© SBM Offshore N.V. 2014 Copyright by SBM Offshore N.V.

Report on selected

Key Sustainability

Indicators 2013

April 17, 2014

Document number or related information

© SBM Offshore N.V. 2014 Copyright by SBM Offshore N.V.

Content

1. Reporting criteria ....................................................................................................................... 4

1.1. Reporting Scope .................................................................................................................................... 4

1.2. Safety reporting ..................................................................................................................................... 4

1.3. Environmental reporting ....................................................................................................................... 5

2. Performance indicators ............................................................................................................. 6

2.1. Safety ...................................................................................................................................................... 6

2.1.1. Offshore Operations ............................................................................................................................................. 7

2.1.2. Onshore Projects ................................................................................................................................................. 7

2.2. Environmental ........................................................................................................................................ 8

2.2.1. Environmental Emissions to Air ........................................................................................................................... 9

2.2.2. Energy Consumption ......................................................................................................................................... 11

2.2.3. Oil in Produced Water Discharges ..................................................................................................................... 12

3. Notes on calculation LTIFR and TRIFR ................................................................................... 13

3.1. Notes ..................................................................................................................................................... 13

3.1.1. Note 1 ............................................................................................................................................................... 13

3.1.2. Note 2 ............................................................................................................................................................... 13

3.1.3. Note 3 ............................................................................................................................................................... 13

3.1.4. HSS – Accident Statistics................................................................................................................................... 14

4. Assurance report ...................................................................................................................... 15

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Introduction

This report provides an overview on selected Key Sustainability Indicators of SBM Offshore N.V. The

selection is based on the key indicators which we consider to be most relevant for our business. The

indicators are based on the Reporting criteria as set out in chapter 1 and are presented for both 2012

and 2013 to facilitate comparison.

This report is based on the performance of selected Key Sustainability Indicators 2013 only and

therefore does not provide an overview relating to performance of the organization on sustainable

development during the reporting year. The data in this report is derived from the SBM Offshore N.V.

Annual Report 2013, in which a total overview of SBM Offshore N.V. its performance relating to

Sustainability is presented. The Annual Report can be found at http://www.sbmoffshore-

annualreport.com/2013.

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1. Reporting criteria

1.1. Reporting Scope

The main Safety and Environmental indicators are listed in the following pages of the report. Safety data

is presented for both 2012 and 2013 to allow comparison.

This year the Company has completed the new organisation structure and these changes have been

reflected in the reporting scope with the inclusion of new entities based on location and type of activities.

As part of the reorganization SBM Offshore has identified a new category of workforce, Construction

Yards. Construction Yard employees are non-traditional type of SBM Offshore workforce who work on

construction yards, which SBM Offshore owns and/or operates in Joint Venture, and are allocated to

non-SBM Offshore projects.

The change in reporting structure has resulted in some entities not being comparable to last year.

Details of the reporting scope for the specific performance indicators can be found in the sections below

under their corresponding heading.

1.2. Safety reporting

Performance indicators are applied to the Company and take into account all permanent employees,

part-time employees, locally employed agency staff (contractors and subcontractors) in the fabrication

sites, offices, and offshore workers, i.e. all people working for SBM Offshore.

Reporting of indicators for Health, Safety and Security (HSS) are divided into four main sections:

Onshore Projects, Offshore Operations, Offshore Contracting and Construction Yards. Onshore Projects

consists of SBM Offshore employees and contractors in all offices, yards and SBM Operations

employees based in the Monaco office. Offshore Operations includes all vessels operated and owned by

SBM Offshore and their respective supporting shorebases. Offshore Contracting specifically refers to the

Normand Installer crew and onshore support staff. Construction Yards employees for HSS reporting

consist of employees from the Brazil based yards which SBM Offshore owns and/or operates in Joint

Venture.

HSSE incident reporting is registered and managed through the Company’s Single Incident Reporting

System (SIRS) database. SIRS is a reporting system that is used to collect data on all incidents on all

units operated by the Company. SIRS is a web based application which allows data entry from

anywhere in the world.

The SIRS system will also record an incident that is classed as environmental, i.e. any unwanted release

of pollutants to the environment.

Incidents are reported based on the incident classifications as defined by Oil and Gas Producers (OGP).

The Company also reports incident data from subcontractor’s construction facilities if the incident is

related to a SBM Offshore project.

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The Company uses man-hours records and SIRS data to calculate Health and Safety performance

indicators set by SBM Offshore.

1.3. Environmental reporting

The environmental performance of the Company’s twelve offshore units is reported after taking into

account the following reporting boundaries:

Units in the Company's fleet producing and/or storing hydrocarbons under lease and operate contracts

during 2013;

• Units in which the Company exercises full operational management control;

• Units in which the Company has full ownership or participates in a Joint Venture (JV)

partnership, where the Company controls 50% or more of the shares.

Offshore operations environmental performance results are chosen according to the performance

indicators relative to GRI and OGP guidelines1. This includes:

• Greenhouse Gases, referred to as GHG which are N2O (Nitrous Oxide), CH4 (Methane) and

CO2 (Carbon Dioxide);

• GHG emissions per hydrocarbon production from flaring;

• GHG emissions per hydrocarbon production from energy generation;

• Gas flared per hydrocarbon production;

• Energy consumption per hydrocarbon production;

• Oil in Produced Water per hydrocarbon production.

The environmental performance of the Company is reported by region: Brazil, Angola and Rest of the

World. Based on the criteria stated above SBM Offshore reports on the environmental performance for

following vessels, with 12 vessels in production at year end:

• Brazil - FPSO Brazil, FPSO Marlim Sul, FPSO Espirito Santo, FPSO Capixaba, FPSO Cidade

de Anchieta and FPSO Cidade de Party (in production in second quarter);

• Angola – FPSO Kuito, FPSO Mondo and FPSO Saxi Batuque; Sanha (sold in third quarter);

• Rest of World – FPSO Aseng, FSO Yetagun and PFC Deep Panuke (in production in fourth

quarter).

The segmental reporting for 2013 has changed from last year and the reporting of some 2012

performance indicators have been revised to allow for year-to-year comparison. Other atmospheric

emissions excluding flaring were not considered to be material for this year’s reporting scope.

The average for SBM Offshore at the bottom of each table is a weighted average, calculated pro rata the

volume of hydrocarbon production per region.

The calculation of air emissions from offshore operations units is by the method recommended by Oil &

Gas UK (OGUK).

1 Environmental performance indicators. 2011 data. Report No. 2011e. October 2012. International Association of Oil & Gas Producers.

6

The Company uses the World Resources Institute Greenhouse Gas Protocol (GHG Protocol) method to

calculate CO2 equivalents. CO2 equivalency is a quantity that describes, for a given mixture and amount

of greenhouse gas, the amount of CO2 that would have the same global warming potential (GWP),

when measured over a specified timescale (generally, 100 years). For further information on the GHG

protocol and country specific calculation methods, please refer to their website:

http://www.ghgprotocol.org/calculation-tools. Environmental spills to air (except gas leaks which are not quantifiable), water or land from the offshore operations units are reported using the data recorded in the Single Incident Reporting System (SIRS) database.

2. Performance indicators

2.1. Safety

During 2013 the Company delivered a stable safety performance on a range of its business activities.

The Company has managed to achieve a similar safety performance in comparison to 2012 with a Total

Recordable Injury Frequency Rate (TRIFR) of 0.40 in 2013 compared to 0.38 in 2012, despite a number

of challenges in safe working practices on one specific project. However, the Lost Time Injury Frequency

Rate (LTIFR) has deteriorated for both construction activities and offshore operations. A number of

corrective actions have been taken to help raise the standards, especially on the above mentioned

project, and are detailed further below.

The exposure hours, incidents and frequency rates include all hours recorded on TREG (including SBM-

Offshore Operations) and any incidents recorded at SBM Offices and premises. The methods used to

calculate LTIFR and TRIFR are explained in the notes in Chapter 3.

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2.1.1. Offshore Operations

The fleet of FPSOs recorded an increase in its TRIFR in 2013 (0.81 compared to 0.71 in 2012) and its

Lost Time Incident Frequency Rate (LTIFR) (0.17 in 2013, compared to 0.08 in 2012).

During 2013, a series of new initiatives has been put in place to emphasise management system

compliance and enhance dynamic risk awareness and behaviours.

The length of operating time achieved without recordable incidents provides a good indicator of safety

performance throughout the industry. In 2013, the offshore fleet was awarded eight Safety Milestone

Certificates for recordable incident-free periods, with one offshore unit, the FPSO Saxi Batuque in

Angola, achieving four years recordable incident-free.

As part of its drive for continuous improvement, SBM Offshore Operations has attained compliance

recognition by ABS on a voluntary basis for Occupational Health and Safety Assessment Series

(OHSAS) 18001. Following a successful implementation of the standard in Brazilian Shore Bases in

2009 and on-board FPSOs managed from Brazil in 2010, the process continued in Angola and for the

Rest of the World Fleet in 2011 and 2012.

2.1.2. Onshore Projects

All construction yards undertaking work for the Company provide the Company with details of their

safety records to support its reporting requirements in this area.

In 2013, the onshore operations recorded a stable performance in its Total Recordable Incident

Frequency Rate (TRIFR) (0.31 compared to 0.32 in 2012), while the Lost Time Incident Frequency Rate

(LTIFR) has increased to 0.12, compared to 0.06 in 2012.

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Despite solid performance on a number of yards and projects, the Company's overall safety

performance has been impacted in 2013 by the challenges in safe working practices on one of its

projects.

Following the deteriorating performance on this project, SBM launched several initiatives aimed at

improving safety onsite including:

• Increased number of safety resources

• Improvement and strengthening of the Permit to Work System used

• Improved scaffolding

• Reinforcement of the safety observations programme in place

• Implementation of positive incentive schemes

• Extension of the existing basic safety training and safety training for supervisors

• Improved communication around HSSE on the yard: tool box talks, weekly newsletter, safety

stand downs...

• Review of the yard management system by two external consultancy companies

• Improvement of the start-up process starting from the tendering phase.

2.2. Environmental

The Company endeavours to operate on its own behalf and on behalf of its clients in an environmentally

sustainable way, in order to minimise damage to local ecosystems.

The Company pays particular attention to three key environmental challenges:

• Avoiding oil spills

• Preventing unnecessary flaring or emissions to sea or air

• Minimising the use of energy and waste outputs by encouraging reduced consumption and re-

use.

The ambitious plan of the Company to bring its entire fleet into compliance with ISO 14001 was

achieved in early 2013 with the accreditation of the FPSO Cidade de Anchieta. All the FPSO units are

now compliant with the ISO 14001 standards.

9

During 2013, The Company has aligned its environmental performance reporting with the reporting

guidelines from the International Association of Oil & Gas Producers (2). As a consequence the

Company reports additional environmental related performance data and has decided to group fleet data

by region. The 2012 data have been reported accordingly, by region as well, for comparison purposes

Over the year, the Company has significantly improved its environmental performance reporting. The

Company now reports its environmental performance in accordance with best practice OGP (Oil & Gas

Producers) guidelines2. As outlined below, a solid environmental performance has been achieved from

the offshore units, compared to the oil and gas industry average.

2.2.1. Environmental Emissions to Air

The primary emissions from the offshore fleet are Greenhouse Gases (GHG) caused by energy

generation and flaring.

During production of oil and natural gas, the most significant components of produced GHG are Carbon

Dioxide (CO2) and Methane (CH4).

Emissions reported in the Company’s emissions records include:

• GHG emissions for the production of energy. Records GHG emissions from steam boilers, gas

turbines and diesel engines used by the operating units.

• GHG emissions from gas flared. Records of the volume of gas flared attributable to SBM

account and/or attributable to the client account.

The records of gas flared include the volume of emissions below the limit defined by the client, and the

volume of emissions above the limit attributable to SBM account, or at the request of the client to

optimise production. Emissions reported do not take into account any fugitive emissions nor emissions

from cargo tank venting. In general, the overall GHG emissions from energy generation and gas flared

increased by 9 % in comparison to 2012, but still remain 9% below the OGP average (159 tonnes of

GHG per thousand tonnes of hydrocarbon produced3.

The total gas flared in 2013 was 18.4 tonnes of gas flared per thousand tonnes of hydrocarbons

produced, 17% above the OGP average (15.7 tonnes of gas flared per thousand tonnes of hydrocarbon

produced4 with 37% of the gas flared recorded on SBM account and 63% on client account for

production optimisation or not exceeding the client allowance. The high level of gas flared in 2013 is

mainly due to start-up of two new oil production units in Canada (Deep Panuke) and Brazil (FPSO

Cidade de Paraty), which typically flare a substantial amount of gas during this phase as systems are

being tested and commissioned with hydrocarbons. Once production is stabilised emissions levels will

drop as these systems have been designed to produce without flaring gas, unless for safety reasons.

2 Environmental performance indicators. 2011 data. Report No. 2011e. October 2012. International Association

of Oil & Gas Producers. 3 Page 11 of Report No. 2011e. October 2012. International Association of Oil & Gas Producers

4 Page 17 of Report No. 2011e. October 2012. International Association of Oil & Gas Producers.

10

(1) GHGs includes CO2, N2O and CH4.

(2) 2012 GHG data revised in line with new segmental reporting. Also minor changes to 2012 data due to resubmissions. Please see section 1.1 Performance Scope for details.

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Non Greenhouse Gas Emissions Comparison Excluding Flaring Value expressed in tonnes 2013 2012 (1)

Number of Offshore Operations Units 12 units 11 units CO 2,600 2,245 NOx 5,814 4,924 SO2 210 154 VOCs 55 44 (1)2012 Non GHG data revised in line with new segmental reporting. Also minor changes to 2012 data due to resubmissions.

Please see section 1.1 Performance Scope for details

Non Greenhouse Gas Emissions Excluding Flaring

Values expressed in tonnes CO NOx SO2 VOCs

Brazil 1,404 3,206 103 32

Angola 846 1829 92 15

Rest of World 350 779 15 8

Total 2,600 5,814 210 55

2.2.2. Energy Consumption

The energy used to produce oil and gas covers a range of activities, including:

• Driving pumps producing the hydrocarbons or re-injecting produced water

• Heating produced oil for separation

• Producing steam

• Powering compressors to re-inject produced gas

• Driving turbines to generate electricity needed for operational activities.

The main source of energy consumption of offshore units is Fuel Gas and Marine Gas Oil.

Energy consumption of the Company units was 33 % better in 2013 than the OGP average (1.57

gigajoules of energy per tonnes of hydrocarbon produced in 20125.

5 Page 16 of Report No. 2011e. October 2012. International Association of Oil & Gas Producers.

(1) 2012 GHG data revised in line with new segmental reporting. Also minor changes to 2012 data due to resubmissions.

Please see section 1.1 Performance Scope for details.

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2.2.2.1. Indirect Energy Consumption

2.2.3. Oil in Produced Water Discharges

Produced water is a high volume liquid discharge generated during the production of oil and gas. After

extraction, produced water is separated and treated (de-oiled) before discharge to surface water.

The quality of produced water is most widely expressed in terms of its oil content. Limits are imposed on

the concentration of oil in the effluent discharge stream (generally expressed in the range of 15-30 ppm)

or discharge is limited where re-injection is permitted back into the reservoir. The overall efficiency of the

oil in water treatment and as applicable reinjection can be expressed as tonnes of oil discharged per

million tonnes of hydrocarbon produced.

The Company's result has been stable as compared to 2012. In 2013, the average volume of oil

discharged was 3.98 tonnes of oil discharged to sea per million tonnes of hydrocarbon production, which

represents less than half of the OGP average (8.8 tonnes of oil discharged per million tonnes of

hydrocarbon production in 20126.

6 Page 22 of Report No. 2011e. October 2012. International Association of Oil & Gas Producers.

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3. Notes on calculation LTIFR and TRIFR

3.1. Notes

3.1.1. Note 1

The exposure hours, incidents and frequency rates shown below include all hours recorded on TREG

(including SBM Operations) and any incidents recorded at SBM Offshore offices and premises.

3.1.2. Note 2

FAT: Fatality

LTI: Lost Time Incident

RWC: Restricted Work Case

MTC: Medical Treatment Case NM:

Near Miss Days Lost: LTI Days Lost

LTIFR: Lost Time Incident Frequency Rate

TRI: Total Recordable Incidents

TRIFR: Total Recordable Incident Frequency Rate

3.1.3. Note 3

The Total Recordable Incidents is the sum of the Fatalities, Lost Time, Restricted Work Case and

Medical Treatment Case incidents, but exclude First Aid Case and Near Miss Incidents.

TRI = FAT+LTI+RWC+MTC

TRIFR = (TRI x 200,000)/ EH

Where:

TRI = Total Recordable Incidents

200,000 = base for 100 equivalent full-time workers

(Working 40hrs per week, 50 weeks per year)

EH = Exposure Hours, total hours workedby all employees

LTIFR = (LTI x 200,000)/ EH

Where:

LTI = the number of Lost Time Incidents

200,000 = base for 100 equivalent full-time workers

(Working 40hrs per week, 50 weeks per year)

EH = Exposure Hours, total hours worked by all employees

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3.1.4. HSS – Accident Statistics

15

4. Assurance report

Assurance report

To: the Board of Management of SBM Offshore N.V.

Engagement and responsibilities

We have reviewed the Report on selected Key Sustainability Indicators 2013 (hereafter: Report) for the

year 2013 of SBM Offshore N.V., Rotterdam, in which the company renders account of its performance

related to these selected indicators.

A review is focused on obtaining limited assurance which does not require exhaustive gathering of

evidence as in audit engagements. Consequently, a review engagement provides less assurance than

an audit.

The Board of Management is responsible for the preparation of the Report. We are responsible for

providing an assurance report on the Report.

Reporting criteria

SBM Offshore N.V. has developed its own reporting criteria as set out in chapter 1 of the Report.

We consider the reporting criteria to be relevant and sufficient for our examination.

Scope and work performed

We have conducted our examination of the key indicators in accordance with Dutch law, including the

Dutch Assurance Standard 3000 ‘Assurance engagements other than audits or reviews of historical

financial information’.

Our most important review procedures were:

interviewing key employees;

assessing the acceptability of the reporting policies and consistent application of this, such as assessment of the reasonableness of estimates made by management, as well as evaluating the overall presentation of the Report;

reviewing the systems and processes for data gathering, internal controls and processing of other

information, such as the aggregation process of data to the information as presented in the Report;

reviewing internal and external documentation to determine whether the information in the Report is substantiated adequately.

We believe that the information we have obtained from our examination is sufficient and appropriate to

provide a basis for our conclusion.

Conclusion

Based on our review procedures performed, nothing has come to our attention that would cause us to

believe that the Report, in all material respects, is not correctly prepared in accordance with the

reporting criteria of SBM Offshore N.V. as set out in chapter 1 of the Report.

16

Basis of preparation and selection of the key sustainability indicators

Without qualifying our conclusion we draw your attention to the introduction of the Report, which

describes that this report does not provide a comprehensive overview of SBM Offshore N.V.’s

performance on sustainable development, because it does not contain all key sustainability figures as

included in the Annual Report 2013 of SBM Offshore N.V. We have not been engaged to provide

assurance on the sustainability information in the Annual Report 2013. Chapter 1 of the Report

describes the basis of preparation of the Report and the selection of the key sustainability indicators for

the Report.

Use of this assurance report

This assurance report has been prepared in accordance with our engagement for the Board of

Management of SBM Offshore N.V. and is published for information purposes only.

The Hague, 17 April 2014

PricewaterhouseCoopers Accountants N.V.

Original signed by W.H. Jansen RA