No 1 • 2007

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 shallmaximise shareholder value and create a

challenging and motivating workplace.

CORE VALUESProfitability

Respect InnOvation

Safety Ambition

Focus Environment

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

vendors and other key audiences.

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

Karine Cosemanscommunications and branding manager

karine.cosemans@prosafe.com

EDITORKarine Cosemans

PRODUCTIONPrinters AS

Photo page 1: FPSO Umuroa on itsvoyage from the yard in Singapore

to the Tui field in New Zealand.

VISIT OUR WEB SITEwww.prosafe.com

RESPONSIBLE PUBLISHERProsafe SE

Nedre Holmegt. 30-34P.O.Box 559 Sentrum

N-4003 Stavanger, NorwayPhone: +47 51 64 25 00

Fax: +47 51 64 25 01

Prosafe has the last couple of yearsseen tremendous growth. We havedoubled the size of our rig and ourFPSO fleets, have delivered strongoperational and financial results, andhave positioned the company as aleading provider of high qualityservices.

Since our foundation in 1997 wehave spread our wings, and haveentered new geographical areas such as the Gulf of Mexico, Brazil,Australia, west Africa, Australia and New Zealand. Today we arerepresented in all major offshoreoil and gas provinces worldwide. Our employees from more than 30 countries are employed globally, and almost 80 percent of our share-holders are non-Norwegians.

Vital employee contributionWe have a track record ofdelivering high quality products and services. Our reputation is amajor competitive advantage andwill often be a deciding factorwhen being awarded new contracts.Our customers trust that we willdeliver as promised, and ourshareholders expect that we will deliver good financial results andcreate shareholder value.

Recent FPSO contract awards, high rigutilisation and a large fleet of rigsand vessels in operation have resultedin high activity in all departmentsand a strong increase in the numberof employees. The reputation of thecompany is the sum of all the contri-butions of every single co-worker,and each of them plays an equallyimportant role. The knowledge andskills of our employees are funda-mental to the sustained progress andsuccess of Prosafe.

To all our employees: Thank you foryour hard work and commitment. I encourage you to continue todistinguish yourselves and ourcompany through delivering to thehighest standards in everything youdo. I also urge you to remember thatno matter how busy you are, it isparamount that you always live up toour core values and code of conduct,and never compromise on safety.

Leading in the top segmentWe have seen an increased segmen-tation of the FPSO market, whichnow consists of three segments: atop, a medium and a lower segment.Prosafe is positioned in the top seg-ment where competition is moderateand barriers of entry high. The players

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Spreadingour wings

are characterised by having their ownengineering resources, in-housedeveloped technology, a solid track-record and the capacity to conductmultiple projects.

Our FPSOs and FSOs have been insteady operation with a minimum ofdowntime. We have completed theconversion of the FPSO Polvo and the FPSO Umuroa. At the time ofwriting, both vessels have arrived at their respective fields and haveproduced first oil.

Demand in the FPSO market segmentis still high, and this has resulted in anall-time high activity in our FloatingProduction division in Singapore. We have increased our capacity toconduct multiple projects and willthereby derive advantage of thefavourable FPSO market. We arecurrently running three simultaneousconversion projects.

We were in the beginning of Mayawarded a USD 418 million contractby Apache for the supply andoperation of an FPSO for the VanGogh field offshore Australia. Thefirm period of the contract is sevenyears, followed by options for amaximum of eight years. The FPSOwill be equipped with our in-housedeveloped disconnectable turret,which will enable the vessel to leavethe field upon short notice in case ofa hurricane or a typhoon.

Steadily increasing dayratesOffshore Support Services has demonstrated a very high level of rig utilisation. All rigs, expect for theSafe Astoria, have been in operation.We experience a strong demand foravailable units, and dayrates are stillincreasing.

We were during the first months ofthis year awarded a number ofimportant rig contracts:Safe Bristolia was awarded a six-month contract on the UK Continen-

tal Shelf, and Safe Bristolia’s contractat Sakhalin in Russia was extendedwith 85 days. MSV Regalia wasawarded a seven-month contract for decommissioning work in the UK sector of the North Sea. Thesecontract awards confirm that dayratescontinue to increase.

The five-year contracts for the fiverigs that are on bareboat contracts inthe Gulf of Mexico will expire in late2008. We have started working onthe renewal of these contracts, andbelieve that this might createinteresting opportunities.

Organisational changesWith high activity in both businessdivisions and a continued strongmarket for our services, we saw theneed for some organisational changesin order to continue to be able toserve the growing demand in a cost-efficient manner. We have amongstothers employed a Chief OperatingOfficer and are now even betterequipped to further strengthen ourleading market positions. You willfind more information about thenewly appointed managers in thearticle “Management appointments”in this magazine.

Considerably improved dividend policyProsafe’s principal objective is toprovide its shareholders with a maxi-mum return on their capital in a long-term perspective, so that it remainsan attractive investment object. In order to give our shareholdersincreased predictability and allowthem to directly benefit from thepositive momentum in our existingFPSO and accommodation rigoperations, we have implemented a new dividend policy.

The annual general meetingapproved the distribution of anordinary dividend of NOK 1.25. In addition, the Board has proposedto distribute a special dividend ofNOK 3.75 to be approved by an extra-

ordinary general meeting followingthe company’s relocation to Cypruswhere there is no withholding tax on dividend payment. The Board hasalso proposed to increase the targetdividend pay-out ratio to approxi-mately 75 per cent effective fromfiscal year 2007, however, with aproposed minimum of NOK 5 pershare payable in 2008.

The improved dividend policy will not interfere with our objective to increase our annual investments innew FPSOs. We are able to fund thisgrowth rate and the revised dividendpolicy on the back of our currentstrong balance sheet and high cash-flow from existing FPSO contracts and firm and expected cash flow from the accommodation units.

Strongly positioned for growthOur recent FPSO deliveries and thelatest FPSO contract awards are an acknowledgement of our longoperational experience and capacityto conduct conversion projects. Wehave considerably strengthened ourposition as a leading FPSO provider.

The recently awarded rig contracts,the increasing rig dayrate level andcurrent market activity for accommo-dation/service rigs provide optimismfor the outlook for this businessdivision.

Based on our strong order backlog,our financial capacity, experiencedstaff of engineering resources and a long track-record of high qualityoperations, we are confident thatgrowth in Prosafe will continue at an even higher pace than we haveseen so far.

Arne AustreidPresident and CEO

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By Karine Cosemans, communicationsand branding manager

FPSO Polvo naming ceremonyIn rather rainy weather, the namingceremony of the FPSO Polvo tookplace on 9 January at KeppelShipyard in Singapore. Attending

the ceremony were representativesfrom the partners in the Polvo field:Devon Energy and SK Corporation of Korea, as well as representativesfrom Keppel and Prosafe. The FPSO Polvo was officially named by Mrs Hadden, wife of Stephen JHadden, Senior Vice President

(Exploration & Production) of Devon Energy.

The FPSO Polvo will be chartered toDevon Energy in Brazil for an initialperiod of seven years with options to extend the contract with a furthereight years.

–We are very grateful to DevonEnergy and its partner SK Corporationof Korea for selecting us to constructand operate this FPSO to produce thePolvo field, said Arne Austreid,President and CEO of Prosafe.

–We have had an excellent coopera-tion through the project phase, andwill continue to do our utmost tomaintain and further develop thisgood relationship. We will continueto deliver to the highest qualitystandards and to your full satisfac-tion, and aim to operate with thefirst-class regularity that Prosafe isrenowned for.

The FPSO Polvo will be capable ofproducing 90 000 barrels of oil perday, 135 000 barrels of water per dayand 150 000 barrels of fluid per day,with a storage capacity of 1.6 millionbarrels. The vessel will be moored in105 meters of water.

The FPSO Polvo is Prosafe's first FPSOoffshore Brazil. However, in early2009, Prosafe will assume operationsof its second FPSO in Brazil, a gascondensate FPSO for Petrobras.

The naming ceremonies of the FPSO Polvo and FPSO Umuroa were importantmilestones for Prosafe. Together with the shipyard, we marked that the conversionof the vessels was successfully completed, and that the FPSOs were ready to leavethe yard in order to assume operations on the fields for which they had been tailor-made: the Polvo field in Brazil and the Tui field in New Zealand

Naming ceremonies of FPSO Polvo and FPSO Umuroa

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The FPSO Polvo was officially named by Lady Sponsor Mrs Hadden (fourthfrom left). Accompanying her are (from left) Nelson Yeo, ED of KeppelShipyard, Arne Austreid, President & CEO of Prosafe, Stephen Hadden,Senior VP (E&P) of Devon Energy, Reidar Lund, Chairman of Prosafe, Mrs Lund, CB Choo, Chairman & CEO of Keppel O&M, Hugh Parry, Exec. VPSpecial Projects of Prosafe, Shin Heon Cheol, President & CEO of SK Corpand Kim Hyun Moo, VP (E&P) of SK Corp.

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Lion dancers accompanied Lady Sponsor Jacqueline Phillips when she arrivedat the naming ceremony of the FPSO Umuroa. The lion dance has been part of the Chinese culture for thousands of years and is performed on auspiciousoccasions. The lion, a symbol of power, wisdom and good fortune, chasesaway evil spirits and brings happiness, prosperity and good luck.

Two newly converted FPSOs side by side in the yard – an impressive sight. No wonder that Arne Austreid,President and CEO of Prosafe, is proud.

–Adding the FPSO Polvo to our fleetconfirms that our innovative thinking,engineering and in-house technologydevelopment have been successful.We acknowledge that this would nothave been possible without thecontribution of demanding clientsand focused contractors and suppliers,related Arne Austreid.

The naming ceremony was concludedwith a guided tour of the vessel.

FPSO Umuroa naming ceremonyThe naming ceremony of the FPSOUmuroa was held on 15 February at Keppel Shipyard in Singapore.Attending the ceremony wererepresentatives from the partners inthe Tui field: Australian WorldwideExploration Limited, New Zealand Oiland Gas, Mitsui E&P New Zealand andPan Pacific Petroleum and represen-tatives from Keppel and Prosafe.

The vessel was officially named by Mrs Jacqueline Phillips, wife of Bruce Phillips, Managing Director ofAustralian Worldwide ExplorationLimited.

FPSO Umuroa will be deployed to the Tui Area Development in NewZealand for Australian WorldwideExploration Limited for an initialperiod of five years with a furtherfive one-year options.

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The name, Umuroa, was selectedfollowing cultural advice from theNew Zealand Iwi, a Maori tribalgroup who are the traditionaloccupiers of the nearest landfall tothe project. Loosely translated “Umu”means heat or energy or place ofwarmth, and “Roa” means long.Hence Umuroa can be considered tomean “long on energy”.

–The development of the Tui field is a truly global project. The project’ssuccess will largely depend on thewillingness and ability of people andcompanies from various nations and

with different cultures to worktogether, said Arne Austreid.

–The project has been characterisedby a fruitful cooperation based onmutual respect between all involved.We believe that diversity is a sourceof strength, and will work actively tocontribute further to the successfuldevelopment of the Tui field.Together, we can now add thisproject to the offshore industry’s listof successful fast track FPSO projects.

Safely arrived at the fieldThe FPSO Polvo left the yard on 6

March for sea trials and departedfrom Singapore waters on 26 March2007, 18 months after the contractaward. The vessel arrived at the Polvofield on 27 May.

The FPSO Umuroa left Singaporewaters on 1 April and arrived in theTaranaki Basin in New Zealand after a 21-day voyage on 21 April.

At the time of writing, both vesselshave completed mooring and flow-lines installation, and have com-menced production.

FPSO Polvo

Length overall: 340.6 meters

Breadth moulded: 54.5 meters

Storage capacity: 1.6 million barrels

Process capacity: 90 000 bopd, 135 000 bwpd, 150 000 bfpd

Water injection: 100 000 bwpd

Gas compression: 7.5 mmscfd

Mooring type: Prosafe developed turret

Accommodation: 55 persons

FPSO Umuroa

Length overall: 241 meters

Breadth moulded: 46 meters

Storage capacity: 773 245 barrels

Process capacity: 50 000 bopd, 118 000 bwpd, 120 000 bfpd

Gas compression: 25 mmscfd

Mooring type: Prosafe developed turret

Accommodation: 40 persons

By Ian Young, director of HSEQ

An AoC is a decision made by the PSAto the effect that the technical condi-tion of Safe Scandinavia and ProsafeOffshore’s organisation and manage-ment systems are considered to be incompliance with relevant require-ments in Norwegian shelf legislation.

Originally, an AoC was only requiredfor mobile offshore drilling units.However, from 1 July 2006 thearrangement was expanded tocomprise mobile facilities that are registered in a national ship’s register and that are used for drilling,production, storage and offloading(FPDSOs and FPSOs), well interventionand living quarters (flotels).

Technical verification of the vessel’scompliance was initiated as long agoas in 2002 when the new regulationscame into force.

The AoC process is complex and re-quires the vessel, regardless of age, tobe mapped against the latest Classifi-cation Rules (DNV Offshore Standards)and Regulation. During this process,both the vessel and Prosafe Offshore’sIntegrated Management System wereunder close scrutiny to ensure thatboth met the PSA requirements.

Workforce involvement is at the heartof the AoC process and must bedemonstrated throughout all phases.The Shipboard Management, safetydelegates and marine crew andonshore management have all playedan active role in gaining this greatachievement for Safe Scandinavia.

The AoC diploma issued to the Safe Scandinavia is a living documentthat remains valid provided it ismaintained. This means that the workis not over for the Safe Scandinaviavessel team. There are scheduledaudits of the office to ensure closureof terms and conditions associatedwith the diploma and of course, wewill all be required to continuallyreview the status of the vessel againstnew legislation and standards thatmay be applicable.

In conclusion, a great milestone hasbeen achieved. The Safe Scandinavia,her management and crew havesecured a positive future for thevessel in the Norwegian ContinentalShelf and have laid the path for moreProsafe Offshore vessels to gain theirown AoC.

First for Safe ScandinaviaSafe Scandinavia is the first floating accommodation unit ever to be awarded anAcknowledgment of Compliance (AoC) required for operations in theNorwegian Continental Shelf. The diploma was awarded by the PetroleumSafety Authority Norway (PSA), the enforcement authority responsible foroffshore safety in Norway.

Andy Brown, Safe ScandinaviaMaster/OIM displays the Acknow-ledgement of Compliance diplomaon the vessel.

Safe Scandinavia, currently working for Statoil at Snorre A in the North Sea,can accommodate 583 persons.

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By Américo Santos, asset managerand Paul Lees, offshore installationmanager

The contract has a fixed term of sevenyears plus eight one-year options. TheFPSO Polvo arrived in Brazil in the endof April and has successfully carriedout all Brazilian authorities inspec-tions at Guanabara Bay in Rio deJaneiro. Thereafter, she was mobilizedto the field for hook up operations,being completed moored in May.

The Polvo fieldThe Polvo field is located in Block BM-C-8 in the Campos Basin offshore Riode Janeiro, about 100 km from theBrazilian coastline in approximately100 meter of water. Devon Energy doBrasil Ltda is the operator of the fieldwith 60 percent working interest. SK Corporation of Korea holds theremaining 40 percent interest.

The field has a life expectancy of 15years. Production facilities for theinitial development phase will besized to handle up to 50 000 barrelsper day and include a fixed produc-tion and drilling platform connectedto the FPSO.

The offshore personnel fly out ofMacaé which is about 3.5 hours drivefrom Rio de Janeiro. Macaé is ahelicopter hub for the Campos basinoffshore facilities, and is one of thebusiest helicopter terminals in theworld. Overseas crew membersusually stay overnight in Rio deJaneiro at one of the world’s mostfamous beaches, Copacabana Beach.

FPSO PolvoThe FPSO Polvo is a converted VLCC,fully owned by Prosafe. After theconversion to an FPSO, the vesselsailed from Singapore to the fieldunder its own power, and is nowsecured to the sea floor by anchors tothe turret. The FPSO is connected tothe Polvo A well head platform witha 12” production flow line. The wellhead platform is expected to have up to 18 oil producing and 6 waterinjection wells. The oil producingwells will all have electric submersiblepumps (ESP) fitted down hole in eachwell to be able to bring the crude oilup to the surface. The power requiredfor these pumps is generated on theFPSO with 3 x 12MW steam turbines,and exported via a subset cable at 24 000 volts to the well headplatform.

FPSO Polvo’s production is handled by two production trains with a totalcapacity of 90 000 barrels per day ofcrude oil and 135 000 barrels per dayof water. The gas produced from thisfield is minimal and not enough tosustain the boilers alone, so the

boilers are designed to run on heavyfuel oil and diesel as well. To supplythis diesel and heavy fuel oil require-ment, a crude oil topping plant isinstalled on deck to produce the fuelfrom the crude oil on board. Thediesel produced on board is also to be transferred to the supply boats for their use and for forwarding onto the well head platform.

The FPSO has just completed essentialcommissioning work to allow the safecommencement of crude production.This period has been extremely busywith up to 140 personnel workingand living on board the FPSO.Logistics support has also kept peoplebusy with up to 17 helicopter flightsand three supply boat runs per week.Further, as required by Brazilianregulations, numerous inspectionteams from different governmentbodies have come offshore to givetheir stamp of approval thatproduction can commence.

About 60 per cent of the offshorecrew are Brazilians. The remainingcrew members are from SouthAfrica, the Philippines, India,Australia and Montenegro. Inaddition, 20 trainees are rostered to come offshore to familiarizethemselves with offshore operationsfor Prosafe’s next project in Brazil:the FPSO Cidade de São Mateus forPetrobras that is scheduled toassume production in early 2009.

Brazil officeIn order to prepare for the Braziloperations, Prosafe started to

Firm foothold in BrazilIn September 2005, Prosafe was awarded a contract by Devon Energy do Brasil Ltdafor the provision and operation of a Floating Production Storage Offloading system(FPSO) for the Polvo field, offshore Campos Basin in Brazil. This contract representsan important milestone for Prosafe as it marks the company’s entry into Brazil, oneof the world’s most important markets for FPSO developments.

FPSO Polvo arriving in Rio.

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mobilize to Brazil in the first quarterof 2006 and has now set up a centraloffice located in Rio de Janeiro and a logistics support base located atNiterói, a city about 30 minutes drive from Rio de Janeiro, fromwhere logistic support is provided to the FPSO.

The Brazil office provides all thenecessary support to ensure asmooth and safe operation of theFPSO Polvo and supports thecompany in its activities to expandbusiness opportunities in Brazil.

One of the challenges in Brazil is to be able to understand acomplex set up of laws andregulations, and in order to achieve this, it has been Prosafe’sstrategy to hire Brazilianprofessionals with extensiveexperience from the oil and gasindustry both for the base officeand the FPSO.

Local employeesIn a market where the demand forqualified professionals is very high,local content requirements presented achallenge. Prosafe has made conside-rable efforts in order to bring Brazilianpersonnel into the organization.

One of the initiatives was the establish-ment of a partnership with a BrazilianTechnical Institute. We selected 20young students that finished mediumtechnical courses in disciplines asmechanics, electricity and instrumen-tation and sponsored a four-monthProduction Operator course and anEnglish course, to facilitate the inte-gration with the expatriate personnelwhen they were mobilized to the FPSO.

The course started in the beginningof this year and the trainees havesuccessfully finalized the course in theend of April. They are now beingmobilized to the FPSO and we arepleased to say that the program was

a success. The trainees are adjustingvery well onboard and prove to behard workers. They are looking for-ward to the perspective of a career in the offshore industry.

Prosafe considers this approach thebest way to deal with local contentrequirements and the lack ofprofessionals for the industry. We have now and within two months of the FPSO’s arrival to Brazil a total of 52 local employees,which represents 60 percent of theproject’s total work force.

Set for successWith a high quality vessel and ahighly skilled and motivated crew, wehave laid a solid basis for a long, safeand prosperous production period atthe Polvo field offshore Brazil. At thesame time, the foothold that we havegained in Brazil will facilitate forfurther growth of our activities in this exciting and beautiful country.

The FPSO Polvo has the capacity to handle up to 90 000 barrels of oil per day.

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Elizabeth Teixeira, 44Human Resources ManagerNationality: Brazilian

BackgroundI graduated with an MA in Biology,with specialisation in MedicalMicrobiology (Rio de Janeiro) and inEnvironmental Microbiology (NewYork) and with an MBA in Business(Rio de Janeiro) specialising in peoplemanagement. I have worked with the New York based environmentalengineering company, MSE, inenvironmental studies and anti-pollution research projects in Europe,USA, Latin America and Brazil and,more recently, with Enterprise Oiland with Shell.

ResponsibilitiesI have now worked for Prosafe for 15 months and my responsibilitieshave included recruitment of localpersonnel and the definition of allrelevant human resources policies,including salaries and benefits. This is at times a difficult and vital role inthe Brazilian offshore environmentwhere labour laws are complex and

where the competition for specialisedskills in areas such as instrumen-tation, mechanical and electricalengineering is fierce.

I have successfully recruited a coregroup of young technical personnelto help to ensure that the FPSO Polvohas a highly competent team oftechnicians and support staff in allrequired disciplines. In order forProsafe to enter into the Brazilianoffshore labour market withminimum impact on fellow offshorecontractors, we selected 20 studentsfrom CEFETES, a highly respectedtechnical school in Vitoria (one-hour flight from Rio de Janeiro)which is used also by Petrobras. On graduating, these students wereplaced in classes (including English)to train as Production Operators.Prosafe now has a motivated coreteam of young, qualified traineeswho are enthusiastic about growingtheir careers with Prosafe.

Kleiton Telles Xavier, 23Radio OfficerNationality: Brazilian

BackgroundI have lived for about 10 years in theU.S. and moved there when I was 12years old. I went through high schooland had some college while there(Liberal Arts). After my return toBrazil in 2002 I started working in the offshore business as a clerk,responsible for translation onboardthe Campos basin vessels. After twoyears, I went for a Marine back-ground qualification and became a Radio Officer in the beginning of 2005. I joined Prosafe on the FPSO Polvo project in the beginningof 2007.

ResponsibilitiesI am in charge of all GMDSS (globalmaritime distress safety systems) radio communication/satellitecommunication in the vessel, logisticsof choppers and supply boats andverbal translations for the non-English speaking personnel on board.

As I write this article, I am monitoringthree choppers with crew changes inthe field, a supply boat that isapproaching the vessel bringing thefood supply for the crew onboardand an oil spill recovery vessel. I alsohave regular communications withthe Polvo A well head platform. I playa vital role in case of an emergencywith communications to the outsideworld and I am one of the last toleave the vessel. I also make sure thatall emergency radio communication isonline. Working on the FPSO Polvohas become one of the most excitingthings in life for me. I work hard all day, and it has never been sorewarding.

My future plan is to go to a Navalschool where I can learn ballast, radarreadings, etc to become a First Officeras well as having general knowledgeof the process plant as whole.

Meet some of our employees in Brazil...

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Thaisa Sant`Anna Cordeiro, 32Ships nurseNationality: Brazilian

BackgroundWhen people ask me about my job, I answer that I am a nurse. When theyask in which hospital I work, I replythat I don’t work with sick people – I avoid them.

I graduated as a Registered Nursefrom the Federal University of Rio deJaneiro-UFRJ. I have experience fromworking at Intensive Care, CardiologicCare and in the Emergency Room.When I started to work on board ofships, I felt the necessity to have aspecialized knowledge. I concluded aPost-graduation on Industrial Nursetogether with my first year ofexperience on board.

ResponsibilitiesThere is no doubt that a nurse needsto have the skills for advanced lifesupport and also the knowledge ofgeneral care. But, keep in mind thatthe people I deal with are supposedto be healthy, after all they are FITFOR DUTY. So, I consider myself ahealth educator, a health knowledgemultiplier.

“Prevention” is a key word for myjob. I try to teach the crew members

the benefits of a healthy andbalanced diet and the importance ofregular exercise. I share informationabout most common diseases andcauses of death that are related withbad habits like smoking, alcohol anda sedentary way of life. When peopletake care of themselves, they have ahigh self-esteem and confidence rubsoff on everyone around. The resultscan be seen in a safe workingenvironment with no accidents andpro-active attitudes. I think that is thereason I enjoy my job so much!

In the beginning of the year I went to Singapore to settle the HealthFacilities on board of the FPSO Polvo.For me, it was a marvellous oppor-tunity to be with different nationali-ties and cultures. It was an unforget-table professional experience whichtaught me a lot. I was the onlywoman on board the ship during thecrossing to Brazil. Everyone respectedme and I was like an “older sister”taking care of them. The trip was fastand calm and the inspections withBrazilian Authorities successful on our arrival. I am very happy to be partof this exciting project!

George Andrews, 42Production SupervisorNationality: South African

BackgroundBefore joining Prosafe on the Polvoproject, I worked for Petro SA inSouth Africa for 17 years. Highestqualification NQF Level 5 – QualifiedWork Place Assessor.

Most of my experiences are in theRefinery Processes: Hydro Treatingprocesses, Platformer, HF Alkylationand on the FA Platform installation(Offshore Installation).

ResponsibilitiesI report directly to the Super-intendent. As Production Supervisormy key responsibilities are:• Optimization of oil processes• Coordinating PTW system• Training of Subordinates• Safe operation of all Processes• Enforcing of the HSE Policy on

board with the assistance of theSafety Officer

• Compiling of Production reports• Involve in the management of the

Emergency Response Teams onboard

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By Karine Cosemans, communicationsand branding manager

Social responsibilityIn order to contribute to the positivedevelopment of the local com-munities in which we are represen-ted, we cooperate closely with localemployees, customers and govern-ment authorities. Our most importantcontribution to local communities is job creation, both directly andindirectly, which helps to enhance thelocal level of expertise and generatestax revenues. Local suppliers of goodsand services are used where they arecompetitive.

In addition, we run programmes toensure that we employ the largestpossible proportion of local managersand employees in our operations.Prosafe has established extensivetraining programmes, both in-houseand at approved educational

institutions. We thereby contributenot only to local employment, butalso to boosting the level of localexpertise.

Helping children in needProsafe wants to be a responsiblemember of the society. Therefore, we decided that the company eachyear will give a donation to a socialprogram in a country where thecompany has business activities.

Early 2007 Prosafe gave a donation to SOS Children’s Villages for thebuilding and running of a familyhouse in the SOS Children’s Village inIgarassu, close to Recife in Brazil. SOSChildren’s Villages is an internationalchild welfare organisation providinglong term care for orphans andchildren in need. The organisation is politically neutral and worksindependently of nationality, cultureand religion.

–FPSO Polvo started productionoffshore Brazil for Devon Energy on30 July 2007. We will be operatingthe FPSO on a seven-year contractwith eight one-year options. This isour first contract in Brazil. To markour entry into this country, wedecided to support a local socialinitiative, tells Arne Austreid,President and CEO in Prosafe.

“Education is the most powerfulweapon we can use to changethe world.”

Nelson Mandela

–We want to contribute to socialdevelopment in the local communitiesin which we are represented. Webelieve that offering children a homeand education is the most valuableaid the company can give. In thelonger term, this will contribute to abetter future, both for the childrenand the country in which they live,says Arne Austreid.

SOS Children’s Villages in BrazilThe SOS Children’s Village near Recifewill be the 15th SOS Children’s Villagein Brazil. It is being built on a plot ofland of 30 000 m2 donated by theState of Pernambuco. The SOSChildren's Village will comprisefourteen family houses, where 126

Investing in the futureProsafe will finance the building and running of a family house in SOS Children’sVillage in Igarassu, near Recife in Brazil.

Giving children in need a home and education will help them to take care of themselves when they become adults.

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children aged from 0 – 15 years willfind a new home.

Each house is organised like a family,with nine children in different agesthat grow up as brothers and sisters.An SOS mother is responsible forlooking after the children andorganising the family’s daily life. SOS Children’s Villages places specialemphasis on giving the childreneducation as a preparation for life on their own afterwards. This ensuresthat the children will be able to takecare of themselves when they becomeadults, and can contribute with theircompetence to the local community.

The village consists also of anadministration and service area, amulti-purpose hall for functions andfestivities as well as a sports ground.Further, the SOS Children's Villageincludes an SOS Social Centre, whichis run as a day-care centre. This centrewill offer medical and dentalassistance and a small pharmacy, aswell as class rooms for counsellingand training of adults and children.The SOS Social Centre caters to needypeople from the neighbourhood.

The building of the village is almostcompleted, and the village will beofficially opened on 13 November 2007.

The appointment of the SOS mothersstarted in 2005, and during thebuilding period, some of the mothershave lived together with the childrenin rented apartments in Recife. Theywill move to the SOS Children’s Villageas soon as it is completed.

Facts about SOS Children’s VillagesSOS Children’s Villages has more than 1 800 projects in 132 countries.More than 65 000 children andyouths have their home in achildren’s house and about 140 000children go to SOS kindergartens,schools and training centres. About 1.3 million children and theirfamilies receive assistance throughSOS Children’s Villages’ work.

SOS Children’s Villages has aninfluence on the local communitieswhere the organisation operates.Children from the children’s villagesgo to a municipal school wherepossible. If there are no goodmunicipal schools nearby, SOSChildren’s Villages establishes theirown schools. SOS Children’s Villagesalso builds and operates kinder-gartens, training centres, medicalcentres and social centres. These arenot only used by children and youthsfrom the SOS Children's Village, butare open for the general public.

Give a child hope and a futureProsafe encourages all its employees,customers, suppliers and otherstakeholders to become an SOSsponsor.

For USD 30 or £20 per month, you cangive children in need a home and anew family. You can help to give afuture to a child without hope. Youwill be able to write to them andlearn how they grow up with love,and see the real impact that yoursupport has made. You will also behelping SOS Children’s Villages tohelp other orphaned, abandoned andvulnerable children and their familiesin the local communities.

You can choose to support a child in the SOS Children’s Village inIgarassu in Brazil or in one of theother countries in which SOS Childrenworks. Alternatively, you can leaveSOS Children’s Villages to decidewhere the need is greatest at present.The individual sponsorships arehandled directly by SOS Children'sVillages.

Additional information on SOSChildren’s Villages and about thesponsorship programs can be foundon www.sos-childrensvillages.org

The building of the SOS Children’s Village near Recife is almost completed.

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Protecting the environment“The environment” is a hot topic. There is ongoing political and public debate on aworld scale regarding what action should be taken to reduce the increasing consump-tion and pollution and to reverse future global warming. Prosafe’s standpoint is clear:we will take a pro-active role and will do our utmost to make a difference.

By Anita Rios, environmentalspecialist and Regina Wang,environmental engineer

Prosafe is dedicated to running safeand environmentally responsibleoperations. “The environment” is oneof our core values, and we cooperateactively with our customers andsuppliers to set in-house goals, makecontinuous improvements to our own

routines, and shape attitudes towardsprotecting the natural environmentfrom pollution by our operations andthose of our partners.

Environmental focus from day oneWhen starting a new FPSO project inthe Floating Production division, weinclude environmental considerationalready in the engineering andconstruction stage. Thereby, we

ensure that much of the desiredperformance can be achieved byadhering to principles of pollutionprevention, zero or minimumdischarge and maximum use ofnatural resources. We implementdesigns and innovative technologiesthat minimize the impact of ouroperations, at the same timeimproving productivity.

In order to ensure that environmentalconsiderations are attended to, wetake the following steps for everysingle FPSO project that we conduct:• identification and assessment of

environmental risks• identification of the requirements

from various stakeholders includingregulators, clients, and communities

• designing the FPSO according tothese requirements

• establishing operational proceduresand routines

• preparing for any emergencieswhich may result in discharges ofharmful substances to theenvironment.

Environmental Impact AssessmentThe client (operator of the field)completes an oilfield EnvironmentImpact Assessment (EIA). Thisassessment of the sea water columnand sea bed is absolutely essential inenabling us to set an environmentalbaseline. The baseline data referencethe biodiversity of the area andchemical analysis of the sea watercolumn.

Environmental monitoring over thefield life will take place against thebaseline data gained from the EIA. By

Anita Rios, environmental specialist (right) and Regina Wang, environmentalengineer (left) developed the Environmental Management Plans for FPSOPolvo and FPSO Umuroa.

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doing this we are able to determineany impact on the environment thatwe may have.

Environmental Management PlanTo successfully manage the environ-ment against the EIA, we develop anenvironmental management plan(EMP). This plan shows in detail theactions, routines and proceduresnecessary for maintaining environ-mental control.

The first part of the EMP describesthe operations of the FPSO fromstart-up to routine production,maintenance, shutdown and finaldecommissioning at the end of thefield’s life. This information providesthe input required for understandingthe sources of emissions and dis-charges which need to be controlled.Thereafter, specific procedures arewritten for controlling, preventingand minimizing emissions andresponding to any uncontrolleddischarges.

The EMP also describes the responsi-bilities of various personnel on theFPSO for managing environmentalemissions. While specific responsibili-ties are allocated, the EMP clearlyemphasizes the responsibility ofeveryone on the FPSO, includingvisitors, to comply with environ-mental requirements.

ISO 14001 certifiedProsafe Production’s environmentalmanagement systems are certifiedaccording to ISO 14001:2004. TheEnvironmental Management Plan andthe different steps described in thisplan have adopted the principles ofISO 14001. There are conductedregular audits on the HSE depart-ment, the Prosafe management, theproject team and the FPSO operationsteam. These audits shall ensure thatenvironmental aspects or sources ofemissions or discharges which cancause adverse environmental aspectsare adequately managed in asystematic manner. The audits shallalso verify whether the organisationis seeking continuous improvement of its environmental performance.

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Developing an EMPTo develop an environmental mana-gement plan, the first step was toidentify and assess the environmentalaspects associated with the operationof the respective FPSO, including risksof uncontrolled and harmful releaseto sea and air.

We employed qualitative andquantitative methods to evaluate thesignificance of each environmentalemission, discharge or use of naturalresource – all these causing adverseimpacts to the environment.

This information provided a basis foridentifying design considerations inorder to eliminate the source ofharmful emission. If elimination wasnot possible, alternative means wereevaluated to minimize impacts ofunavoidable discharges.

In parallel to the assessment process,it was also important to understandwho were interested in theenvironmental performance of theFPSO Polvo and FPSO Umuroa and thephilosophies and expectations ofthese various groups. We determinedthat the interested parties were theregulators, the community, the titleholder of the field and the operatorof the FPSO.

Once the key inputs were identified,an environmental management planwas written to define the specifica-tions for the respective FPSOs, theexpected performance and therequired capabilities and resources tomeet specifications and requirements.

FPSO specifications were defined forminimum emissions to sea and air,minimum generation of waste, andconservation and use of resources, in particular use of excess gas orprocessed crude as fuel, and re-use of steam.

We wrote also specifications for howto prevent uncontrolled discharge ofharmful substances to sea and air andmeasures to contain and recovershould these undesired eventshappen. Striking a balance betweencontainment for environmentalsafeguards versus dispersion anddilution for safety considerations wasnot that easy and straightforward. A classic example is bunding aroundtanks or process vessels on thetopsides. The bunding was to be putin place to prevent accidental oilspillage overboard, however, thesame bunding may result in a safetyissue as it may cause an accumulationof light hydrocarbons due to lack ofdispersion by natural ventilation.

Defining PerformanceEnvironmental performance of theFPSO Polvo and FPSO Umuroaincluded requirements of stake-holders and adherence to Prosafepolicies. The Environmental Manage-ment Plan (EMP) for each of theseFPSOs defined specific performancecriteria from statutory/legal require-ments and those of the client or thefield operator. To complement theEMP, specific procedures were writtendetailing ways and means of com-plying and achieving the desiredperformance.

One of such procedures was theWaste Management Procedure. Both FPSO Polvo and FPSO Umuroahave a specific waste managementprocedure designed to comply withthe local legal requirements andconform to Prosafe’s corporatestandards. The FPSOs were requiredto segregate their solid waste andrecord the disposed amountaccordingly. They were required to report the total waste disposedonshore to the Prosafe HSEQAdepartment and if necessary to the client and regulatory bodies.

In addition, both FPSOs wererequired to record discharges to air and sea.

The records of the discharges will be evaluated and studied so thatenvironmental targets and improve-ment strategies can be implementedrealistically to improve the environ-mental performances of the vesselsand of Prosafe as a company.

We looked into the local regulationsand international standards as well asat good practices to ensure that thedesign and the operation of FPSOPolvo and FPSO Umuroa comply withthe environmental requirements ofthe countries we operate in, namelyBrazil and New Zealand. In addition,we provided the Brazilian environ-mental authority IBAMA with theestimation of greenhouse gasesemissions. This was used as basis foracceptance and approval to operatethe FPSO Polvo. We provided the NewZealand environmental authority witha detailed Discharge ManagementPlan which involves a study on thedispersion of produced water and oil spills in the Tui oil field.

Confirming outcomesProsafe uses a monitoring andauditing system to evaluate theperformance and implementation of its Integrated ManagementSystem. To ensure compliance with legal requirements andconformance to the IntegratedManagement System, there will be conducted environmental auditsthat will look into the imple-mentation of Prosafe’s environ-mental requirements onboard of all Prosafe FPSOs as well as our sub-contractors and suppliers. Audits and reviews will provide the basis for on-going evaluation of performance and identification of areas for improvement.

Meticulous prepartions for FPSO Polvo and FPSO Umuroa

Below follows a short description of the work that was done by the HSEQAdepartment in Singapore for the FPSO Polvo and the FPSO Umuroa.

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Local Communities The locations where the FPSO Polvoand FPSO Umuroa operate havedistinct environmental, social andlocal community backgrounds. BothFPSOs are located some 100 kilo-metres from shore. However, FPSOPolvo will be one of many FPSOsalready in the field, while FPSOUmuroa is located in New Zealand in an area with few oil and gasoperations.

The FPSOs have addressed theirimpact on the local communities.Communication and discussion groupsorganized by the respective clientshave given the affected communitiesa chance to voice their concerns as

well as to see the positive impacts theFPSO will bring. The positive impactscan range from direct employment oflocal residents to indirect utilizationof local resources to support the FPSOoperation.

Reducing our ecological footprintProsafe aims to employ its FPSOs toproduce oil in an efficient way, andwill do its best to minimize theimpact on the environment. We willwork hard to reduce our ecologicalfootprint and to deliver qualityproducts that will be used in anenergy efficient way to benefitmankind and the environment in thelong run.

–It's not just that we are depen-dent on the natural world for our food and for the very air we breathe and that the veryrichness of the natural worldcontinues to provide us with allkinds of assistance. But it's amoral question about whetherwe have the right to exterminatespecies and leave to our grand-children a world that is moreimpoverished than the one weinherited – simply because of our carelessness and greed.

David Attenborough, producer of nature documentaries

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By Alan Hooper, Director of R & D

The field is located on the NorthWest Coast of Australia in 350metres of water. Since the area ischaracterized by cyclonic activityduring the summer periods, a keyfeature of the FPSO is the dis-connectable turret mooring (DTM) tobe installed at the bow of the FPSO.

The DTM is being developedand engineered by the R & D Turret Groups ofProsafe at its engineeringcentre in Singapore. Detailengineering includes allmechanical components,structural design, fluidtransfer systems, includingthe fluid swivels andchemical injection systems,and control systems. The system consists of a

detachable internal buoy which sup-ports up to 7 fluid risers, 2 umbilicalsand 9 mooring lines. During periodsof cyclonic activity this buoy may bedetached allowing the FPSO to sailaway to calmer areas.

The system will utilize a multi-pathfluid transfer assembly consisting offive 10-inch 1500 lb swivels. These

will provide two production paths,one water injection flow path for re-injection of produced water, onegas flow path for re-injection ofproduced gas and one spare flowpath. In addition a utility swivelassembly for chemicals, hydraulics and utilities and an electric swivel for power and control functions willbe provided.

Developed as a compilation ofexisting concepts used in previousProsafe mooring systems, the DTMhas already successfully undergoneextensive model testing at Marin in the Netherlands and detailengineering is continuing so thatconstruction may commence in thefourth quarter of 2007. Componentdetailing and testing has alreadycommenced under the direction ofProsafe’s R & D team in Singapore.

Disconnectable turretIn May 2007 Prosafe was awarded the contract for the supply of an FPSO for theVan Gogh field operated by Apache Energy Ltd.

Prosafe will apply its in-house developeddisconnectable turret on the Prosafe FPSO thatwill develop the Van Gogh field offshoreAustralia for Apache Northwest Pty Ltd.

Alan Hooper, Director of R & D.

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Prosafe’s Ambassador-prize

The prize is a gift voucher and asculpture that will be in the winner’spossession for one year. The sculptureis a miniature of “The Pilot”, a statuein Tananger, Norway, where thecompany from 1972 - 2006 had itsheadquarters. The pilot symbolisesalso a person who directs a courseand guides others through unknownwaters and into a safe harbour.

Who should receive Prosafe’sAmbassador-prize for 2006?We wish to highlight the efforts ofthose who through their activitiescontribute to build a corporateidentity we all can be proud of.

Please send your nomination,inclusive a well-founded proposal to:

Prosafe SEAtt.: Karine Cosemanse-mail: karine.cosemans@prosafe.comfax no.: +47 51 64 25 01

by 1 October 2007

The person who submits the winningproposal will receive a token ofappreciation.

All proposals will be evaluated by a jury consisting of the corporatemanagement. The name of thewinner(s) will be made public in the next edition of Prosafe NOW.

From left: Arne Austreid, president and CEO, Iwan Kuswana, last year’sAmbassador Prize winner, and Dagfinn Hatleskog, VP Operations

Prosafe’s Ambassador-prize will this year be awarded for the sixth time. The ambassador prize is annually awarded to a single person, a group ofemployees, a department or an operation that through the previous year in an excellent way has promoted one or several of Prosafe’s core values.

Prosafe SENedre Holmegt. 30-34P.O.Box 559 SentrumN-4003 Stavanger, Norway

Karl Ronny Klungtvedt (34)Karl Ronny Klungtvedt was appointedas executive vice president and CFO of Prosafe SE in May 2007. Mr Klungtvedt joined Prosafe in 2002and has held several positions, last asvice president finance and treasury.Prior to joining Prosafe, he heldvarious positions in Nordea andAccenture.

Bjørn Henriksen (46)Bjørn Henriksen was appointed aschief operating officer in May 2007.He comes from the position ofexecutive vice president and CFO of Prosafe SE. Mr Henriksen joinedTransocean in 1992 and has held anumber of positions there and inProsafe, including president ofOffshore Support Services andFloating Production.

Roy Hallås (42)Roy Hallås was appointed aspresident of Floating Production inMay 2007. He comes from theposition of executive vice presidentcorporate business development inProsafe SE. Mr Hallås joined Prosafein 1997 and has held a number ofpositions, including president ofProsafe Drilling Services and executivevice president corporate relations.Prior to joining Prosafe, he heldvarious posts in Transocean, theNorwegian Petroleum Directorateand Norsk Hydro.

Tom Milne (49)Tom Milne was appointed as directorof operations for Prosafe Offshore inMarch 2007. Mr Milne joined Prosafein November 2006 as project managerheading up the conversion of the

Safe Caledonia. He has nearly 30 years of experience from theoffshore business, and was previouslyemployed as amongst others projectmanager in Consafe Offshore, rigmanager in OSM Kristiansand anddirector in MarineCo UK.

Clive Adshead (54)Clive Adshead was appointed director of technical services forProsafe Offshore in February 2007. He comes from the position oftechnical manager having joinedProsafe Offshore in April 2000.Previously Mr Adshead was employedin the Chemical Industry as a main-tenance manager for six years and in the Royal Navy in various marineengineering positions for 25 years.

Management appointments

Karl Ronny Klungtvedt Bjørn Henriksen Roy Hallås Tom Milne Clive Adshead