SBM Offshore N : adapts to business during pandemic

As the COVID-19 pandemic continues across the globe, SBM Offshore has been adapting to this unprecedented situation, protecting its workforce and putting in place business continuity measures.

SBM Offshore's priority remains the health and safety of its staff, contractors and their families, ensuring safe operations across the Company's activities at the same time. A dedicated task force continues to monitor the situation at all Company locations across the globe, on a daily basis. The Company follows advice from the relevant authorities and medical experts, whilst also keeping in close contact with clients, partners and suppliers.

Safe operations of our fleet is of the essence. In the first quarter, the year-to-date uptime of the fleet has been in line with our historical track record. Business continuity protocols have been activated at shore bases, as well as for offshore operations. To keep offshore operations safe and stable, only essential maintenance is performed and crew rotations have been extended for those offshore while their upcoming counterparts are in self-quarantine at monitored facilities onshore. Earlier in April, SBM Offshore has transported some crewmembers with symptoms from one FPSO back to shore. Further tests have now confirmed a number of positive COVID-19 cases. The Company is assessing the situation with the client and the authorities.

SBM Offshore is also carrying out construction activities in many parts of the world. Additional measures and protocols have been put in place to ensure the health and well-being of staff and contractors at the yards. Construction yards in China reopened in February and are now close to planned capacity. In Singapore and Dubai, the yards have remained open until the end of March. Since last week, the authorities suspended activities at the yard in Singapore for a period of two weeks, meaning that some delays in project execution will be unavoidable.

In our office locations, most staff work from home and activities continue. Staff are updated on a regular basis and are supported with advice to help them achieve a healthy balance between professional and personal lives.

Activity and operations therefore continue, although with some incremental expenditure to keep operations running safely. In this regard, measures have been taken to postpone non-vital programs to reserve cash to help offset these impacts.

The unprecedented effects of the combined supply and demand shocks in the oil and gas industry have a major impact on oil and gas companies across the globe. In order to preserve liquidity and cash, measures to reduce and defer expenditure are in the process of being implemented by most oil companies. We are assessing where we may be able to assist our clients, while creating a solution which is fair for all parties.

As the situation evolves, we shall provide updates on SBM Offshore's activities going forward. In the meantime, we hope all SBMers, our clients, suppliers, partners and all our stakeholders and their families are staying safe.