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HSE& S 20 10– 20 11 A n n u al Rep or t   L i vi ng t h e Valu es
About this report:                Table of Contents
 Health and Safety, Environ-
 mental, and Security

 Reporting period:                 About Willbros  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3
 2010 (Q2)–2011 (Q1)
                                   Willbros Values and Safety Vision  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4
 Date of most recent report:
 2009–2010                         CEO Letter  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5

 Reporting cycle:                  Business Segments Overview  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 6
 Annual
                                   Leadership . Excellence . Accountability . Compliance .  .  .  .  .  .  . 6
 Boundary of the report:
 All countries, product            Health and Safety  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 8
 service lines, and
 owned subsidiaries
                                   Security  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 11

 Content:
                                   Environment  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 12
 The content of the report
                                   HSE&S in Action  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 14
 has been influenced and
 shaped by a number of             Appendix I: Awards and Recognition  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 17
 factors, including:
 • Our Values                      Our Values  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 18
 • Our Safety Vision
 • Engagement with
    Willbros stakeholders
 • Alignment, as practical,
    with Standards and
    Guidelines (for example,
    Global Reporting Initiative)




 Printed on recycled paper




–2–
About Willbros

Overview                                                                               Facts and Figures:
                                                                                       • Founded in 1908
Willbros Group, Inc . is an independent contractor serving the oil, gas, power,        • Released initial public
refining and petrochemical industries, providing engineering, construction,               offering in 1996
turnaround, maintenance, life-cycle extension services, and facilities develop-        • Engineered/constructed
ment and operations services to industry and government entities worldwide .              over 200,000 km
                                                                                          (124,000 miles)
Over the years, we have developed expertise and competency in solving some of             of pipeline
the most challenging engineering problems worldwide . We have a global pres-           • Offers quality downstream
ence, and the capability to pursue projects on six continents, where we have              specialty services that
worked for many years . As we continue to grow, the philosophy of the company             address life cycle spend
remains unchanged . Willbros is about people, innovation, challenging projects,        • Is a world leader in
and clear values . Clients know that wherever they are, or whatever language they         pipeline engineering
speak, the Willbros name translates into                                                  and construction
“A Good Job On Time…Done Right!”                                                       • Is the go-to contractor
                                                                                          for logistically difficult
Willbros Group, Inc . is registered in Delaware and has its headquarters in Houston,      projects
Texas . The company’s common stock is listed on the New York Stock Exchange            • Provides full energy
and traded under the symbol, “WG .”                                                       infrastructure services,
                                                                                          extending its reach into
                                                                                          the Utility Transmission
                                                                                          and Distribution sector




In more than a century of operation, we have worked on six continents .
We have completed diverse projects for more than 400 clients in
60 countries .



  Our Vision:
  To be a leading provider of diversified professional services including
  engineering, consulting, logistics, construction, and maintenance by
  addressing solutions for asset development and life cycle extension to
  the global infrastructure and government services markets


                                                                                                                 –3–
Our Values




      Our Safety Vision




–4–
CEO Letter

                                    Dear stakeholders:

                                    Health, Safety, Environment, and Security (HSE&S) performance at Willbros is a
                                    key element of our business success in operational excellence and meeting
                                    client expectations . We fully understand that our reputation and safety
                                    implementation are valued by our clients and can be a major differentiator
                                    in contract awards . We know, too, that our operations have an impact on
                                    the communities in which we work and on the environment . By adhering
                                    to consistent standards on HSE&S, we believe our engineering designs,
                                    construction execution, and maintenance procedures are all directed at
                                    protecting the environment, offering a healthy workplace and, above all,
                                    emphasizing our key core value of delivering high-performance safety in
                                    everything we do .

I’m proud of our efforts on health and safety this year and realize that we have more work to do in HSE&S as we
build for the long term . A fatality in our Canadian operations in March 2011 serves as a sobering reminder that
no matter how good you’re doing, safety is always a work in progress . Our legacy business segments (Upstream
and Downstream) continued a two-year performance improvement trend in Total Recordable Incident Rate
(TRIR) . Each business unit is further entrenching our Management System into their ongoing business operations
and risk management approaches . The cultural surveys we deployed (in cooperation with the University of
Houston) across Willbros pointed us toward more things we can do to even further enhance the safety culture
and subcultures across the organization .

Our newest business segment, Utility T&D, was created when we completed the purchase of the InfrastruX group
of companies halfway through 2010 . I am personally involved in integrating Utility T&D into our approaches to
safety systems, culture, and organizational behaviors that we began transforming in the beginning
of 2009 .

In 2011, I’ve challenged every business segment across the company to cut its TRIR in half and create safety
metrics that provide a line of sight from the workforce to the senior leadership . It is my personal belief that
even higher levels of safety performance lie in our future . When it comes to high safety performance, our
employees and their families, our subcontractors, our clients, and the communities we live and work in
deserve nothing less than “A Good Job on Time… Done Right!”

In this report, you will see how we manage our approach to HSE&S and are delivering our safety vision .

Randy Harl
President and CEO




                                                                                                                     –5–
Leadership. Excellence. Accountability. Compliance.

                               Our Business Segments

                               Upstream Oil & Gas
                               Our Upstream Oil & Gas business segment provides individual engineering,
                               procurement and construction, or fully-integrated EPC, expertise (including systems,
                               equipment, and personnel) to design, build, or replace large-diameter cross-country
                               pipelines; fabricate engineered structures, process modules, and facilities; and build
                               oil and gas production facilities, pump stations, flow stations, gas compressor stations,
                               gas processing facilities, gathering lines, and related facilities . We also provide a
                               broad array of engineering, project management, pipeline integrity, and field services.
Brad MacLean,
                               Downstream Oil & Gas
Vice President,
                               Downstream Oil & Gas provides integrated, full-service specialty construction,
Health, Safety, Environment,
                               turnaround, repair, and maintenance services to the downstream energy infrastructure
and Security
                               market, which consists primarily of major integrated oil companies, independent
                               refineries, product terminals, and petrochemical companies. We also provide services
                               to select EPC firms, independent power producers, government entities, specialty
 At an enterprise level,       process facilities, and ammonia and fertilizer manufacturing plants and facilities .
 Willbros created and
 deployed an integrated        Utility Transmission & Distribution (Utility T&D)
 HSE&S Management              Utility T&D provides a wide range of services in electric power and natural gas
 System in 2009. In            transmission and, which includes comprehensive maintenance and construction,
 2010, Willbros refined a      repair, and restoration of utility infrastructure .
 performance assurance
 model for monitoring
 the effectiveness of
 the HSE&S Manage-
 ment System. In 2011,
 we will make further
 advances in HSE&S.
 This will be driven by
 the prominent role that
 safety plays in our new
 organization-wide
 Balanced Scorecard.




–6–
Health, Safety, Environmental, and Security (HSE&S) performance is a key
                                                                                      HSE&S Highlights:
element of our business success . Our goal is to lead our industry in HSE&S
                                                                                      • A pipeline construction
performance by using a performance-based HSE Management System that
                                                                                        team completed one
maximizes empowerment in our business units, with vision and governance
                                                                                        million work hours without
at our enterprise level .
                                                                                        a recordable injury . This
Leadership, excellence, accountability, and compliance are vital parts of a             accomplishment began
high-performance organization and underpin our commitment to operational                during the Midcontinent
excellence and meeting the expectations of our clients .                                Express Pipeline (MEP)
                                                                                        project in 2009, and
At the corporate level, we provide oversight using, among other things, a Balanced      continued through the
Scorecard, while the business segments are empowered with the flexibility to            Texas Independence
implement in accordance with the business priorities .                                  Pipeline (TIPs), Bay Gas,
In 2010, each business segment was specifically and individually measured for           and FEP projects.
performance in five areas:                                                            • TOCO achieved a 10%
 Measured total recordable incident rate (TRIR)                                        reduction of hand and
     There was a continued multi year downward trend for the legacy Willbros            finger injuries over our
     businesses (to an enterprise TRIR of 0 .53) .                                      2009 performance .
 HSE&S Management System implementation                                              • At end of year 2010,
     According to our lead independent assessor “At the end of 2010, all                a Willbros Canada crew
     business units are moving quickly toward integrating HSE&S decisions into          working within the
     ongoing business operations and developing structured and aligned                  Syncrude’s Base Plant
     management systems .”                                                              completed 824 days with-
 Safety culture as measured by a perceptions survey                                    out a recordable injury .
     The cultural diagnostics we used across Willbros pointed us toward               • Zero reportable spills
     important interventions that are allowing us to target areas and activities
     that can further enhance the safety culture across the organization .
 Key self-identified safety risk reductions
     Each business unit is expected to identify safety risks that are particular to
     its risk profiles. Some of these included a focus on reducing hand and finger
     injuries, training for heavy equipment operators, total incident reporting,
     and defensive driving training .
 Conformance to incident reporting and investigation performance standards
     Assessing our incident reporting and investigation has led to stronger
     reporting and enhanced capabilities of tracking corrective actions, trending
     incident root causes and sharing lessons learned .

Going forward, each business segment is further embedding our HSE&S Management
System into its ongoing business operations and risk-management approaches .

In 2011, we will further sharpen our key safety performance differentiating
tools, including:
• Top-flight incident investigation methodologies
• Enterprise-wide incident trending and tracking strategies
• Cultural diagnostics and leading cognitive-based safety approaches
                                                                                                              –7–
Health and Safety

                          Health and
                          Safety
                          Our goal is to fulfill the promise
                          we have made to ourselves, our
                          families, our customers, and
                          our communities to live the
                          Willbros values in all that we do .

                          Our Approach
                                                                 Our leaders visiting the job site (left to
                          Leadership and Culture
Jim Gibson,                                                      right: Harry New, Jerrit Coward, Randy Harl)
                          Our leadership and employees are
Chief Operating Officer
                          committed to creating a safety
                          culture that is motivated by an internal value for safety .

                          Our leaders are engaged and understand the importance of clear and visible
                          commitment, strategy, and accountability for safety from the top .
                          • In 2010, our senior leaders participated in four days of safety
  Each and every            leadership courses .
  one of us has a         • Premier Utility Services, a business unit in the Utility T&D Segment established
  responsibility            Executive and Employee Health and Safety Steering Committees .
  to ourselves,           • The Project-200 Supervisory Safety Committee, consisting of foremen,
  our family,               superintendents, and senior leaders in US Construction, developed the policy
  our crewmembers,          and procedures for its new field safety manual.
  our customers,          Our employees are empowered to create a strong safety culture that embraces
  our suppliers,          safety as a core value .
  and our community       • Our 2010 safety culture assessment revealed key opportunities to improve our
  to operate in the          safety culture across Willbros . These are now captured in action plans developed
  safest manner              by each business segment .
  possible at
                          In 2011, Willbros Canada launched its new employee recognition program to instantly
  all times.
                          recognize individuals who show commitment, dedication, and acts of safe behavior .

                          Systems and Standards
                          We set the expectations for health and safety through a set of performance standards and
                          each business unit is accountable for delivering results against the performance standards .

                          In 2010, we implemented Willbros’ global performance standards that contain the
                          mandatory expectations of each business unit . During the year, we shared our lessons
                          and best practices through our internal HSE&S network (“Extended Staff”), by conduct-
                          ing whiteboard sessions on management system implementation and by gaining key
                          insights to incident root causes using our root cause analysis system, TapRoot® .

                          Our Performance
                          The apparent 2010 spike in TRIR (see TRIR graph) was due primarily to the addition of
                          the former InfrastruX group of companies many of whom have TRIR’s historically in
                          the 3 to 4 range . We are integrating Utility T&D into our approaches to safety systems,
–8–                       culture, and organizational behaviors .
We are proud of many safety accomplishments:
• TOCO, Muscat employees had zero lost-time or recordable incidents.
• For the second consecutive year, Downstream Engineering did not have a
  recordable injury .
• Willbros Canada worked 3,474,100 hours between lost-time incidents.
• Upstream Engineering worked 925,144 hours without a recordable injury.
• Willbros and its subcontractors did not have a fatality in 2010. In February 2011
  an employee was fatally injured in an equipment accident after his shift ended .
  From its investigation of the incident, Willbros is implement improvements to
  avoid future accidents . More information by contacting askhse@willbros .com

                                        Total Recordable Injury Rate (TRIR)
                                               Total Recordable Injury Rate
                                                                                                       Why “Stop Work” Works
                                                                                                       Cody Bailes
                      2.00
                      1.80
                      1.60                                                                             A superintendent,
                      1.40
                                                                           1.53                        Cody Bailes, was leading
                      1.20
                                                                                                       a project in southern
                      1.00
                      0.80               .97
                                                                                                       Louisiana . A client advised
                      0.60
                                                            0.71
                                                                                                       him that he could excavate
                      0.40
                                                                                                       an area it had designated
                      0.20
                      0.00                                                                             based on existing alignment
                                        2008               2009       2010 (6 mos UTD)                 sheets . The client said that
                                                                                                       it was acceptable if the crew
      Calculation: (total number of injuries and illnesses × 200,000) / (total number of work hours)
                                                                                                       damaged any electrical lines
                      0.50
                                               Lost Time Injury Rate (LTIR)                            because another crew would
                      0.45                                                                             repair any damage . This
                      0.40                                                 0.44                        attitude of “don’t worry,
                      0.35                                                                             go ahead and work” did
                      0.30                                                                             not sit well with Cody . Cody
                      0.25                                                                             requested line locating .
                      0.20
                                                                                                       A live pipeline, not previously
                      0.15
                                                                                                       listed on any alignment
                      0.10               .14
                                                            0.12
                      0.05
                                                                                                       sheet, was located and
                      0.00                                                                             identified. Subsequently,
                                        2008               2009       2010 (6 mos UTD)
                                                                                                       the client shut down the
           Calculation: (number of lost time cases × 200,000) / (total number of work hours)           project, realizing that they
                                                                                                       were not fully prepared for
                                        Experience Modifier Rating (EMR)                               this project before allowing
                                 0.64                                                                  work to begin . These actions
                                 0.63                                                                  by Cody and the on-site
                                                                              0.63
                                 0.62                                                                  Safety Coordinator illus-
                                 0.61                                                                  trate what all management
                    Axis Title




                                  0.6
                                                                                                       encourages—the “Stop
                                 0.59
                                                                                                       Work Obligation” when
                                 0.58
                                 0.57
                                          .58                .58                                       we see something that
                                 0.56                                                                  is not safe .
                                 0.55
                                          2008              2009       2010 (6 mos UTD)

         Based on actual losses compared to expected losses for various payroll classifications                                    –9–
Performance Data
                                             Project Management Office and HSE&S
(2009–2010)
                                             In alignment with an organization-wide focus on project management excellence
Vehicle Incident Rate in 2009                in 2010 (“The Year of Project Management”), the Corporate HSE&S Group in
2 .69                                        partnership with our Project Management Office (PMO) developed an enhanced
                                             Project-level Health, Safety, Environmental and Security Management Perfor-
Vehicle Incident Rate in 2010                mance Framework. This framework is currently being deployed to our business
0 .32                                        units and provides the following to our project teams and clients:
                                             • Consistent planning approaches for project-level HSE&S activities
                                             • Clear and observable project safety leadership and behavioral expectations
                                             • Comprehensive HSE&S performance assurance systems and tools for
       Vehicle Incident Rate                    all our projects
  3
              Vehicle Incident Rate
                                             Our commitment to reliably delivering high-performance HSE&S on all our proj-
 2.5
            2.69                             ects is one way that we’re operationalizing our Vision of making safety “… a key
  2

 1.5
                                             part of a high-performance organization .”
  1
                                      0.32
 0.5

  0
           2009                       2010
                                             Vehicle and Motorized
        Calculation: (number of
                                             Equipment Safety
 incidents × 1,000,000 / Miles driven)
       Business Segment data                 Vehicle and motorized equipment
         excluding Utility T&D
                                             safety is an area that poses a
                                             significant risk to our employees and
                                             subcontractors . We place an empha-
                                             sis on reducing risk to our employees
                                             and the public with whom we share
                                             the road every day .


                                             2010 highlights
                                             • Willbros Engineering became an accredited training center for the
                                               National Safety Council defensive driving program .
                                             • Willbros Upstream Construction deployed the new 360-degree walkaround
                                               program for vehicles and motorized equipment .
In 2011, we will continue to                 • Willbros Canada built upon its heavy-equipment training program and
focus on awareness and                         developed 35 customized training manuals, which are make- and
accountability in an effort                    model-specific to the equipment we operate.
to influence behavior behind
the wheel .                                  Next Steps in 2011
                                             •   Implement in-vehicle monitoring systems in additional business segments.
                                             •   Reduce year-over-year TRIR by 50%.
                                             •   Implement HSE&S Management System in 100% of the business segments.
                                             •   Complete 2010 action plans for cultural interventions and resurvey.
                                             •   Enhance enterprise-level incident trending (root causes and tracking).
– 10 –
Security




                                                                                        Latif Razek,
                                                                                        Vice President,
                                                                                        Middle East Operations



                                                                                             As tension in the Middle East
                                                                                             has risen over the past year,
                                                                                             we have found ourselves in a
 Security                                                                                    position where we implement-
                                                                                             ed items in our Crisis Manage-
 We are committed to providing a safe and secure work environment, both onsite               ment plan; fortunately, as
 and offsite . Our goal is to effectively manage security risks to our people, opera-        the alert state was raised, we
 tions, and assets .                                                                         were able to activate these
                                                                                             precautionary measures:

 Our Approach                                                                                • Ensured adequate
                                                                                               transport was on
 We take comprehensive steps to address potential threats to our projects around               standby to provide for a
 the world by:                                                                                 smooth transition to an
 • Implementing a low-profile, high social engagement security model for our                   evacuation point as and
                                                                                               when required.
    personnel and project assets
                                                                                             • Alerted our security
 • Educating, training, and supporting our personnel for the scope and scale of                vendor to ensure we
    their security needs                                                                       received regular
                                                                                               security updates
 Our partner, GardaWorld, provides professional services for risk-analysis-led               • Ensured standby
 security, consulting, and support, both domestically and internationally, and                 country evacuation
                                                                                               transport was put
 assists us in:
                                                                                               on standby.
 • Working closely with our customers, local communities, and governmental
    agencies to mitigate potential threats to company personnel and assets                   Simply knowing that the
                                                                                             company was reacting to
 • Maintaining the highest international standards, strictly complying with the
                                                                                             the current situation went a
    Foreign Corrupt Practices Act (FCPA), the Anti-Corruption Convention adopted             long way toward providing
    by the OECD (Organization for Economic Cooperation and Development), and                 assurance and preventing
    the International Code of Conduct for Private Security Providers                         panic with our employees.




                                                                                                                    – 11 –
Environment

                                     Environment
                                     Our mission of a “Good Job On
                                     Time…Done Right” includes a focus
                                     on environmental responsibility .
                                     We recognize that concerns about the
                                     natural environment are increasingly
                                     becoming a critical business issue
                                     for us and our stakeholders .
                                     Our business success relies on
 Ali Zein (left), General Manager,   maintaining a high standard of
 Jerry Nealy (right)                 environmental management .
 The Oman Construction
 Company (TOCO)                      Our Approach
                                     Responsible Operations
   TOCO was the first                We work to minimize the impact of our operations on the environment
   construction company              through careful planning and collaboration with our clients by using a
   in Oman to be certified           systematic approach and by maintaining a sharp focus on regulatory compliance .
   as ISO 14001 Environmental
   Compliant and as such             Spills can damage the environment and put employees and communities at risk .
   we are committed to               We focus on spill prevention every day by making sure that our operations are
   complying with these              safely operated and equipment properly inspected and maintained . As a result of
   environmental practices,          this focus, we achieved zero reportable spills during 2010 .
   including the commit-
   ment to meet or exceed
                                     We routinely look for ways to reduce energy consumption of our operations,
   applicable legal and other
                                     facilities, and fleets:
   governmental require-
                                     • Right-size fleet, logistics, and transport for projects and customers
   ments. Climate change,
                                        — We use dedicated experts and proprietary information systems to increase
   waste management, and
                                             utilization and efficiency of our fleet, streamline operations, and create
   energy use are global
                                             cost savings . We plan, implement, and control the logistics of projects to
   concerns and we will strive
   for continual improve-                    ensure efficient flow and conform to client requirements.
   ment in our environmental         • Energy efficiency in our facilities
   management system.                   — In 2010, we created a baseline survey of energy and fuel for TOCO, these data
                                             will be used to set future performance targets .




 Award winning Green Camp at
 our Mukhaiza project in Oman .
– 12 –
Performance Data
• Offices
  — In 2010, we continued flexible work programs to reduce
     commute-related costs and energy use and to accommodate
     working families .
                                                                                   0
                                                                                   Reportable spills to the
                                                                                   environment in 2010*
The energy sector is becoming increasingly concerned about water use as this


                                                                                   0
resource becomes scarcer . In 2010, Willbros Oman completed an inventory of
water use in its operations and facilities in order to better plan, manage, and
allocate this resource in future operations .
                                                                                   Environmental enforcement
                                                                                   actions in 2010*
Minimizing Environmental Impacts of Projects
Our reputation has been built in part on our ability to provide construction and
engineering services in logistically difficult and sometimes environmentally
sensitive regions . We work with our clients to develop stringent operating
practices that enable us to operate responsibly in these areas .

At the onset of a project:
• Our environmental team assesses environmentally sensitive areas such as
   water bodies and wetlands and develops plans to avoid or mitigate impacts .
• We integrate environmental issues into decision making at the earliest
   stages of project development .
• We innovate with our customers to provide state of the art engineering
                                                                                   We provide the skills and
   solutions to further minimize impacts and reduce emissions during the
                                                                                   capabilities our customers need
   operating phase of the project .
                                                                                   in developing alternative and
                                                                                   renewable energy projects .
During project construction, we manage the project for the efficient use of
                                                                                   In 2010, we began working
materials, resources, and energy . In Upstream Construction, we have assigned
                                                                                   on the BP Solar array project
environmental staff on large-diameter pipeline projects who oversee environ-
                                                                                   at the Brookhaven National
mentally sound operating practices . On smaller-diameter pipeline projects,
                                                                                   Laboratory in Long Island, NY .
where crew sizes are limited, we designate personnel for a similar role . And,
                                                                                   The facility provides up to 32
we always follow through by monitoring practices to project completion .
                                                                                   Megawatts of energy to the
                                                                                   Long Island Power Author-
Our Performance                                                                    ity Grid–enough for 4,500
In 2010, we achieved the following key performance goals:                          homes . Generating electricity
• Zero reportable spills to governmental entities                                  from the solar cells instead of
• Zero enforcement actions                                                         hydrocarbon fuels prevents
• Completion of baseline survey of energy and fuel use in Oman                     the production of 30,950
• Water use assessment in operations and facilities in Oman                        metric tons of carbon dioxide
                                                                                   a year .

Next steps in 2011
• Complete implementation of The Oman Construction Company
                                                                                   * Represents Upstream and
  ISO 14001 Environmental Plan.                                                      Downstream 2010 data .
• Implement improved framework for environmental management in
                                                                                                               – 13 –
  Upstream Construction .
HSE&S in Action

         Case Study: Downstream wins
         Marathon’s “Green Vendor” certificate
         for being environmentally responsible.
         In 2010, Willbros Downstream was recognized by
         Marathon Petroleum Company’s Illinois Refining
         Division for being environmentally responsible,
         resulting in a “Green Vendor” certificate. Our
         environmental practices of recycling steel, plastic,
         universal waste, and paper were acknowledged .

         The objective of Marathon’s “Green Vendor” program
         is to share innovative ways to reduce water, energy,
         and chemical use throughout the supply chain .
         This certificate recognizes our commitment to
         environmentally responsible operations and symbolizes
         our team’s hard work and dedication to improving
         environmental performance . Innovative, effective, and
         efficient waste management benefits Willbros and all
         our customers . We are proud to be an environmentally
         conscious vendor, and we look forward to working
         similarly with other companies .


         Case Study: Utility T&D integrates
         its HSE&S efforts in Willbros’
         performance-based system.
         Willbros’ Utility T&D segment spent the last half of
         2010 becoming a part of our HSE&S community .
         The HSE&S integration efforts focused principally
         on three areas: a cognitive-based Safety Leadership
         program, incident investigation (e .g . TapRoot®), and
         familiarization with the performance-based system .
         Each business unit within the segment is currently
         working on establishing a management system that
         meets the requirements of Willbros’ performance
         standards . They have four internal TapRoot trainers
         and at least one individual specifically trained in
         TapRoot for each business unit . They have established
         a working group comprised of a business safety direc-
         tor in order to share best practices and gain synergies
         in establishing procedures and training .


– 14 –
Case Study: Upstream Construction
reports successes for hours worked
without a recordable injury.
In 2010, many successes were made towards the goal
for Total Incident Reporting (TIR) . Near-miss reporting
increased, as we worked 1 .8 million work hours and
reported 575 near misses . Employees worked safer and
reduced our actual recordable injuries from 23 in 2009
to nine in 2010, including one spread of that completed
one million work hours without a recordable injury .
Employees who strived to work safer; who reported hazards,
unsafe acts, and near misses; and who provided
suggestions for safer work practices were acknowledged
with Safe PIPE hats, Safety Leader hats, “Don’t Gamble
with Safety” poker chips, and appreciation dinners .




Case Study: Canada develops
training and certification program for
heavy-lift operators.
In 2010, Willbros Canada developed and deployed a
consistent training methodology for heavy-equipment
operator training and certification. Between January
2010 and January 2011, in partnership with ek pass, 70
operators were trained and certified in many
equipment types. Thirty-five make-and-models –
specific training manuals, customized to the equipment
we operate, have been developed and are industry
endorsed. For example, our side boom training and
certification program, which Willbros Canada first
began utilizing in 2007, meets the Sideboom
Operator Training Standard sanctioned by the Canadian
Energy Pipeline Association (CEPA) on January 12, 2011.
This standard was developed at the request of CEPA
members with the participation of knowledgeable and
experienced industry and government stakeholders .
                                                             – 15 –
Case Study: TOCO takes aggressive
         steps to recognize and eliminate
         at-risk behaviors.
         In 2010, TOCO focused on recognition and elimination of
         at risk behaviors and subsequent reduction of incidents .
         The results of the 2010 culture survey for TOCO indicated
         that we needed to increase our efforts recognizing and
         eliminating at risk behaviors . To help us achieve this,
         we took the following actions .

         • We designed and implemented an ‘approaching others’
           training course, intended to teach employees how to
           recognize hazards and unsafe acts and how to
           intervene when these were observed .
         • We created and implemented a hazard ID picture card system, in which pictures of unsafe conditions
           were taken, filed and used during tool box talks and pre-task briefings.
         • We modified our Safe Work Incentive Scheme to award points for employees who intervened during
           unsafe situations .




– 16 –
Appendix I: Awards and Recognition

 Appendix I: Awards and Recognition

 Internal
 2009/2010 Presidents’ Safety Awards and Chairman’s Safety Award Winners

 These awards are given to a Willbros employee or team that has gone “above and
 beyond” with respect to safety . The key criteria for these awards are as follows:
 • Innovation/Learning/Continuous Improvement: The recipients are “change
   agents” who have moved safety performance to a higher level within their
   spheres of influence. Perhaps, they have arrived at a new approach to solving
   a safety challenge, or they have taken the lessons of a safety failure to heart
                                                                                         Pat Clark (left)
   and used those lessons to change or create a new program, approach, or even
                                                                                         Winner, Chairman’s Award
   a way of thinking .
 • Making Safety Unconditional: The recipients have demonstrated that safety
                                                                                         John McNabb (right)
   does not have different rules for different situations. Perhaps, they have stood
                                                                                         Chairman of the Board,
   up for a safe job when it was not easy to do so. Perhaps, they did something
                                                                                         Willbros Group
   that put safety ahead of productivity when the situation called for it .
 • Straight Talk on Safety: The recipients have shown that they are “ready, willing,
   and able” to wrestle with the tough questions on safety. Perhaps, they have
   had the conversations on safety that others have avoided. Perhaps, they have
   been willing to challenge conventional wisdom when no one else has .
 • Sustainable Safety Solutions: The recipients have avoided the temptations
   of making the “quick fix” for a safety problem, but rather have fixed a problem
   in a way that allows it to stay fixed. Perhaps, they have focused on the underlying
   reasons for a safety issue and addressed its root causes—not merely
   its symptoms .

 President Award Winners
 • George McFarlane: George is a superintendent in Sur, Oman .
 • John Rockafellow: John is a site manager for the Syncrude Aurora
    site in Fort McMurray, Alberta, Canada.
 • Cody Bailes: Cody is a superintendent with US Construction in Houston, Texas .

 Chairman’s Safety Award Winner
 • Pat Clark: Pat is a superintendent for Downstream, Construction Tank Services.

 External
 • Willbros Canada, April 2010, from Shell Albian Sands Expansion 1 project
 • Willbros Downstream, October 2010, Green Vendor Certificate of registration
    from Marathon Petroleum Company LP, Illinois Refining Division
 • Willbros Downstream Engineering, December 2010, BP Contractor Safety Award
 • Willbros Upstream Engineering, Occupational Excellence Achievement Award from
    the National Safety Council

                                                                                                                  – 17 –
Our Values


    Our Values


         We are committed to strong Leadership across the organization to achieve
         Excellence , Accountability, and Compliance in everything we do based on
         these Core Values:
         • Safety
           – Perform safely every single time, for the protection of our people and stakeholders,
             including our customers, suppliers, and the community
           – Every employee is empowered to stop any unsafe act

         • Honesty and Integrity
           – Always do the right thing

         • Our People
           – Respect and care for their well being and development
           – Maintain an atmosphere of trust, empowerment, and teamwork
           – Have the best people in the right position

         • Our Customers
           – Understanding their needs and develop responsive solutions
           – Promote mutually beneficial relationships
           – Everything we do is with the customer in mind, externally and internally
           – Deliver a good job on time

         • Superior Financial Performance
           – Earnings per share
           – Cash management
           – Strong balance sheet

         • Vision and Innovation
           – Understanding our business environment
           – Imagination and creativity
           – Continuous improvement

         • Effective Communication
           – A clear, consistent, and accurate message
           – To our people, our customers, and the public




– 18 –
– 19 –
Worldwide Headquarters
4400 Post Oak Parkway, Suite 1000
      Houston, Texas 77027
        1-713-403-8000




                         May 2011

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Willbros HSE&S 2010-2011 Annual Report

  • 1. HSE& S 20 10– 20 11 A n n u al Rep or t L i vi ng t h e Valu es
  • 2. About this report: Table of Contents Health and Safety, Environ- mental, and Security Reporting period: About Willbros . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2010 (Q2)–2011 (Q1) Willbros Values and Safety Vision . . . . . . . . . . . . . . . . . . . . . 4 Date of most recent report: 2009–2010 CEO Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Reporting cycle: Business Segments Overview . . . . . . . . . . . . . . . . . . . . . . . . . 6 Annual Leadership . Excellence . Accountability . Compliance . . . . . . . 6 Boundary of the report: All countries, product Health and Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 service lines, and owned subsidiaries Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Content: Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 The content of the report HSE&S in Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 has been influenced and shaped by a number of Appendix I: Awards and Recognition . . . . . . . . . . . . . . . . . . 17 factors, including: • Our Values Our Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 • Our Safety Vision • Engagement with Willbros stakeholders • Alignment, as practical, with Standards and Guidelines (for example, Global Reporting Initiative) Printed on recycled paper –2–
  • 3. About Willbros Overview Facts and Figures: • Founded in 1908 Willbros Group, Inc . is an independent contractor serving the oil, gas, power, • Released initial public refining and petrochemical industries, providing engineering, construction, offering in 1996 turnaround, maintenance, life-cycle extension services, and facilities develop- • Engineered/constructed ment and operations services to industry and government entities worldwide . over 200,000 km (124,000 miles) Over the years, we have developed expertise and competency in solving some of of pipeline the most challenging engineering problems worldwide . We have a global pres- • Offers quality downstream ence, and the capability to pursue projects on six continents, where we have specialty services that worked for many years . As we continue to grow, the philosophy of the company address life cycle spend remains unchanged . Willbros is about people, innovation, challenging projects, • Is a world leader in and clear values . Clients know that wherever they are, or whatever language they pipeline engineering speak, the Willbros name translates into and construction “A Good Job On Time…Done Right!” • Is the go-to contractor for logistically difficult Willbros Group, Inc . is registered in Delaware and has its headquarters in Houston, projects Texas . The company’s common stock is listed on the New York Stock Exchange • Provides full energy and traded under the symbol, “WG .” infrastructure services, extending its reach into the Utility Transmission and Distribution sector In more than a century of operation, we have worked on six continents . We have completed diverse projects for more than 400 clients in 60 countries . Our Vision: To be a leading provider of diversified professional services including engineering, consulting, logistics, construction, and maintenance by addressing solutions for asset development and life cycle extension to the global infrastructure and government services markets –3–
  • 4. Our Values Our Safety Vision –4–
  • 5. CEO Letter Dear stakeholders: Health, Safety, Environment, and Security (HSE&S) performance at Willbros is a key element of our business success in operational excellence and meeting client expectations . We fully understand that our reputation and safety implementation are valued by our clients and can be a major differentiator in contract awards . We know, too, that our operations have an impact on the communities in which we work and on the environment . By adhering to consistent standards on HSE&S, we believe our engineering designs, construction execution, and maintenance procedures are all directed at protecting the environment, offering a healthy workplace and, above all, emphasizing our key core value of delivering high-performance safety in everything we do . I’m proud of our efforts on health and safety this year and realize that we have more work to do in HSE&S as we build for the long term . A fatality in our Canadian operations in March 2011 serves as a sobering reminder that no matter how good you’re doing, safety is always a work in progress . Our legacy business segments (Upstream and Downstream) continued a two-year performance improvement trend in Total Recordable Incident Rate (TRIR) . Each business unit is further entrenching our Management System into their ongoing business operations and risk management approaches . The cultural surveys we deployed (in cooperation with the University of Houston) across Willbros pointed us toward more things we can do to even further enhance the safety culture and subcultures across the organization . Our newest business segment, Utility T&D, was created when we completed the purchase of the InfrastruX group of companies halfway through 2010 . I am personally involved in integrating Utility T&D into our approaches to safety systems, culture, and organizational behaviors that we began transforming in the beginning of 2009 . In 2011, I’ve challenged every business segment across the company to cut its TRIR in half and create safety metrics that provide a line of sight from the workforce to the senior leadership . It is my personal belief that even higher levels of safety performance lie in our future . When it comes to high safety performance, our employees and their families, our subcontractors, our clients, and the communities we live and work in deserve nothing less than “A Good Job on Time… Done Right!” In this report, you will see how we manage our approach to HSE&S and are delivering our safety vision . Randy Harl President and CEO –5–
  • 6. Leadership. Excellence. Accountability. Compliance. Our Business Segments Upstream Oil & Gas Our Upstream Oil & Gas business segment provides individual engineering, procurement and construction, or fully-integrated EPC, expertise (including systems, equipment, and personnel) to design, build, or replace large-diameter cross-country pipelines; fabricate engineered structures, process modules, and facilities; and build oil and gas production facilities, pump stations, flow stations, gas compressor stations, gas processing facilities, gathering lines, and related facilities . We also provide a broad array of engineering, project management, pipeline integrity, and field services. Brad MacLean, Downstream Oil & Gas Vice President, Downstream Oil & Gas provides integrated, full-service specialty construction, Health, Safety, Environment, turnaround, repair, and maintenance services to the downstream energy infrastructure and Security market, which consists primarily of major integrated oil companies, independent refineries, product terminals, and petrochemical companies. We also provide services to select EPC firms, independent power producers, government entities, specialty At an enterprise level, process facilities, and ammonia and fertilizer manufacturing plants and facilities . Willbros created and deployed an integrated Utility Transmission & Distribution (Utility T&D) HSE&S Management Utility T&D provides a wide range of services in electric power and natural gas System in 2009. In transmission and, which includes comprehensive maintenance and construction, 2010, Willbros refined a repair, and restoration of utility infrastructure . performance assurance model for monitoring the effectiveness of the HSE&S Manage- ment System. In 2011, we will make further advances in HSE&S. This will be driven by the prominent role that safety plays in our new organization-wide Balanced Scorecard. –6–
  • 7. Health, Safety, Environmental, and Security (HSE&S) performance is a key HSE&S Highlights: element of our business success . Our goal is to lead our industry in HSE&S • A pipeline construction performance by using a performance-based HSE Management System that team completed one maximizes empowerment in our business units, with vision and governance million work hours without at our enterprise level . a recordable injury . This Leadership, excellence, accountability, and compliance are vital parts of a accomplishment began high-performance organization and underpin our commitment to operational during the Midcontinent excellence and meeting the expectations of our clients . Express Pipeline (MEP) project in 2009, and At the corporate level, we provide oversight using, among other things, a Balanced continued through the Scorecard, while the business segments are empowered with the flexibility to Texas Independence implement in accordance with the business priorities . Pipeline (TIPs), Bay Gas, In 2010, each business segment was specifically and individually measured for and FEP projects. performance in five areas: • TOCO achieved a 10%  Measured total recordable incident rate (TRIR) reduction of hand and There was a continued multi year downward trend for the legacy Willbros finger injuries over our businesses (to an enterprise TRIR of 0 .53) . 2009 performance .  HSE&S Management System implementation • At end of year 2010, According to our lead independent assessor “At the end of 2010, all a Willbros Canada crew business units are moving quickly toward integrating HSE&S decisions into working within the ongoing business operations and developing structured and aligned Syncrude’s Base Plant management systems .” completed 824 days with-  Safety culture as measured by a perceptions survey out a recordable injury . The cultural diagnostics we used across Willbros pointed us toward • Zero reportable spills important interventions that are allowing us to target areas and activities that can further enhance the safety culture across the organization .  Key self-identified safety risk reductions Each business unit is expected to identify safety risks that are particular to its risk profiles. Some of these included a focus on reducing hand and finger injuries, training for heavy equipment operators, total incident reporting, and defensive driving training .  Conformance to incident reporting and investigation performance standards Assessing our incident reporting and investigation has led to stronger reporting and enhanced capabilities of tracking corrective actions, trending incident root causes and sharing lessons learned . Going forward, each business segment is further embedding our HSE&S Management System into its ongoing business operations and risk-management approaches . In 2011, we will further sharpen our key safety performance differentiating tools, including: • Top-flight incident investigation methodologies • Enterprise-wide incident trending and tracking strategies • Cultural diagnostics and leading cognitive-based safety approaches –7–
  • 8. Health and Safety Health and Safety Our goal is to fulfill the promise we have made to ourselves, our families, our customers, and our communities to live the Willbros values in all that we do . Our Approach Our leaders visiting the job site (left to Leadership and Culture Jim Gibson, right: Harry New, Jerrit Coward, Randy Harl) Our leadership and employees are Chief Operating Officer committed to creating a safety culture that is motivated by an internal value for safety . Our leaders are engaged and understand the importance of clear and visible commitment, strategy, and accountability for safety from the top . • In 2010, our senior leaders participated in four days of safety Each and every leadership courses . one of us has a • Premier Utility Services, a business unit in the Utility T&D Segment established responsibility Executive and Employee Health and Safety Steering Committees . to ourselves, • The Project-200 Supervisory Safety Committee, consisting of foremen, our family, superintendents, and senior leaders in US Construction, developed the policy our crewmembers, and procedures for its new field safety manual. our customers, Our employees are empowered to create a strong safety culture that embraces our suppliers, safety as a core value . and our community • Our 2010 safety culture assessment revealed key opportunities to improve our to operate in the safety culture across Willbros . These are now captured in action plans developed safest manner by each business segment . possible at In 2011, Willbros Canada launched its new employee recognition program to instantly all times. recognize individuals who show commitment, dedication, and acts of safe behavior . Systems and Standards We set the expectations for health and safety through a set of performance standards and each business unit is accountable for delivering results against the performance standards . In 2010, we implemented Willbros’ global performance standards that contain the mandatory expectations of each business unit . During the year, we shared our lessons and best practices through our internal HSE&S network (“Extended Staff”), by conduct- ing whiteboard sessions on management system implementation and by gaining key insights to incident root causes using our root cause analysis system, TapRoot® . Our Performance The apparent 2010 spike in TRIR (see TRIR graph) was due primarily to the addition of the former InfrastruX group of companies many of whom have TRIR’s historically in the 3 to 4 range . We are integrating Utility T&D into our approaches to safety systems, –8– culture, and organizational behaviors .
  • 9. We are proud of many safety accomplishments: • TOCO, Muscat employees had zero lost-time or recordable incidents. • For the second consecutive year, Downstream Engineering did not have a recordable injury . • Willbros Canada worked 3,474,100 hours between lost-time incidents. • Upstream Engineering worked 925,144 hours without a recordable injury. • Willbros and its subcontractors did not have a fatality in 2010. In February 2011 an employee was fatally injured in an equipment accident after his shift ended . From its investigation of the incident, Willbros is implement improvements to avoid future accidents . More information by contacting askhse@willbros .com Total Recordable Injury Rate (TRIR) Total Recordable Injury Rate Why “Stop Work” Works Cody Bailes 2.00 1.80 1.60 A superintendent, 1.40 1.53 Cody Bailes, was leading 1.20 a project in southern 1.00 0.80 .97 Louisiana . A client advised 0.60 0.71 him that he could excavate 0.40 an area it had designated 0.20 0.00 based on existing alignment 2008 2009 2010 (6 mos UTD) sheets . The client said that it was acceptable if the crew Calculation: (total number of injuries and illnesses × 200,000) / (total number of work hours) damaged any electrical lines 0.50 Lost Time Injury Rate (LTIR) because another crew would 0.45 repair any damage . This 0.40 0.44 attitude of “don’t worry, 0.35 go ahead and work” did 0.30 not sit well with Cody . Cody 0.25 requested line locating . 0.20 A live pipeline, not previously 0.15 listed on any alignment 0.10 .14 0.12 0.05 sheet, was located and 0.00 identified. Subsequently, 2008 2009 2010 (6 mos UTD) the client shut down the Calculation: (number of lost time cases × 200,000) / (total number of work hours) project, realizing that they were not fully prepared for Experience Modifier Rating (EMR) this project before allowing 0.64 work to begin . These actions 0.63 by Cody and the on-site 0.63 0.62 Safety Coordinator illus- 0.61 trate what all management Axis Title 0.6 encourages—the “Stop 0.59 Work Obligation” when 0.58 0.57 .58 .58 we see something that 0.56 is not safe . 0.55 2008 2009 2010 (6 mos UTD) Based on actual losses compared to expected losses for various payroll classifications –9–
  • 10. Performance Data Project Management Office and HSE&S (2009–2010) In alignment with an organization-wide focus on project management excellence Vehicle Incident Rate in 2009 in 2010 (“The Year of Project Management”), the Corporate HSE&S Group in 2 .69 partnership with our Project Management Office (PMO) developed an enhanced Project-level Health, Safety, Environmental and Security Management Perfor- Vehicle Incident Rate in 2010 mance Framework. This framework is currently being deployed to our business 0 .32 units and provides the following to our project teams and clients: • Consistent planning approaches for project-level HSE&S activities • Clear and observable project safety leadership and behavioral expectations • Comprehensive HSE&S performance assurance systems and tools for Vehicle Incident Rate all our projects 3 Vehicle Incident Rate Our commitment to reliably delivering high-performance HSE&S on all our proj- 2.5 2.69 ects is one way that we’re operationalizing our Vision of making safety “… a key 2 1.5 part of a high-performance organization .” 1 0.32 0.5 0 2009 2010 Vehicle and Motorized Calculation: (number of Equipment Safety incidents × 1,000,000 / Miles driven) Business Segment data Vehicle and motorized equipment excluding Utility T&D safety is an area that poses a significant risk to our employees and subcontractors . We place an empha- sis on reducing risk to our employees and the public with whom we share the road every day . 2010 highlights • Willbros Engineering became an accredited training center for the National Safety Council defensive driving program . • Willbros Upstream Construction deployed the new 360-degree walkaround program for vehicles and motorized equipment . In 2011, we will continue to • Willbros Canada built upon its heavy-equipment training program and focus on awareness and developed 35 customized training manuals, which are make- and accountability in an effort model-specific to the equipment we operate. to influence behavior behind the wheel . Next Steps in 2011 • Implement in-vehicle monitoring systems in additional business segments. • Reduce year-over-year TRIR by 50%. • Implement HSE&S Management System in 100% of the business segments. • Complete 2010 action plans for cultural interventions and resurvey. • Enhance enterprise-level incident trending (root causes and tracking). – 10 –
  • 11. Security Latif Razek, Vice President, Middle East Operations As tension in the Middle East has risen over the past year, we have found ourselves in a Security position where we implement- ed items in our Crisis Manage- We are committed to providing a safe and secure work environment, both onsite ment plan; fortunately, as and offsite . Our goal is to effectively manage security risks to our people, opera- the alert state was raised, we tions, and assets . were able to activate these precautionary measures: Our Approach • Ensured adequate transport was on We take comprehensive steps to address potential threats to our projects around standby to provide for a the world by: smooth transition to an • Implementing a low-profile, high social engagement security model for our evacuation point as and when required. personnel and project assets • Alerted our security • Educating, training, and supporting our personnel for the scope and scale of vendor to ensure we their security needs received regular security updates Our partner, GardaWorld, provides professional services for risk-analysis-led • Ensured standby security, consulting, and support, both domestically and internationally, and country evacuation transport was put assists us in: on standby. • Working closely with our customers, local communities, and governmental agencies to mitigate potential threats to company personnel and assets Simply knowing that the company was reacting to • Maintaining the highest international standards, strictly complying with the the current situation went a Foreign Corrupt Practices Act (FCPA), the Anti-Corruption Convention adopted long way toward providing by the OECD (Organization for Economic Cooperation and Development), and assurance and preventing the International Code of Conduct for Private Security Providers panic with our employees. – 11 –
  • 12. Environment Environment Our mission of a “Good Job On Time…Done Right” includes a focus on environmental responsibility . We recognize that concerns about the natural environment are increasingly becoming a critical business issue for us and our stakeholders . Our business success relies on Ali Zein (left), General Manager, maintaining a high standard of Jerry Nealy (right) environmental management . The Oman Construction Company (TOCO) Our Approach Responsible Operations TOCO was the first We work to minimize the impact of our operations on the environment construction company through careful planning and collaboration with our clients by using a in Oman to be certified systematic approach and by maintaining a sharp focus on regulatory compliance . as ISO 14001 Environmental Compliant and as such Spills can damage the environment and put employees and communities at risk . we are committed to We focus on spill prevention every day by making sure that our operations are complying with these safely operated and equipment properly inspected and maintained . As a result of environmental practices, this focus, we achieved zero reportable spills during 2010 . including the commit- ment to meet or exceed We routinely look for ways to reduce energy consumption of our operations, applicable legal and other facilities, and fleets: governmental require- • Right-size fleet, logistics, and transport for projects and customers ments. Climate change, — We use dedicated experts and proprietary information systems to increase waste management, and utilization and efficiency of our fleet, streamline operations, and create energy use are global cost savings . We plan, implement, and control the logistics of projects to concerns and we will strive for continual improve- ensure efficient flow and conform to client requirements. ment in our environmental • Energy efficiency in our facilities management system. — In 2010, we created a baseline survey of energy and fuel for TOCO, these data will be used to set future performance targets . Award winning Green Camp at our Mukhaiza project in Oman . – 12 –
  • 13. Performance Data • Offices — In 2010, we continued flexible work programs to reduce commute-related costs and energy use and to accommodate working families . 0 Reportable spills to the environment in 2010* The energy sector is becoming increasingly concerned about water use as this 0 resource becomes scarcer . In 2010, Willbros Oman completed an inventory of water use in its operations and facilities in order to better plan, manage, and allocate this resource in future operations . Environmental enforcement actions in 2010* Minimizing Environmental Impacts of Projects Our reputation has been built in part on our ability to provide construction and engineering services in logistically difficult and sometimes environmentally sensitive regions . We work with our clients to develop stringent operating practices that enable us to operate responsibly in these areas . At the onset of a project: • Our environmental team assesses environmentally sensitive areas such as water bodies and wetlands and develops plans to avoid or mitigate impacts . • We integrate environmental issues into decision making at the earliest stages of project development . • We innovate with our customers to provide state of the art engineering We provide the skills and solutions to further minimize impacts and reduce emissions during the capabilities our customers need operating phase of the project . in developing alternative and renewable energy projects . During project construction, we manage the project for the efficient use of In 2010, we began working materials, resources, and energy . In Upstream Construction, we have assigned on the BP Solar array project environmental staff on large-diameter pipeline projects who oversee environ- at the Brookhaven National mentally sound operating practices . On smaller-diameter pipeline projects, Laboratory in Long Island, NY . where crew sizes are limited, we designate personnel for a similar role . And, The facility provides up to 32 we always follow through by monitoring practices to project completion . Megawatts of energy to the Long Island Power Author- Our Performance ity Grid–enough for 4,500 In 2010, we achieved the following key performance goals: homes . Generating electricity • Zero reportable spills to governmental entities from the solar cells instead of • Zero enforcement actions hydrocarbon fuels prevents • Completion of baseline survey of energy and fuel use in Oman the production of 30,950 • Water use assessment in operations and facilities in Oman metric tons of carbon dioxide a year . Next steps in 2011 • Complete implementation of The Oman Construction Company * Represents Upstream and ISO 14001 Environmental Plan. Downstream 2010 data . • Implement improved framework for environmental management in – 13 – Upstream Construction .
  • 14. HSE&S in Action Case Study: Downstream wins Marathon’s “Green Vendor” certificate for being environmentally responsible. In 2010, Willbros Downstream was recognized by Marathon Petroleum Company’s Illinois Refining Division for being environmentally responsible, resulting in a “Green Vendor” certificate. Our environmental practices of recycling steel, plastic, universal waste, and paper were acknowledged . The objective of Marathon’s “Green Vendor” program is to share innovative ways to reduce water, energy, and chemical use throughout the supply chain . This certificate recognizes our commitment to environmentally responsible operations and symbolizes our team’s hard work and dedication to improving environmental performance . Innovative, effective, and efficient waste management benefits Willbros and all our customers . We are proud to be an environmentally conscious vendor, and we look forward to working similarly with other companies . Case Study: Utility T&D integrates its HSE&S efforts in Willbros’ performance-based system. Willbros’ Utility T&D segment spent the last half of 2010 becoming a part of our HSE&S community . The HSE&S integration efforts focused principally on three areas: a cognitive-based Safety Leadership program, incident investigation (e .g . TapRoot®), and familiarization with the performance-based system . Each business unit within the segment is currently working on establishing a management system that meets the requirements of Willbros’ performance standards . They have four internal TapRoot trainers and at least one individual specifically trained in TapRoot for each business unit . They have established a working group comprised of a business safety direc- tor in order to share best practices and gain synergies in establishing procedures and training . – 14 –
  • 15. Case Study: Upstream Construction reports successes for hours worked without a recordable injury. In 2010, many successes were made towards the goal for Total Incident Reporting (TIR) . Near-miss reporting increased, as we worked 1 .8 million work hours and reported 575 near misses . Employees worked safer and reduced our actual recordable injuries from 23 in 2009 to nine in 2010, including one spread of that completed one million work hours without a recordable injury . Employees who strived to work safer; who reported hazards, unsafe acts, and near misses; and who provided suggestions for safer work practices were acknowledged with Safe PIPE hats, Safety Leader hats, “Don’t Gamble with Safety” poker chips, and appreciation dinners . Case Study: Canada develops training and certification program for heavy-lift operators. In 2010, Willbros Canada developed and deployed a consistent training methodology for heavy-equipment operator training and certification. Between January 2010 and January 2011, in partnership with ek pass, 70 operators were trained and certified in many equipment types. Thirty-five make-and-models – specific training manuals, customized to the equipment we operate, have been developed and are industry endorsed. For example, our side boom training and certification program, which Willbros Canada first began utilizing in 2007, meets the Sideboom Operator Training Standard sanctioned by the Canadian Energy Pipeline Association (CEPA) on January 12, 2011. This standard was developed at the request of CEPA members with the participation of knowledgeable and experienced industry and government stakeholders . – 15 –
  • 16. Case Study: TOCO takes aggressive steps to recognize and eliminate at-risk behaviors. In 2010, TOCO focused on recognition and elimination of at risk behaviors and subsequent reduction of incidents . The results of the 2010 culture survey for TOCO indicated that we needed to increase our efforts recognizing and eliminating at risk behaviors . To help us achieve this, we took the following actions . • We designed and implemented an ‘approaching others’ training course, intended to teach employees how to recognize hazards and unsafe acts and how to intervene when these were observed . • We created and implemented a hazard ID picture card system, in which pictures of unsafe conditions were taken, filed and used during tool box talks and pre-task briefings. • We modified our Safe Work Incentive Scheme to award points for employees who intervened during unsafe situations . – 16 –
  • 17. Appendix I: Awards and Recognition Appendix I: Awards and Recognition Internal 2009/2010 Presidents’ Safety Awards and Chairman’s Safety Award Winners These awards are given to a Willbros employee or team that has gone “above and beyond” with respect to safety . The key criteria for these awards are as follows: • Innovation/Learning/Continuous Improvement: The recipients are “change agents” who have moved safety performance to a higher level within their spheres of influence. Perhaps, they have arrived at a new approach to solving a safety challenge, or they have taken the lessons of a safety failure to heart Pat Clark (left) and used those lessons to change or create a new program, approach, or even Winner, Chairman’s Award a way of thinking . • Making Safety Unconditional: The recipients have demonstrated that safety John McNabb (right) does not have different rules for different situations. Perhaps, they have stood Chairman of the Board, up for a safe job when it was not easy to do so. Perhaps, they did something Willbros Group that put safety ahead of productivity when the situation called for it . • Straight Talk on Safety: The recipients have shown that they are “ready, willing, and able” to wrestle with the tough questions on safety. Perhaps, they have had the conversations on safety that others have avoided. Perhaps, they have been willing to challenge conventional wisdom when no one else has . • Sustainable Safety Solutions: The recipients have avoided the temptations of making the “quick fix” for a safety problem, but rather have fixed a problem in a way that allows it to stay fixed. Perhaps, they have focused on the underlying reasons for a safety issue and addressed its root causes—not merely its symptoms . President Award Winners • George McFarlane: George is a superintendent in Sur, Oman . • John Rockafellow: John is a site manager for the Syncrude Aurora site in Fort McMurray, Alberta, Canada. • Cody Bailes: Cody is a superintendent with US Construction in Houston, Texas . Chairman’s Safety Award Winner • Pat Clark: Pat is a superintendent for Downstream, Construction Tank Services. External • Willbros Canada, April 2010, from Shell Albian Sands Expansion 1 project • Willbros Downstream, October 2010, Green Vendor Certificate of registration from Marathon Petroleum Company LP, Illinois Refining Division • Willbros Downstream Engineering, December 2010, BP Contractor Safety Award • Willbros Upstream Engineering, Occupational Excellence Achievement Award from the National Safety Council – 17 –
  • 18. Our Values Our Values We are committed to strong Leadership across the organization to achieve Excellence , Accountability, and Compliance in everything we do based on these Core Values: • Safety – Perform safely every single time, for the protection of our people and stakeholders, including our customers, suppliers, and the community – Every employee is empowered to stop any unsafe act • Honesty and Integrity – Always do the right thing • Our People – Respect and care for their well being and development – Maintain an atmosphere of trust, empowerment, and teamwork – Have the best people in the right position • Our Customers – Understanding their needs and develop responsive solutions – Promote mutually beneficial relationships – Everything we do is with the customer in mind, externally and internally – Deliver a good job on time • Superior Financial Performance – Earnings per share – Cash management – Strong balance sheet • Vision and Innovation – Understanding our business environment – Imagination and creativity – Continuous improvement • Effective Communication – A clear, consistent, and accurate message – To our people, our customers, and the public – 18 –
  • 20. Worldwide Headquarters 4400 Post Oak Parkway, Suite 1000 Houston, Texas 77027 1-713-403-8000 May 2011