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IntertankoVetting Seminar

Doug McCormick-Manager Marine AssuranceHouston Tanker Event 2007

March 26, 2007

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Chevron Shipping Marine Assurance

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Marine Assurance Clearance ProcessMarine Assurance Clearance Process

There are no standing approvals. Vessels are assessed (SIRE and CDI Inspections) at the time of nomination, for each and every nomination.

Clearance Decisions are always made within the context of the nominated transaction.

We consider the absence of information as potentially increased risk!

Operator performance weighs heavily into the Clearance decision.

Human error is the big issue! We look carefully at officer and crew experience and competence.

We look carefully at quality of and compliance with onboard procedures. (SIRE and CDI Inspections)

Alternatives are frequently considered.

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Marine Assurance Clearance SystemMarine Assurance Clearance System

•Active, Rules Based Decision Process using Real Time Information – SIRE and CDI Inspections

•Oracle database – Port And Vessel Information System (PAVIS) – is a mission critical tool.

• Experienced Clearance Specialists make clearance decisions based on clearly defined rules, guidelines and process.

•Experienced Marine Superintendents providing “eyes on ships”.

•Management approval triggers ensure appropriate personnel are involved in decisions.

•Data mining capability significantly enhances our owner/operator knowledge. (Casualty/Port State History)

•Data review and spot-checks are regularly conducted to assess performance and identify gaps.

•Substantial Management involvement i.e. Marine Assurance Managers, Regional Marine Superintendents, Regional Managers, Commercial Manager

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Operational Excellence is

the systematic management of

safety, health, environment, reliability and

efficiency

to achieve world-class performance.

Operational Excellence

Chevron’s Corporate Culture

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Operational Excellence“The End Game”

OE Vision: To be “recognized and admired” by industry and

communities as world class in all areas of Operational Excellence.

OE Objectives: (The definition of “World Class”)

Achieve an injury-free workplace

Eliminate spills and environmental incidents; identify and mitigate key environmental risks

Promote a healthy workplace and mitigate significant health risks

Operate incident-free with industry-leading asset reliability

Maximize efficient utilization of resources and assets

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Tenets of Operation

1. Always operate within design or environmental limits.

2. Always operate in a safe and controlled condition.

3. Always ensure safety devices are in place and functioning.

4. Always follow safe work practices and procedures.

5. Always meet or exceed customers’ requirements.

6. Always maintain integrity of dedicated systems.

7. Always comply with all applicable rules and regulations.

8. Always address abnormal conditions.

9. Always follow written procedures for high-risk or unusual situations.

10.Always involve the right people in decisions that affect procedures and equipment.

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Chevron Shipping Marine Assurance Officer Experience Matrix

•Senior Deck Officers have aggregate 5 years in rank, aggregate 2 years with the company and each have 5 years minimum on tankers.

•Senior Engineering Officers have aggregate 5 years in rank and aggregate 2 years with the company.

•For Time Charters to Chevron–Senior Deck Officers have aggregate 5 years minimum in rank, each have 5 years minimum on tankers and aggregate 5 years with the company. Senior Engineering Officers have 5 years aggregate in rank and with the company.

It is paramount that Senior Officers demonstrate fluency in and compliance with their company’s Safety Management System.