No 1 • 2012

Building the world’s best accommodation rig. PAGE 12

Corporate governance and strategy in Prosafe. PAGE 8

A new approach to fire-fighting training. PAGE 15

Safe Caledonia refurbishment. PAGE 4

VISION Prosafe shall be a leading and

innovative provider of technology and services in selected niches of the global oil and gas industry.

MISSIONBy providing our clients with innovative and

cost-efficient solutions, Prosafe shall maximise shareholder value and create achallenging and motivating workplace.

CORE VALUESProfitability

Respect InnOvation

Safety Ambition

Focus Environment

Prosafe NOW is published two times a year for our employees, clients,

vendors and other key audiences.

Submit ideas, comments and articles for the next issue to:

Karine CosemansCommunication and branding manager

karine.cosemans@prosafe.com

EDITORKarine Cosemans

Photo page 1, 5: courtesy RemontowaPhoto page 2: Kjetil Alsvik

Photo page 6, 7: courtesy Almaco

PRODUCTIONPrinters AS

VISIT OUR WEB SITEwww.prosafe.com

RESPONSIBLE PUBLISHERProsafe SE

Stadiou Street 126CY-6020 Larnaca, CyprusPhone: +357 2462 2450

Fax +357 2462 2480mail@prosafe.com

“Ambition” is a core value in Prosafe. We endeavour to be ambitious inour goal-setting, strive continuouslyto improve, seek chal lenges andchase business opportunities.

It should therefore not come as asurprise that we have set anambitious long-term strategictarget: Prosafe shall be the worldleader in offshore accommodation.

We aim to achieve this target bydoing the following:

- We will employ and train theright people, because the qualityof the services that we deliverwill be largely determined by the efforts of our employees

- We will take the necessary stepsto ensure that our safety andoperational standards are amongst the best in the offshore industry

- We will maintain or increase ourmarket share within the high endof the offshore accommodationindustry by renewing andincreasing our fleet ofaccommodation vessels.

New build on trackIn line with our strategy, we ordered end of 2011 a new rig to be builtat Jurong Shipyard in Singapore.This semi-submersible rig will bethe most advanced and efficientharsh environment accommodation rig in the world and will beconstructed to comply withstringent Norwegian regulations.

During the last couple of months,the project’s activity level hasincreased considerably. We haveestablished an experienced projectteam based in the yard, detailedengineering is progressing well,and orders for critical equipmentsuch as lifeboats have been placed.

We will be monitoring the projectclosely and will take all therequired steps in order to ensurethat this new build will of thehighest quality and that we canoffer our clients the most flexibleunit available.

Renewing our fleetThe Safe Caledonia is currently in the shipyard at Remontowa in Gdansk in Poland for a major

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High activity leveland good order intakeThe first half of 2012 has been busy, with two large projects in addition to normal rig operations. We have had a high order intake, stable operations and strongfinancial results, and have thereby positioned our-selves strongly for future development and success.

refur bish ment project. This refur -bish ment will not only enhance thevessel’s facilities as an accommo -dation rig, but will also extend thestructural life time of the vessel with20 years.

The project is progressing accordingto plan and the work is scheduled tobe completed in the fourth quarterof this year.

High order intakeWe have a flexible fleet consisting of both anchored and dynamicallypositioned rigs. In combination withour extensive experience and a solidtrack record, this makes us a strongcontender when new contracts arebeing awarded.

We have recently secured a numberof very good contracts:- Regalia was awarded a five-monthcontract at Draugen on theNorwegian Continental Shelf

(NCS), planned to commence inApril 2013

- Safe Caledonia won a 15-monthcontract with BP with start-up justafter completion of the yard stayin the fourth quarter of this year

- Regalia and Safe Scandinavia woncontracts with Statoil on the NCS,both to commence early in 2014after these rigs have completedtheir five-year Special PeriodicSurvey

- Safe Astoria was awarded acontract by Shell in the Philippinesstarting in the summer of 2014.

With these new contracts we haveincreased our order backlogconsiderably and we have laid asound basis for financial robustnessand investment capacity in the yearsto come.

Positive outlookThe prospects for our business aregood. Both in the North Sea, the

Gulf of Mexico, Brazil, SoutheastAsia and Australia, we expect astable or increasing demand. We have observed that somecompanies are trying to enter theaccommodation rig market. Itremains to be seen which of theseprojects will materialize to finalexecution.

For us, however, this provides aneven greater motivation to performbetter and improve the service toour clients by focusing even more onhealth, safety and the environment,a low level of costs, efficiency andinnovation. By offering the highestlevel of services we will be able tocontinue to meet and maybe evenexceed client expectations.

Karl Ronny KlungtvedtChief Executive Officer

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By Karine Cosemans,Communication and BrandingManager

Prosafe’s core values – the environ -ment, focus, ambition, safety,innovation, respect and profitability– are the pillars upon which thecompany is built. They define theway we should act as individualsand as a company, and are astandard to refer to when in doubt.

In order to honour those employeeswho in an excellent way areambassadors for one or several of

our core values, we annually awardthe Ambassador Prize. It can begiven to a single person, a group ofemployees, a department, a projectteam or a rig crew.

Call for NominationsPlease send your nomination,inclusive a brief explanation of why that person, department,project team or rig crew should be awarded the prize to:karine.cosemans@prosafe.comby 10 September 2012.

The prize is a gift voucher and a

sculpture of a pilot, symbolizing a person who directs a course andguides others through unknownwaters and into a safe harbour.

The person who submits thewinning proposal will receive a giftvoucher or a token of appreciation.

All proposals will be evaluated by a jury consisting of the corporatemanagement. The name of thewinner will be made public at theAnnual Safety Day in October andwill be published in the nextedition of Prosafe NOW.

Who has in an outstanding way promoted one or several of Prosafe’s corevalues? We encourage your to submit your nomination, and help us to find thisyear’s Prosafe Ambassador.

Who should receive Prosafe’sAmbassador Prize for 2012?

By Mike Duddy,Project Manager

DemobilisationAs the vessel crew organised andplanned for the demobilisation ofthe Safe Caledonia from Everest inthe UK sector of the North Sea onthe 7th of April, concurrent activi -ties were taking place in a numberof European venues to support thesubsequent seven months of whatwill be the largest refurbishmentwork undertaken in a shipyard thisyear in Europe.

A stability check had shown that totraverse the shallow channel intoGdansk, Safe Caledonia would haveto diet a little. Cataloguing andcontainerising spares and equip -ment had already begun a numberof months previously in preparationfor backloading to shore in aneffort to reduce weight high in thevessel. Additionally, two of hermooring lines – Safe Caledonia has10 mooring winches each holding2200m of 76mm wire – werespooled onto attendant supplyvessels, removing approximately110 tonnes at deck level. I will

explain why this was so importantin Safe Caledonia’s next stoppingpoint, which was in Norway.

Thruster removal in NorwaySafe Caledonia has 4 x 2.4MW RollsRoyce azimuthing thrusters, whichcan assist her mooring spread.These thrusters are used to hold herposition without employing herwinches, so-called Dynamic Positio -ning (DP), or can be utilised topropel her along. Accompanied bya tow vessel, she used her thrustersto arrive in Nymo, Eydehavn(Norway) on the 13th of April.

Nymo has a deep artificial basin thatallows jack-up rigs to be tested andhas also the water depth neces saryfor the removal of rotatable unitsthat are slung below the hull of avessel, just as Safe Caledonia’s are.

Well before the rig began herjourney from the UK North Sea, the vessel crew and Techno Divehad prepared as much as possibleto facilitate for the removal of thethrusters once in Norway. Liftingarrangements were pre-installed and tested, tools placed at the work sitein the depths of the columns.

Each thruster weighs 37 tonnes, anddue to their position, their removalwould reduce the stability marginof Safe Caledonia at her survival

draft, hence the prior removal of asmuch material upstairs as possiblebeforehand.

On the 23rd of April all thrustershad been safely and efficientlyremoved and Safe Caledonia wasunder tow from the tug vessel BBTroll in a race to beat the new ac -commodation modules to Gdansk.

Pass the parcel from EstoniaMeanwhile in Loksa, another majorlogistics operation was underway.Eide Barge 28 had arrived undertow from the Eide Wrestler on the15th of April. Nearly a year of hardwork was drawing to a close, withthe fabrication of four new accom -modation modules by Almaco.

Again in preparation for the load-out, seafastenings had been desig -ned and fabricated, the harbourcleared of ice (yes, in April) anddredged to allow the draft of the bigNorth Sea type barge to safely enter.

Hans Håkon Norr from ESN hadmodelled the load-out operationand was responsible for theefficient design (41 tonnes of steel)of the temporary structure (termedgrillage or seafastening) whichsecures the modules to the bargeduring transit, ensuring that theydo not become an artificial reef atthe first approach of bad weather.

In the last edition of Prosafe Now, the Safe Caledonia was preparing to finishwork at the Everest Field for BG and the refurbishment project was wellunderway in other parts of Europe. For what has been a busy quarter of a yearfor all involved, this article provides a short update of the personnel and tasksinvolved with her new lease of life.

Safe Caledonia refurbishment - update

4

5

Eide Barge 28 was moored along sidethe quay whilst the grillage wasinstalled, then turned aft on to thereinforced loading area. Each modulewas rolled onto the barge over ashort 2.5m ramp using the yard’s own MAFI low loader transporter.

First onboard was the StarboardInner Module (SIM), so theStarboard Outer Module (SOM),then the Port Inner Module (PIM)and finally the monster that is the

Port Outer Module (POM), with herfull extra level of offices. A total of875 tonnes was lifted on the barge.The loose materials were fleetedunder the modules and secured, as the latter were being welded tothe seafastenings. Eide Barge 28departed Loksa with her preciouscargo on the 22nd of April. It was a text book operation due to thejoint efforts of Almaco, Loksa,Bertling, Eide, MatthewsDaniel, ESN and Prosafe.

First in PolandOn the morning of the 25th of April,the modules arrived at Remontowawhere they were prepared for libe -ra tion from their barge-bindings. IanBahn, the Marine Warranty Surveyorwas again in attendance to overseethe lifting operation by the Majafloating crane. They now residesafely on the quayside, awaitingtheir next lift, this time on to theSafe Caledonia by the larger Uglenheavy lift vessel. Uglen will be

Safe Caledonia traversing the shallow channel into Remontowa yard, Gdansk.

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arriving in Poland mid-June with the installation of the modulestaking place end of June.

Although in second place in the raceto Remontowa, the Safe Caledoniacut a far more striking figure as shewas guided up the channel into theyard, finally being secured on the29th of April at her moorings.

Power-down and isolationIn the period of a week, the vesselcrew isolated and drained down the systems and put in place electrical and mechanical isolations, which would en -sure the safety of the shipyard workers as they performed their duties in thefollowing weeks. Simul taneously, theyard began installing access ways andtemporary lighting and power thatwould allow the rig’s cranes and lightsto function without the operation ofher engines. Mean while, all materialsand stores were backloaded intosecure storage in the yard.

DemolitionRemontowa are a speedy outfit, butthe alacrity in which they set aboutpulling to pieces the redundantsystems of the Safe Caledonia, wasstill surprising.

The containerised accommodationwas dissected, and with this gone tobe recycled, the main deck was nowclear to be inspected by ultrasonicthickness measurement (UTM) toascertain what had to be replacedand what could stay.

The machinery spaces were prisedopen and the six engines, twoboilers and the redundant dieseldriven fire pump removed. In anexchange with Wärtsila, the oldengines form part of the paymentfor our six new machines, which aresafely arrived from Trollhättan,Sweden.

PrefabricationEven before Safe Caledoniashimmied down the channel toGdansk, Remontowa had begunconstructing deck plates that wereknown to have to be inserted. The deck store/workshop, anchorbolsters and helideck supports werealso underway prior to her arrival.This is all in an effort to reduce ourtime in the yard.

Special Periodic Survey (SPS) orRenewal SurveyPowering down the vessel requiredthat we had to remove all themooring lines to allow access to thewinches for refurbishment. Witheach anchor wire being around 55tonnes, the resulting benefit wasthe pontoons being well clear ofthe water in advance of what wehad expected.

With the local DNV surveyor, SafeCaledonia crew, Jim McDonough,Gary McCartney and a localinspection company, UT Marine, wemanaged to pore over every nookand cranny of her a month beforewe thought we would have been

able. They confirmed that the SafeCaledonia is in good condition forher age (build 1982) and for theharsh environments she hasoperated in for 30 years.

BPFollowing her refurbishment, SafeCaledonia will be assisting BP on a15-month contract, first with thelife-extension of the Andrew Field,before moving northwards to theMagnus field.

BP personnel met with us in Gdanskto prepare for our operationstogether. They were suitablyimpressed with the standard of themodules provided by Almaco andwith the scope of what we aim toachieve during the yard stay atRemontowa.

Project teamThe blend of our team in Poland is with the vessel operationspersonnel, and they have slottedwell into their slightly differentroles from what they wereaccustomed to offshore.

We have also been assisted withextra logistics capabilities in theshape of John Keir, ensuring thatour materials and equipment arrivein one piece and on-time in Poland.

One of the roles the vessel crew isperforming is to ensure that theexisting equipment is maintainedand preserved so that it is available

The accommodation modules were rolled onto the barge over a short 2.5m ramp using the yard’s MAFI low loader transporter.

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when we will re-activate it duringthe commissioning works.

Safety and environmentWith the multiple workfaces,simultaneous destruct works thatinclude many cutting, burning and lifting operations, all has been managed extremely well byRemontowa with the assistance of Ruth Buchan, Billy McIlhone and George Sewell.

Remontowa is accredited accordingto ISO 14001 and we know that ourdespatched equipment is beingreused to form the next generationof vessels.

On top of itThis last month in Poland has beena voyage of discovery and we havegained a good understanding ofthe condition of the hull. Withinthe next few weeks we will fully

comprehend the Safe Caledoniaand be able to plan the work to be done to the deck in theforthcoming months.

Based on the great amount ofpreparations done so far, and withan experienced, pro-active projectteam and reliable and competentvendors, we aim to complete therefurbishment project in due timebefore her next contract.

The refurbishment will not only enhance the vessel’s facilities as an accommodation rig, but will also extend the structural life time of thevessel with 20 years.

The new accommodation modules have comfortable cabins and light and airy offices.

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By Frode Ravndal, Strategy andFinance Manager

The definition of corporate gover -nance most widely used is "thesystem by which companies aredirected and controlled" (CadburyCommittee, 1992). More specificallyit is the framework by which thevarious stakeholder interests arebalanced, and contains a descriptionof the roles and relationshipsbetween a company’s management,its board, its shareholders and otherstake holders. Corporate governancealso provides the structure throughwhich the shareholders’ objectivesare translated into governing docu -ments, including the overall strategy,and the means of attaining thatstrategy.

Governing bodies in ProsafeShareholders, general meetings,board of directors and management:what's the difference?

Corporate governance is one ofthe main reasons that these termsexist. The evolution of publicownership has created aseparation between ownership and management. In an attempt to create a corporation whereshareholders' interests are lookedafter, Prosafe has implemen ted a

two-tier corporate hierarchy. On the first tier is the board ofdirectors: these individuals areelected by the shareholders of the corporation during a generalmeeting. On the second tier is themanagement: these individuals arehired by the board of directors.

First tier – Non-executive functionsThe general meeting secures theparticipation of shareholders andrepresents the highest non-executivedecision-making body. It isresponsible for the election of themembers of the board, and allshareholders are entitled to submitmatters for inclusion on the agendaof a general meeting, as well as toattend, speak and vote at themeeting.

The board of directors currentlycomprises six directors that areindependent of the company’spersonnel, and management is notrepresented on the board. Theboard has the overall responsibilityfor the decision making of thecompany and act as an advocate forthe shareholders by monitoring themanagement. The company’soperations and strategic direction

are regularly reviewed by the boardthrough periodic board meetingsand annual strategy and budgetaryprocesses. These are supplementedby ongoing strategic discussions andmonthly reporting of all significantmanagement projects. In essence,the board of directors tries to makesure that shareholders' interests arewell served.

Second tier – Executive functionsThe management acts on behalf ofthe board and is the highest execu -tive decision-making body. As thesecond tier of the company, the ma -nagement team is directly respon -sible for the day-to-day opera tionsand profitability of the company.

Governing documents in ProsafeCore values, code of conduct, visionand mission statements, strategy and strategic targets, policies andprocedures: what’s the point?

The board of directors, on behalf ofthe shareholders, has established anumber of governing documents toguide the company in its day-to-dayoperations. The core values, the codeof conduct and the strategy repre -sent the top level in the governing

What are we doing? Why are we doing it? How are we doing it? Where are wegoing? If you have asked yourself any of these questions, corporate governanceand strategy is a good place to start if you are looking for an answer.

Corporate governance and strategy in Prosafe

NON-EXECUTIVE FUNCTIONS

Electioncommittee

Externalauditor

Compensationcommittee

Auditcommittee

Ethicscommittee

Internalauditor

EXECUTIVE FUNCTIONS

GeneralMeeting

Board ofDirectors

Management

BOARD OF DIRECTORS

CoreValues

Strategy

FinancePolicy

InsurancePolicy

IRPolicy

HSSEQPolicy

HRPolicy

CSRPolicy

Procedures

MANAGEMENT

Code ofConduct

9

documents structure. To gether, the three documents provide theover lying framework of govern ingprinciples, defining everything frompreferred individual behavior to thestrategic direction of the company.

Core valuesThe core values are the pillars uponwhich the company is built and“the way we do things in Prosafe”.They define the way we should actas individuals and as a company,and are a standard to refer to when in doubt. It is our ambitionthat every single employee does not only know, but also under -stands and acts according to thesecore values, as our values are notjust words on paper, they are aninherent part of our culture, andvital for our future success.

Code of conductThe code of conduct is the corner -stone of the company’s commitment

to integrity. It provides guidance toour actions and decisions, and reflectsthe mindset and behaviour expectedin Prosafe. In order to ensure thateveryone in Prosafe has a uniformstandard of conduct and that we actas one company across all borders,we request that all employeesconform to the code of conduct.

StrategyThe strategy is the direction andscope of the company over thelong term. Guided by the visionand mission statements, it outlinesthe ends for which the company isstriving and the means by which itis seeking to get there. The long-term strategic targets, on theother hand, define the key successfactors and the overall ambition of the company. Achieving thesetargets will only be possible if allstakeholders of Prosafe (e.g.shareholders, board of directors,management, employees, clients,vendors) understand their role andpull in the same direction, andappreciate that they are all partlyresponsible for the outcome.

Long-term strategic targetsProsafe’s objective is to provideshareholders with a competitive,risk-adjusted yield on their sharesthrough a combination of shareprice appreciation and directreturn in the form of dividend.

In order to create such sustainableshareholder value, the board hasintroduced long-term strategictargets with regards to our people,operations, fleet and economicperformance:

1) Prosafe shall be the world leaderin offshore accommodation andthis shall be achieved by:a) employing and training the

right peopleb) achieving safety and

operational standards that are amongst the best in theoffshore industry

c) maintaining or increasing the market share within thehigh end of the offshoreaccommodation industry byrenewing and increasing thefleet of accommodationvessels

2) Prosafe shall at least doubleshareholder value over a 5-yearperiod, measured as the combinedvalue creation of increasedearnings per share and capitalreturned to shareholders.

Vision statementProsafe’s vision is to be a leadingand innovative provider oftechnology and services inselected niches of the global oiland gas industry.

Mission statementProsafe’s mission is to providecustomers with innovative andcost-efficient solutions in orderto maximize shareholder valueand to create a challenging andmotivating workplace.

Strategy statementProsafe’s strategy is to be the pre ferred provider of semi-submersible accommodation and service rigs and to pursueprofitable growth within thehigh-end of the offshoreaccommodation industry.

Profitability

Respect

Innovation

Safety

Ambition

Focus

Environment

CORE VALUES

Accommodating the Offshore Industry

C E ROCAV

P ofitabilityr

R tespec

ESUAL

E

Inno tionav

S etyaf

Ambition

Focus

E tonmenvirn

CODE OF CONDUCT

Accommodating the Offshore Industry

- the cornerstone of the company’s commitment to integrity

ODCorners - the c

ON C OFEs cy’ompanstone of the c

DUCTNtegrit to intommitmen c ty

omcAc shfffting the Ommoda ye Industrhor

Prosafe SE www.prosafe.com

126 Stadiou Telephone: +357 2462 2450 Business Enterprise No.: CY-6020 Larnaca Telefax: +357 2462 2480 SE 4Cyprus mail@prosafe.com

�������� Strategy – Public 1 of 4

Date approved

23.05.2012

Document responsible Approved by Document No. Revision

General Manager

Prosafe SE

Board of Directors

Prosafe SE

S-01

Signed Signed

(orig. signed) (orig. signed)

Title

Corporate Strategy – Public

Table of Contents

Chap. Subject Page

0.0� Alterations concerning this revision ...................................................................................................... 2�

1.0� Purpose ...................................................................................................................................................... 2�2.0� References ................................................................................................................................................. 2�3.0� Definitions ................................................................................................................................................. 2�4.0� Responsibility ........................................................................................................................................... 2�

5.0� Strategy ...................................................................................................................................................... 3�6.0� Appendices ................................................................................................................................................ 3�

10

In this edition of Prosafe NOW wewill focus on the core value “Safety”.We strongly believe it is possible toconduct our operations withoutinjuries to people or damages to

assets and the environ ment, and will continue our efforts to improve safety results. The safety of our people isimperative and is not subject tonegotiation or interpretation.

Below you will find the reflectionsof some of our employees on whatthe core value “Safety” means tothem.

Our core values – the environment, focus, ambition, safety, innovation, respect andprofitability are the cornerstone of everything we do in Prosafe. All employees should not only know, but also understand and act according to these values.

SAFETY– a core value in Prosafe

“Only by understanding the risks associated with the work we do, can we manage them safely.“

Jim Mearns, Marine Manager

“Protection from physical or mental harm whether at work, rest orplay!“ Ruth Buchan, HSEQ Advisor

Policies and proceduresThe policies provide a documentedset of specific guidelines, formula -ted by the board of directors, todirect and restrict the plans, deci -sions, and actions of the company’smanage ment and employees.

The procedures provide a documen -ted set of specific actions, formulated

by the management, which have tobe executed in the same manner inorder to always obtain the sameresult under the same circumstances.

SummaryTo make a long story short, the governing bodies and thegoverning documents, from thegeneral meeting to the last

procedure, together ensure thatshareholders’ interests are wellserved, and as a consequence, fiveyears from now, we can still saythat we work for Prosafe – theworld’s leading owner and operatorof semi-submersible accom -modation and service rigs.

11

“Commitment to safety is a part of every thing we do and everyone inthe offshore industry must make it his or her personal responsibility tolook out for his or her own safety and the safety of the people they areworking with at all times.“ Richard Parkin, Motorman Regalia

“Safety glasses, PPE and doing the job in such a way that it ensures I gohome in the condition that I joined the vessel.“

Kent Cederstrom, Accommodation Tech Regalia

“A strong safety culture is a major contribution in securing ourfuture.“

Roy McMaster, Crane Operator Regalia

“In the past, attempts to improve workplace safety or to controlworkplace risks have focused on technical aspects and on the directinfluence of human behaviour. Nowadays, impact of organisational factorson the outcome of safety performance has been recognised as equallyimportant. No lasting success can be achieved without safety as a primaryobjective, on every level of the company structure.“

Mirek Korcz, SDPO Regalia

“I believe safe behaviour, sound knowledge, being risk and controlaware, willingness to conform with the system, resistance to pressures tobehave unsafely, remain adequately trained, with job experience,supervised and working in harmony with each other means we will allcarry out our roles safely and efficiently.“ Greg Mclean, Storekeeper Regalia

“A strong safety culture and a proactive approach by all demonstratesthe extent to which organisation members embrace the company corevalues, ensuring learning and growth is communicated through thesharing of best practices.“ Darren J Hartigan, OIM Regalia

“Realisation that safety leadership is top driven. Promoting safety at alllevels of the organisation.“

Ian Young, HSEQ Director

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By Yann Goazou, Project Managerand Ian Young, Director of HSEQ

The Safe Boreas is being built atJurong Shipyard Ptd Ltd (JSPL) to a GVA 3000E design. Delivery isscheduled for the end of Q2 2014,and after final sea trials, acceptancetests and transit, the vessel will beavailable to the market.

North Sea compliant vesselSafe Boreas has been built to fulfilfuture requirements within theNorwegian Continental Shelf. Due to the turnkey nature of ourcon tract with JSPL, the shipyard willbe responsible to provide the safetystudies to support both the Acknow -ledge of Compliance (AOC) forNorway and the UK HSE Safety Case.

Part of the Prosafe yard team’sresponsibility is to verify that theappropriate studies and technicalspecifications meet the require -ments for each sector. The Prosafeteam will ultimately be responsiblefor submitting the documentationto the authorities in order to gainacceptance.

Prosafe has a long established historyof operating in Norway and UK andengaging with the respec tive regula -tors. This experience has contributedto the early develop ment of philoso -phies and strategies to developdocumentation required to formallysubmit our AOC and Safety Caseapplications at the appropriate time.

Workforce involvementOne of the key aspects indeveloping a Norwegian AOC and aUK Safety Case is engagement withthe workforce. At this early stage ofthe basic design, there is obviouslyno dedicated operational crew toprovide input into the project.

We have therefore run a series ofworkshops with a cross section ofour onshore and offshore staff inattendance. The first workshop washeld in January 2012 and focusedon a review of the contract generalarrangements. Comments from thisexercise have been captured andare being tracked as basic designmoves to detailed design.

Representing over 200 years of experienceThe Safe Boreas project team isgrowing rapidly in order to copewith the challenges of verifying the basic design in order to ensurea smooth transition with the detaildesign phase. The team is com -posed of experienced members with broad international experience.

The Safe Boreas project will be a demanding project and it is ofparamount importance that weensure that the different projectmembers and their competencescomplement each other. SinceJanuary 2012, 15 members havebeen mobilised, representingProject Management, EngineeringManagement, Administration,Documentation Control and allEngineering disciplines. In total,they represent over 200 years ofexperience!

Being located in Jurong Shipyard,the project team is very close to the shipyard’s project team, andtherefore to the action. Our highlyskilled engineers are currentlyfocused on reviewing basic designdeliverables, challenging the

Prosafe is building the Safe Boreas, which will be the most advanced and efficientsemi-submersible accommodation rig in the world. Our new build will beconstructed for operations in the North Sea’s harsh environment.

Building the world’sbest accommodation rig

The Safe Boreas will be the most advancedand efficient harsh environment accommo da -tion rig in the world and will be construc t edto comply with Norwegian regulations.

13

shipyard and its sub-contractor GVA rationales and assisting insolution finding process when wefeel it is necessary.

With this turnkey project configu -ration, the right balance must befound between a passive, but

effective verification and a morepro-active approach of solvingengineering problems. Procure -ment, construction and commis -sioning matters will be addressed at a later stage this year. Right nowwe are focusing on approvingdrawings, philosophies and

calculation notes, thereby ensuringthat we lay the best possiblefoundation for the future success of the project.

Below, you can meet some of theproject team members.

The project team: From left to right: Romain Dejean (Project Engineer), Mike Young (Lead Electrical & DP), George Paterson (EngineeringManager), Yann Goazou (Project Manager), Lawrence Toh (Doc Controller), Ian Young (Director of HSEQ), Jason Goodmund (LQ Project Engineer),Noralisa Majlam (Lead Doc Control), Eric Henneville (Lead Structural Engineer), Richard Massey (Lead Mechanical and Marine Systems Engineer),Sonia Mohamed (Project Administrator), Amos Ong (Mechanical Engineer), Argyll Villasin (Structural Engineer), Cynthia Tang (Doc Controller).

George Paterson (50)Position: Engineering Manager/ Deputy Project ManagerNationality: British

BackgroundI joined the Ministry of Defence (MoD)working at Rosyth Royal Dockyard in1978 as an apprentice Mechanical/Engine Fitter and transferred toBabcock Inter national Group in 1989,before joining Prosafe in 2012. I tookevery opportunity presented forfurther education and careerdevelopment, and progressed fromapprentice, through technical planner,to Mechanical Design Engineer beforemoving into management where I waspromoted from Design SectionManager to CVF Group Manager andultimately to Senior Project Manager.

I managed many projects for the MoDand commercial clients in a variety ofindustries from civil engineering projectsuch as Heathrow Terminal 5 andBirmingham Joint Venture Hospital tomarine projects covering ship refur -bishment, life extension, conversion and

new build. I have worked indirectly forProsafe on secondment from Babcock onseveral occasions, including the Regaliarefurbishment project Rotterdam.

Responsibilities I am responsible for managing, coordina -ting and verifying that all technical docu -ments and drawings are in accordancewith rules, regulations and contractrequirements.

I manage the attendance of all criticalFATs and am responsible for managingthe engineering team, ensuring that allcon tractual engineering obligations aremet. Other tasks are managing, coordi -nating and verifying that all procure-ment tech nical specifications areconforming to regulatory and Prosaferequirements, verification and accep -tance of proposed vendors, answering/raising technical queries and monitoringcontractors’ engineering plans.

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Amos Ong (33)Position: Mechanical EngineerNationality: Singaporean

BackgroundI started my professional career with PPLShipyard Pte Ltd as a Mechanical Com -missioning Engineer and later as ProjectSuperintendent. During my time in PPLShipyard, I was involved in several jack-up and two semi-submersible rig projects.I went on to join Awilco Offshore Semi AS(now known as COSL Drilling Europe AS)for three new- build semi-submer sibledrilling rigs in China. I have also workedfor Skeie Drilling & Produc tion duringthe construction phase of the three N-Class jack-up drilling rigs at KeppelFELS.

I joined Prosafe for the Safe Astoriaupgrade project in 2011, prior to joiningthe Safe Boreas project. The Safe Astoriaupgrade project has been a success notonly to Prosafe but to me, as I made

many good friends and gained goodinsight into how Prosafe functions in the opera tion aspect, which I am surewill be useful for the Safe Boreas project.

Responsibilities My role in the Safe Boreas project is toensure that the rig is built to meet theproject specification by reviewing andverifying the documents (drawings,procedures, etc.) from the yard andvendors, attending FATs, site acceptancetests and commis sioning.

I am also responsible for reviewing andverifying that all associated class com -ments and responses are satisfactorilyclosed by the yard. I will also providefamiliarisation and handover tooperations personnel.

Noralisa Majilam (32)Position: Lead Document ControllerNationality: Singaporean

BackgroundI have 12 years of various workingexperience covering office admini -stration & management, generalaccounting and auditing, and generalrecruiting administration.

I started off with assisting the DCCDepartment for TPG500 Platform andhence found my forte in DocumentControl. Since then, I have mainly beeninvolved in project documentation ofjack-up drilling units. The last project Iwas involved in was in Shanghai, China,in the XDS3600 Drillship Design Stage.

With good, experienced mentors I havehad from various nationalities, I havelearned that nothing is impossible

unless you have tried and tested it.Working with many different nationa -lities, cultures and making many goodfriends along the way.

ResponsibilitiesI am responsible for development,maintenance and control of documen -tation coming in and out of engine eringoffsite files and engineering library, andfor the development, implementationand control of systems for entering andlocating documen tation information.

I provide assistance to project individualsin setting up project files so they can beeasily integrated into the engineeringfiling system at the end of a project.

Mike Young (49)Position: Lead Electrical and DPNationality: British

BackgroundI qualified in Electrical and Electro nicEngineering from Inverness TechnicalCollege in 1983. Further to completingmy training, I was involved in variousOil and Gas construction projects before joining a drilling contractor in the North Sea.

I then joined the Poly Concord (now SafeHibernia) as Chief Electrician in 1994,worked onboard Safe Britannia in 1997and went on to spend several yearsonboard Prosafe units based in the Gulfof Mexico. On leaving Prosafe, I haveheld project positions on new build unitsin Korea, Singapore and China.

I went on to join Blade Offshoreservices as their electrical systems

specialist and was involved in many DPnew build/upgrade projects, completingdesign verification, compiling FMEA’sand acceptance work on behalf of theowners or clients.

I joined the Safe Boreas project teamfrom my previous role as a DP/FMEAconsultant.

ResponsibilitiesI am currently responsible for reviewand acceptance of all the DP3 relatedelectrical systems for the Safe Boreasproject, which includes HV/LV electricaldistribu tion, power managementsystem and dynamic positioning system. All the systems have to comply with DNV,NMD and NORSOK rules.

15

By Mark Arlow, Vessel ManagerRegalia

If not handled correctly, even thesmallest fire on a rig can quicklygrow out of control, putting thelives of the crew at risk. Training of our personnel is essential inorder to ensure that the crew actsas a team, instinctively doing theright things.

As all our personnel have emergen -cy response functions, we have tocomply with the mandatory require - ments for approved training courses.With regards to fire-fightingtraining, depending upon theindividual crew member’s roles andresponsibilities, our personnel mayattend Fire Team Member, FireTeam Leader and Helideck FireFighting courses. These courses areheld at various OLF and OPITOapproved training establishments,at regular and prescribed intervals.

However, over the years, it hasbecome a commonly held view thatbeing in full compliance with thetraining matrix will “tick the box”

with regards to industry require -ments, but doesn’t ensure effectiveteam management. The refreshertraining was generally disjointedand sporadic, as it was held atvarious training establishments witha collection of strangers from allacross our industry, at intervals thatwere determined by the anniversarydate of each individual’s last course.

Training an entire crewWhen this topic was discussed atonboard safety meetings and at

exercise debriefs, it was regularlysuggested that we should send anentire crew to a “hot” fire exercise.Therefore, we made some enquiriesto various training establishmentslooking for a training course thatwould meet our specific require -ments, but which would also beauthorised to issue OPITO and OLFcertification.

Regalia’s Safety Officer Bob Eddontook ownership of this task andmade contact with the Interna -

Prosafe is committed to working actively to avoid injuries and accidents. We also place great emphasis on training on how to handle incidents andminimize their impact if they should occur. Recently, Prosafe has taken a new approach to training related to fire-fighting.

A new approach to fire-fighting training

The exercise commences with a high impact helideck crash that ruptures the fuel tanks. This is initially tackled by the helideck team with back up support from one of the fire teams.

16

tional Fire Training Centre (IFTC),which is located at Teesside airport.For practical fire training, they haveone of the most extensive andcomprehensive fire traininggrounds in the world, and delivertraining to the aviation, offshore,maritime and petrochemical sectors.With the fire training groundlocated next to the airport and alsoa large hotel, this facility met allour requirements.

Last year we arranged for theinstructors from IFTC to attendRegalia when we were operational

at the Valhall Field. This enabledthem to see for themselves how ourvessels operate, how our onboardemergency response is set up andhow we manage our fire teams.

Following on from this, a three-daycourse was organised: the first twodays ensured that all OLF andOPITO certification was refreshed,and on the third day bespokescenarios were set up. The exercisesincluded a high impact helideckcrash, an accommodation fire and a fire in a complicated machineryspace with multiple casualties.

These exercises were prolonged andextensive. They built upon the firsttwo days training, and were deli -berately designed to incorporate allaspects of emergency response.The fire teams faced authenticconditions including intense heat,smoke and flames. This requiredmultiple Breath Apparatus (BA)teams to be committed simultane -ously, with numerous changes ofbreathing apparatus.

Successful completion of theexercises required effective teammanagement and communication,

The Bridge Control Team coordinating the emergency response.

A BA team are committed to search the accommodation for missing personnel whilst the Fire Team Leader, assisted by the BA Controllercoordinates handover of information between the BA teams.

17

and also an appreciation of when anintense fire situation may be beyondthe team’s abilities, i.e. the situationhas to be contained and isolated,rather than tackled head on.

Following the overwhelmingpositive feedback from last year’strail course, further courses havenow been held this year for allRegalia and Safe Scandinavia crews.

The feedback from the Regalia andScandinavia crew members whohave attended the course isoverwhelmingly positive.

The effectiveness of the emergencyresponse function has undoubtedlyimproved as the team has animproved understanding of theirown strengths and weaknesses,particularly with regards to• aptitude for front line BA duties• organisational skills• communication skills• cooperation • improved performance bymatching individual strengths tothe required tasks.

In summary, we feel that we havedefinitely improved the team

dynamics and the effectiveness ofour emergency response, and thatwe are much better prepared tohandle fires and minimize thedamage they may cause for peopleand assets.

Whilst the team is searching the accommodation, spilled helifuel from the ruptured tanksignites causing flame flashover in the Heli-Admin area.

Safe Scandinavia team members being briefed by their Team Leader.

Feedback from some of the participants

“Combined Fire Team TrainingDay was extremely beneficial.The crew’s determination andprofessionalism ensured successagainst challenges that wererealistic, in arduous conditions.120% effort and commitmentdemonstrated by all.”

Cameron Mew, HSEQ Manager

“It seems that each trainingestablishment has a differentapproach to fire fightingmethods whilst staying withinthe OLF and OPITO guidelines.However, by all crew attendingthe course as a team, we arebeing taught the same methods;definitely the way forward infuture.”

Regalia Crew

“I wish we could deliver courseswith crews like these guys everyweek.”

International Fire TrainingCentre Instructor

“All crew members were knownto each other, the impact on theexercises was immediate andteam work established rightfrom the start. This does nothappen when we go to coursesindividually.”

Regalia Crew

“I got more from this coursethan any other fire courseattended.”

Regalia Crew

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By Cecilie HellandOuff, Finance and IR Manager

Recent strong order intakeFrom the graph below, we see apositive trend for the order backlogin the first quarter of 2012. Thepositive trend from the first quarterwill continue in the second quarter.So far in the second quarter, a grossorder inflow of almost USD 300million has been awarded, withfirm order inflow being around USD240 million. The order intake in thesecond quarter relates to contractsawarded for North Sea operations.

Contract statusBased on recent contract awards,we see that future rig utilisation isfilling up in the North Sea for thenext couple of years. Regalia iscurrently operating for Talisman inNorway and is scheduled to moveto the Shell operated Draugen fieldin 2013. After a Special PeriodicSurvey (SPS) in early 2014, the rig isscheduled to commence a five-month contract for Statoil withinFebruary 2014.

Safe Scandinavia is currently opera -ting for ConocoPhillips in Norway.After a SPS to be completed earlyin 2014, Safe Scandinavia isplanned to commence a nine-month contract for Statoil inNorway within March 2014.

Safe Caledonia is at the Remontowayard undertaking a life extensionproject due for completion in thefourth quarter of 2012. The rig hasa 15-month firm contract with BPin the UK starting around year-end2012. Thereafter, the rig has aneight-month firm contract withNexen in the UK commencing May-July 2014.

Safe Astoria has a 150-day contractwith Woodside in Australia thatcommenced in May 2012. The rigalso has a nine-month contract forShell in the Philippines commencingwithin Q2/Q3 2014.

Safe Concordia is working on athree-year contract with Petrobrasin Brazil. The contract expires inMay 2014.

Safe Esbjerg is currently idle and ismarketed for work.

Six of Prosafe’s rigs are on bareboatcharters in Mexico for end-userPemex. The rigs have firm contractsas follows: Safe Hibernia untilDecember 2013, Safe Lancia untilend-December 2012, Jasminia untilend-December 2012, Safe Britanniauntil mid-January 2013, SafeBristolia until end-March 2013 andSafe Regency until beginning ofAugust 2013.

The activity level in the accommodation market has gradually improved since2009. In 2011 we saw activity picking up, especially in the North Sea. Based onthis development we initiated our new build program as part of our long-termstrategic target of maintaining or increasing the market share within the highend of the offshore accommodation industry.

Strong order intake andgood outlook for 2012-2014

Order backlog.

20157%

201238%

201319%

201436%U

SD m

illion

0

100

200

300

400

500

600

700

800

900

1000 OptionFirm order

Gross order inflow of almost USD 300m so far in Q2

2008 2009 2010 2011

19

OutlookThe demand in the North Sea isdriven by high maintenance activity,modifications, tie-backs andredevelopments. Despite the highnumber of contract awards thisyear, the North Sea demand indexshows somewhat lower activity nowthan in the third and fourth quarterof last year. The overall level is,however, strong. Last year therewere several large discoveries,which is positive for the long-termactivity level in the region.Consequently, the outlook foraccommodation services over thecoming years appears positive forthe North Sea.

Demand for semi-submersibleaccommodation rigs in Mexico hasbeen stable since the late 1990s andis anticipated to remain stable overthe coming years. The accommo -dation rigs are essential in assistingPemex with maintenance andconstruction projects in order tokeep up the production level at theCantarell and nearby fields. In thelonger term, there is potentialdemand in connection with newdevelopments in deeper waters.

In Brazil, demand currently comesfrom the Campos basin wheresafety and maintenance units areassisting in connection withmaintenance and upgrade of FPSOs

and fixed installations. Longer term demand from other basins isexpected to increase in line withanticipated growth in maintenanceand modification activities.

Traditionally, accommodation rigshave not been widely used inSoutheast Asia and Australia. The market in this region is still frag mented, but there has been a positive development for accom -mo dation rigs in the region, andProsafe has recently announced twocontracts in Southeast Asia/Australia.Demand for semi-submersibleaccommodation rigs in the region isexpected to be higher in the comingyears than it has been in the past.

There are currently two semi-submersible North Sea compliantaccommodation rigs underconstruction. Safe Boreas, owned by Prosafe, will be suitable foroperations in Norway and will bethe most advanced accommodationvessel in the world. The rig will bedelivered in the second quarter of2014. Floatel Victory, owned byFloatel International, will becapable of UK operations anddelivery is scheduled for the firstquarter of 2014. Furthermore,Floatel International has announceda Letter of Intent to build aNORSOK compliant rig, withdelivery in the second quarter of2014. These three rig additions willincrease the number of semi-submersible accommodation rigscapable of year-round operations in the North Sea from six to nine.

All in all, the market for semi-submersible accommodation rigs is likely to be tight for the nextcouple of years. The visibilitybeyond the next three years is, asusual, more limited. The new NorthSea rigs entering the market in2014 and potential new builds mayaffect the demand/supply balancenegatively. With increasing fieldlife, ageing infrastructure and newlarge discoveries, it is expected thatdemand will remain robust andgrow in the long term.

North Sea demand index - Based on firm contracts, extension options, projects in thetendering phase and prospects for the next 36 months. Index based on number of days indemand. Q4 11 = 100. Source: Prosafe

Contract status.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Safe Boreas

Safe Scandinavia

Regalia

Safe Caledonia

Safe Bristolia

Safe Astoria

Safe Concordia

Safe Esbjerg

Safe Hibernia

Safe Britannia

Safe Regency

Safe Lancia

Jasminia

Contract Option Yard

110

100

90

80

70

60

50

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

65 6764

70

81 79

90 91

76 78

101 100

90

Prosafe SEStadiou Street 126CY-6020 LarnacaCyprus

By Karine Cosemans,Communication and BrandingManager

Attendance reached a 30-year highof 89,400, which is up 14% fromlast year. There were a total of2,500 exhibitors who represented46 countries.

OTC is spread over a huge surfacearea (641,350 ft²) and four differentexhibition halls; Reliant Centre,Reliant Arena, Reliant Stadium andan outdoor pavilion. Prosafe was

allocated a booth in a remote partof the Reliant Arena.

In order to ensure that as many as possible people would find ourstand and learn more about Prosafeand our services, we decided to alsoexhibit with a smaller stand in theUK Energy Industry Council Pavilionlocated in the Reliant Centre, whichis the most visited hall.

Visitors to our stands were given apresentation of our fleet, services,experience and skill sets. Many

visitors expressed that the accom -modation rig concept was new tothem and that they thought it wasa clever solution for companies inneed for additional accommodationoffshore.

There was also great interest in ournew build, the Safe Boreas, and inour operations in Brazil where weare operating gangway-connectedto a weathervaning FPSO - anindustry first.

From 30 April – 3 May, Prosafe exhibited at the Offshore Technology Conference(OTC) in Houston. OTC is the world’s largest meeting place for representativesfrom the offshore oil and gas industry.

OTC Houston

Prosafe´s stand in the Reliant Arena.Commercial Director Ryan Stewart (left), giving an update on Prosafe’s activities.