Ahmad Shukri Ghazali Ref: JKKP IS 127/438/2/824 DOCUMENT NAME: SAFETY AND HEALTH REPORT

(In compliance with Occupational Safety & Health (Safety & Health Officer) Regulation 1997)

Reporting Month March 2011

1. Compliance with OSHA, FMA and its Regulations NO ITEM CONCERN 1 OSH (Safety Policy) Newcomers are not fully Regulation 1995 aware of the content of the policies. Company OSH Policy: - HSE Policy - UDAT Policy - Stop Work Policy

RECOMMENDATION / Action taken - Included the policy into our HSE briefing program onboard work-barge - displayed policies at various strategic location onboard work-barge. - random UDAT (urine, drug & alcohol test) done average 10 crew per week - implementation of stop work (e.g. sea state criteria limitation 25 knots above stop lifting activity) - Top management involvement. Next meeting shall be conducted in Mid April 2011. - Conducted on monthly basis. Latest conducted on 2 April 2011. - maintenance of machinery carried out by 3rd party on annual basis - Internal preventive maintenance and inspection carried out onboard work barge. - discussed MSDS during toolbox meeting. - MSDS were kept at worksite for easy reference - Full compilation of MSDS was kept in the Barge Clinic for medic reference in case of emergency medication required. - Ear plug & ear muff area was identified during the noise mapping and warning signs displayed to remind crew to wear noise protection.

Safety & Health Committee - HSE Steering Committee Regulation 1996 Meeting - Site HSE Committee Meeting Factory & Machinery Act 1967 - Re-validation of machinery - Internally HSE team produced inspection plan. - inadequate understanding of MSDS content among workers

Classification, Packaging and Labeling of Hazardous Chemicals Regulation 1997

Noise Monitoring

-Identifying noisy area onboard work barge

2. Method of establishing and maintaining a safe and healthy working condition in the place of work NO ITEM CONCERN RECOMMENDATION 1 Health related issue Contagious illness onboard - hygiene inspection carried out weekly - BMI carried out randomly every week. - health talk delivered by Medic on weekly basis during toolbox meeting 2 Lifting activities Lifting carried out not as per plan Defective lifting gears - Pre-lift inspection carried out prior any lifting. - Rigging arrangement are engineered - Weather forecast done for risk reduction. - Annual 3rd party inspection carried out for validation of lifting gears (slings, shackle etc) - Color coding system implemented onboard.

Lifting gears n equipment

Ahmad Shukri Ghazali Ref: JKKP IS 127/438/2/824 DOCUMENT NAME: SAFETY AND HEALTH REPORT
(In compliance with Occupational Safety & Health (Safety & Health Officer) Regulation 1997)

Reporting Month March 2011

3. Accidents, Dangerous Occurrence, Occupational Disease and Occupational Poisoning NO ITEM CONCERN RECOMMENDATION 1 One Non-lost Time Lost focus and wrong -Revised JSA, included new hazard identified. Injurious incident occurred placement of hand had -Recommended to install life-line for tying off on 21 March 2011 caused finger pinched in safety harness while working on the working between shackle and pad- platform. (to be done upon completion of the eye during stinger pipe-lay activity) installation at Larut Field. 2 One Property Damage Due to wear and tear, P2 Established a log book to record visual incident occurred on 2 anchor wire accidentally inspection on wire ropes and etc. March 2011 parted 3 No other incident occurred this month 4. Machinery, plant, equipment, appliance, substances, manual labor to cause bodily injury or any person working in the place of work and to minimize any such risk NO ITEM CONCERN RECOMMENDATION 1 Anchor wire Anchor wire parted and Anchor winch area are prohibited and stored energy released cordoned from unauthorized access could cause harm to people 2 2nd section of stinger No handrail provided Planned to install handrail once stinger is accessible. 4 Material barge Material barge alongside Adequate Yokohama fender provided and may cause damage to visual inspection done periodically. MWB 5 Coating station Chemical spillage - provide MSDS at worksite - provide eye wash and emergency shower nearby - ensure competent person - SOPEP equipment available to be used during emergency. 6 Hot work Hot work activity within 500m zone from life platform - habitat erected to prevent fire - ensure no flammable release permit issued by platform - hot work only at enclosed area - regular gas check carried out

5. Machinery, plant, equipment , appliance or any personal protective equipment required for the purpose of minimizing any such risk NO ITEM CONCERN RECOMMENDATION 1 Fire retardant coverall Inadequate FRC Ordered FRC to top up stock. Delivery expected by end of April 2011. 2 3 Forklift Pipe joint coating foam Restricted movement Protection against exposure to component A (DensiflexPC6053 Activator) - Dedicated forklift driver appointed - Assigned traffic controller to monitor movement within the congested area. In minimizing exposure to component A (DENSIFLEX(tm) PC 6053 ACTIVATOR) :Although the odor of the combination of parts A & B are somewhat strong when standing

Ahmad Shukri Ghazali Ref: JKKP IS 127/438/2/824 DOCUMENT NAME: SAFETY AND HEALTH REPORT
(In compliance with Occupational Safety & Health (Safety & Health Officer) Regulation 1997)

Reporting Month March 2011

directly over the mold while injection and during the equipment flush process, there is no concern for the general population. The operators must be aware of the concentration in a closed, non-ventilated environment. The basic personal protections required on all projects where chemicals are used is: hardhat w/full face shield, goggles/safety glasses, coveralls, chemical resistant gloves and steel toe boots. All required protective equipment was available onboard work-barge. 6. Recommendation any alteration to structure and lay out for safety and health purposes NO ITEM CONCERN RECOMMENDATION 1 Muster station Crew not familiar with Muster drill at secondary muster station for secondary muster station familiarization. 2 Helicopter operation Pilot confused by platform Communication are made earlier to MHS and Main Work Barge heli- (Malaysian Helicopter Services) and deck understood 7. Safety & Health promotions NO ITEM CONCERN 1 U See U Act Program Crew did not apply intervention program 2 Hand n finger injury prevention The most popular body part to be injured RECOMMENDATION HSE Team onboard promoted the program, described the importance of intervention in saving life. Incentive token provided to encourage U See U Act submission. Lesson learnt from recent incident was shared with all crew during toolbox talk and safety stand down session onboard. Preventive to hand and finger injury campaign was conducted onboard work barge.

8. Other Matters NO ITEM 1 Emergency drill 2 U See U Act program 3 Safety walkabout 4 Management visit 5 Health Concern

DETAILS Emergency Drill was conducted on weekly basis. As of 31 March 2011, submission met the target by 110% Participated by client, HSE and supervisors on weekly basis Conducted on Monthly basis, lead bt Senior Management Reps. Health, hygiene and sanitation inspection carried out on weekly basis
END OF REPORT -

ATTACHMENT

PROJECTS HSE MONTHLY PERFORMANCE STATISTICS TL OFFSHORE SDN. BHD. TRANSPORTATION AND INSTALLATION OF OFFSHORE FACILITIES FOR YEAR 2010 - 2012 CONTRACT NO: C-NFX-P-1009 For Period : 1 - 31 March 2011

A) HEALTH, SAFETY & ENVIRONMENT STATISTICS

DESCRIPTION 1) LOST TIME INJURY (LTI)

CUMULATIVE LAST MONTH

THIS MONTH

CUMULATIVE

REMARKS

Fatality Permanent Total Disability (PTD) Permanent Partial Disability (PPD) Lost Workday Case (LWC) SUB TOTAL 2) NON-LOST TIME INJURY (NLTI) Restricted Work Case (RWC) Medical Treatment Case (MTC) First Aid Treatment Case (FAC) Medical Evacuation (Medivac) SUB TOTAL 3) NON-INJURIOUS CASE Near Misses Fire Incident Property Damage Oil Spill Man Overboard Road Traffic Incident SUB TOTAL TOTAL INCIDENT CASES 4) YEAR 2011 MANHOURS ONSHORE ACTIVITIES PROJECT MANAGEMENT TEAM

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

1 0 0 0 1

1 0 0 0 1

Onboard E3

0 0 0 0 0 0 0 0

0 0 1 0 0 0 1 2

0 0 1 0 0 0 1 2
Onboard E3

15,168 0 0 0 0 0 0 0

4,416 0 0 0 0 0 0 0

19,584 0 0 0 0 0 0 0

Captured from 8 Nov 2010 (Kick-Off Meeting)

OFFSHORE ACTIVITIES 0 0 0 0 0 89,237 0 0 0 0 89,237 0 0 0 0

TOTAL MANHOURS WORKED 2010 CUMMULATIVE PROJECT MANHOURS WORKED WITHOUT LTI

15,168

93,653

108,821 108,821

OVERALL PROJECT MANHOURS WORKED

5) YEAR 2011 PERFORMANCE TOTAL MANHOURS Lost Time Injury Frequency Rate (LTIF) Total Recordable Case Frequency (TRCF) Injury Frequency Rate (IFR) No. of days worked (2011 Project) 6) YEAR 2010 PERFORMANCE TOTAL MANHOURS Lost Time Injury Frequency Rate (LTIF) Total Recordable Case Frequency (TRCF) Injury Frequency Rate (IFR) No. of days worked (2010)

346,741
108,821 0.00 9.19 9.19 144

(Since 7 January 2010)

237,920 0.00 0.00 0.00 358

REMARKS Manhours captured from date of Kick-Off meeting - 8 November 2010

Prepared by: Ahmad Shukri Ghazali Project HSE Manager

PROJECTS HSE WEEKLY PERFORMANCE STATISTICS

TL OFFSHORE SDN. BHD.
CONTRACT NO: C-NFX-P-1009 - TRANSPORTATION AND INSTALLATION OF OFFSHORE FACILITIES FOR YEAR 2010 - 2012 GENERAL HSE ACTIVITIES REPORT NO
1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2 2.1 2.2 2.3 2.4 3 3.1 3.2 3.3 3.4 3.5 3.7 4 4.1 4.2 4.3

1 - 31 March 2011 THIS WEEK 0 0 0 0 1 1 1 2 0 CUMULATIVE SINCE 8 Jan 10 0 0 0 0 1 1 1 2 0 REMARKS

PARTICULAR Incidents No. of Fatality No. of Lost Workday Cases No. of Lost Time Incident Cases (LTI) No. of Work Days Lost for LTI Cases No of Recordable Cases Total Number of Injurious Incidents Total Number of Other Incidents Total Number of Incidents No. of Medical Evacuation (Medevac) Overall Incident Frequency Rate Lost Time Injury Frequency Rate (LTIF) Total Recordable Case Frequency (TRCF) Injury Frequency Rate (IFR) Lost Time Incident Severity Rate

(1.3)/(3.4)x1,000,000 (1.5)/(3.4)x1,000,000 (1.6)/(3.4)x1,000,000 (1.2)/(3.4)x1,000,000

0.00 9.19 9.19 0.00

Manhours Total Man-hours Worked (PMT) Total Man-hours Worked (Onshore Sites) Total Man-hours Worked (Offshore Sites) Cumulative Man Hours Worked for 2011 Total Man-hours Worked in 2010 Cumulative Man Hours Worked since last project (2010) U See U Act No. of Unsafe Condition Submission No. of Unsafe Act Submission Total U See U Act Reports

960 0 31,722 32,682 -

19,584 0 89,237 108,821 237,920 346,741

Since 7 January 2010

18 11 29

47 33 80

5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.1 6 6.1 6.2 6.3 7 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 8 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19

Emergency Drills Fire Drill Muster Drill Stretcher Drill Abandon ship Drill Rescue boat launch drill Man Overboard Helideck training & Fire Drill Diving Drill Medivac Total Drill Conducted Drug and Alcohol Test Pre-Access Drug and Alcohol Test Random Drug and Alcohol Test Post Incident Drug and Alcohol Test HSE Activities No of Occupational Health Talk No of Body Mass Index (BMI) conducted (Health Activity) No. of HSE Walkabout Management Visit No of Site HSE Meeting Conducted No of Toolbox Meeting Conducted In House - catering Crew - Function of Room Checkers Training In House - - Usage of Rigid Personnel basket training In House - Site ERT - Helideck manning team training Site Inspections (Monthly and Weekly) Hygiene and Sanitation Inspection Support Vessel Inspection Personal Basket Inspection Eye Wash Station Work Vest Inspection Personal Protective Equipment Inspection Pre-lift Inspection Equipment and Machinery Inspection Lifting Preventive Maintenance Fire Extinguisher Inspection Helideck Crash Box Inspection Fire Hydrant Life Jacket Liferaft Gas Cylinder Body Harness Fireman Locker & BA Emergency Escape Breathing Device Fire Fighting Equipment

0 0 0 0 0 0 0 0 0 0

1 1 1 0 0 1 0 0 0 0

0 0 7

264 0 7

0 0 3 0 0 8 0 0 0 0 3 0 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0

2 0 4 1 0 29 0 0 0 0 4 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 1

9
9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14

Other HSE Highlights

Loss Prevention System training was conducted on 4th, 5th, 6th and 9th March 2011 at Hotel Selesa, Pasir Gudang. Total 293 pax were trained. Hot Work Safety training was condcuted on 5th & 6th March 2011 for all Riggers and Fitters. Total 123 pax were trained. On 6th March, NFX PTW training was conducted in the morning & EMEPMI PTW training was conducted in the afternoon. 38 pax attend NFX and 39 pax attended to EMEPMI. Management Site Visit was conducted onboard Enterprise 3 from 1000hrs - 1300hrs on 7th March 2011. EMEPMI Contractor SHE Induction was conducted on 7th March 2011 (at 1130hrs) at Selesa hotel. Newfield Pre-mob Induction for E3 was conducted on 7th March 2011 @ 1430hrs at Hotel Selesa. From 14 March 2011 to 26 March 2011, 30 numbers of participants have attended Loss PreventionSystem training at Terengganu Safety Training Centre (TSTC) 16 March 2011, SSW Training was conducted for crew working onboard Larut platform. 17 March 2011, HSE dialogue with NFX , EMEPMI and barge Superintent. Safety Stand-down conducted onboard E3 for all crew - with regards to the Injurious incident occurred on 21 March 2011. Incident Investigation conducted onboard DLB Enterprise 3 on 24th and 25th March 2011. The team comprised of TL Offshore, Newfiled and ExxonMobil Representatives. Safety Stand-down conducted onboard E3 for all tower operation personnel - with regards to the parted anchor wire incident occurred on 23 March 2011. Incident Investigation conducted onboard DLB Enterprise 3 on 25th and 26th March 2011. The team comprised of Barge Supt, Marine Capt, Anchor Foreman, HSE Engineer & Senior Safety Officer. Prevention to Hand & Finger injuty campaign was conducted onboard E3 on 26 March 2011.

10

Incident This Month

One Restricted Work Case & one Property Damage case were reported this week - On 21st March 2010 at about 1640 hours, IP was on his assigned duty to detach 85 tonne shackle from stinger padeye during stinger installation process at starboard side of barge stern on working platform provided complete with full body harness. After detaching the shackle, IP was trying to support his position by using his hand as anchor point at the padeye, when the shackle (approximately weight 80 kg) which was in upright position flopped forward due to sudden vessel motion and pinched his finger in between the shackle and padeye with his rigging gloves on. IP suffered a laceration cut on his 4th and 5th fingers of his right hand. He was refferred to shore clinic for further examination. - During the incident, weather observed was fine with wind speed between 5 7 knots and swell height 0.8m 0.9m. Barge rolling and pitching was about 2 degree and 1 degree accordingly and heaved about 0.5m 1m height. - Incident occurred 2305hrs on 22nd March 2011 shortly after DLB Enterprise 3 commenced with Pipe lay start-up for 8 x 15km Gas at Larut-A Platform. While pulling JT# 15 at bead stall, suddenly tower operator noted that the tension on P2 dropped to zero. After confirming with Anchor Foreman, it is found that the P2 anchor wire parted. Prior to the incident, tower operator observed that the tension of the bow winches were approxi-mately at 38T which is considered normal for pipe lay operation. Pipe lay activity was immediately stopped. Anchor foreman re-confirmed that P2 wire parted and found end of parted P2 wire in the winch room at approximately 20m out of the drum. - During the incident, the weather observed was fine with wind speed from 10 knots and swell height from 0.5. - No injury to personal. - Parted anchor wire retrieved by AHT Touchet Tide and replaced with new wire. - Manufactured date of wire : 24/07/2009 - Date of wire installed : 03/05/2010 - Date of wire parted : 22/03/2011

10.1

10.2

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