.

Zakher Marine International Inc.

SHEQ

2016

ANNUAL

PERFORMANCE

REPORT

ZAKHER MARINE INTERNATIONAL INC.

Issued on - 30.03.2017

VISION STATEMENT

Our Vision is a world in which every worker attains the conscious to speak, act and do something not only for hisSAFETY but also for others. We seek to save the Planet Earth by saving her ENVIRONMENT. Our Vision is nothing less than realizing that we all need better HEALTH and best QUALITY of life.

LEADERSHIP

ACCOUNTABILITY

COMMITMENT

QUALITY

SAFETY

TEAMWORK

RELIABLE

TRUST

INNOVATION

RESPECT

Zakher Marine's mission is to provide quality and reliable services to offshore sector in all kinds of offshore operations. Company is using all available resources and state of the art built vessels to lead the industry. Company is matured now to handle the largest number of fleet not only in the gulf region but world wide as well.

04

Executive Summary Zakher Marine goal is to make every day, a perfect HSE day.......

05

Welcome Messages General Manager and SHEQ Manager messages.................

06

Performance Analysis Data collected from 2011 to 2016 include reports from all vessels .......

09

Benchmarking HSE Benchmarking with IMCA statistics.................

11

Objectives & KPIs How we met our Objectives and KPIs in 2016.................

13 Customer Satisfaction Zakher Marine performed an ideal

and excellent role ................

16

Activities & Achievements ZMI took part in ADIPEC and impressed her potential Customers ................

17

Awards & Recognitions Recognition is the best way to motivate................

CONTENTS

EXECUTIVE

12

Rise & Shine Meet and greet our New Family members ................

achieve 365

perfect HSE

days in a

year

ZMI's goal is to make today and every day a Perfect HSE Day;

one without recordable injury or illness, serious spill and serious road accident across the company. During 2016, we improved our HSE performance in many areas however, overshadowed by three of the Medical cases. These events emphasize that we cannot lose our focus on mitigating risks. We strive for flawless execution in our operations and believe that we can achieve 365 perfect HSE days in a year. Our performance matrix highlights that we are progressing but we still have more to do in the following:

Top Level Management commitment is evident towards SHEQ; however Management still believes that Sky is limit

Minimize the Accidents/Lagging indicators & maximize the Leading indicators

Reduce ZMI impact on the environment, through continuous improvement of the environmental management and raising awareness

Enhance and update shore-based employees and shipboard personnel understanding of SHEQMS, standards, other rules and applicable regulations by providing in-house and outsourced training which is organized by Company.

Continuous Monitoring & Control to improve & achieve the highest possible staff/vessel’s performance during Internal/ External Audit and inspection.

Achieve the highest possible client satisfaction, establishing the company in a position as being a preferred employer within the industry

Expanding and strengthening company’s market presence

EXECUTIVE SUMMARY WELCOME

365

perfect HSE

days in a

year

"Zakher Marine International is currently the largest offshore vessel owners and operators in the United Arab Emirates, Qatar and Saudi Arabia. Our goal is to expand and become the premier provider of marine services to the offshore industry. We are committed to provide our clients with reliable and professional marine services and solutions emphasizing safety, health, quality and environmental sustainability. Zakher Marine has two areas on which our target is to reach zero. These are the areas of work-related injuries and oil spills. ZMI is on the top of it since beginning however we are always struggling to reduce minor injuries at worksites. It is also imperative to maintain high standards of services ensuring safe operations and efficiency in all aspects of our business. The Management of ZMI is fully committed to the improvement of HSE within the organization and considers safety, quality and protection of the environment as the core value in our day to day business." Eng. Musadaq Al Yacoub -- General Manager

"Our long-term success depends entirely upon working to ensure the safety of our workers, subcontractors and visitors to our premises. I believe that a safe and healthy workplace is a fundamental right of every person and also a business imperative. Our Workplace Rights Policy requires that we take responsibility for maintaining a productive workplace in every part of our Company by doing what we can to minimize the risk of accidents, injury and exposure to health hazards for all of our associates and contractors. At ZMI, solving client challenges is second only to keeping everyone safe and healthy. We do not compromise our focus on HSE for better business results. Our commitment to safety minimizes the impact on the environment, control risks to our employees and maintain safe work practices. I would like to extend my gratitude to all, particularly to the offshore staff members for their personal contribution, dedication and commitment to HSE and making 2016 another year without LTI. Keep this up."

Capt. Nasir Mehmood -- SHEQ Manager

Overall

Report

aims

new

WELCOME MESSAGE

T

PERFORMANCE

Overall 2016 was positive year in terms of personal injuries as compare to last years, However Medical Treatment

Report (MTR) remained the same as of 2015. ZMI had Three (3) Medical Treatment cases on different units. ZMI

aims to achieve Zero injuries in 2017. To achieve the target ZMI will continue to do more efforts by introducing

new training and competency program.

The following analysis is based on data collected covering the years 2011 to 2016. These data include reports from vessels operating under ZMI Management wherein Safety Performance is measured based on Lagging and Leading Indicators as presented below.

PERFORMANCE ANALYSIS PERFORMANCE

LAGGING (REACTIVE) SAFETY PERFORMANCE INDICATORS

PERSONAL INJURY TREND ANALYSIS

Treatment

ZMI

introducing

As per cause wise study the main reason of personal injury in 2016 is "Line of Fire / Caught Between / Struck Against , Fall on the same level (slips, trips and Fall) and Struck against (person hit a stationery object).

PERSONAL INJURY AND FIRST AID CASES

LEADING (PROACTIVE)

PERFORMANCE & STATISTICS ANALYSIS

FIRST AID CASES AND INJURIES

2. Duty oiler was slipped in stairs while approaching to receive the phone call at Engine Room.

LEADING (PROACTIVE) SAFETY PERFORMANCE INDICATORS

In contrast to Lagging Safety Indicators, Leading Safety Indicators are measured using a series of leading or proactive indicators which aim to elevate the Safety Management Performance and strengthen HSE culture within ZMI by diminishing undesired events such as injuries or damages.

Safety Observations Frequency Rate (SOFR) is significantly increased. In comparison to 2015 there is positive trend in the rate.

Training Frequency Rate (TFR) -immensely increased noting that ZMI change the way of recording training hours from per vessel to per person. TFR of 107.8 is achieved in 2016 against set target of 50.

Lessons Learnt Rating (LLR) -This area was marked weak area in 2015 however more efforts are done to achieve the set target. ZMI achieved the set target as circulated Safety Flashes throughout the year for awareness and motivation of on-board crew. LLR increased from 2.8 to 6.4 in 2016.

Management Visits Rating (MVR) – The number of Management Visits are decreased in 2016 but due to increase in

Man-hours the MVR rate is decreased. Management Visit Plan 2017 is already launched and ZMI aims to achieved the set target in 2017.

1. Chief Engineer's left arm thumb injured while doing maintenance at Engineer Room.

3. During mooring operation AB was trying to hold the stopper rope but the mooring rope was moved quickly and pulled him towards upward bar (crash bar support) and his right shoulder touched the bar.

FIRST AID CASES AND INJURIES

SAFETY OBSERVATIONS ON BOARD

3,815,328

Actual Man-Hours Based on a 12-Hour /Workday

ZMI has set target of minimum one safety observation per person per month. The set target is well achieved

as shown in the above graph. All safety observations received from the vessels are recorded for further

actions i.e. Awards and Incentives, Training Identifications, Preventive Actions, and Improvement Plan for the

Company.

HSE STATISTICS BENCHMARK HSE STATISTICS

As we are expanding the number of vessels and barges, ZMI is committed to its objective to "Reduce ZMI

Impact on the Environment" through continuous improvement of the environmental management and raising

awareness. Training and Development will enhance and update shore-based employees and shipboard

personnel understanding of SHEQMS, standards, rules and applicable regulations by providing in-house or

outsourced training which will organize by ZMI.

At the very beginning of 2016 ZMI had one minor environmental incident at one of the Barges. The incident

happened during Bunkering Operations. The incident was investigated and closed with list of preventive actions

and recommendations. Safety Flash was circulated to all vessels and barges to avoid recurrence of such

incidents. Awareness created and ZMI successfully completed the year without any other environmental

incident.

ENVIRONMENTAL / PROPERTY DAMAGE INCIDENTS

HSE STATISTICS BENCHMARK OBJECTIVES

incident

actions

such

environmental

OBJECTIVES & KPI’s ACHIEVEMENT RISE

Zakher Marine is the leading service provider in UAE Marine Offshore industry and the fleet is growing in

number and size every year. Company's vision is to lead the industry in Safety Standards as well. In 2016

Three (3) Barges joined QMS Fleet ; QMS Supporter, QMS Pearl and QMS Pride. In addition new vessels also

joined the fleet.

QMS SUPPORTER

150 POB, DPS- 1, SELF PROPELLED,

SELF ELEVATING BARGE. Built 2015

Registered - St. Vincent and the Grenadines, Kingstown

ABS, A1, Self Elevating Unit, AMS-NP, DPS1 CRC CPS HELIDK

QMS PEARL

150 POB, DPS- 1, SELF PROPELLED,SELF ELEVATING BARGE. Built

2015, Registered - St. Vincent and the Grenadines, Kingstown, ABS,

A1, Self Elevating Unit, AMS-NP, DPS1 CRC CPS, HELIDK

QMS PRIDE

150 POB, DPS- 1, SELF PROPELLED,

SELF ELEVATING BARGE, Built 2016

Registered - St. Vincent and the Grenadines, Kingstown

ABS, A1, Self Elevating Unit, AMS-NP, DPS1 CRC CPS

HELIDK

QMS POSEIDON

QMS Poseidon is 2016 built Offshore Supply Vessel. She has a Length

overall of 65 m and can hold 1679 deadweight with a capacity of 84

personnel on board,equipped with state of the art Kongsberg K-Pos Dual

Redundant Position Reference Systems for critical operations offshore

RISE & SHINE CUSTOMER

support and services are given the score based on below matrix.

Clients have a broad positive feedback in 2016,

“Excellent” in 2016 as per Rating Matrix Criteria.

ZMI will carry out more focus on areas that might give more and better impression to the client

especially on “Services” having 85% .

This performance inspired ZMI to continue their unbeatable services in each area. Even statistic

shows that there’s excellent performance delivered, ZMI will carry on by providing more efficient

planning, effective implementation, vigilant monitoring and fair analysis.

SCORE BY MAIN CATEGORIES

CUSTOMER SATISFACTION As one of ZMI’s approach to verify its performance and quality

of services being offered, ZMI has developed a system for

handling feedback and complaints through “Client Feedback

Form” wherein different areas such as Company profile,

operational performance,

WHAT OUR CLIENTS SAY

CUSTOMER SATISFACTION

OPERATIONAL PERFORMANCE

SERVICES

SUPPORT

ZMI PROFILE

CLIENT FEEDBACK CATEGORIES CUSTOMER

WHAT OUR CLIENTS SAY ABOUT US !

Keep up the good service and performance - ADMA

Vessel senior crew are very professional and experience. Technical and Operation support of the vessel is more than excellent. Crewing support and crewing change follow-up is extremely perfect.

An outstanding project, our thanks to the Master, Officer and Crew

SAFETY PYRAMID SAFETY PYRAMID

TRAINING OF THE MONTH PROGRAM

"Training2015seafarerssamestandards

CUSTOMER SATISFACTION ACTIVITIES &

TRAINING OF THE MONTH PROGRAM

"Training of the Month" Program was introduced in late 2015 to unify the Trainings for the whole year for all seafarers. This is to bring every crew member at the same level of competence and to regulate it at ZMI’s standards.

"Environments R us Environmental Campaign is conducted on all units and records are maintained. The objective of the campaign is to Reduce, Reuse and Recycle the amount of wastes/emissions and that is to enhance a better Environment and to ensure our commitment towards Environmental Sustainability.

ADIPEC PARTAKE 2016 ADIPEC is one of the world’s most influential events for the oil and gas industry. As a premium exhibition and conference platform, ADIPEC hosts hundreds of speakers, thousands of exhibiting companies and tens of thousands of trade professionals from around the world.

ZMI participated in ADIPEC – 2016. ADIPEC Visitors, Clients and interested parties were given opportunity to visit QMS Poseidon and meeting ZMI Management.

ACTIVITIES & ACHIEVEMENTS

WE ARE

MrCoordinator"HSEremarkablethroughout

AWARDS &

thatfixdepartmentpersonal

ZMI is recognized & Appreciated by ZADCO for supporting Marine Services LGM to achieve 11.2 Million man-hours & 3 years without LTI.

ShipTek 2016, International Conference on Marine, Offshore and Oil & Gas Industry held at Dubai, awarded Zakher Marine as "Best Offshore Service Provider".

The purpose of this program is to motivate ZMI staff on how to improve safety culture and awareness offshore and onshore within the organization. This is to encourage employees to follow health and safety procedures, reward those who achieve outstanding health and safety performance, reward those who actively participated to enhance a positive HSE culture on worksites and encourage participation in safety initiatives such as training and drills.

Mr. "Anjani Kumar" MSI Coordinator is awarded with "HSE Annual Award" on his remarkable performance throughout 2016.

Chief Officer "Fadhi Yaser Lutfi" is the annual award winner based on his performance for 2016.

AWARDS & RECOGNITIONS

Eng. Haitham Mustafah performance as

SHEQ Coordinator surpassed the

company expectations and awarded with "Letter of Appreciation".

Ms. Heidi Torres Observed that Sharp edges of card holder fix on the wall in crewing department that may cause personal injury to passers by.

Best Master Award Winners - 2016

ZAKHER MARINE INTERNATIONAL INC.

Abu Dhabi - U.A.E.

www.zmiglobal.com