2012-2013 CSR Report
2012-2013 CSR Report
2012-2013 CSR Report
SOCIAL
RESPONSIBILITY
REPORT
2012-2013
INTEGRATED OFFSHORE OILFIELD
SERVICES PROVIDER
Kraken Field - FPSO
Armada Installer, DLB FPSO Armada Sterling FPSO Armada TGT 1
Under Conversion
Bumi Armada Berhad is a Malaysia-based international offshore oilfield services provider with a presence in
over 18 countries spread across five continents, underpinned by its access to over 3,000 people from over
25 nationalities. Bumi Armada Berhad is listed on Bursa Malaysia. Our clients range from NOCs and IOCs to
the Independents.
Our Business Units: Gas Development and Technology (GDT): we have
developed a range of conceptual designs for floating
Floating Production, Storage
and Offloading (FPSO): regasification projects, including LNG carrier conversion,
we own, lease and operate FPSOs to receive hydrocarbon and regasification barge solutions.
sourced from oilfields to be offloaded into an oil tanker or
a pipeline. Support Units:
Offshore Support Vessels (OSV): we own, operate Asset Management and Operations (AMO): we provide
and charter vessels to provide support for exploration, asset maintenance, oilfield operations and offshore
development and production activities in the offshore oil management using AMO’s Compliance Assurance
and gas industry. Management System (CAMS).
Transport and Installation (T&I): we own, operate and Engineering and Technology (E&T): we provide concept
charter vessels to provide pipe-laying, heavy lift, subsea studies, basic and front-end engineering design and
installation, floater and mooring installation and marine detailed engineering with complete EPCM delivery
spread support. capabilities for oil and gas, and floating systems.
Oilfield Services (OFS): we provide services for offshore Major Projects: we provide extensive EPCC (Engineering,
brownfield markets, such as well services, marginal Procurement, Construction and Commissioning)
field production solutions and enhanced extraction of competencies in managing large projects such as FPSOs
hydrocarbons. and early production systems with tight timeframes.
CONTENTS
2 CEO’s Review
5 Building Trust
20 Environment
23 People
27 Community
30 Appendices
30 Vessel Certifications
31 Supplementary Data
02
CEO’S REVIEW
Dear Stakeholders,
Our strategy remains entrenched in the strict belief that only firms that are
economically, environmentally and socially responsible will have a real chance at
being profitable for the long haul. We measure our long-term goals against best-in-
class processes and performance, while continuously embracing the right values and
taking steps to be more efficient with the resources we have.
I am proud of the team at Bumi Armada for their In the area of Health, Safety, Security, Environment
relentless dedication to sustainability. This has and Quality (HSSEQ), we launched an initiative to drive
resulted in two successive inclusions in the Dow Jones Operational Excellence as a strategic priority. We also
Sustainability Index for Emerging Markets and the introduced two information management improvements,
RobecoSAM Sustainability Yearbook 2014. Bumi Armada and continue to improve the reporting culture in Bumi
was identified as one of seven global sustainability Armada.
leaders out of a total of 48 eligible firms in the Energy
Equipment & Services universe. Sustained vigilance is essential in building a culture to
achieve our HSSEQ objectives, which includes targets of
Following the release of the Global Reporting Initiative zero injuries and zero spills. We also target to reduce
(GRI) G4 guidelines in May 2013, our reporting fuel consumption per man-hour by 5% every year.
framework has transited from G3.1 to G4 guidelines.
The G4 guidelines were improved to strengthen the We recognise that there are externalities that may
focus on materiality in sustainability reporting - a firm not be captured over the short term, but will prove
should focus their efforts, and reporting on issues that to be valuable to our long-term business and social
are the most significant and relevant to stakeholders. objectives. An example is our emphasis on gender
We strengthened our materiality assessment with a equality and diversity. Our efforts and investments to
more rigorous process, in the process using it as a ensure female employees are provided support and
tool to identify and prioritise gaps for improvement. equal opportunities is reflected in our gender diversity
As a result, we also produced a more focused report, figures. In demonstrating our commitment to be a fair
reporting on issues that are of greatest concern to our and inclusive employer, we believe that it will help
stakeholders. attract the best talents regardless of gender and build
our standing in the community.
03
04
Economic
Profit (in RM, millions) 435 388 365 351
Revenue (in RM, millions) 2,073 1,659 1,544 1,241
EBITDA (in RM, millions) 994 948 872 714
Environmental
Spills - onboard (number) 1 2 3 5
Spills - overboard (number) 3 0 0 0
Social
Fatalities 0 0 0 0
Lost time injury frequency (LTIF) 0.44 0.37 0 0.21
Total recordable injuries frequency (TRIF) 1.31 1.29 0.19 0.43
First aid case frequency 2.32 3.34 1.13 3.19
Near miss incidents 46 34 38 16
Fire/Explosion 1 1 0 1
Security incidents 3 0 1 5
Man-hours (million) 6.88 5.40 5.33 4.70
Please refer to Data Measurements on page 29 for details of definitions and methodologies.
05
Vision
Mission
Customer
Focus
We recognise that the environmental, social and We expect the same level of ethics from our business
governance (“ESG”) aspects of business underpin associates. Our Code of Ethics is communicated to all
sustainability. employees and customers. Our suppliers are required
to abide by our Code of Procurement Ethics (see page
Sustainability is about balancing growth with corporate 12).
responsibility, conserving resources for future
generations by minimising activities that may have Our whistle-blowing channel is accessible on our
a negative impact on the environment and driving website. Our whistle-blowing policy is reviewed and
efficiency and productivity and returning value to our approved by the Board. All stakeholders have access to
stakeholders in a variety of ways. report malpractices in full confidentiality.
Corporate Social Responsibility Report 2012-2013
06
In a complex and connected world, we believe it is imperative to collaborate with stakeholders to achieve shared
goals and work towards common challenges. We engage stakeholders whom we have significant influence on, or
are significantly influenced by.
Engagement Platforms
Suppliers and contractors Employees (refer to page 23-26 for Governments, regulators and
• Supplier performance appraisals more information) industry associations
upon completion of each major • Quarterly CEO breakfast sessions • Visits to our sites and vessels
project • Quarterly townhall sessions • Private meetings
• Regular updates and discussions • Line managers • Formal consultation dialogues
with key suppliers on projects, • Bienniel employee engagement
products and business survey
environments • Annual performance appraisal
• 360o for managers
• Exchange programme
08
The CEO has overall responsibilities over the The CEO has a standing invitation to the Board-level Risk
performance of the Group’s operational and business Management Committee (“RMC”). Risks are collated and
units. He is responsible for the implementation of Board reported on a quarterly basis to the RMC and thence
policies, directives, strategies and decisions. to the Board. The adequacy and soundness of the
ERM Framework are addressed during these quarterly
The CEO also functions as the intermediary between meetings.
the Board and Management, working with the Board in
defining the strategic objectives of the organisation, Risk management is supported by an internal control
preparing its operational plans and seeing to its environment and structure. Elements of our internal
implementation including business and financial controls include documented policies and procedures
performance, organisation effectiveness, human relating to functions such as finance, procurement,
resource development, investor relations and building human resources, information system, quality;
brand equity, striving for operational excellence, compliance management; HSSEQ management system;
supporting health, safety, environment and quality and a robust internal audit function. Mitigations are
performance initiatives as well as commitment to then translated to actions for implementation to the
corporate social responsibility. point where the risk is effectively managed to as low
as reasonably practicable (“ALARP”). Every project and
The Board is also responsible for adherence to, and business group is subject to the Risk Management
the accuracy of disclosures prepared in compliance Process to ensure sustainable business growth as well
to, the Malaysian Companies Act and Bursa Malaysia as company wide compliance.
regulations.
The Board reviews the effectiveness of the risk
The Board is supported by a number of Board management and internal control systems through the
committees, namely the Audit, Nomination & Corporate Group’s actual versus planned performance as well
Governance, Remuneration, Risk Management and as other key financial and operational performance
Executive committees. indicators to determine if the underlying risk
management and internal control systems continue to
The Board reviews HSSE performance as part of the be effective.
regular meeting agenda, and receive ad-hoc updates
on other sustainability events and performance as Specific transactions, projects or opportunities are also
determined by the CEO. discussed with the Board when required. This allows the
Board to determine if new risks have arisen and need to
Remuneration be addressed or action plans and internal controls need
Bumi Armada’s Employees’ Shares Option Scheme (ESOS) to be enhanced to improve results.
is structured in alignment with long-term success, with
a vesting period of three years. The Company assesses the management and
performance of joint venture companies through
representation on boards and monitoring controls.
Corporate Social Responsibility Report 2012-2013
10
Our materiality analysis serves three purposes. Firstly, The following materials were reviewed: strategic
in conducting a formal evaluation of stakeholder priorities, policies, risk management, internal KPIs,
interests, the exercise adds clarity to our goal of long- internal and external communications, due diligence
term and inclusive growth. We cross check material forms from banks, guidance documents by industry
considerations against our risk management systems associations, formal feedback from our customers and
and strategy for completeness. Secondly, in prioritising business partners, and sustainability reports from peers
issues, it provides focus in our overall and CSR across our business units. Interviews with employees
strategies. Thirdly, our sustainability reporting will be who interact frequently with external stakeholders were
focused and concise while meeting expectations of our held to add depth to specific issues of concern to our
stakeholders. key stakeholders.
Legend: Key material issue Critical material issue Moderately material issue
ED/CEO
Hassan Assad Basma
SUB GROUPS
(Each Sub-Group to develop group
objectives, targets and reporting)
ENVIRONMENT SOCIETY
Scope Scope
• Fleet Initiatives • Health and Safety
• Energy Targets ECONOMIC Programme
• Waste and Emission Scope • Staff Welfare
• Green Technology • Corporate • Human and Labour
• ISO 14001 Programme • Finance Rights
• Legal • Community Services
• Compliance • Stakeholders
• Transparency
• Ethics
• Accountability
12
14
2012
Each year RobecoSAM, the leading sustainability specialists serving EMEPMI Marine Contractor
investors, identifies global sustainability leaders in each sector. Out of of Q1 2012
48 eligible firms in the Energy Equipment & Services universe, 7 were Awarded by Exxon Mobil
selected for inclusion. The other 6 firms are Baker Hughes Inc, AMEC PLC,
Schlumberger Ltd, Technip SA, Halliburton Co and SBM Offshore NV. Armada Tuah 10 – HSE
Performance Award (for
Separately, Bumi Armada has been included in the Dow Jones SustainabilityTM operations without lost
Emerging Markets Index since its launch in February 2013.
time injury and downtime in
2011)
2013 Awarded by PetroVietnam
Technical Services Corporation
(PTSC) Marine Vietnam
MANAGEMENT
REVIEW
COST OF + BUSINESS
POOR QUALITY GROUP
INTERNATIONAL
QUALITY COMMITTEE AUDIT & OPERATING
STANDARDS
& ROQ COMPLIANCE PROCEDURES
CERTIFICATION
PROGRAMME PROGRAMME DEVELOPMENT
QUALITY
MANAGEMENT CUSTOMER
QUALITY SYSTEM VENDOR &
IMPROVEMENT
STAFF FEEDBACK
WORKSHOPS INCLUDING 12 PROGRAMME
PROGRAMME DRIVERS FOR
IMPROVEMENT
QUALITY HSEQ
QA/QC
LEADERSHIP INTEGRATED
INTERNAL RESOURCES
& AWARENESS SOFTWARE
AUDITOR DEVELOPMENT
TRAINING SYSTEM
PROGRAMME PROGRAMME INTRANET
QUALITY SITE
COMMUNICATIONS
& E-LEARNING
Corporate Social Responsibility Report 2012-2013
16
The Corporate HSSEQ department supports the Group on achievable and measurable goals and best possible
in achieving HSSEQ objectives through a comprehensive results from available resources, while simultaneously
development model. executing structural improvements.
BU Action
Plan (OFS)
LOCAL/INTERNATIONAL
BU Action
HSSEQ EXCELLENCE
Responsibility & Plan (OSV)
VISION MISSION Accountability
REQUIRES
• Global • Hazardous • Medical • Company • ISM Code • Training & • CINTELLATE • Energy • QA • Crises
Awareness Act Examination Policies • ISPS Code Development • VISTA Management • QC Management
• Visible Management & Surveillance • Company • ISO 9001 • E-learning • EDMS • GHG • DOC • Travel
Leadership • Behavior • HIRADC Management • ISO 14001 • Induction • MICROSITE • Awareness CONTROL Management
• HSSEQ Team Audit Process • OH Diseases System • OSHAS 18001 • Seminars • Reporting • COEC • Security
• Safety Drivers • Training & Manual • ISO 50001 • Lunch & Learn • Waste • AUDIT Standard
• Lesson Learnt Development • Corporate • ISO 14064 Management • Business
• Stop Work SOPs • Safety Case • Improvement continuity
Authority • Business • DJSI Targets
• Incentive Unit SOPs • GRI
Scheme • Law
(International
& Local)
17
Safety Mission
“Our mission is to build a zero tolerance culture throughout
our value chain such that safety mindset becomes a way of
life.”
1
Management approach
Frequency
Our management system addresses both personal and We registered lost time injuries in 2012 and 2013,
process safety. Process safety relates to eliminating resulting in an increase from our 2011 performance
potential risks, and also readiness to address a potential with zero lost time injuries. The LTIF and TRCF for
incident. Risk assessment such as HAZOP, HAZID, QRA, 2013 remained close to 2012 with a marginal increase.
MAE is conducted for each project. In 2013, there was a remarkable improvement in the
reporting process and level of reporting from the shore
Target: Zero harm to people bases to Corporate HSSEQ. This is due to improvements
in the Safety culture amongst the staff and crew. The
Data improved reporting contributed to higher LTIF and
Refer to page 4 for our 4-year safety performance summary. TRCF. bases to Corporate HSSEQ.
Corporate Social Responsibility Report 2012-2013
18
Safety culture their own errors and near misses. We foster such a
Where a safety culture operates, there is zero tolerance climate through leadership by example.
for hazardous conditions, unsafe practices, short cuts
that compromise safety, or non-compliance with safety All performance appraisals include a component
procedures. where employees have to cite examples on how they
demonstrated behaviour aligned to Bumi Armada’s core
The Bumi Armada Safety Culture Rules (BSCR) are values – one of which is safety mindset.
summarised in a simple and clear poster format to
ensure effective compliance for all employees and Weekly safety meetings are conducted on our
contractors. The BSCR is available on our website. All operating fleet to discuss near-miss incidents, accident
reported non-compliance incidents will be investigated investigations, job safety audits and safety problems
and consequential actions will be meted. encountered or anticipated.
Our safety culture is proactive. From the Master to Safety campaigns and training are rolled out to promote
the trainee on board our vessels, from tea ladies to safety awareness and knowledge, across our fleet
management executives in our offices – we require all and offices. These activities are developed through
individuals to actively spot hazards and unsafe practices continuous studies done by the HSSEQ team leaders and
both in their own jobs and elsewhere on board vessels committee to analyse weaknesses and identify ways to
or in
the offices. Once identified, these hazards can
be improve HSSEQ performance.
eliminated or mitigated. We encourage staff to report
19
We benchmark our practices with the industry’s best We track sick leave (onshore) and the number of
practices. Security measures are based on systematic employee visits to clinics (offshore) as a measure of the
geographical risk analysis, as imposed on all projects health of our employees.
and countries in which we operate.
We provide gymnasiums and fitness corners on board
Our commitment to local content and local partners, our vessels. More information on offshore well-being
and close collaboration with our clients, the oilfield can be found on page 26.
operators, plays an important role in ensuring the
proactive analysis of security threats and the enactment To support our employees’ general wellness, we also
of sustainable security measures. This stakeholder organise regular health awareness activities such as
approach is critical to the ability of the Company to talks and articles on serious diseases such as cancer
operate successfully in ostensibly austere environments, awareness, exercise and healthy eating.
in accordance with local laws and cultures.
Corporate Social Responsibility Report 2012-2013
20
We have limited influence on fuel consumption of our We recorded zero overboard spills in 2012. There were
vessels, as explained under Carbon footprint section. three incidents of overboard spills in 2013. Total oil in
To improve our environmental performance within our produced water overboard was 760.1 ppm and 1,209.2
control and raise employee awareness, we set year on ppm for 2012 and 2013 respectively.
year targets for our offices to reduce our electricity,
water and paper consumption. An action plan was One incident was a spill of produced water overboard,
developed and rolled out across our offices and fleet to with oil quantity of 70 litres (non-reportable spill based
achieve our targets. on regulation of operation in Nigeria). A full review and
engineering study was conducted to improve the design
Data for prevention of future spills.
Refer to page 4 for our 4-year environment performance
summary. Performances of individual environmental
aspects are discussed under respective headers.
21
The second incident was due to intermittent oil Vessels are required to provide detailed daily fuel
sludge spillage overboard of quantity less than one monitoring reports which are closely monitored. In
litre. All equipment used were checked and restored 2012, we installed fuel metering systems on board for
systematically, to prevent reoccurrence. our vessels to improve our fuel measurement process.
Data is submitted to HSSEQ department on a monthly
The third incident was due to a pinhole leak in the basis.
offtake hose, resulting in a spill of 0.3 litres. The
defective section was removed. The hose was tested Further, we also developed a target to reduce fuel
before use, with weekly visual inspection to monitor its consumption per man-hour by 5% each year.
condition.
Scope 1 emissions reported increased from 472 to
Bumi Armada monitors oil concentrations in produced 529 thousand tonnes of CO2 equivalent. This is due to
water at all production facilities on a daily basis and increased activity and an increased number of vessels
manages the oil/ water separation process to meet their operating in 2013, including Armada Sterling which
discharge compliance. consumed more fuel than other FPSO vessels. To monitor
fuel efficiency, we set operational greenhouse gas
To monitor content of oil in bilge water, Bumi Armada KPIs normalised by man-hours for fuel and electricity.
fitted internationally approved “oily water separators” Further, we improved the accuracy and completeness of
on our OSVs. This is in line with MARPOL 73/78 our greenhouse gas inventory in 2013.
requirements. In the event the oil content in the water
exceeds 15 ppm, the water will be automatically Refrigerants are a significant source of Scope 1
redirected back to the holding tank and recycled for greenhouse gas emissions. We are working on complete
further cleaning. These oily water separators also and accurate reporting of refrigerants in order to
record the amount of water discharged, its content, and determine a target and develop appropriate reduction
the date and time of discharge. plans for each business unit. We aim to report data on
refrigerants in the next CSR report.
Carbon footprint
We report Scope 1 emissions relating to direct fuel Electricity consumption per
consumption of vessels for transparency (refer to page 4). employee (MWh/headcount)
Contracts for vessel charters are structured to allow our
customers the flexibility to determine the tasks and job
5.00
scope for the vessel. The extent in which we can reduce
emissions arising from fuel consumption is thus limited.
In the same way, our influence to minimise flaring is 4.00
limited. The variance in tasks also presents difficulties
in normalising emissions to monitor efficiency.
3.00
We aim to improve efficiency through a variety of 1.98 1.63 1.80 1.46
initiatives such as: 2.00
22
Electricity consumption is identified as an area where regularly sent for lab testing. These technologies
we are able to reduce our carbon footprint. We have eliminate or minimise the need to procure water supplies
implemented electricity saving measures including and generation of plastic waste. Environmentally
simple practices such as setting air-conditioning conscious behaviours such as minimising water usage
thermostats at 25 degrees Celsius and purchasing onboard for showers are also encouraged.
energy efficient computers. Our collective efforts have
resulted in a decrease of electricity consumption per Waste products are segregated on board, and are
headcount. then collected by an appointed local contractor. Non-
hazardous waste (glass, metal, paper and plastic) is
In addition, we have also equipped our offices with state- removed for recycling where possible. All waste is
of-the-art video conferencing technology to reduce air managed in compliance with MARPOL 73/78 and local
travels. regulations where applicable. We are in the process of
improving our data collection systems for waste and will
Environment protection aim to report data on waste generated in the next CSR
We achieved our target to reduce water consumption per report.
employee by 5% every year, registering a 36% reduction
from 2012 to 2013. Water consumption per employee Environmental awareness
in 2012 and 2013 were 9.63 and 6.20 m3 per headcount Campaigns and initiatives developed to achieve
respectively. environmental targets also instill environmental
awareness.
Our vessels are also equipped with reverse osmosis
technology that produces potable water from seawater. In 2012 and 2013, Bumi Armada held more than
Vessels are also fitted with water purification systems ten events, including talks from experts on future
to produce water fit for drinking. Water samples are environmental challenges in the industry, and care for
the marine environment.
23
PEOPLE
Management approach
Our corporate and fleet human resource teams aims to
Offshore new hires for 2013
meet the needs of our employees and organisation, by:
Malaysian Regional International
• Mapping human resource demands to support our
strategy for growth, including technical and business
development training
• Designing recruitment strategies
• Designing a competitive compensation system that 195,
builds on our core values and rewards performance 152, 310, 42%
• Ensuring engagement platforms are effective to foster 33% 67%
communication and build trust 115,
• Ensuring employees feel safe, well taken care of and 25%
motivated
Data
Refer to page 4 for our 4-year performance summary.
24
PEOPLE (cont’d)
19% 17% 18% 14% The level of employee engagement has increased from
20
58% in 2010 to 61% in 2012, registering a marginal
positive increase. The biggest improvements are
10 Employee Promise, Recognition and Valuing People.
The participation rate is approximately 75%.
0 Training hours per employee increased in 2012 and
2013, in line with Bumi Armada’s objective for increased
-10 investment in developing our employees. 2013 registered
a slight dip from 2012 as a number of courses were held
2010 2011 2012 2013
25
PEOPLE (cont’d)
in-house in 2012, resulting in accessible training for Bumi Armada has developed six customised
more employees. Bumi Armada will continue to provide developmental training modules, in collaboration with
and support relevant training opportunities. Malaysian Maritime Academy (ALAM). Experienced
Masters and Chief Engineers, together with a
psychologist, identify and develop candidates for the
Training hours per employee
programme.
26
PEOPLE (cont’d)
Graduate Development Programme (GDP) At the beginning of each year, supervisors hold a private
The Graduate Development Programme was designed to meeting with each employee to evaluate performance for
attract and retain outstanding graduates from Malaysian the previous year, and also discuss expectations for the
and overseas institutions each year. Candidates are coming year. Areas for improvement and development
placed on a rotational training programme over a needs are identified so that supervisors can support
24-months period. They are placed on a development employees to meet their objectives. The exercise offers
plan designed to build functional and business skills. an opportunity for employees to discuss the evaluation
The assigned manager of each graduate also fulfills the and also their aspirations with their supervisors.
role of a mentor to the graduates.
In 2012 and 2013, 100% of our employees have
International exposure undergone this process.
Our exchange programme was developed to promote
integration with colleagues from our overseas offices Offshore well-being
(including JV partners). It encompasses a job posting Working at the seas can be demanding. We pay attention
varying from two weeks to one year in our head office to the needs our offshore crew have.
in Malaysia. The programme covers cultural, systematic
and process aspects of our organisation and individuals Facilities on vessels are designed to ensure that our
selected are from various disciplines. Since its inception crew gets adequate rest. The minimum amount of rest
in 2009, we have hosted colleagues from Astrakhan, each rank and vocation requires is stipulated.
Australia, China, India, Nigeria and the United Kingdom.
All vessels have internet connectivity for our crew to
Our Malaysian employees are similarly given overseas maintain their relationships with their family.
opportunities to gain global exposure and a deeper
understanding of our business. All FPSOs are fitted with gymnasium. OSVs have fitness
corners as they are smaller in size and thus unable to
Performance appraisals accommodate gymnasium facilities.
Performance appraisals are conducted yearly to foster
a performance culture aligned to our core values. Every Our fleet human resource managers consult our crew on
employee has to describe behaviour where he/she the duration of cycles they wish to work on board. The
demonstrated adherence to each of Bumi Armada’s core consultation is conducted over email, and registered a
values. This ensures our values are embedded in our 100% response rate over the reporting period.
daily activities, and serve as a compass in achieving our
business goals. To enhance the level of support for our crew, a formal
crew grievance process Crew Access to Reliable and
Easy Solution (CARES) was implemented in 2012.
Work-life balance
Our employees enjoy a good work-life balance. We
extend a certain amount of flexibility, including
allowing employees to report to work between 8 am-10
am according to their personal commitments.
Remuneration
To realise our vision it is imperative that there
is a
strong alignment between shareholders, management
and employees. In line with this, shares are offered to
all employees in service working in various offices and
sites, and ESOS was offered to the management team.
COMMUNITY
28
COMMUNITY (cont’d)
Developing competency
We develop training programmes in all locations we with a dance performance and a school tour,
operate to transfer knowledge to local communities. concluding with a friendly netball match between
our employees and the teachers. The event was
We seek ways to make long-term and sustainable an opportunity for our employees to build bonds
contributions to the communities. For example, in 2012, among themselves and forge a deeper connection
we built our first diesel-electric multi-purpose platform with causes that Bumi Armada supports.
support vessel (“MPSV”). In doing so, we opened a new
sector in Malaysia with the aim of increasing Malaysia’s Bumi Armada contributed RM5,000 to help finance
profile in the global offshore sector. the school activity “Linus Learning Corner”. Bumi
Armada’s employees made personal contributions
Building local partnerships amounting to RM678 to purchase books relevant
We partner with local organisations which help us. to the primary school level, and also donated used
This began in 2008 with the establishment of Century books to add to the school’s collection.
Bumi Limited in Nigeria, a joint venture (“JV”) with Century
Energy Group. In Indonesia we have established PT Armada
Gema Nusantara with the Gema Group and in India with the Data
Forbes and Company Limited and Shapoorji Pallonji Group.
Community contributions (RM)
Community development
We believe that in every community, there are groups
of marginalised individuals who benefit from financial 500,000
aid to give a boost to their standard of living. Employee 402,989
volunteerism further aids our organisation’s empathy 400,000
and sensitivity towards communities where operate, and
also provides an excellent platform for our employees
to bond over a meaningful cause. 300,000
244,772
205,150
Investing in the future of our youth
200,000
We believe that investing in the education of
our children and youth is crucial to ensure that
79,372
they will be able to seek better opportunities for 100,000
themselves and their communities.
Social
30
APPENDICES
Vessel Certifications
As at 31 Dec 2013
ISM The ISM Code provides an international standard SMS The Safety Management System (SMS) is a management
for the safe management and operation of ships and for system to manage all aspect of safety throughout an
pollution prevention. organisation.
APPENDICES (cont’d)
Supplementary Data
2013 2012
Employment Type Female Male Total Female Male Total
Contract 97 380 477 45 247 292
Permanent 171 170 339 162 167 329
Tot al 268 550 818 207 414 621
Turnover by gender
Male 79 70% 80 73%
Female 34 30% 30 27%
Total 113 100% 110 100%
Turnover by region
Malaysia 73 65% 75 68%
Asia (excluding Malaysia) 32 28% 32 29%
Africa 3 3% 2 2%
Oceania 3 3% 0 0%
South America 2 2% 1 1%
Total 113 100% 110 100%
Employee category by age group < 30 years old 30-49 years old ≥50 years old < 30 years old 30-49 years old ≥50 years old
Senior management 0% 51% 49% 0% 62% 38%
Managers 2% 79% 18% 3% 81% 16%
Executives 29% 67% 4% 28% 65% 7%
Non-executives 31% 64% 6% 26% 70% 3%
Total 17% 68% 14% 17% 70% 13%
Employee category by nationality No. of employees Local Expat No. of employees Local Expat
Senior management 99 30% 70% 73 36% 64%
Managers 245 51% 49% 185 57% 43%
Executives 402 67% 33% 302 70% 30%
Non-executives 72 90% 10% 61 92% 8%
Total 818 60% 40% 621 64% 36%
32
APPENDICES (cont’d)
Glossary of Technical Terms
BASS Barber Ship Management System, the information technology system used in fleet management
EOR Enhanced oil recovery is a generic term for techniques used for increasing the amount of crude
oil that can be extracted from an oil field. It is sometimes referred to as “improved oil recovery”
or “tertiary recovery”
EPC Engineering, procurement and construction is a form of contracting arrangement whereby the
contractor will design the product, procure the necessary materials and construct it, either in-
house or by subcontracting part of the work
ESOS Employee share option scheme established for the grant of options to eligible employees of our
Group and our Executive Directors to subscribe for new Shares in the Company
FPSO Floating production, storage and offloading system, an offshore system comprising a large tanker
or similar vessel equipped with a high-capacity production facility. FPSOs are normally moored
at the bow to the seabed to maintain a geo-stationary position, and serve as a fixed point for
risers to connect subsea wellheads to on-board processing/production, storage and offloading
systems. Produced oil is periodically offloaded to smaller shuttle tankers, which transports the oil
to onshore facilities for further processing
GRI Global Reporting Initiatives is a non-profit organisation that promotes economic, environmental
and social sustainability. GRI provides all companies and organisations with a comprehensive
sustainability reporting framework that is widely used around the world
IMCA International Marine Contractors Association. The international trade association representing
offshore, marine and underwater engineering companies promoting good practices, particularly
in the areas of HSE standards, quality and efficiency and technical standards.
IMCO International Maritime Consultative Organisation. Codes which relate to international shipping,
particularly regarding safety and marine pollution.
IOC International oil company, refers to large private or public oil companies that have upstream,
midstream and downstream capabilities, such as Royal Dutch Shell plc and The Exxon Mobil
Corporation
IPIECA The global oil and gas industry association for environmental and social issues. When IPIECA
was set up in 1974 the acronym stood for the International Petroleum Industry Environmental
Conservation Association. In 2002, recognising that this no longer accurately reflected the breadth
and scope of the association’s work, IPIECA stopped using the full title
ISPS Code International Ship and Port Facility Security Code. A comprehensive set of measures to enhance
the security of ships and port facilities. The ISPS Code is implemented through chapter XI-2 Special
measures to enhance maritime security in the International Convention for the Safety of Life at Sea
(SOLAS), 1974
33
APPENDICES (cont’d)
ISM The ISM Code provides an international standard for the safe management and operation of ships
and for pollution prevention:
• To ensure safety at sea
• To prevent injury or loss of life
• To avoid damage to the environment and to the ship
LTI Lost time injury, a work-related injury or illness that renders the injured person unable to return to
work on the next working day after the day of the injury or illness
MARPOL International Convention for the Prevention of Pollution From Ships,1973 as modified by the
73/78 Protocol of 1978. MARPOL was designed to minimise pollution of the seas, including dumping, oil
and exhaust pollution.
Its stated object is: to preserve the marine environment through complete elimination of pollution
by oil and other harmful substances and the minimisation of accidental discharge of such
substances.
NOC National oil company, O&G company owned or controlled by a national government, typically
having special rights or access to its local market
OFS Oilfield services, refers to services required to maximise the extraction of hydrocarbons in the
marginal field and EOR business
OSV Offshore support vessel, refers to any vessel, boat or ship whose main function is to support
the offshore O&G operations, which includes movement of equipment or structures, as well as
transportation of materials and personnel
Riser Pipe or assembly of pipes used to transfer produce from the seabed to the surface facilities or to
transfer injection fluids, control fluids or lift gas from the surface facilities to seabed
SMS Safety Management System. A management system to manage all aspect of safety throughout an
organisation. It provides a systematic way to identify hazards and control risks while maintaining
assurance that these risk controls are effective
SOLAS International Convention for the Safety of Life at Sea. An international treaty protecting the safety
of merchant ships in the world
34
36
38
SUB-CATEGORY: SOCIETY
ASPECT: LOCAL COMMUNITIES
G4-DMA Generic Disclosures on Management Approach Page 11-12, 27-28
G4-SO1 Percentage of operations with implemented Page 28
local community engagement, impact
assessments, and development programmes
ASPECT: ANTI-CORRUPTION
G4-DMA Generic Disclosures on Management Approach Page 5, 8-9
G4-SO4 Communication and training on anti- Page 5, 8-9, 12
corruption policies and procedures
ASPECT: ANTI-COMPETITIVE BEHAVIOR
G4-DMA Generic Disclosures on Management Approach Page 5, 8-9
G4-SO7 Total number of legal actions for anti- There were no significant fines or sanctions
competitive behavior, anti-trust, and monopoly during the reporting period.
practices and their outcomes
ASPECT: COMPLIANCE
G4-DMA Generic Disclosures on Management Approach Page 5, 8-9
G4-SO8 Monetary value of significant fines and total There were no significant fines or sanctions
number of non-monetary sanctions for non- during the reporting period.
compliance with laws and regulations
ASPECT: SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY
G4-DMA Generic Disclosures on Management Approach Page 11-12
G4-SO9 Percentage of new suppliers that were Page 12
screened using criteria for impacts on society
ASPECT: GRIEVANCE MECHANISMS FOR IMPACTS ON SOCIETY
G4-DMA Generic Disclosures on Management Approach Page 5-7, 11-13
G4-SO11 Number of grievances about impacts on None.
society filed, addressed, and resolved through
formal grievance mechanisms
SUB-CATEGORY: PRODUCT RESPONSIBILITY
ASPECT: CUSTOMER HEALTH AND SAFETY
G4-DMA Generic Disclosures on Management Approach Page 11-12, 15-19
G4-PR1 Percentage of significant product and service Page 17
categories for which health and safety impacts
are assessed for improvement
G4-PR2 Total number of incidents of non-compliance Page 12
with regulations and voluntary codes
concerning the health and safety impacts of
products and services during their life cycle,
by type of outcomes
ASPECT: PRODUCT AND SERVICE LABELING
G4-DMA Generic Disclosures on Management Approach Page 6
G4-PR5 Results of surveys measuring customer Page 6
satisfaction
ASPECT: COMPLIANCE
G4-DMA Generic Disclosures on Management Approach Page 5, 8-9, 11-12
G4-PR9 Monetary value of significant fines for There were no significant fines or sanctions
non-compliance with laws and regulations during the reporting period.
concerning the provision and use of products
and services
Bumi Armada Berhad Port Harcourt, Nigeria Astrakhan, Russia
Level 21, Menara Perak Century Bumi Limited Bumi Armada Caspian, LLC
24, Jalan Perak (c/o Century Energy Services Limited) Kirova Street 1
50450 Kuala Lumpur 96A, Elelenwo Close 3rd Floor
Malaysia GRA Phase 1 414000 Astrakhan
Tel: +603 2171 5799 Port Harcourt, Rivers State Tel: +7 (8512) 29 29 01
Fax: +603 2163 5799 Nigeria Fax: +7 (8512) 29 29 04
Email: bumiarmada@bumiarmada.com Tel: +234 (0) 84-465116/7/8
Fax: +234 (0) 84-231502 Jakarta, Indonesia
Miri, Malaysia PT. Armada Gema Nusantara
Lot 2395, Block 4 Mumbai, India Alamanda Tower 20th Floor – unit F
MCLD, Jalan Bulatan Park Forbes Bumi Armada Offshore Limited Jl. T.B. Simatupang
P.O. Box 1228 Suite 7, Tower 3, Equinox Business Park Kav. 23-24 Cilandak Barat
98000 Miri, Sarawak (Peninsula Techno Park) Jakarta Selatan 12430
Malaysia Off. Bandra Kurla Complex Indonesia
Tel: +6085 661 118 LBS Marg, Kurla (West) Ph.: +62 21 2960 3000
Fax: +6085 652 955 Mumbai - 400 070, Maharashtra, India Fax: +62 21 2960 3030
Tel: +91 (22) 4263 0157
Labuan, Malaysia Fax: +91 (22) 6121 5179 Perth, Australia
Block C, No. A11, Lot 1211 Bumi Armada Australia Pty Ltd
Manmohan’s Warehouse Luanda, Angola Level 1, 85 Havelock Street,
Jalan Patau-Patau, P.O.Box 80226 Angoil Bumi JV Lda West Perth
87012 Wilayah Persekutuan Labuan Belas Business Park WA 6005, Australia
Malaysia Torre Cunene 205, Tel: +61 (0) 864 65 3100
Tel: +6087 412 327 2° andar, Talatona, Luanda, Angola Fax: +61 (0) 864 65 3199
Fax: +6087 413 801 Mobile: +244 222 020 596
Texas, US
Kemaman, Malaysia Ashgabat, Turkmenistan Armada Blue, LLC
Lot 13840 Armada Marine Contractors Registered Address:
Jalan Penghiburan, Chukai Caspian Pte Ltd c/o Capitol Corporate Services, Inc
24000 Kemaman, Terengganu Suite 202, Level 2 800 Brazos, Suite 400
Malaysia “Diamond International” Austin, Texas 78701
Tel: +609 8510 100 Business Center
Fax: +609 8510 111 Andalyp Street (1958) * 15 London, UK
Ashgabat 744005 Bumi Armada UK Limited
Singapore Turkmenistan Portland House, Bressenden Place
Bumi Armada (Singapore) Pte Ltd Tel: +993 12 945 990/946 911 London, SW1E 5RS, UK
1 Fusionopolis Walk Fax: +993 12 947 198 Tel: +44 (0) 0207 869 8026
#08-02 Solaris South Tower Fax: +44 (0) 0207 869 8001
Singapore 138628 Turkmenbashi, Turkmenistan
Tel: +65 6643 5060 Armada Marine Contractors Accra, Ghana
Fax: +65 6861 6628 Caspian Pte Ltd Bumi Armada Ghana Limited
77, Magtymguly Street No 22, Third Close
Lagos, Nigeria 745000, Turkmenbashi Airport Residential Area Extension
Century Bumi Limited Turkmenistan (Opposite Lavender Lodge)
Plot 21, Prince Adelowo Adedeji Street Tel: +993 243 72644 Accra, Ghana
Off Admiralty Way Tel: +233 543 992395
Lekki Phase 1, Lagos
Nigeria
Tel: +234 (0) 1 2715 374; 2719 586
Fax: +234 (0) 1 2717 573
www.bumiarmada.com