willbros hse&s 2010-2011 annual report

20
HSE&S 2010–2011 Annual Report Living the Values

Upload: willbros-group-inc

Post on 29-Nov-2014

2.235 views

Category:

Business


1 download

DESCRIPTION

http://www.willbros.com/About/HSE-Vision-329.html The content of the report has been influenced and shaped by a number of factors, including: • Our Values • Our Safety Vision • Engagement with Willbros stakeholders • Alignment, as practical, with Standards and Guidelines (for example, Global Reporting Initiative)

TRANSCRIPT

Page 1: Willbros HSE&S 2010-2011 Annual Report

HSE&S 2010–2011 Annual Repor t Living the Values

Willbros 2010-2011 Annual Report_final.indd 1 5/23/2011 4:33:59 PM

Page 2: Willbros HSE&S 2010-2011 Annual Report

– 2 –

Table of Contents

About Willbros . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Willbros Values and Safety Vision . . . . . . . . . . . . . . . . . . . . . 4

CEO Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Business Segments Overview . . . . . . . . . . . . . . . . . . . . . . . . . 6

Leadership . Excellence . Accountability . Compliance . . . . . . . 6

Health and Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

HSE&S in Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Appendix I: Awards and Recognition . . . . . . . . . . . . . . . . . . 17

Our Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

About this report:Health and Safety, Environ-mental, and Security

Reporting period:2010 (Q2)–2011 (Q1)

Date of most recent report: 2009–2010

Reporting cycle: Annual

Boundary of the report: All countries, product service lines, and owned subsidiaries

Content: The content of the report has been influenced and shaped by a number of factors, including:• Our Values• Our Safety Vision• Engagement with

Willbros stakeholders• Alignment, as practical,

with Standards and Guidelines (for example, Global Reporting Initiative)

Printed on recycled paper

Willbros 2010-2011 Annual Report_final.indd 2 5/23/2011 4:34:05 PM

Page 3: Willbros HSE&S 2010-2011 Annual Report

Overview Willbros Group, Inc . is an independent contractor serving the oil, gas, power, refining and petrochemical industries, providing engineering, construction, turnaround, maintenance, life-cycle extension services, and facilities develop-ment and operations services to industry and government entities worldwide . Over the years, we have developed expertise and competency in solving some of the most challenging engineering problems worldwide . We have a global pres-ence, and the capability to pursue projects on six continents, where we have worked for many years . As we continue to grow, the philosophy of the company remains unchanged . Willbros is about people, innovation, challenging projects, and clear values . Clients know that wherever they are, or whatever language they speak, the Willbros name translates into “A Good Job On Time…Done Right!”

Willbros Group, Inc . is registered in Delaware and has its headquarters in Houston, Texas . The company’s common stock is listed on the New York Stock Exchange and traded under the symbol, “WG .”

About Willbros

– 3 –

Facts and Figures: • Founded in 1908• Released initial public

offering in 1996 • Engineered/constructed

over 200,000 km (124,000 miles) of pipeline

• Offers quality downstream specialty services that address life cycle spend

• Is a world leader in pipeline engineering and construction

• Is the go-to contractor for logistically difficult projects

• Provides full energy infrastructure services, extending its reach into the Utility Transmission and Distribution sector

Our Vision: To be a leading provider of diversified professional services including engineering, consulting, logistics, construction, and maintenance by addressing solutions for asset development and life cycle extension to the global infrastructure and government services markets

In more than a century of operation, we have worked on six continents . We have completed diverse projects for more than 400 clients in 60 countries .

Willbros 2010-2011 Annual Report_final.indd 3 5/23/2011 4:34:06 PM

Page 4: Willbros HSE&S 2010-2011 Annual Report

– 4 –

Our Values

Our Safety Vision

Willbros 2010-2011 Annual Report_final.indd 4 5/23/2011 4:34:17 PM

Page 5: Willbros HSE&S 2010-2011 Annual Report

– 5 –

Dear stakeholders:

Health, Safety, Environment, and Security (HSE&S) performance at Willbros is a key element of our business success in operational excellence and meeting client expectations . We fully understand that our reputation and safety implementation are valued by our clients and can be a major differentiator in contract awards . We know, too, that our operations have an impact on the communities in which we work and on the environment . By adhering to consistent standards on HSE&S, we believe our engineering designs, construction execution, and maintenance procedures are all directed at protecting the environment, offering a healthy workplace and, above all, emphasizing our key core value of delivering high-performance safety in everything we do .

I’m proud of our efforts on health and safety this year and realize that we have more work to do in HSE&S as we build for the long term . A fatality in our Canadian operations in March 2011 serves as a sobering reminder that no matter how good you’re doing, safety is always a work in progress . Our legacy business segments (Upstream and Downstream) continued a two-year performance improvement trend in Total Recordable Incident Rate (TRIR) . Each business unit is further entrenching our Management System into their ongoing business operations and risk management approaches . The cultural surveys we deployed (in cooperation with the University of Houston) across Willbros pointed us toward more things we can do to even further enhance the safety culture and subcultures across the organization . Our newest business segment, Utility T&D, was created when we completed the purchase of the InfrastruX group of companies halfway through 2010 . I am personally involved in integrating Utility T&D into our approaches to safety systems, culture, and organizational behaviors that we began transforming in the beginning of 2009 .

In 2011, I’ve challenged every business segment across the company to cut its TRIR in half and create safety metrics that provide a line of sight from the workforce to the senior leadership . It is my personal belief that even higher levels of safety performance lie in our future . When it comes to high safety performance, our employees and their families, our subcontractors, our clients, and the communities we live and work in deserve nothing less than “A Good Job on Time… Done Right!”

In this report, you will see how we manage our approach to HSE&S and are delivering our safety vision .

Randy HarlPresident and CEO

CEO Letter

Willbros 2010-2011 Annual Report_final.indd 5 5/23/2011 4:34:19 PM

Page 6: Willbros HSE&S 2010-2011 Annual Report

– 6 –

Brad MacLean, Vice President, Health, Safety, Environment, and Security

Leadership. Excellence. Accountability. Compliance.

At an enterprise level, Willbros created and deployed an integrated HSE&S Management System in 2009. In 2010, Willbros refined a performance assurance model for monitoring the effectiveness of the HSE&S Manage-ment System. In 2011, we will make further advances in HSE&S. This will be driven by the prominent role that safety plays in our new organization-wide Balanced Scorecard.

Our Business Segments

Upstream Oil & GasOur Upstream Oil & Gas business segment provides individual engineering, procurement and construction, or fully-integrated EPC, expertise (including systems, equipment, and personnel) to design, build, or replace large-diameter cross-country pipelines; fabricate engineered structures, process modules, and facilities; and build oil and gas production facilities, pump stations, flow stations, gas compressor stations, gas processing facilities, gathering lines, and related facilities . We also provide a broad array of engineering, project management, pipeline integrity, and field services.

Downstream Oil & GasDownstream Oil & Gas provides integrated, full-service specialty construction, turnaround, repair, and maintenance services to the downstream energy infrastructure market, which consists primarily of major integrated oil companies, independent refineries, product terminals, and petrochemical companies. We also provide services to select EPC firms, independent power producers, government entities, specialty process facilities, and ammonia and fertilizer manufacturing plants and facilities .

Utility Transmission & Distribution (Utility T&D)Utility T&D provides a wide range of services in electric power and natural gas transmission and, which includes comprehensive maintenance and construction, repair, and restoration of utility infrastructure .

Willbros 2010-2011 Annual Report_final.indd 6 5/23/2011 4:34:21 PM

Page 7: Willbros HSE&S 2010-2011 Annual Report

HSE&S Highlights:• A pipeline construction

team completed one million work hours without a recordable injury . This accomplishment began during the Midcontinent Express Pipeline (MEP) project in 2009, and continued through the Texas Independence Pipeline (TIPs), Bay Gas, and FEP projects.

• TOCO achieved a 10% reduction of hand and finger injuries over our 2009 performance .

• At end of year 2010, a Willbros Canada crew working within the Syncrude’s Base Plant completed 824 days with-out a recordable injury .

• Zero reportable spills

– 7 –

Health, Safety, Environmental, and Security (HSE&S) performance is a key element of our business success . Our goal is to lead our industry in HSE&S performance by using a performance-based HSE Management System that maximizes empowerment in our business units, with vision and governance at our enterprise level .

Leadership, excellence, accountability, and compliance are vital parts of a high-performance organization and underpin our commitment to operational excellence and meeting the expectations of our clients .

At the corporate level, we provide oversight using, among other things, a Balanced Scorecard, while the business segments are empowered with the flexibility to implement in accordance with the business priorities .

In 2010, each business segment was specifically and individually measured for performance in five areas: Measured total recordable incident rate (TRIR)

There was a continued multi year downward trend for the legacy Willbros businesses (to an enterprise TRIR of 0 .53) .

HSE&S Management System implementation According to our lead independent assessor “At the end of 2010, all business units are moving quickly toward integrating HSE&S decisions into ongoing business operations and developing structured and aligned management systems .”

Safety culture as measured by a perceptions survey The cultural diagnostics we used across Willbros pointed us toward important interventions that are allowing us to target areas and activities that can further enhance the safety culture across the organization .

Key self-identified safety risk reductions Each business unit is expected to identify safety risks that are particular to its risk profiles. Some of these included a focus on reducing hand and finger injuries, training for heavy equipment operators, total incident reporting, and defensive driving training .

Conformance to incident reporting and investigation performance standards Assessing our incident reporting and investigation has led to stronger reporting and enhanced capabilities of tracking corrective actions, trending incident root causes and sharing lessons learned .

Going forward, each business segment is further embedding our HSE&S Management System into its ongoing business operations and risk-management approaches .

In 2011, we will further sharpen our key safety performance differentiating tools, including:• Top-flight incident investigation methodologies• Enterprise-wide incident trending and tracking strategies• Cultural diagnostics and leading cognitive-based safety approaches

Leadership. Excellence. Accountability. Compliance.

Willbros 2010-2011 Annual Report_final.indd 7 5/23/2011 4:34:28 PM

Page 8: Willbros HSE&S 2010-2011 Annual Report

Health and Safety Our goal is to fulfill the promise we have made to ourselves, our families, our customers, and our communities to live the Willbros values in all that we do .

Our ApproachLeadership and CultureOur leadership and employees are committed to creating a safety culture that is motivated by an internal value for safety .

Our leaders are engaged and understand the importance of clear and visible commitment, strategy, and accountability for safety from the top . • In 2010, our senior leaders participated in four days of safety

leadership courses . • Premier Utility Services, a business unit in the Utility T&D Segment established

Executive and Employee Health and Safety Steering Committees . • The Project-200 Supervisory Safety Committee, consisting of foremen,

superintendents, and senior leaders in US Construction, developed the policy and procedures for its new field safety manual.

Our employees are empowered to create a strong safety culture that embraces safety as a core value . • Our 2010 safety culture assessment revealed key opportunities to improve our

safety culture across Willbros . These are now captured in action plans developed by each business segment .

In 2011, Willbros Canada launched its new employee recognition program to instantly recognize individuals who show commitment, dedication, and acts of safe behavior .

Systems and Standards We set the expectations for health and safety through a set of performance standards and each business unit is accountable for delivering results against the performance standards .

In 2010, we implemented Willbros’ global performance standards that contain the mandatory expectations of each business unit . During the year, we shared our lessons and best practices through our internal HSE&S network (“Extended Staff”), by conduct-ing whiteboard sessions on management system implementation and by gaining key insights to incident root causes using our root cause analysis system, TapRoot® .

Our PerformanceThe apparent 2010 spike in TRIR (see TRIR graph) was due primarily to the addition of the former InfrastruX group of companies many of whom have TRIR’s historically in the 3 to 4 range . We are integrating Utility T&D into our approaches to safety systems, culture, and organizational behaviors .– 8 –

Each and every one of us has a responsibility to ourselves, our family, our crewmembers, our customers, our suppliers, and our community to operate in the safest manner possible at all times.

Jim Gibson, Chief Operating Officer

Health and Safety

Our leaders visiting the job site (left to right: Harry New, Jerrit Coward, Randy Harl)

Willbros 2010-2011 Annual Report_final.indd 8 5/23/2011 4:34:32 PM

Page 9: Willbros HSE&S 2010-2011 Annual Report

– 9 –

Why “Stop Work” WorksCody Bailes

A superintendent, Cody Bailes, was leading a project in southern Louisiana . A client advised him that he could excavate an area it had designated based on existing alignment sheets . The client said that it was acceptable if the crew damaged any electrical lines because another crew would repair any damage . This attitude of “don’t worry, go ahead and work” did not sit well with Cody . Cody requested line locating . A live pipeline, not previously listed on any alignment sheet, was located and identified. Subsequently, the client shut down the project, realizing that they were not fully prepared for this project before allowing work to begin . These actions by Cody and the on-site Safety Coordinator illus-trate what all management encourages—the “Stop Work Obligation” when we see something that is not safe .

We are proud of many safety accomplishments:• TOCO, Muscat employees had zero lost-time or recordable incidents. • For the second consecutive year, Downstream Engineering did not have a

recordable injury .• Willbros Canada worked 3,474,100 hours between lost-time incidents.• Upstream Engineering worked 925,144 hours without a recordable injury.• Willbros and its subcontractors did not have a fatality in 2010. In February 2011

an employee was fatally injured in an equipment accident after his shift ended . From its investigation of the incident, Willbros is implement improvements to avoid future accidents . More information by contacting askhse@willbros .com

2008 2009

.97

0.71

2010 (6 mos UTD)

1.53

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

Total Recordable Injury RateTotal Recordable Injury Rate (TRIR)

Calculation: (total number of injuries and illnesses × 200,000) / (total number of work hours)

2008 2009

.140.12

2010 (6 mos UTD)

0.44

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0.50 Lost Time Injury Rate (LTIR)

Calculation: (number of lost time cases × 200,000) / (total number of work hours)

2008 2009

.58 .58

2010 (6 mos UTD)0.55

0.56

0.57

0.58

0.59

0.6

0.61

0.62

0.63

0.64

0.63

Axi

s Titl

e

Experience Modifier Rating (EMR)

Based on actual losses compared to expected losses for various payroll classifications

Willbros 2010-2011 Annual Report_final.indd 9 5/23/2011 4:34:39 PM

Page 10: Willbros HSE&S 2010-2011 Annual Report

– 10 –

2009 2010

2.69

0.32

0

0.5

1

1.5

2

2.5

3Vehicle Incident Rate

Performance Data (2009–2010)

Vehicle Incident Rate in 20092 .69

Vehicle Incident Rate in 20100 .32

In 2011, we will continue to focus on awareness and accountability in an effort to influence behavior behind the wheel .

Project Management Office and HSE&S In alignment with an organization-wide focus on project management excellence in 2010 (“The Year of Project Management”), the Corporate HSE&S Group in partnership with our Project Management Office (PMO) developed an enhanced Project-level Health, Safety, Environmental and Security Management Perfor-mance Framework. This framework is currently being deployed to our business units and provides the following to our project teams and clients:• Consistent planning approaches for project-level HSE&S activities• Clear and observable project safety leadership and behavioral expectations • Comprehensive HSE&S performance assurance systems and tools for

all our projects

Our commitment to reliably delivering high-performance HSE&S on all our proj-ects is one way that we’re operationalizing our Vision of making safety “… a key part of a high-performance organization .”

Vehicle and Motorized Equipment SafetyVehicle and motorized equipment safety is an area that poses a significant risk to our employees and subcontractors . We place an empha-sis on reducing risk to our employees and the public with whom we share the road every day .

2010 highlights • Willbros Engineering became an accredited training center for the

National Safety Council defensive driving program .• Willbros Upstream Construction deployed the new 360-degree walkaround

program for vehicles and motorized equipment .• Willbros Canada built upon its heavy-equipment training program and

developed 35 customized training manuals, which are make- and model-specific to the equipment we operate.

Next Steps in 2011 • Implement in-vehicle monitoring systems in additional business segments. • Reduce year-over-year TRIR by 50%. • Implement HSE&S Management System in 100% of the business segments.• Complete 2010 action plans for cultural interventions and resurvey. • Enhance enterprise-level incident trending (root causes and tracking).

Calculation: (number of incidents × 1,000,000 / Miles driven)

Business Segment data excluding Utility T&D

Vehicle Incident Rate

Willbros 2010-2011 Annual Report_final.indd 10 5/23/2011 4:34:46 PM

Page 11: Willbros HSE&S 2010-2011 Annual Report

– 11 –

SecurityWe are committed to providing a safe and secure work environment, both onsite and offsite . Our goal is to effectively manage security risks to our people, opera-tions, and assets .

Our ApproachWe take comprehensive steps to address potential threats to our projects around the world by: • Implementing a low-profile, high social engagement security model for our

personnel and project assets • Educating, training, and supporting our personnel for the scope and scale of

their security needs

Our partner, GardaWorld, provides professional services for risk-analysis-led security, consulting, and support, both domestically and internationally, and assists us in: • Working closely with our customers, local communities, and governmental

agencies to mitigate potential threats to company personnel and assets• Maintaining the highest international standards, strictly complying with the

Foreign Corrupt Practices Act (FCPA), the Anti-Corruption Convention adopted by the OECD (Organization for Economic Cooperation and Development), and the International Code of Conduct for Private Security Providers

Security

Latif Razek, Vice President, Middle East Operations

As tension in the Middle East has risen over the past year, we have found ourselves in a position where we implement-ed items in our Crisis Manage-ment plan; fortunately, as the alert state was raised, we were able to activate these precautionary measures:

• Ensured adequate transport was on standby to provide for a smooth transition to an evacuation point as and when required.

• Alerted our security vendor to ensure we received regular security updates

• Ensured standby country evacuation transport was put on standby.

Simply knowing that the company was reacting to the current situation went a long way toward providing assurance and preventing panic with our employees.

Willbros 2010-2011 Annual Report_final.indd 11 5/23/2011 4:34:47 PM

Page 12: Willbros HSE&S 2010-2011 Annual Report

– 12 –

EnvironmentOur mission of a “Good Job On Time…Done Right” includes a focus on environmental responsibility . We recognize that concerns about the natural environment are increasingly becoming a critical business issue for us and our stakeholders . Our business success relies on maintaining a high standard of environmental management .

Our ApproachResponsible OperationsWe work to minimize the impact of our operations on the environment through careful planning and collaboration with our clients by using a systematic approach and by maintaining a sharp focus on regulatory compliance .

Spills can damage the environment and put employees and communities at risk . We focus on spill prevention every day by making sure that our operations are safely operated and equipment properly inspected and maintained . As a result of this focus, we achieved zero reportable spills during 2010 .

We routinely look for ways to reduce energy consumption of our operations, facilities, and fleets:• Right-size fleet, logistics, and transport for projects and customers — We use dedicated experts and proprietary information systems to increase

utilization and efficiency of our fleet, streamline operations, and create cost savings . We plan, implement, and control the logistics of projects to ensure efficient flow and conform to client requirements.

• Energy efficiency in our facilities — In 2010, we created a baseline survey of energy and fuel for TOCO, these data

will be used to set future performance targets .

Environment

TOCO was the first construction company in Oman to be certified as ISO 14001 Environmental Compliant and as such we are committed to complying with these environmental practices, including the commit-ment to meet or exceed applicable legal and other governmental require-ments. Climate change, waste management, and energy use are global concerns and we will strive for continual improve-ment in our environmental management system.

Ali Zein (left), General Manager, Jerry Nealy (right) The Oman Construction Company (TOCO)

Award winning Green Camp at our Mukhaiza project in Oman .

Willbros 2010-2011 Annual Report_final.indd 12 5/23/2011 4:34:52 PM

Page 13: Willbros HSE&S 2010-2011 Annual Report

– 13 –

• Offices — In 2010, we continued flexible work programs to reduce

commute-related costs and energy use and to accommodate working families .

The energy sector is becoming increasingly concerned about water use as this resource becomes scarcer . In 2010, Willbros Oman completed an inventory of water use in its operations and facilities in order to better plan, manage, and allocate this resource in future operations .

Minimizing Environmental Impacts of ProjectsOur reputation has been built in part on our ability to provide construction and engineering services in logistically difficult and sometimes environmentally sensitive regions . We work with our clients to develop stringent operating practices that enable us to operate responsibly in these areas .

At the onset of a project:• Our environmental team assesses environmentally sensitive areas such as

water bodies and wetlands and develops plans to avoid or mitigate impacts . • We integrate environmental issues into decision making at the earliest

stages of project development .• We innovate with our customers to provide state of the art engineering

solutions to further minimize impacts and reduce emissions during the operating phase of the project .

During project construction, we manage the project for the efficient use of materials, resources, and energy . In Upstream Construction, we have assigned environmental staff on large-diameter pipeline projects who oversee environ-mentally sound operating practices . On smaller-diameter pipeline projects, where crew sizes are limited, we designate personnel for a similar role . And, we always follow through by monitoring practices to project completion . Our PerformanceIn 2010, we achieved the following key performance goals:• Zero reportable spills to governmental entities• Zero enforcement actions• Completion of baseline survey of energy and fuel use in Oman• Water use assessment in operations and facilities in Oman

Next steps in 2011• Complete implementation of The Oman Construction Company

ISO 14001 Environmental Plan.• Implement improved framework for environmental management in

Upstream Construction .

Performance Data

0Reportable spills to the environment in 2010*

0Environmental enforcement actions in 2010*

* Represents Upstream and Downstream 2010 data .

We provide the skills and capabilities our customers need in developing alternative and renewable energy projects . In 2010, we began working on the BP Solar array project at the Brookhaven National Laboratory in Long Island, NY . The facility provides up to 32 Megawatts of energy to the Long Island Power Author-ity Grid–enough for 4,500 homes . Generating electricity from the solar cells instead of hydrocarbon fuels prevents the production of 30,950 metric tons of carbon dioxide a year .

Willbros 2010-2011 Annual Report_final.indd 13 5/23/2011 4:34:59 PM

Page 14: Willbros HSE&S 2010-2011 Annual Report

– 14 –

Case Study: Utility T&D integrates its HSE&S efforts in Willbros’ performance-based system. Willbros’ Utility T&D segment spent the last half of 2010 becoming a part of our HSE&S community . The HSE&S integration efforts focused principally on three areas: a cognitive-based Safety Leadership program, incident investigation (e .g . TapRoot®), and familiarization with the performance-based system . Each business unit within the segment is currently working on establishing a management system that meets the requirements of Willbros’ performance standards . They have four internal TapRoot trainers and at least one individual specifically trained in TapRoot for each business unit . They have established a working group comprised of a business safety direc-tor in order to share best practices and gain synergies in establishing procedures and training .

HSE&S in Action

Case Study: Downstream wins Marathon’s “Green Vendor” certificate for being environmentally responsible.In 2010, Willbros Downstream was recognized by Marathon Petroleum Company’s Illinois Refining Division for being environmentally responsible, resulting in a “Green Vendor” certificate. Our environmental practices of recycling steel, plastic, universal waste, and paper were acknowledged .

The objective of Marathon’s “Green Vendor” program is to share innovative ways to reduce water, energy, and chemical use throughout the supply chain . This certificate recognizes our commitment to environmentally responsible operations and symbolizes our team’s hard work and dedication to improving environmental performance . Innovative, effective, and efficient waste management benefits Willbros and all our customers . We are proud to be an environmentally conscious vendor, and we look forward to working similarly with other companies .

Willbros 2010-2011 Annual Report_final.indd 14 5/23/2011 4:35:03 PM

Page 15: Willbros HSE&S 2010-2011 Annual Report

– 15 –

Case Study: Upstream Construction reports successes for hours worked without a recordable injury.In 2010, many successes were made towards the goal for Total Incident Reporting (TIR) . Near-miss reporting increased, as we worked 1 .8 million work hours and reported 575 near misses . Employees worked safer and reduced our actual recordable injuries from 23 in 2009 to nine in 2010, including one spread of that completed one million work hours without a recordable injury . Employees who strived to work safer; who reported hazards, unsafe acts, and near misses; and who provided suggestions for safer work practices were acknowledged with Safe PIPE hats, Safety Leader hats, “Don’t Gamble with Safety” poker chips, and appreciation dinners .

Case Study: Canada develops training and certification program for heavy-lift operators.In 2010, Willbros Canada developed and deployed a consistent training methodology for heavy-equipment operator training and certification. Between January 2010 and January 2011, in partnership with ek pass, 70 operators were trained and certified in many equipment types. Thirty-five make-and-models – specific training manuals, customized to the equipment we operate, have been developed and are industry endorsed. For example, our side boom training and certification program, which Willbros Canada first began utilizing in 2007, meets the Sideboom Operator Training Standard sanctioned by the Canadian Energy Pipeline Association (CEPA) on January 12, 2011. This standard was developed at the request of CEPA members with the participation of knowledgeable and experienced industry and government stakeholders .

Willbros 2010-2011 Annual Report_final.indd 15 5/23/2011 4:35:10 PM

Page 16: Willbros HSE&S 2010-2011 Annual Report

– 16 –

Case Study: TOCO takes aggressive steps to recognize and eliminate at-risk behaviors. In 2010, TOCO focused on recognition and elimination of at risk behaviors and subsequent reduction of incidents . The results of the 2010 culture survey for TOCO indicated that we needed to increase our efforts recognizing and eliminating at risk behaviors . To help us achieve this, we took the following actions .

• We designed and implemented an ‘approaching others’ training course, intended to teach employees how to recognize hazards and unsafe acts and how to intervene when these were observed .

• We created and implemented a hazard ID picture card system, in which pictures of unsafe conditions were taken, filed and used during tool box talks and pre-task briefings.

• We modified our Safe Work Incentive Scheme to award points for employees who intervened during unsafe situations .

Willbros 2010-2011 Annual Report_final.indd 16 5/23/2011 4:35:17 PM

Page 17: Willbros HSE&S 2010-2011 Annual Report

– 17 –

Pat Clark (left) Winner, Chairman’s Award

John McNabb (right) Chairman of the Board, Willbros Group

Appendix I: Awards and Recognition

Internal2009/2010 Presidents’ Safety Awards and Chairman’s Safety Award Winners

These awards are given to a Willbros employee or team that has gone “above and beyond” with respect to safety . The key criteria for these awards are as follows: • Innovation/Learning/Continuous Improvement: The recipients are “change

agents” who have moved safety performance to a higher level within their spheres of influence. Perhaps, they have arrived at a new approach to solving a safety challenge, or they have taken the lessons of a safety failure to heart and used those lessons to change or create a new program, approach, or even a way of thinking .

• Making Safety Unconditional: The recipients have demonstrated that safety does not have different rules for different situations. Perhaps, they have stood up for a safe job when it was not easy to do so. Perhaps, they did something that put safety ahead of productivity when the situation called for it .

• Straight Talk on Safety: The recipients have shown that they are “ready, willing, and able” to wrestle with the tough questions on safety. Perhaps, they have had the conversations on safety that others have avoided. Perhaps, they have been willing to challenge conventional wisdom when no one else has .

• Sustainable Safety Solutions: The recipients have avoided the temptations of making the “quick fix” for a safety problem, but rather have fixed a problem in a way that allows it to stay fixed. Perhaps, they have focused on the underlying reasons for a safety issue and addressed its root causes—not merely its symptoms .

President Award Winners • George McFarlane: George is a superintendent in Sur, Oman .• John Rockafellow: John is a site manager for the Syncrude Aurora

site in Fort McMurray, Alberta, Canada.• Cody Bailes: Cody is a superintendent with US Construction in Houston, Texas .

Chairman’s Safety Award Winner • Pat Clark: Pat is a superintendent for Downstream, Construction Tank Services.

External• Willbros Canada, April 2010, from Shell Albian Sands Expansion 1 project • Willbros Downstream, October 2010, Green Vendor Certificate of registration

from Marathon Petroleum Company LP, Illinois Refining Division• Willbros Downstream Engineering, December 2010, BP Contractor Safety Award• Willbros Upstream Engineering, Occupational Excellence Achievement Award from

the National Safety Council

Appendix I: Awards and Recognition

Willbros 2010-2011 Annual Report_final.indd 17 5/23/2011 4:35:18 PM

Page 18: Willbros HSE&S 2010-2011 Annual Report

Our Values

We are committed to strong Leadership across the organization to achieve Excellence , Accountability, and Compliance in everything we do based on these Core Values:

• Safety – Perform safely every single time, for the protection of our people and stakeholders,

including our customers, suppliers, and the community – Every employee is empowered to stop any unsafe act

• Honesty and Integrity – Always do the right thing

• Our People – Respect and care for their well being and development – Maintain an atmosphere of trust, empowerment, and teamwork – Have the best people in the right position

• Our Customers – Understanding their needs and develop responsive solutions – Promote mutually beneficial relationships – Everything we do is with the customer in mind, externally and internally – Deliver a good job on time

• Superior Financial Performance – Earnings per share – Cash management – Strong balance sheet

• Vision and Innovation – Understanding our business environment – Imagination and creativity – Continuous improvement

• Effective Communication – A clear, consistent, and accurate message

– To our people, our customers, and the public

– 18 –

Our Values

Willbros 2010-2011 Annual Report_final.indd 18 5/23/2011 4:35:19 PM

Page 19: Willbros HSE&S 2010-2011 Annual Report

– 19 –

Willbros 2010-2011 Annual Report_final.indd 19 5/23/2011 4:35:21 PM

Page 20: Willbros HSE&S 2010-2011 Annual Report

Worldwide Headquarters4400 Post Oak Parkway, Suite 1000

Houston, Texas 770271-713-403-8000

May 2011

Willbros 2010-2011 Annual Report_final.indd 20 5/23/2011 4:35:21 PM