PSA Norway Orders NEM to Provide Worker Documentation at Mongstad

Petroleum Safety Authority Norway

The Petroleum Safety Authority Norway (PSA) has ordered Dutch contractor NEM to provide documentation on the employment terms for contract workers at Mongstad. The deadline for compliance has been set for October 11, 2008.

During the PSA's audit at Mongstad on October 6-8, 2008, it emerged that NEM employed contract workers supplied by various staffing agencies.

When the Company was unable to document the employment terms for these workers -- written contracts of employment, pay slips and agreements on meeting travel, subsistence and accommodation expenses -- the PSA gave oral notice on October 7 of an order to obtain these documents. The notice was followed up with a written order on October 8.

StatoilHydro is the responsible operator of the Mongstad plant, while Dong Energy is the construction client for the power station being built at the site. Both StatoilHydro and Dong Energy are responsible for ensuring that contractors pursue their operations in compliance with the regulations.

If the PSA has not received the requested documentation from NEM by the deadline, the contractor will be required to cease its activities wholly or in part until the order has been complied with -- confer section 18-8 of the Norwegian Working Environment Act.

Act on Pay Agreement Application

The Norwegian Act on Pay Agreement Application gives the PSA the power to supervise pay and working conditions for foreign workers. Pursuant to section 8 of the Act, the PSA conducts audits to ensure compliance with pay and working conditions which are subject to a decision on the general application of pay agreements. Anyone subject to supervision pursuant to these provisions must, when requested to do by the PSA and without reference to any duty of confidentiality, present the information considered necessary for exercising this supervision. The PSA can report contraventions to the police.