teekay petrojarl by guylaine rondeau design

SUSTAINABILITY RE PORT

KE Y FIGURES

2006

2007

2008

671.5

652.3

708.5

57.9 7 47.1 710

43.8 3 54.7 433

50.9 8 82.1 553

8.1 3 23.4 3.6 0 1,102 4,701

8.9 2 14.5 4.6 0 1,543 4,709

6.8 2 10.5 4.3 0 988 5,802

Organization Union membership (percent of workforce) Proportion of female employees (percent) Employee satisfaction (percent) (on- / offshore) 2

3 8 —

67.9 9 87/70

68.2 11 89/79

Operations Combined oil production (million barrels) Production utilization factor, PUF (vol percent of

32 93.6

32 95.2

27 94.9

IFRS 289,998 21,021 992 67,671 997,730 57,346 309,802

IFRS 277,354 4,395 (30,849) 66,000 970,678 54,900 263,755

US GAAP

Environment Total GHG (Greenhouse Gases) emissions (CO2 equivalents, thousand tons) Flaring (MSm3 ) Accidental discharges (number of) 1

Oil discharged with produced water (tons) Total amount of waste produced from Teekay Petrojarl FPSOs and tankers (tons) Waste reuse / recycling, offshore (percent) Health and Safety Total recordable injury frequency Lost time injuries High potential incident frequency Sick leave (percent) Fatalities HSE ideas Transfer of experience reports

system capacity)

Finance (numbers in thousand US dollars) 3 Revenues Operating income (loss) Net income (loss) E B I TDA Total assets Cash and cash equivalents Net interest bearing debt

320,848 (31,155) (62,395) 42,863 851,287 26,795 355,655

(1) Authority reported oil and chemical spills. (2) Result from employee survey 2007 and 2008. Surveys from previous years are not in comparable format. (3) 2006 and 2007 are IFRS ﬁgures for Teekay Petrojarl as a stand alone entity. 2008 ﬁgures are US GAAP for the Teekay Petrojarl business unit within Teekay Corp. and are as such not directly comparable.

Presidentâ&#x20AC;&#x2122;s Introduction 3

Safety 19

Facts & History 4

Health 22

Sustainability & C S R 6

Actions & Results 27

Environment 12

Abbreviations 28

CONTENTS

W I D E N I N G OUR SCOPE

In April 2008, the Petrojarl Cidade de Rio das Ostras, our fifth Floating Production, Storage and Offloading ( FPSO) vessel, began production on the Siri field on the Brazilian continental shelf. This is our first FPSO operating on a field outside the North Sea. At the same time we increased our focus on Corporate Social Responsibility (CSR ), as we recognise that wherever we operate we have an opportunity to contribute towards the local communities. In a time where a great deal of focus is on the global economic crisis we have not taken our eyes off the issues concerning global warming. Operating in the oil and gas industry we naturally face some challenges, one of which is to contribute to a reduction in global emissions while delivering energy to our customers. Teekay Petrojarl takes this responsibility seriously and will not compromise on our efforts to minimize emissions. We are pleased to see that our environmental efforts offer results. Even though we increased our greenhouse gas (GHG) emissions due to a new FPSO in operation, we managed to decrease the combined GHG from our other four FPSO units. Also in 2008, we continued to improve our understanding of sustainability and all our employees took part in discussions, completed questionnaires and prioritized areas relating to the company’s CSR , based on the Global Reporting Initiative (GRI ) parameters. In the coming years, as in the past, Teekay Petrojarl will be committed to good performance within all fields of the triple bottom line; economic sustainability, environmental excellence and our social responsibility.

PETER LYTZE N

Teekay Petrojarl | p 3

President & CEO, Teekay Petrojarl

FACTS & H I STO R Y

T E E K AY P E T R O J A R L

Teekay Petrojarl is the largest operator of Floating Production, Storage and Offloading ( FPSO ) vessels in the North Sea. With a combined production capability of 350,000 barrels of oil per day and a crude storage capacity of more than one million barrels, we have a long, proven track record in safely operating FPSO vessels in one of the harshest marine environments in the world. T E E K A Y C O R P O R AT I O N

Teekay Corporation transports more than 10 percent of the world’s seaborne oil, has built a signiﬁcant presence in the liquefied natural gas shipping sector through its publicly listed subsidiary, Teekay LNG Partners L.P. ( NYSE : TGP ), is further growing its operations in the offshore oil production, storage and transportation sector through its publicly

Norwegian and two on UK continental shelves, in addition to one on the Siri Field off the south-eastern coast of Brazil. Our operating fleet also includes two shuttle tankers (Petronordic and Petroatlantic), one storage tanker (Apollo Spirit) and a 40 percent ownership in the FPSO Ikdam, operating offshore Tunisia.

listed subsidiary, Teekay Offshore Partners L.P. ( NYSE : TOO ),

Our head office is in Trondheim, Norway and we have

and continues to expand its conventional tanker business

operations ofﬁces in Macaé, Brazil and Aberdeen, Scotland.

through its publicly listed subsidiary, Teekay Tankers Ltd. ( NYSE : TNK ).

In essence we : are the largest operator of Floating Production Storage

With a ﬂeet of over 195 vessels, ofﬁces in 17 countries and

and Offloading ( FPSO ) vessels in the North Sea

more than 6,700 seagoing and shore-based employees,

operate five FPSOs

Teekay provides a comprehensive set of marine services to

started producing on our first FPSO outside of the

the world’s leading oil and gas companies, helping them

North Sea in April 2008

seamlessly link their upstream energy production to their

operate two shuttle tankers, serving the Foinaven

downstream processing operations. Teekay’s reputation

operations

for safety, quality and innovation has earned it a position

have 650 employees on- and offshore

with its customers as The Marine Midstream Company. Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol “TK”. Teekay Petrojarl | p 4

Teekay Petrojarl owns and operates five FPSOs – two on ��

THE FLEET

Teekay Petrojarl has been an FPSO contractor since 1986 and we have operated on 15 different fields in some of the industry’s harshest environments. Our FPSO fleet is one of the most advanced in the world.

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W H AT I S A N F P S O ? FPSO stands for Floating Production, Storage and Off-

loading. An FPSO is built to process oil and has facilities

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for gas lift and gas / water injection into the reservoir. An FPSO system is an offshore production facility that is typically ship-shaped and stores crude oil in tanks located in the hull of the vessel. The crude oil is periodically

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offloaded to shuttle tankers for transport to shore. ��

FPSOs may be used as production facilities to develop

marginal oil fields or fields in deepwater areas remote ��

from the existing pipeline infrastructure.

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S U S TA I N A B I L I T Y & C S R

C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y

A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. The European Commission’s definition

Corporate Social Responsibility is another widely defined term, but is essentially about managing business processes and at the same time having an overall positive impact on society. It ties closely into sustainability as the two can support us in the direction towards a better future for S U S TA I N A B I L I T Y

the generations to come.

The property of being sustainable, the condition

The term “triple bottom line (also referred to as TBL, 3BL,

where human activity may be continued indeﬁnitely

or “people, planet, proﬁt”) captures an expanded spectrum

without damaging the environment and where the

of values and criteria for measuring organizational (and

needs of all peoples are met equally.

societal) success : economic, ecological and social. We refer

Karbon-Neutral Ltd’s definition

to it as a commitment to corporate social responsibility

The word “sustainability” means a number of things. It touches upon environmental awareness, care for societies, financial and technological responsibility. At Teekay Petrojarl, sustainability means all of the above, including the ability to contribute in areas where we operate, and to share our knowledge and experience where we can. This is becoming increasingly important as we start to operate in different parts of the world, where there might be a lack of infrastructure or where

Teekay Petrojarl | p 6

other social challenges are prominent.

and it implies a commitment to our TBL reporting, which is this Sustainability Report.

S U S TA I N A B I L I T Y & C S R

CHARITY

A charity committee awards donations and sponsorships, both locally, nationally and internationally – twice a year. The main contributions are given where we operate; in Norway, UK and Brazil. In 2008 our main recipients were the two organizations CARE and MOT . These were chosen by the charity committee by election, based on suggestions from employees. It is essential that the organizations have a good reputation and are able to prove that contributions are used in a constructive way. CARE is a well reputed worldwide charity that Teekay WHY WE CARE

Petrojarl donated 100,000 NOK to in 2008. The contribu-

CSR has become increasingly relevant to Teekay Petrojarl

tion was earmarked for Brazil where CARE runs several

with operations in new areas, such as Brazil where the

initiatives, especially aimed at creating positive role models

social differences are much more apparent and dramatic

for young people in deprived areas.

than in both Norway and the UK where we have operated for several years. We want to help charities and initiatives that are put forward by Teekay Petrojarl employees, as we believe this is our duty as well as a source of great pleasure both on the end of the receiver and for us, being able to see the joy of the recipients and how they can put the contributions to good use. However, much more than charity donations are on the agenda.

The Norwegian organization MOT also received 100,000 NOK and it was an emotional MOT representative who came to the Trondheim office to tell the story of MOT and to share how they planned to use the money to

continue their work targeted at young people. The actual word MOT has two meanings; it means “against” and it means “courage”. MOT is working to give young people the courage to stand up against different pressures they may encounter.

Teekay Petrojarl | p 8

PUTTING OUR MONEY WHERE OUR MOUTH IS

We have also established local charity contributions in

Our ways of considering CSR and sustainability are wide-

Brazil because it is vital to Teekay Petrojarl that our local

ranging, including charity contributions, investing in

employees are involved when we choose the activities

training, developing people, and offering opportunities

and projects we wish to support. Being in the area they

to those with special needs. We also seek involvement

have unique closeness and opportunity to actually see

from all employees on CSR priorities through surveys and

where support is most needed.

by encouraging reflection on CSR issues.

T E E K A Y P E T R O J A R L’ S C S R S U R V E Y

The CSR survey aims to fulﬁl two purposes; to increase the company’s focus on sustainability issues, and to reveal the employees’ advice to management on the way forward. For Teekay Petrojarl it is essential to receive input on

Brazil has the highest rate of social inequality in the world

what our employees think CSR should be, creating real

– the wealth of the richest one percent of the population

ownership throughout the organization.

is equal to the combined wealth of the poorest 50 percent.

In 2008, we asked everyone on- and offshore, to rate

The drop out rate from education is high and in some parts

what they think the main priorities in terms of CSR should

surrounding the big cities, children and young people live

be for Teekay Petrojarl. Responses received indicated

under conditions of extreme violence and without proper

that what is considered the most relevant focus areas for

sanitary systems and clean drinking water.

the company are :

CARE started “Educating Communities” in 2006 in order to

Amounts of waste

remove the stigma that poor young people were indifferent

Education to families on serious diseases

and doomed to an uneducated life of poverty. Through

Investments into research and development

positive role models they give hope and pride to pupils.

Evaluation of contractors according to CSR criteria

Over the last three years, approximately 350 school pupils have become leaders in this program, promoting reading amongst their peers, encouraging recycling, and producing

It also indicated that geographical and age-distribution between employees is not a main concern.

videos, articles, photos and plays about the history of their

Proposals on how to approach the issues will be presented

community and region. To date, around 4,000 children and

to the Senior Management Team in 2009 and further

adolescents have been involved in the programme.

actions on the basis of that will be decided.

Teekay Petrojarl | p 9

CARE IN BRAZIL

F R O M A T R A I N E E â&#x20AC;&#x2122;S P O I N T O F V I E W

I have always had a great interest in oil production and in 2005 I contacted Nils Johannessen, the person responsible for HR at Teekay Petrojarl, to apply for the open learning course in Petroleum Processing Technology. Fortunately, PEOPLE OPPORTUNITIES

Nils gave me the go ahead and only 18 months later I had

Another aspect of building a sustainable business is our

successfully completed the course.

effort to employ trainees on all our vessels. This is a part

In October 2008, I was given the opportunity to start in a

of our ambition to teach the next generation of offshore

new position as Trainee Production Operator on the

workers what we believe are the real and important

Petrojarl Foinaven FPSO. I felt the open learning course had

values in our industry and secure good experience transfer

definitely given me a head start in my new role. However,

not only of technical skills, but of the HSE-culture.

there are so many aspects to this job that go far beyond

In the offices we aim to include and adjust for special

the contents of the course and I was very excited about

needs of disabled employees.

this new challenge. The onboard training scheme that Teekay Petrojarl provides,

Our efforts will continue in 2009 as we take our experiences and increased knowledge to develop further in the interesting and rewarding fields of sustainability and CSR. Our development, achievements and results will be

documented in the 2009 Sustainability Report.

assures that I am given adequate time to learn the process system and no pressure is put on me until I feel confident enough to take on the specific tasks I am required to carry out at the end of the training period. This creates a positive and enjoyable learning environment. My colleagues are always very helpful, showing me all the process equipment and explaining to me how various systems operate. They are always willing to pass on their knowledge and to answer the many questions I have. I have also attended several additional training courses relevant to my work, which gave me the opportunity to gain further useful information. With the much appreciated help from my colleagues and management, I will complete my training on schedule. Already now, I can say that this has been a fantastic experience and that the training course on Petrojarl Foinaven has given me a solid foundation for a technical career in oil production which I am hoping to pursue. DAV E F R A S E R Trainee Production Operator, Petrojarl Foinaven

Teekay Petrojarl | p 11

LOOKING FORWARD

E N V I RON M E N T

“ Nobody made a greater mistake than he who did

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nothing because he could only do a little.”

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Edmund Burke, political thinker

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We do more than a little, but we also appreciate that every little bit helps. When considering the environmental results, the numbers and figures presented in this report offer a picture of the overall development. In addition, a

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number of other activities such as reducing printing at

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ofﬁces and substituting thruster oil on the FPSO Petrojarl I ��

with a more environmentally friendly type, also contribute

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towards making a long-term positive impact on reducing waste and emissions.

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AT M O S P H E R I C E M I S S I O N S

valent emissions) from Teekay Petrojarl’s total operations

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started producing in 2008, taking the number of FPSOs

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from four to five. If we compare the emissions from the

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To give a picture of how energy efficiently we run our operations we can look at the speciﬁc GHG emissions per liquids treated, where liquids treated refer to both oil equivalents produced and the handling of produced water. The reason why handling of produced water is included in our measure, is the age of our mature fields, giving increasing amounts of produced water. Our goal is to handle increasing volumes of liquids through the process

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from 2007 to 2008.

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before. This is due to the fact that one additional FPSO

original four, we actually see a decrease of 1.8 percent

Teekay Petrojarl | p 12

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Overall emissions of Greenhouse Gases ( GHG / CO 2 equiincreased by 8.6 percent in 2008, compared with the year

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E N V I RON M E N T

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plants, without increasing the emissions of CO 2 equivalents per liquid throughout. From 2006 to 2007 there was a substantial reduction from 89.5 to 72.8 kg CO 2 per liquid treated (Sm3). This number showed a slight increase in 2008 to 76.6 kg CO 2 per liquid treated

(Sm3),

correspon-

ding to a 5.2 percent increase. However, the direction we are heading in is positive and we work to continue that development.

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Collectively our FPSOs cleaned 4.3

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produced water in

2008, before discharging it to sea and a total of 4.5 million m3 produced water was re-injected in to the reservoirs.

PLANNED DISCHARGES TO SEA

Operating on mature oil ﬁelds, we experience an increasing amount of produced water to handle from year to year.

I N 2 0 0 8 O UR EXISTING UNITS FROM 2007 MANAGED TO REDUCE THEIR GHG EMISSIONS

Teekay Petrojarl | p 14

B Y 1. 8 P E RCENT.

In 2008, the increase in water volumes discharged was 13 percent. Over the last few years there have been changes in analysis methods for oil in produced water,

meaning that the results displayed in the graphs are not

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directly comparable. Nevertheless, we see that the total

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content of oil in the produced water discharged from our

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on late life production fields.

A C C I D E N TA L D I S C H A R G E S

The total number of accidental spills from our five FPSOs and two shuttle tankers was eight in 2008, five oil spills and three chemical spills. In volumes, the accidental spills in 2008 were 1.2 m3 of oil and 9.9 m3 of chemicals.

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FPSOs has increased significantly in 2008 which is typical

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One incident related to high oil in produced water ﬁgures ( OPPC non-compliance). This involves a process upset in

WASTE MANAGEMENT

the produced water treatment plant, so that the produced

At Teekay Petrojarl, we put a great deal of effort into

water discharged to sea temporarily contains a higher

keeping as much waste as possible out of landfills, by

concentration of oil than 30 mg / l. Still, the total volume

segregating and minimizing waste generated. In 2008,

of oil to sea stays within the discharge permit. One on

553 tonnes of waste was produced from our FPSOs and

the chemical spills related to Aqualink release due to a

shuttle tankers. This represents a 28 percent increase

leakage. Great effort was made to solve the problem and

compared to 2007, keeping in mind that one FPSO was

prevent recurrence.

added to the fleet.

O V E R A L L , 7 9 . 6 P E R C E N T O F T H E WA S T E G E N E R AT E D F R O M T E E K AY P E T R O J A R L’ S

Teekay Petrojarl | p 15

F P S O S WA S R E U S E D O R R E C Y C L E D .

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S E G R E G AT I O N S U C C E S S

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Petrojarl Varg impressed with their high level of waste

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segregation in 2008. 91.1 percent was reused or recycled,

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an increase of 13 percent from the previous year. ��

Meanwhile, Petrojarl I came out on top of Statoil’s ranking

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list for their waste segregation performance.

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Onboard Petrojarl Foinaven and Petrojarl Banff the degree of recycling increased in 2008 compared with the year

The reuse and recycling figures presented in the graph

before, making excellent contributions to Teekay Petrojarl’s

include all waste production from our FPSOs. This figure

recycling rates.

includes both general and production waste. Reuse / recycling percentage gives a representative picture of the installation’s actual waste performance.

On the Shuttle Tankers; Petronordic and Petroatlantic, we saw the same positive trend.

In total, 79.6 percent of the 2008 total waste amount was radioactive waste ( LSA ) in 2008.

Teekay Petrojarl | p 17

recycled or reused. No Teekay Petrojarl vessels generated

SAFETY

AWA R E N E S S S AV E S L I V E S

Our aim is to stay ahead of the game and at Teekay Petrojarl we strive to have a strong HSE culture throughout the organization. Our approach includes frequent reporting of both undesired and positive events, as well as focusing on receiving ideas from employees on improvements in all areas.

W H AT W E R E W E FA C I N G ?

Entering 2008, the three main aims within the area of safety were : To improve the trend in number of injuries to personnel from 11 in 2007 to five in 2008.

RISK AWARENESS

To reduce the number of high potential HSE events

Increasing individual safety awareness throughout the

(16 in 2007). These events were related to dropped

organization was a high priority for Teekay Petrojarl in

objects, damage / loss of equipment due to wear and

2008. Some achievements were :

tear, offloading problems and gas leaks. HSE programme seminars held with safety representa-

To implement Teekay Petrojarl HSE standards in our

tives, on- and offshore management and customer

operations in Brazil and the FPSO Petrojarl Cidade de Rio

representatives for all individual vessels in the fleet.

das Ostras by introducing our HSE induction program,

The seminars identified focus areas and produced

HSE programme seminar, experience transfer tool, and

generic HSE plan for the whole fleet as well as one

general HSE support from the onshore organization.

specific for each individual FPSO, based on their own

As we see from the results, the focus paid off and all

needs and priorities.

three aims were met.

Mandatory internet based HSE induction programme which includes interactive courses, HSE videos and handbooks for all vessels, including our new FPSO

Teekay Petrojarl | p 19

Petrojarl Cidade de Rio das Ostras.

SAFETY

Increased employee involvement through safety representative seminars, Safe Card reporting and active monitoring. Increased focus on use of investigations of undesired events both by the crew onboard the FPSOs, safety representatives and representatives from the onshore organization. Use of the Group Risk Assessment Conversation and Experience ( GRACE ) transfer tool by the whole fleet in order to increase the risk awareness connected to daily activities onboard the FPSOs and to encourage the transfer of experience from reported and investigated events in the fleet. GRACE N O FAT A L I T I E S

GRACE is a short presentation of three PowerPoint slides

We want everyone to return home safe and sound and

of actual events within Teekay Petrojarl that can be related

in all the achievements we saw in 2008 perhaps the

to events on any other FPSO within the fleet. Members of

greatest was the reductions in injuries and events with

the crew identify the risk associated with the activity and

high potential.

the conditions presented.

Teekay Petrojarl experienced a reduction in reported high

Based on firm belief in experience transfer and using own

potential HSE events from 16 in 2007 to 12 in 2008. The

examples GRACE was chosen to be the common safety item

high potential frequency dropped accordingly from 17.0

for the fleet in the HSE programmes for 2009. The GRACE

to 10.5.

tool can contribute to a simple and effective experience transfer of incidents that are likely to happen to others

The total amount of Lost Time ( LTI ) and Medical Treatment ( MTI ) injuries were reduced from 11 in 2007 to

Teekay Petrojarl | p 20

five in 2008.

within the industry.

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BE SEEN, BE SAFE

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Not limiting ourselves to campaigns in the workplace

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we launched a reflector campaign in the autumn,

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offering slap wrap reflector bands to all employees, for

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visibility in the dark. �

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The Total Recordable Injury Frequency ( TRIF – number of LTIs and MTIs per one million work hours) decreased from

8.9 in 2007 to 6.8 in 2008. This was due to an increased awareness towards personal injuries which have mainly been foreign substances in eyes, squeeze of limbs, trips,

Teekay Petrojarl | p 21

slips and falls.

H E A LT H

CHEMICALS

It is a well known fact within the oil and gas industry that a number of physical and chemical factors can cause or contribute to acute injuries or cause illness over time. Teekay Petrojarl has always taken these challenges very seriously and our emphasis is to tackle these issues before anything occurs. We make use of chemicals in various work processes, and much attention has been paid to reduce chemical exposure in the work environment. Nevertheless, chemical Seeing the details in the big picture is especially important

exposure is an ongoing health risk that requires continuous

in a large organization and Teekay Petrojarl aims for a

attention and a systematic approach.

common, systematic approach for all issues related to

At Teekay Petrojarl we use high quality chemical risk

health and work environment in our fleet. At the same

management systems combined with a long-term plan

time we value and strive towards being able to adjust to

relating to managing chemical exposure. Choosing the

challenges and needs for change. Our ambition is to be

right technical solutions, chemical replacements, mapping

a flexible employer with good systems at the core,

and risk assessments, we work to prevent injuries or

supplemented by the ability to meet the various needs in

development of long-term illnesses due to chemical

different parts of the organization.

exposure. Empowerment through workgroups appointed

We invest in people through our continuous focus on

to phase out chemicals has proven successful and our

improving systems and conditions and running campaigns

web-based chemical training course raises awareness of

promoting health and well-being both at work and

the risks connected with chemical handling.

extended into the home sphere. In a potentially challenging business we take numerous preventative measures and take a proactive approach every day to prevent injuries and illness. Putting people first is at the very core of our success and in order to do that we have to have a clear idea of the Teekay Petrojarl | p 22

challenges our workforce can potentially be facing.

H E A LT H

C A M PA I G N I N G

For the third year running a health campaign was carried out where a fitness expert visited all FPSOs and offices offering advice on exercise and nutrition. Offshore employees had the opportunity to sign on for a personal consultation where they could receive help with customising training or tips and ideas on adjusted diets. This was very well received and feedback forms provided a chance to make suggestions for next yearâ&#x20AC;&#x2122;s health campaign. Teekay Petrojarl puts continuous effort into extending ERGONOMICS

Musculoskeletal illness is the most common reason for absence due to work-related illness in the offshore industry, and this is often caused by physical work loads as well as psychosocial issues. Employees might have jobs that involve relatively heavy strain, such as static work, heavy lifts, awkward work positions and work above shoulder height. In addition, computer workstations can be associated with musculoskeletal risks.

lives at home and runs annual Family Days where there is always an element of HSE focus. In 2008 we had an environment quiz and offered energy saving light bulbs to the winning quiz team. In our offices and on the FPSOs and shuttle tankers, local initiatives have also been organized such as a hiking group and facilitation of cycling or walking to work through web-registration of activities. We encourage ideas from all parts of the organization on how we can help coordinate and run these campaigns for maximum benefit and

To counter potential problems related to musculoskeletal

participation, and the feedback received will be considered

illness ergonomic assessments were carried out. Musculo-

for our campaign activities in the future.

skeletal risks were assessed and computer users both on- and offshore were provided with computer based training to alert them to the risk factors and to educate them in measures to minimize these. Specific display screen assessments were conducted on core users to determine whether any actions were needed. The results from these assessments were reviewed and resulted in Teekay Petrojarl | p 24

the HSE culture at work into the employeesâ&#x20AC;&#x2122; everyday

improvements being made in user positioning. Several stations were altered offshore as a result of this survey.

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OVERALL ACHIEVEMENTS

Achieving long-term results in areas of health and work

S U M M E R C A M PA I G N

environment demands long-term focus and one indicator

HSE is about more than what happens at work. If anyone

of how successful we are, is our sick leave statistics.

deserves their place in the sun it is all Teekay Petrojarl

We had an overall decrease in sick leave by 0.3 percent, from 4.6 percent in 2007 to 4.3 percent in 2008. While

employees, and in the summer of 2008 we gave a sun protection kit with sunscreen and UV patches to all employees.

short-term absence is reduced by 0.4 percent, long-term absence went up slightly with 0.17 percent. According to our yearly Employee Survey, Teekay Petrojarl

Teekay Petrojarl | p 25

employees have a great level of loyalty.

A CT I O N S & R E S U LT S

We run annual vessel specific HSE Programme seminars

safety and environment. Below are some of the actions

for all our vessels, with participants from both on- and

planned for and completed in 2008 as well as planned

offshore, including oil companies, safety representatives

actions for 2009, set through the formal HSE programme

and sometimes also the petroleum authorities. Together we

and corporate goals processes.

set targets in the areas of health, working environment,

AREA

TARGET 2008

RESULTS 2008

PLANNED ACTIONS 2009

Climate I

Establish climate group to investigate new technology for emission reduction consisting of members from engineering, operation and HSE departments.

Climate group was not established, but there was a high focus on reducing emissions.

Arrange internal climate change competition in order to collect ideas on how to reduce CO2 emissions.

Discharges to sea

Achieve a 10 percent reduction in accidental spills to sea.

We had eight minor spills in 2008 compared to three in 2007.

Carry out full analysis of the last three yearsâ&#x20AC;&#x2122; spills to identify root causes and relevant actions to prevent recurrence.

Safety

Focus on risk awareness. All employees onboard to take part in the GRACE campaign.

Completed by all vessels.

Focus on experience transfer via GRACE and lessons learned from investigations. Prepare company specific campaign to prevent incidents involving dropped objects.

Society

Increase competence and focus on CSR : All shifts and departments to participate in CSR survey. Issue the ďŹ rst Teekay Petrojarl Sustainability Report.

All shifts and departments participated in CSR survey. GRI certified Sustainability Report issued.

Maintain focus on increasing competence in and focus on CSR. Establish a Social Footprint committee with the mandate to support organisations, sports or cultural activities.

Human Resources

Improve the Employee Satisfaction score.

Employee satisfaction increased from 87/70 in 2007 (on/offshore) to 89/79 in 2008.

Target for overall response rate Employee Survey is 90 percent. Action plans based on survey results to be completed.

Health

Establish common health manual for all offshore operations.

Work in progress.

Implement a company wide health and lifestyle campaign focusing on exercise, healthy eating and stress management.

Target achieved and planned 2008 actions complete.

Target not achieved or planned actions not complete.

Target not achieved and planned actions not complete.

Teekay Petrojarl stood out with top results in the First Point Assessment Ltd. ( FPAL ) Audit in 2008. The scores achieved were 9.2 for Health and Safety and 9.1 for Environment, out of a maximum of 10, where 8 was rated as excellent. The audit recognized our HSE systems and procedures and qualified us as a recommended

Teekay Petrojarl | p 27

company to do business with.

A B B R E V I AT I O N S

CO2

Carbon dioxide

HSE

Health, Safety and Environment

CO2 equivalents

Unit for GWP (Global Warming Potential)

LSA

Low Specific Activity (radioactive waste)

CPR

Cardiopulmonary resuscitation, an emergency medical procedure for a victim of cardiac arrest

mg / l

Milligrams per liter

CSR

Corporate Social Responsibility (also referred to as the third bottom line)

Oil equivalents (1 oe = 1 Sm 3 crude oil; 1 oe = 1000 Sm 3 gas)

OIW

EBITDA

Earnings before interest, taxes, depreciation and amortization

Oil in water. Used about oil contaminated produced water.

OPPC

FPSO

Floating Production Storage and Offloading vessel

Oil Pollution Prevention and Control Regulations ( UK legislation)

GHG

Greenhouse gases

Sm 3

Standard cubic meter

GRACE

Safety risk reducing program based on real historical accidents

Tonne equivalent

TRIF

GRI

Global Reporting Initiative, a global framework for sustainability reporting

Total Recordable Incident Frequency ( Lost Time Injuries plus medical treatment injuries per Million manhours worked)

HiPo

Incident with high potential for personal or environmental accident

G L O B A L R E P O R T I N G I N I T I AT I V E

C O N TA C T U S

Teekay Petrojarlâ&#x20AC;&#x2122;s Sustainability Report 2008 accords with

If you have any comments, queries or questions, please

Global Reporting Initiative ( GRI ) guidelines, revised in

get in touch at trd.reception @ teekay.com

October 2006 ( G3 ). The report qualiďŹ es to reporting level C+ ( GRI checked and self declaration). The GRI index which lists Teekay Petrojarl references to all GRI parameters may be found at our website.

IN CLOSING

We have, in this report, described some of the challenges, results and focus areas for the previous year. Entering a new year we will naturally carry on with a lot of the work that was initiated. New projects, campaigns and initiatives will come up and will be documented in our Sustainability Report for 2009.

Teekay Petrojarl | p 28

We appreciate your interest and welcome you to share any ideas on areas for improvement or give general comments.

We want to thank everyone who provided us with the excellent pictures we have used in this report. Several of them were taken by Teekay Petrojarl employees. Front page and page 14 : Jan A. Jensen | Page 2, 16, 23 and 26 : Ellen Trolid | Page 10 : Alf Hogne Hansen | Page 8, 13 and 15 : Ă&#x2DC;ystein Kolstad | Page 19 and 24 : Morten Mehli