY our offerings.
COMPETITIVE IN 2012
AND BEYOND? With people as our core asset,
we continue to grow our team and
groom new talent. We are stepping
up efforts to train and develop our
people, to equip them not only
with the necessary skills, but also to
imbue them with the Keppel
core values.
Mr Tong: We are pleased with Mr Chow: Over the years, we have
A our performance in 2011, but placed a lot of emphasis on improving
we will not rest on our laurels. our productivity. This has enabled us
Our priority is always to ensure that to deliver an increasing number of
Keppel O&M is fighting fit and ready projects each year. In 2009, we delivered
to meet the challenges ahead. Our a record 14 rigs across the Group.
competitive edge is our willingness to In 2013, we will be delivering over
go the extra mile, and our versatility in 20 rigs. We are currently doubling
meeting the needs of customers. We our efforts in raising our operational
will continue to drive such values across efficiencies, so that we continue to be
the Group. Currently, we are focused on well positioned to meet the growing
executing our existing orders well, and demand for quality solutions.
to deliver them safely and on time.
To drive our efforts in this area,
At the same time, we are mindful we formed a Productivity Improvement
of the intensifying competitive Taskforce some years ago. This
landscape. Hence, we are dedicating Taskforce is responsible for overseeing
significant resources to enhance our the development of strategic
competitiveness through improving productivity improvement plans,
our overall productivity, managing our and ensuring that productivity
costs more effectively and honing our improvement initiatives are executed
technology and R&D competencies. across all the yards in our global
We are also harnessing the synergies network. We reap the largest
of our global network of yards to productivity gains through innovative
offer value-added solutions, as well improvements of our systems and
Keppel Offshore & Marine Ltd
8 Report to Stakeholders 2011processes. We are therefore continuing customised rigs with improved quality
to drive process improvements in all WHAT ARE YOUR VIEWS and enhanced safety features.
our business units. Q ON THE OUTLOOK OF THE
OFFSHORE AND MARINE Dayrates will continue to rise,
In addition, we continue to strengthen INDUSTRY IN THE NEXT indicating the market’s need
our technology leadership to position FIVE YEARS? for more rigs. Although 2013 will see
us ahead of the competition. With many rigs entering the market, we
the exploration of oil and gas moving believe there is still a high level of
into harsher environments and demand, and the newbuild rigs will
deeper waters, we are working on be absorbed by the market.
a number of new designs this year.
Among these is our joint project Mr Chow: According to industry
with ConocoPhillips to design a estimates, by 2015 more than 50% of
first-of-its-kind ice-worthy jackup Mr Tong: While the overall the jackup rig fleet will be over 30 years
rig to operate in one of the world’s A global economic outlook is of age. This is five times the number of
harshest marine frontiers, the expected to be weak in the next units at that age today and we expect
Arctic Sea. We have since received few years, there is returning confidence the replacement cycle to continue.
good market response on this in the global oil and gas industry. This is In the North Sea, we are seeing more
design project and are excited about driven mainly by the continued growth in demand for ultra-premium rigs to work
its prospects. We are also working energy demand across countries in the in harsher environments. Also adding
on a series of new harsh environment Asia Pacific and Latin America. multiple jackups to their fleets are
sixth-generation semisubmersibles, Saudi Aramco in the Middle East and
the DSSTM51HE and DSSTM60HE. Many E&P companies are in the PEMEX in Mexico.
These designs are suitable for catch-up mode on delayed projects,
worldwide operations including with key focus in the next few years In the ultra deepwater market,
the North Sea. on offshore deepwater. Global demand is exceeding supply. According
deepwater oil and gas production to Pareto, there are not enough
To us, our innovations must add value is expected to grow 31% by 2015. available rigs in 2012 and the market
to our customers. They must be With the oil price averaging around is expected to fully absorb the new
commercially viable, and must help our US$95 per barrel and significant units arriving in 2013 and 2014.
customers meet their business goals. exploration finds reported in 2011, Going into 2016, Douglas-Westwood
To strengthen our R&D efforts, Aziz the prospects of the offshore market expects Brazil to be the largest
Amirali Merchant is joining Dr Foo Kok in 2012 and beyond are healthy. deepwater market, while deepwater
Seng to helm the Keppel Offshore & activity is resuming in the US Gulf
Marine Technology Centre. Aziz will be In terms of the specific market of Mexico. Deepwater capital
responsible for our R&D efforts in the segments, the continued influence of expenditure in the Asia Pacific is
deepwater area, while Kok Seng will the Macondo incident is expected to forecast at US$29 billion over the
focus on shallow water technologies. translate into increasing demand for next five years.
Interview with CEO and COO
9INTERVIEW WITH CEO AND COO
In the Floating Production market,
industry experts say that the world 1 2
will need more than 100 such units,
equivalent to a value of US$45 billion,
in the next four years. Barclays Capital
expects an FPSO upcycle that could
double the current worldwide fleet
beginning in late 2012 or 2013.
Brazil will require a majority of the
vessels in the floating production
sector in the coming years. For
example, Petrobras expects installation
of 54 new production systems over
the next 10 years. OGX says it will
require 19 FPSOs for their fields.
With the healthy outlook, we are going
full steam ahead in all aspects of our
business to ensure we leverage our With an established yard and track record 1. With an established yard and workforce in
3 Brazil, Keppel O&M is committed to work with
established core competencies to meet in Brazil, where we have built some of WHAT ARE THE
and benefit from the upcoming demand the world’s largest floating production Q NEW AREAS WHICH
our Brazilian customers to meet the country’s
requirements for rigs and vessels.
for rigs and vessels. platforms, we have since secured KEPPEL O&M IS
2. As a mark of the long-standing friendship
a newbuild semisubmersible order LOOKING AT? between Keppel and Petrobras, former
from Sete Brasil. We are currently in Petrobras CEO Mr Jose Sergio Gabrielli and
PLEASE COMMENT ABOUT team visited Keppel O&M in September 2011.
discussions on potential additional orders.
Q BRAZIL AND WHAT CAN 3. Our associated company Dyna-Mac worked
BE EXPECTED OF KEPPEL On the OSV front, our new shipbuilding on the topside modules of FPSO Okha,
which was delivered by Keppel Shipyard to
O&M IN BRAZIL FOR 2012 yard in Santa Catarina is currently SBM in June 2011.
AND BEYOND. being developed. Ahead of its
opening, it is building six tugboats as
well as two technologically-advanced
Platform Supply Vessels (PSV) Mr Tong: A key characteristic
based on our proprietary designs, A of our growth strategy
for our ship owning arm Guanabara has been to integrate our
Navegacao. When completed, these competencies along the value chain.
two PSVs will be offered for bareboat Over the years, we have selected niche
Mr Tong: As we all know, charter or sale. areas where we do not compete with
A Petrobras has revised its most of our customers.
capital expenditure upwards We are committed to our presence in contractors, and the rigs are to be unions and workforce so that they
for the period from 2011 to 2015 to Brazil, and are working to enhance our built in Brazil with between 55% to continue to be aligned with our We have acquired a stake in Dyna-
US$225 billion. Of the US$127.5 billion capabilities in Brazil to better meet 65% local content. An additional interests. Capacity maximisation Mac, a topside module fabricator, to
to be spent on E&P, around Petrobras’ requirements. 150 OSVs are also required by 2015, is another area which we are working strengthen our capabilities as a core
US$53 billion will be set aside to a third of which are 4500dwt PSVs. on. Our team at our BrasFELS yard solutions provider in floating production
develop the pre-salt regions. According Mr Chow: Over the next few years, is considering various ways to further systems. We have taken a 47% stake
to the US Energy Information we will be focused on strengthening While there is strong demand in Brazil, modernise our yard facilities with in Floatel International, which owns
Administration, the pre-salt area our competencies in Brazil. In the we are also mindful of the upcoming the aim of increasing output and and operates accommodation vessels
is estimated to potentially hold at 2011–2015 business plan unveiled new shipyards which will pose optimising utilisation. that will enable us to better tap
least 50 billion barrels of oil and by Petrobras in November 2011, the competition to us. We are therefore growth prospects in quality floating
gas reserves. national oil company stated that by adopting a number of initiatives to boost Beyond this, we are continually accommodation semisubmersibles.
2015, they will require 37 deepwater our competitive edge in Brazil. seeking opportunities in Brazil which In anticipation of demand for offshore
As a result, Petrobras has announced rigs, 479 supply and special vessels, can support us in expanding our vessels in Brazil, we started a new ship
its requirement for a large number 61 production platforms (both Firstly, we are using our knowledge suite of value-added solutions to owning company which will offer PSVs
of deepwater rigs, FPSOs and OSVs semisubmersibles and FPSOs) and of operating in Brazil over the last Petrobras and other customers in for bareboat charter or sale.
to work on its pre-salt fields. It has 81 jackets and TLWPs. 10 years to further enhance the Brazil. On the whole, we are positive
also made known its local content productivity of our operations in on the prospects of Brazil and we Our participation in the offshore wind
requirements for these rigs and So far, Petrobras has confirmed the our yard in Angra dos Reis. At the same hope to continue to deepen our sector is also progressing well. We are
vessels. New players like OGX are also leasing of 33 deepwater drilling rigs time, we are ensuring we relationship with all our customers seeking to build more offshore wind
aggressively increasing their assets. for 15 years from two drilling engage well with the Brazilian operating in Brazil. installation vessels and have developed
Keppel Offshore & Marine Ltd Interview with CEO and COO
10 Report to Stakeholders 2011 11INTERVIEW WITH CEO AND COO
a new cable-laying vessel design meant from around the world. Few other
for future offshore wind farm projects. offshore and marine companies have KEPPEL O&M SUFFERED
We have taken a stake in a Norwegian the same network as we have, and Q SOME FATALITIES IN 2011.
offshore wind turbine jacket foundation we intend to continue this geographic HOW ARE YOU ENFORCING
designer, OWEC Tower, and are looking expansion in a targeted way. GOOD SAFETY MEASURES
for more similar opportunities. ACROSS THE GROUP?
Currently, our expansion plans
To further add to our design capabilities, are focused on Brazil, the Caspian
we acquired ownership of Bennett & region and the Middle East. In the
Associates, a naval architecture, design Caspian region, E&P activities are
and consulting firm in Houston. This picking up. The development of our
firm has developed its own series of new shipyard in collaboration with
jackups and semisubmersibles. SOCAR, Azerbaijan’s national oil
company, is progressing. When ready, Mr Tong: 2011 was indeed
Looking ahead, we will continue this Baku yard will be able to construct A a challenging year for us.
to seek opportunities in areas which a variety of vessels ranging from We deeply regret the loss
can enhance our value-add to our offshore support vessels to tankers, of lives, and as a result, we are
customers and fortify our position as the as well as carry out ship repairs and determined to ensure that such
provider of choice and partner conversions. Our existing Caspian incidents do not happen again. We are
for solutions for the global offshore and Shipyard in Azerbaijan is in discussions drawing invaluable lessons from the
marine industry. on a potential order to construct a incidents and stepping up efforts to
new semisubmersible for SOCAR. enhance safety practices across the
Group. This is done through pushing
WHAT NEW MARKETS In the Middle East, our Nakilat-Keppel ahead with the programmes under
Q ARE YOU FOCUSING ON IN Offshore & Marine (N-KOM) yard has the Keppel Workplace Safety & Health
2012, AS PART OF YOUR steadily ramped up its operations (WSH) 2018 strategy introduced across
“NEAR MARKET NEAR since opening in November 2010. In its the Keppel Group in October 2010.
CUSTOMER” STRATEGY? first year of operations, the yard has
worked on over 40 repair projects and a The key thrusts of this strategy are
number of offshore projects, earning the to establish an integrated WSH
confidence of the marine and offshore framework, implement an effective
industry in the Middle East region. safety management system, enhance
safety ownership and strengthen
Possible future areas which we are safety partnerships.
considering include West Africa,
Mr Chow: Through the Russia and Mexico. We will evaluate At Keppel O&M, a key aspect of
A years, we have steadily and these countries carefully before our safety enhancement strategy
selectively built up a network making any decisions to ensure includes structured training and
of 20 yards and engineering offices we can extract value from operating development of safety leaders.
in 16 countries, serving our customers in these locations. Our Keppel Safety Training Centre
1
Keppel Offshore & Marine Ltd
12 Report to Stakeholders 20111. Our Nakilat-Keppel Offshore & Marine
2 (N-KOM) yard in Qatar has done well in its
first year of operations, with the successful
completion of over 40 repair projects and a
number of offshore projects.
2. At all our yards around the world, we are
enforcing the importance of adopting safe work
habits through the “Plus 5 for Safety” initiative.
3. We are committed to inculcate a vigilant
safety culture through teamwork, open
communication and proactive initiatives.
offers a complete range of safety around the world, this Portal is
training and certification courses 3
useful in connecting our global and
for our workforce across all areas and diverse workforce. We are actively
levels. We are also actively training a encouraging all our employees to
pool of safety assessors whose main make full use of this Portal.
role is to promote safety leadership
and inculcate safe habits. We have also institutionalised
a cross-pollination programme,
We also have the “Plus 5 for Safety” where employees in key positions
initiative where our workers are are seconded to other business units
encouraged to report near misses. for short stints to learn and share
Under this initiative, supervisors safety practices.
are expected to promote better
communications within the workforce Another ongoing programme
regarding safety practices. which we are reinforcing is the
comprehensive review of our Safety
Mr Chow: In our opinion, the Journey. This is part of a three-year
fundamentals of safety training exercise benchmarked against the
should start from the very top and Singapore operations of global
cascade down to the workers. company DuPont. Through this
Training and effective communication Safety Self Assessment Programme,
are therefore two important pillars for we hope our safety processes and
us in inculcating a safety culture. culture will emerge stronger.
To ensure more effective Changing mindsets and behaviour
communication, we introduced will continue to be a main focus for
an e-Safety Portal in late 2011 Keppel O&M. To us, upholding good
to encourage active sharing of safety standards requires constant
safety best practices across business vigilance, open communication and
units and work places. With 20 yards active implementation.
Interview with CEO and COO
13GROUP FINANCIAL
HIGHLIGHTS
2011 2010
S$’000 S$’000
Consolidated Balance Sheet
as at 31 December 2011
Share capital 339,716 339,716
Reserves 1,543,002 1,532,669
Shareholders’ funds 1,882,718 1,872,385
Non-Controlling interests 207,291 180,642
Capital employed 2,090,009 2,053,027
Represented by:
Fixed assets 1,227,407 1,247,443
Associates 386,013 171,500
Loans receivable 47,677 40,864
Goodwill 36,363 50,042
Investments 173,682 171,425
1,871,142 1,681,274
Current assets
Stocks 273,663 118,241
Work-in-progress (cost > billings) 1,081,491 552,241
Related companies & associates 212,297 137,321
Other assets 308,594 195,061
Debtors 610,145 731,638
Bank balances, deposits & cash 2,343,971 2,805,602
4,830,161 4,540,104
Current liabilities
Creditors 2,351,840 2,189,323
Work-in-progress (billings > cost) 1,575,152 1,389,554
Other liabilities 81,043 8,240
Short term loans 32,762 20,683
Taxation 292,851 243,252
4,333,648 3,851,052
Net current assets 496,513 689,052
Non-current liabilities
Long term loans 171,388 213,559
Deferred taxation 80,313 85,734
Deferred liabilities 25,945 18,006
277,646 317,299
Net assets 2,090,009 2,053,027
Keppel Offshore & Marine Ltd
14 Report to Stakeholders 20112011 2010 Change
S$’000 S$’000 %
Consolidated Profit & Loss Account
for the financial year ended 31 December 2011
Revenue 5,705,966 5,577,010 +2
Operating profit 1,397,759 1,195,047 +17
Net Interest/investment income 54,564 72,542 -25
Share of results of associates 44,266 48,773 -9
Profit before tax 1,496,589 1,316,362 +14
Taxation (309,521) (242,059) +28
Profit after tax 1,187,068 1,074,303 +11
Non-Controlling interests (43,381) (12,606) +244
Profit before exceptional items 1,143,687 1,061,697 +8
Exceptional items (44,994) (24,762) +82
Net profit 1,098,693 1,036,935 +6
Economic Value Added (before exceptional items) 992,467 947,112 +5
Keppel Offshore & Marine achieved The Group’s return on equity (before
another outstanding set of results in exceptional items) was slightly lower
2011. Revenue increased by 2% to at 61%, while Economic Value Added of
$5.7 billion due to higher workload, $992.5 million was $45.4 million higher
as revenue recognition commenced on than that of the previous year.
some of the orders secured since the
last quarter of 2010. The completion The Group delivered 8 rigs, 7 FPSO/FSO
of jobs secured prior to 2010 with conversions, 11 specialised vessels and
higher margins and greater operating 25 other major projects in 2011. The
efficiencies contributed to a higher total value of contracts secured for the
operating profit of $1,398 million, year was $10.0 billion, and the Group
17% above that of 2010. Net interest ended the year with a net orderbook of
income was lower at $51.5 million. $9.4 billion, with deliveries extending
Contributions from associates of to 2015.
$44.3 million was 9% lower. Profit after
tax was up 10% to $1,187.1 million,
while profit before exceptional items
increased by 8% to $1,143.7 million.
Exceptional items of $45.0 million were
related to impairment of assets.
Group Financial Highlights
15GROUP AT A GLANCE
KEPPEL OFFSHORE & MARINE
Global leader in offshore rig design, construction and repair, ship repair and
conversion, and specialised shipbuilding.
Headquartered in Singapore, Keppel O&M integrates GROUP FOCUS FOR 2012/2013
and harnesses the experience and expertise of 20 yards FORTIFY CORE COMPETENCIES
worldwide to optimise deployment of resources and – Build on operational excellence and raise productivity
effectively execute our Near Market, Near Customer strategy. levels to deliver projects safely, on time and
within budget.
The head office serves two central functions, providing
Operational Services including technology, design and LEVERAGE GROWTH PLATFORMS
development, engineering and procurement, as well – Extend expertise to offer a wider range of products,
as Corporate Services covering finance, legal, human solutions and services for the offshore and marine
resources, information services and corporate development. industry through R&D.
Driven by innovation and a workforce with the Can Do! spirit, HARNESS GLOBAL SYNERGIES
we strive to become the provider of choice and partner for – Develop and draw on the collective strength of global
solutions for the offshore and marine industry. yards and offices to reinforce Near Market, Near
Customer strategy and deliver value to customers.
INCREASE BUSINESS ROBUSTNESS
– Seek opportunities to strategically acquire or co-invest
with partners in new capabilities and facilities, and enter
into new markets.
Keppel Offshore & Marine Ltd
16 Report to Stakeholders 2011OFFSHORE MARINE SPECIALISED
Leading designer, Trusted industry SHIPBUILDING
builder and repairer partner for the repair, Designer and builder
of high-performance conversion and of a wide spectrum
mobile offshore upgrade of a diverse of highly specialised
drilling rigs. range of vessels. ships for a global
clientele.
The Offshore Division, helmed The Marine Division is represented The Specialised Shipbuilding
by Keppel FELS, is a leading by Keppel Shipyard, trusted for the Division led by Keppel Singmarine
designer, builder and repairer repair, conversion and upgrade of a has a track record of some 400
of high-performance mobile offshore diverse range of vessels. newbuild vessels of diverse functions
drilling rigs. and sophistication.
Keppel Shipyard is a leader in the
The Division’s portfolio of conversion of Floating Production Its portfolio of customised vessels
proprietary designs and floating Storage and Offloading; Floating spans Anchor Handling Tug/Supply
production solutions meets a Storage and Offloading; and Floating vessels, multi-purpose Offshore
broad spectrum of operating Storage Re-gasification Units. Its Support Vessels and tugboats to
requirements including deep competencies include topside and highly advanced solutions such as
waters and harsh environments. turret fabrication. ice-capable vessels.
With technology innovation and With strong commitment to Health, Harnessing its suite of design
competent design and engineering Safety and Environment and an and engineering solutions, strong
capabilities, this Division offers established reputation of reliability, logistics and infrastructure
viable, cost-effective and highly flexibility and quality for complex support in Singapore, this Division
adaptable solutions for newbuilds projects with quick turnaround, the provides customers with one-stop
and upgraded offshore units. Division continues to deliver high value-added services.
value to its customers.
Group at a Glance
17BOARD OF DIRECTORS
CHOO CHIAU BENG TONG CHONG HEONG CHOW YEW YUEN
CHAIRMAN CHIEF EXECUTIVE OFFICER CHIEF OPERATING OFFICER
Keppel Offshore & Marine Ltd Keppel Offshore & Marine Ltd Keppel Offshore & Marine Ltd
Keppel FELS Limited Keppel FELS Limited
Keppel Shipyard Limited Keppel Shipyard Limited CHAIRMAN
Keppel Land Limited Keppel AmFELS, Inc
Keppel Energy Pte Ltd CHAIRMAN
Keppel Integrated Engineering Limited DEPUTY CHAIRMAN
CHIEF EXECUTIVE OFFICER Keppel FELS Brasil SA
Keppel Corporation Limited SENIOR EXECUTIVE DIRECTOR
Keppel Corporation Limited PRESIDENT
Keppel Offshore & Marine USA, Inc
Keppel Offshore & Marine Ltd
18 Report to Stakeholders 2011STEPHEN PAN YUE KUO PROF MINOO HOMI PATEL DR MALCOLM SHARPLES
CHAIRMAN PROFESSOR OF MECHANICAL PRESIDENT
World-Wide Shipping Agency Limited, ENGINEERING AND Offshore Risk & Technology
Hong Kong DIRECTOR OF DEVELOPMENT Consulting Inc, USA
School of Engineering,
Cranfield University, UK
Board of Directors
19BOARD OF DIRECTORS
PO’AD BIN SHAIK ABU BAKAR MATTAR TAN EK KIA LIM CHIN LEONG
INDEPENDENT DIRECTOR CHAIRMAN FORMER CHAIRMAN OF ASIA
Hong Leong Finance Limited City Gas Pte Ltd Schlumberger
Tiger Airways Holdings Limited
INDEPENDENT AND
NON-EXECUTIVE DIRECTOR
Keppel Corporation Limited
Keppel Offshore & Marine Ltd
20 Report to Stakeholders 2011TEO SOON HOE SIT PENG SANG LOH CHIN HUA
SENIOR EXECUTIVE DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER
Keppel Corporation Limited Keppel AmFELS, Inc Keppel Corporation Limited
CHAIRMAN CHAIRMAN
Keppel Telecommunications and Alpha Investment Partners Limited
Transportation Ltd
M1 Limited
Board of Directors
21KEY PERSONNEL
OFFSHORE & MARINE
1. WONG NGIAM JIH 5. TONG CHONG HEONG 9. LAI CHING CHUAN
CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER SENIOR GENERAL MANAGER
(CORPORATE DEVELOPMENT)
2. CHEE JIN KIONG 6. HOE ENG HOCK
EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR 10. MICHAEL CHIA
(HUMAN RESOURCES) (KEPPEL SINGMARINE) MANAGING DIRECTOR
(OFFSHORE)
3. CHOW YEW YUEN 7. WONG KOK SENG
CHIEF OPERATING OFFICER MANAGING DIRECTOR
(KEPPEL FELS)
4. CHOO CHIAU BENG
CHAIRMAN 8. NELSON YEO
MANAGING DIRECTOR
(MARINE)
8
6 7
4 9 10
1
3
5
2
Keppel Offshore & Marine Ltd
22 Report to Stakeholders 20111. YONG CHEE MIN 4. DR LEE CHAY HOON 7. CHOON YONG BOON
GENERAL MANAGER GENERAL MANAGER ASSISTANT GENERAL MANAGER
(PROJECTS) (ORGANISATION DEVELOPMENT) (INFORMATION SYSTEMS)
GENERAL MANAGER 5. FONG SWEE THENG 8. KENNETH CHONG
(HEALTH, SAFETY & GROUP FACILITIES MANAGER ASSISTANT GENERAL MANAGER
ENVIRONMENT) (LEGAL)
6. ANTHONY TOH
2. EDMUND MAH GROUP SECURITY MANAGER COMPANY SECRETARY
GENERAL MANAGER
(FINANCE)
3. JEFFERY CHOW
GENERAL MANAGER
(LEGAL)
6 7
8
5
4
3
1
2
Key Personnel
23KEY PERSONNEL
KEPPEL FELS
1. CHRIS ONG 4. WONG FOOK SENG 6. WONG KOK SENG
GENERAL MANAGER SENIOR GENERAL MANAGER MANAGING DIRECTOR
(ENGINEERING) (OPERATIONS)
7. YEO YUE NGIAP
2. AZIZ AMIRALI MERCHANT 5. KEITH TEO GENERAL MANAGER
EXECUTIVE DIRECTOR GENERAL MANAGER (COMMERCIAL)
(ENGINEERING) (MARKETING)
3. DAVID LEE
FINANCIAL CONTROLLER
1
3
4
2 5
7
6
Keppel Offshore & Marine Ltd
24 Report to Stakeholders 2011KEPPEL SHIPYARD
1. LOUIS CHOW 5. CHARLES SIM 8. SPENCER LEONG
SENIOR GENERAL MANAGER GENERAL MANAGER GENERAL MANAGER
(COMMERCIAL) (OFFSHORE PRODUCTION) (DEVELOPMENT)
2. JIM LIM 6. BURT LOH 9. TAN PENG PONG
FINANCIAL CONTROLLER GENERAL MANAGER GENERAL MANAGER
(OPERATIONS) (ENGINEERING & SYSTEMS
3. NELSON YEO DEVELOPMENT)
MANAGING DIRECTOR 7. MAH CHAN WAH
GENERAL MANAGER
4. CHOR HOW JAT (COMMERCIAL – SHIPREPAIR)
EXECUTIVE DIRECTOR
6
8
2 4 5 9
7
1
3
Key Personnel
25KEY PERSONNEL
KEPPEL SINGMARINE
1. TOH KO LIN 4. EDMUND LEK 6. AU-YEONG KIN HO
SENIOR GENERAL MANAGER SENIOR GENERAL MANAGER GENERAL MANAGER
(COMMERCIAL) (OPERATIONS) (ENGINEERING)
2. TAN CHENG HUI 5. CHARLES YAP 7. POON TAI LUM
SENIOR GENERAL MANAGER GENERAL MANAGER GENERAL MANAGER
(ENGINEERING) (PURCHASING/WAREHOUSE) (COMMERCIAL/MARKETING)
3. HOE ENG HOCK
EXECUTIVE DIRECTOR
5 6
1 7
4
2
3
Keppel Offshore & Marine Ltd
26 Report to Stakeholders 2011RESEARCH & DEVELOPMENT
1. DR ASBJORN MORTENSEN 4. DR MATTHEW QUAH 8. DR FOO KOK SENG
SENIOR PROGRAMME MANAGER SENIOR PROGRAMME MANAGER EXECUTIVE DIRECTOR
(DRILLING EQUIPMENT), (OFFSHORE STRUCTURES), (SHALLOW WATER TECHNOLOGY),
KOMTECH KOMTECH KOMTECH
2. CHARLES SIM 5. AU-YEONG KIN HO EXECUTIVE DIRECTOR,
PROJECT DIRECTOR GENERAL MANAGER, OFFSHORE TECHNOLOGY
(FPSO AND OFFSHORE MARINE TECHNOLOGY DEVELOPMENT
PRODUCTION), DEVELOPMENT
KOMTECH 9. CHONG WEN SIN
6. CHARLES FOO SENIOR PROJECT MANAGER
3. AZIZ AMIRALI MERCHANT DIRECTOR/ADVISOR, (OFFSHORE LNG DEVELOPMENT/
EXECUTIVE DIRECTOR KOMTECH FPSO/ENVIRONMENTAL
(DEEPWATER TECHNOLOGY), ENGINEERING),
KOMTECH 7. TAN CHENG HUI KOMTECH
RESEARCH CONSULTANT
EXECUTIVE DIRECTOR, (MARINE), 10. ANIS ALTAF HUSSAIN
DEEPWATER TECHNOLOGY GROUP KOMTECH GENERAL MANAGER,
DEEPWATER TECHNOLOGY GROUP
SENIOR GENERAL MANAGER,
MARINE TECHNOLOGY
DEVELOPMENT
1
4
2
5
3 10
9
7
8
6
Key Personnel
27KEY PERSONNEL
OVERSEAS MANAGERS
1. JOHN J. BAJOR 3. KWOK KAI CHOONG 5. ABU BAKAR MOHD NOR
KEPPEL MARINE AGENCIES KEPPEL FELS BRASIL GROUP NAKILAT-KEPPEL OFFSHORE
INTERNATIONAL, LLC & MARINE LTD
(NEW JERSEY, USA) 4. HAROLD LINSSEN
KEPPEL VEROLME BV 6. MOK KIM WHANG
2. ROY SLETTEN KEPPEL PHILIPPINES
KEPPEL NORWAY AS MARINE, INC
KEPPEL SUBIC SHIPYARD, INC
1 4
3 5
2 4 6
Keppel Offshore & Marine Ltd
28 Report to Stakeholders 20111. TAN GEOK SENG 3. CHANDRU SIRUMAL RAJWANI 5. MICHAEL HOLCOMB
KEPPEL AMFELS, LLC CASPIAN SHIPYARD COMPANY LTD KEPPEL MARINE AGENCIES
INTERNATIONAL, LLC
2. YICK PING WONG 4. LEE TAI KWEE (TEXAS, USA)
KEPPEL KAZAKHSTAN LLP KEPPEL NANTONG SHIPYARD
CO. LTD 6. JIMMY LOH
ARAB HEAVY INDUSTRIES PJSC
1 3 5
2 4 6
Key Personnel
29KEY PERSONNEL
Overseas Operational Centres ALBERT GARCIA LAU KUAT PIN
Financial Controller Vice President
ARAB HEAVY INDUSTRIES PJSC ERIC PHUA ELSHAN GURBANOV
JIMMY LOH Vice President (Commercial) Chief Financial Officer
Managing Director
JUAN CRUZ KEPPEL NORWAY AS
CHAN LIM HONG Vice President (Operations ROY SLETTEN
General Manager and Engineering) Acting CEO
PT BINTAN OFFSHORE KEPPEL FELS BRASIL GROUP DANNY ANG
KOK BOON HENG KWOK KAI CHOONG Chief Financial Officer
General Manager President & Chief Executive Officer
KEPPEL NANTONG SHIPYARD
KEPPEL PHILIPPINES MARINE, INC TOMMY SAM CO. LTD
MOK KIM WHANG Vice President LEE TAI KWEE
President President
GILBERTO ISRAEL
STEFAN TONG Commercial Director EDMUND LEK
Executive Vice President Deputy President
JERALD LEE
AGNES BARBARA L. LORENZO Chief Financial Officer WONG PHUAY CHENG
Vice President Vice President (Operations)
(Administration & Finance) ALCEU MARIANO
Institutional Director LI GANG
KEPPEL BATANGAS SHIPYARD, INC Vice President (Commercial)
POH LEONG KOK EDMUNDO SANTOS
Senior Vice President Operations Director BEN ANG
Vice President (Finance)
KEPPEL SUBIC SHIPYARD, INC LOW TIAU TONG
MOK KIM WHANG Assistant Operations Director NAKILAT-KEPPEL OFFSHORE
President & General Manager & MARINE LTD
KEPPEL VEROLME BV ABU BAKAR MOHD NOR
LEONG KOK WENG HAROLD LINSSEN Chief Executive Officer
Senior Vice President Managing Director
ALBERT KEE
FROILAN DELA CRUZ WONG WEI KEI General Manager (Operations)
Vice President Chief Financial Officer
(Commercial & Marketing) REGENCY STEEL JAPAN LTD
KEPPEL KAZAKHSTAN LLP WONG CHUN YU
KEPPEL OFFSHORE & MARINE USA, INC YICK PING WONG President
TOMMY SAM Executive Director
Vice President SHIGEYUKI HATANO
ANIL KUMAR SULTAN Chief Operating Officer
CHEUNG TAK ON Executive Vice President
Vice President (Technology) KEPPEL SINGMARINE BRASIL LTDA
LIM AH BENG HOE ENG HOCK
SIMON LEE Assistant General Director Executive Director
Vice President (Projects)
CHOW WAI HOONG TAN CHONG KEE
KEPPEL AMFELS, LLC Chief Financial Officer General Manager
TAN GEOK SENG
President & Chief Executive Officer CASPIAN SHIPYARD COMPANY LTD BAKU SHIPYARD LLC
CHANDRU SIRUMAL RAJWANI DAVID LOH
GILBERT ELIZONDO President General Manager
Vice President (Human Resources)
Keppel Offshore & Marine Ltd
30 Report to Stakeholders 2011Engineering/Technology Centres DEEPWATER TECHNOLOGY Representative Offices
GROUP PTE LTD
AZIZ AMIRALI MERCHANT
KEPPEL OFFSHORE & MARINE Executive Director KEPPEL MARINE AGENCIES
TECHNOLOGY CENTRE PTE LTD INTERNATIONAL, LLC
DR FOO KOK SENG ANIS ALTAF HUSSAIN MICHAEL HOLCOMB
Executive Director (Shallow General Manager President/Director, Texas
Water Technology)
MARINE TECHNOLOGY JOHN J. BAJOR
AZIZ AMIRALI MERCHANT DEVELOPMENT PTE LTD Director, New Jersey
Executive Director (Deepwater TAN CHENG HUI
Technology) Senior General Manager KEPPEL PRINCE ENGINEERING
PTY LTD
CHARLES FOO AU-YEONG KIN HO CHARLES CHIAM
Director/Advisor General Manager Director
TAN CHENG HUI BLUE OCEAN SOLUTIONS PTE LTD
Research Consultant (Marine) DR JERRY NG Marine Services
Chief Executive Officer
CHARLES SIM ASIAN LIFT PTE LTD
Project Director (FPSO and BENNETT & ASSOCIATES, LLC JOHN CHUA
Offshore Production) JOSE VAZQUEZ General Manager
President & Chief Executive Officer
DR MATTHEW QUAH KEPPEL SMIT TOWAGE PTE LTD
Senior Programme Manager FLOATEC, LLC BEN CHEW
(Offshore Structures) ERIC H. NAMTVEDT General Manager (Regional)
President
DR ASBJORN MORTENSEN JERRY WONG
Senior Programme Manager KEPPEL FELS BALTECH LTD General Manager
(Drilling Equipment) LYUDMIL STOEV
General Manager
CHONG WEN SIN Employee Unions
Senior Project Manager IVAN PETROV PELOV
(Offshore LNG Development/FPSO/ Senior Engineering Manager
Environmental Engineering) KEPPEL EMPLOYEES UNION
MOHAMED YUSOP BIN MANSOR
KEPPEL FELS ENGINEERING President
OFFSHORE TECHNOLOGY SHENZHEN CO. LTD
DEVELOPMENT PTE LTD HO JONG HENG
DR FOO KOK SENG MOHD YUSOF B MOHD
General Manager General Secretary
Executive Director
KEPPEL FELS OFFSHORE & KEPPEL FELS EMPLOYEES UNION
LIM TENG KIAT ENGINEERING SERVICES MUMBAI
General Manager VINCENT HO MUN CHOONG
PTE LTD President
SYED AHAMED KABEER
General Manager ATYYAH HASSAN
General Secretary
SHIPBUILDING & MARINE
ENGINEERING EMPLOYEES UNION
WONG WENG ONG
President
MAH CHEONG FATT
Executive Secretary
GOH SOR IMM
Deputy Executive Secretary
Key Personnel
31SPECIAL FEATURE
SAFETY IS
EVERYONE’S
BUSINESS
Our safety journey is a
continuous one. With
strong commitment from
management and ownership
from every Keppelite
towards safety, we can
achieve our vision of creating
an incident-free workplace.
Keppel Offshore & Marine Ltd Special Feature
32 Report to Stakeholders 2011 Safety is Everyone’s Business 33SPECIAL FEATURE
GROWING OUR SAFETY CULTURE Keppel O&M Safety Statistics
For Keppel O&M, at the heart of
workplace safety is a sense of AFR ASR
responsibility. As we journey towards an
0.6 450
incident-free workplace, we constantly
align efforts across our yards worldwide
to encourage best safety practices, 0.4 300
improve safety management systems
as well as to instil the importance of
0.2 150
creating a safe workplace.
In 2011, we invested over $16 million 0 0
on safety infrastructure as well as skills 2007 2008 2009 2010 2011
and knowledge development.
Our safety culture is also rooted in close AFR 0.37 0.37 0.35 0.29 0.24
collaboration with stakeholders including ASR 187 110 83 105 443
contractors, customers, industry * AFR – Refers to the number of workplace accidents per million man hours worked. Figures used
suppliers, partners and regulatory are incident-based.
* ASR – Refers to the number of industrial man days lost to workplace accidents per million
bodies. This is a key element of our man hours worked.
strategy to eliminate workplace incidents
as we strive to train and empower every
single stakeholder to be responsible for
his own safety, as well as the well-being Our experiences in 2011 clearly show as safety assessors, whose role is
of others around him. that safety is an ongoing journey and we to promote safety leadership and
must never be complacent. From the inculcate safe habits. To date, we
We believe that everyone has a role to lessons learnt, we will emerge stronger. have trained 11 lead assessors and
play in protecting people, property and 20 assessors across Keppel Group.
the environment. ENHANCING SAFETY PERFORMANCES
For 2012 and beyond, Keppel O&M has As an extension of being a
RISING TO THE CHALLENGE identified four focus areas to further responsible leader in the offshore
Over the years, we have maintained a strengthen and improve our safety and marine industry, we participate
good safety record working and focusing processes and initiatives. actively in national and industry
on high-risk sectors. From 2007 to safety initiatives and events, such
2010, our accident frequency rate (AFR) 1. LEADING BY EXAMPLE as Singapore’s Workplace Safety
and accident severity rate (ASR) were We believe that leaders must walk and Health (WSH) Conference and
significantly lower. the talk as they play a key role in WSH Council (WSHC)’s bizSAFE
shaping the Group’s safety journey Convention to share our experiences.
However, we faced one of our toughest and performance. As leaders often
years in our safety journey in 2011. drive learning and sharing platforms 2. DRIVING OWNERSHIP
Despite tremendous efforts to such as training programmes To foster a culture of safety
enhance safety, Keppel O&M suffered and safety campaigns, they need ownership at the ground level,
11 fatalities in Singapore and overseas. to be in touch with the workforce we introduced the “Plus 5 for
The impact of these cases spiked our to better understand the working Safety” initiative. This initiative
ASR from 105 man days lost per million environment. During the year, aims to enhance the existing
man hours worked in 2010 to 443 in 2011. Keppel’s Board Safety Committee safety toolbox meeting process
members and our safety leaders by extending it to focus on
We are saddened by the loss of conducted several site visits to supervisory leadership skills
these lives and are determined to facilities in Singapore and overseas. and workers’ participation.
draw lessons from them to prevent These visits are useful input for
any recurrence. Independent lead them in their decision-making Supervisors are frontliners of
investigators were appointed by the CEO process on safety enhancement safety. Through this initiative, we
of Keppel Corporation to find the causes strategies for the Group. hope to enhance ownership in
of these incidents. At the same time, our supervisors, who must take
this helps to facilitate a fresh review of In addition, we continue to reinforce responsibility in ensuring the safety
the established safety systems in areas the training of safety leaders at of their charges. It is important
where the incidents happened so that Keppel. In 2011, selected HSE and that they conduct proper briefings
improvements can be made. operational personnel were trained and risk assessments before
Keppel Offshore & Marine Ltd
34 Report to Stakeholders 2011any job starts. Workers are also and subcontractors, we need to At Keppel O&M, we are aligned
encouraged to voice out potential ensure that safety practices are with Keppel Group’s efforts to
hazards and report near-misses systematically integrated into all further improve our execution
without fear of penalty. work processes, leaving no room of the four key thrusts of Keppel’s
for mistakes. To further enhance WSH 2018 strategy launched in
Driving ownership is also a key the safety management system, we 2010. The reach and efficacy of this
focus in the ongoing “Safety encourage all employees to adhere strategy was further broadened
Buddy” programme, where strictly to safety procedures. with the commitment by Keppel’s
employees and subcontract overseas business units at the
workers are assigned to ”Buddy In 2011, we embarked on a Keppel Group Safety Convention
Groups” so that they can look out comprehensive three-year 2011 to implement the initiatives
for one another and encourage exercise to review our safety under the strategy.
each other to adopt safe work journey, benchmarked against
habits. Such Buddy Groups are that of the Singapore operations The Keppel Safety Training Centre
guided by safety mentors who play of global company DuPont. continues to be a strong advocate
an important role in influencing Following a safety perception of the Group’s safety excellence,
and motivating the group members, survey conducted in January 2011, equipping employees and
as well as inculcating our safety 18 site safety assessments were subcontractors with the relevant
values in them. subsequently held to validate the training and procedures. The Centre
findings of this survey. employs the latest equipment,
At the annual Group Safety simulations and methodologies
Innovation Convention, teams from Over the next two years in 2012 to conduct its courses. In 2011,
across the yards also have the and 2013, Phase Two of this 3,088 workers and subcontractors
opportunity to generate creative Group-wide exercise will were trained at the Centre and key
ideas with the potential to be incorporate coaching for safety courses are tied strongly to High
implemented to improve workplace assessors to hone their skills, Impact Risk Activities awareness.
safety. This in turn serves to instill a as well as development of
sense of ownership towards safety databases to keep track of follow-
in our workforce. up action items. Other potential
initiatives under this exercise
3. ADHERING TO PROCEDURES include the development of In 2011, we trained 3,088 workers and
subcontractors at the Keppel Safety Training
In managing a global workforce personal safety action plans for Centre and key courses are tied strongly to
of more than 40,000 employees key safety management. High Impact Risk Activities awareness.
Special Feature
Safety is Everyone’s Business 35You can also read
