2008

Annual Review of
HSE Performance

Message from the CEO

Gulf Marine Services is currently the largest Elevating Support Vessel operator in the Middle East
supplying a modern fleet of self propelled barges to the oil and gas market which is unrivalled in the
region. Our goal is to expand beyond this watershed to become the global jackup operator of choice
for oilfield clients focusing on offshore well maintenance, construction and accommodation.
So far this year we have completed the construction of Barge Kudeta the latest addition to the fleet
and for 2009 we will see the introduction of a new class of Jack Up barge. This class of barge will be
capable of going to 65 meter water depths and will have 250 tons of crane capacity. As well as the
expansion in our fleet we have also considerably increased our activities onshore with projects well
under way constructing large accommodation modules and outfitting of service barges.
With such aggressive growth comes greater responsibility, to our clients, investors, many existing
and new employees as well as to the contractors who work diligently with us. There is also our
responsibility to the environment of the world we live in. We have been working hard in 2008 to
minimize our impact on the environment, not only through effective management of our offshore units
but also through our shore based projects. This year alone we have invested a considerable amount
of resource into creating a healthy environment for the workforce in our onshore facilities. Looking
further ahead we will be developing an integrated management system for HSE, a large part of which
will be aimed at safeguarding our environment.
While the Lost Time Injury frequency rate has marginally increased, this has been mainly due to the
recent openness in reporting incidents and a no blame culture that has been encouraged throughout
our organization. Our aim for the future through implementation of our HSE management systems
will be to reduce this rate as far as possible toward zero.
We in GMS are aware of the risks inherent to our industry and will continue to develop and improve
the necessary safeguards to protect our employees and the environment.

DUNCAN ANDERSON
CHIEF EXECUTIVE OFFICER

Safety Performance 2008

LOST TIME INJURIES
Lost time injury frequency rate has increased from 0.74 in 2007 to 2.36 in 2008. This was considered to be exceptional for that year. We saw
a similar anomaly in 2004 where the LTIF dropped to 1.59. Over the last 6 years however we have been seeing a steady decrease in the
LTIFR and our aim is to continue on this path.
LTIFR

LTIFR

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

OVERALL SAFETY STATISTICS

Year

HSE Observation

Incident

Accident

Fatality

LTIFR

SVFR

LTI

2001
2002
2003
2004
2005
2006
2007
2008
2009

2010

0
8
7
3
97
82
130
842

5
3
4
1
11
10
1
2

6
11
9
3
10
6
1
5

2

0 4.75

0 3.39
75.24
0 1.59
3.74
0 3.01
38.2
1 2.17
49.55
1 0.74
4.4
0 2.36
14.9

Total

1169 37

51

Lost days

7
5
4
2
4
3
1

4

75
4
43
58
5
22

FATALITIES
In 2008 we did not have any fatalities at any of our work sites, which we attribute to the enhanced awareness of safe working practices and
the overall improvement of our safety culture. Our aim for 2009 and the years to come will be to keep fatalities at zero.

Safety Performance 2008

SEVERITY OF INJURIES
Severity rate of injuries is calculated as the

were minor compared to 2005 and 2006 where we tended to see

injuries taking a longer time to recover from such as a dislocated
shoulder, which required one month rest before the Injured person
could return to work.

Total number of work days lost x 1,000,000

Hours worked
The rate over the past five years has seen a downward trends despite
the increase from 2007 to 2008.
SVFR

INCIDENT DATA
Total Incident Data for the last 7 years.

80
70

INCIDENT DATA

60

12

50

10

40

30

20

10
0

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2
0

SVFR

2001

2002

2003

2004

2005

2006

2007

2008

Comparison of Lost man days due to accidents for the last 7 years.
In 2004 while we still suffered from 3 LTIs the severity of the injuries

TOTAL LTIS YEARLY COMPARISON

LOST DAYS

LTI

80

70

60

50

40

30

20

10

1
2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Lost Days

2010

Incident
Accident
Fatality

LOST DAYS

2009

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010
LTI

ACCIDENT COMPARISON 2008

Accidents are displayed at individual work sites. This year the
majority of accidents occurred on our offshore units although there
was one accident onshore in our yard.

in the Musaffah channel with another vessel but resulted in no lost

time injuries.
ACCIDENT
0%

ACCIDENT

20%

2.5
2

40%

1.5
1
0.5

20%

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0
0%
Accident

Out of the total of 5 accidents recorded this year, four of them have
resulted in Lost Time. 2 of the accidents were on board Barge Naashi
involving lifting operations. One was on Barge Kamikaze involving
lifeboat maintenance and the other was in the yard carpentry area
involving a circular saw. The accident on Helios involved a collision

0%

20%

Slip/trip/fall

Housekeeping

Hygiene

Human error

Other

Disregard rules/regs

Unsafe practice

PPE

Natural cause

Horseplay

Maintenance

Crane/Safelifting

Environmental

Safety Performance 2008

NEAR MISS REPORT QUANTITY BY LOCATION

Throughout 2008 we have offered a number of incentive programs

to encourage reporting on our offshore units and yard facilities.
These programs have been incredibly successful and have led to a
significant increase in the number of reports being submitted.

Although it may seem like some of the vessels are not reporting this
is not the case. We have contractually agreed to participate in client
reporting systems on some of our vessels so in this case we do not
accumulate all the statistics.
NEAR MISS

600
500
400
300
200
100

NEAR MISS
32

114

24

22

63

125

248
30

29

Slip/trip/fall

Housekeeping

Hygiene

Human error

Other

Disregard rules/regs

Unsafe practice

PPE

Natural cause

Horseplay

Maintenance

Crane/Safelifting

Environmental

81

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81

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Near Miss

NEAR MISS REPORTS BY CATEGORY

81

aw

2008

az

2007

2006

ik

2005

Ka

2004

2003

2002

Ka

2001

ffi
ce

Ya
r

900
800
700
600
500
400
300
200
100
0

HSE Observation Reports

NEAR MISS REPORTING

MANAGEMENT VISITS, HSE INSPECTIONS AND INTERNAL AUDITS

Throughout 2008 we have aimed to increase managerial presence on our offshore units and yard facilities. A number of senior management
visits have been made offshore and regular site tours have been made in the yard.
HSE Inspections of the vessels have been made at bi annual intervals to help maintain a good standard of practical safety on board. One
of our KPIs for 2008 was to maintain a certain interval of offshore inspections on our vessels. For 2009 our KPIs will again involve another
increase in the amount of visits to vessels offshore whether for inspections, audits or just promoting general HSE Issues.
VISITS AND INSPECTIONS
4
3
2
1

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Visits
Audits
Inspections

Safety Man of the Month

Every month during 2008 we awarded GMS employees with a gift for excellence in HSE performance based on criteria such as best
near miss report, outstanding HSE awareness or excellent team work. This program will continue in 2009 as it has improved moral and
commitment to HSE for all our employees onshore and offshore.

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2008 Campaigns
In 2008 we carried out 4 safety awareness campaigns.

1ST QUARTER - SAFE LIFTING CAMPAIGN

For this campaign we hired a specialist trainer from ABS Consulting to visit all of our work sites and conduct training sessions with our employees.
We also made a number of fun posters to display safe lifting practices around the work sites.

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2008 Campaigns
2ND QUARTER - HEAT STRESS CAMPAIGN
For the heat stress campaign we carried out awareness sessions with our employees to familiarize
them with the dangers of working in high temperatures. We also supplied promotional items such as
thermos flasks for carrying water and head gear for sun protection.

3RD QUARTER - HOUSKEEPING CAMPAIGN

The housekeeping campaign was kicked off with a company black bag day in our yard where all the
employees and managers went out in the yard for the day to collect rubbish and tidy up the work
areas.

For a Safe Workplace

12

4TH QUARTER - HSE OBSERVATION REPORTING CAMPAIGN

For the last campaign of the year we endeavored to increase awareness about the importance of
reporting any Health Safety or Environmental occurrences. This was achieved using incentives such
as phone cards and end of month prizes on our vessels and onshore.
During this period we saw a substantial push in the number of report cards being received, often from
individuals who were reporting large numbers compared to others reporting none. In 2009 our aim will
be to encourage people not so keen on reporting to step forward and raise report cards.

13

14

Key Performance Indicator Achievements

Some of our KPIs were not achieved this year. Next year we will aim for 100% success rate by making sure the targets while ambitious are achievable.
MARINE DEPARTMENT 2008 KEY PERFORMANCE INDICATORS

Safety Dept. KPIs

Target Date


0 Lost Time Accident or injuries at work
Dec. 2008


At least 4 vessel HSE audits to be carried out on all
Quarterly
GMS vessels throughout the year


All employees must receive GMS induction training
Dec. 2008
including GMS Safety Management System


Increase Near Miss reports to at least 300 in the year
Dec. 2008
for all GMS operations

Responsibility Status

HSE Officers

HSE Officers

HSE Officers

HSE Officers

Completed
Not Completed

15

Key Performance Indicator Achievements

Published
By: QUARTERHealth Safety
and STRESS CAMPAIGN
Safety
Dept. 2ND
KPIs
HEAT
Target Date
Responsibility
Environmental
Department,




Conduct
four For
(4) HSE
Campaigns
(for example:

Dec.sessions
2008 with our employees
HSE Officers
the heat
stress campaign
we carried
out awareness
to familiarize
heat
stress campaign,
lifting
& Marine
hand of
injuries
and
them withGulf
the dangers
working
in high temperatures. We also supplied promotional items such as
Services,
UAE
emergency
evacuation
exercise)
thermos
flasks
for carrying water and head gear for sun protection.

Select and award 12 Safety man of the month
Dec. 2008
HSE Officers/Marine Manager
3RD QUARTER HOUSKEEPING CAMPAIGN
Conduct monthly yard HSE audits
Monthly
HSE Officers
The housekeeping campaign was kicked off with a company black bag day in our yard where all the
Conduct weekly
inspections
any construction
Dec.
2008
HSE
employees
andofmanagers
went out in the yard for the
day
to collect rubbish and
tidyOfficers/Marine
up the work Manager
project within areas.
GMS



Complete updating of company SMS and ensure
Dec. 2008
Marine Dept.
implementation
is achieved
For
a safe workplace



Kawawa HSE Improvement
Jul. 2008
HSE Officers



To update all our HSE Manuals
Jun. 2008
HSE Dept.



Re-introduce the Safety Awareness and Commitment
Dec. 2008
HSE Dept.
of all related HSE issues



Implement waste management control at the supply
Dec. 2008
HSE Dept.
base (yard areas, warehouse and workshops)



Conduct HSE site visit to discuss HSE issues
Dec. 2008
HSE Officers



Ensure full implementation of HSE Policy at all working
Dec. 2008
HSE Dept.
locations and introduce necessary training for all staff.
Ensure strict adherence to companys HSE protection
policy and management system, safety rules/
regulations and standards

Status

Completed
Not Completed

16