oq_october2012

ODFJELL

OCTOBER 2012

www.odfjell.com

CONTENTS

HighlightsOdfjell re-enters the gas market 04

LandmarksOdfjell orders four newbuildings with options 09

Odfjell issues new bond programme10

QHSESafety shutdown at Odfjell Terminals (Rotterdam)11Safety culture towards sustainable performance 12

Energy Saving Campaign 15 The Good Habit – Safety Talk 15

BriefingsGlobal ICT Ship Support00

from the Manila office 16‘Always On’ status 17

Odfjell Terminals (Charleston) on track,00 but with hidden surprises 18

Odfjell Nangang Terminals (Tianjin) going forward 19Shipping ERP on track 20

New software platform for Odfjell Terminal (Houston) 21

Portrait 22

Sea and shoreOiP’s staff summer outing 2012 23

Odfjell Golf Tournament 2012 24Foskor F21 Marathon 26

Tribute to 12 Odfjell pioneers 27Service awards Norwegian Officers 27

Personnel 28Fleet and terminals 30

Offices and addresses 32

Odfjell Quarterly

EDITOR: Margrethe Gudbrandsen

EDITORIAL COMMITEE:Karin Ryland Blom, Brit A. Bennett, Matt Duke, Geirmund Drivenes, Leif Gunnar Alvær, Theo Kruithof, Henning Løseth

CORRESPONDENTS:HOUSTON: Rebecca SnyderPHILIPPINES: Jennifer Franco

Deadline next issue: 9 November 2012

Design: Bruno Blanchard, Cox Graphic production: Jannicke Gildernes, CoxPrint: Scanner Grafisk ASCover: Photo by Almanh Hernal

Photo this page: Photo by: Almanh Hernal

Texts submitted to Quarterly may be subject to editorial adjustments.

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o d fj e l l q u a r t e r ly m a g a z i n e

As many of you know, the most pressing issue during recent months has been the situation at our terminal in Rotterdam (OTR), which again became a major media topic at the end of July when we decided to execute a safety shut-down. The most typical question asked in this context is what happened? To give a good and thorough answer is not that easy since this is not the result of a single accident, although the butane leakage last August can be said to have started the chain of events. Our problems, as they gradually have been revealed through internal and external investigations, go much further back in time and have to do with lack of systematic maintenance of certain critical systems, a reactive safety culture and in general terms, a terminal that was not in compliance with the HSE standards we have set for ourselves and also therefore of many stakeholders, including the regulatory authorities. The consequences have been and still are severe, with a particular constraint at the time of writing on our employees, the members of the Management Team and other key personnel. In light of some of the unrest, let me make it very clear that we have the full and strongest confidence in the Management Team. Together with our partner, Lindsay Goldberg, we decided recently and have already started preparation of a recovery plan and reorganization that OTR will develop together with the Works Council. It will require time, funds and a lot of resources, but you can all rest assured: we will succeed in bringing OTR to a state of the art terminal at this important port and junction for petrochemicals and oil products. At the same time as the current situation hurts, and we recognize that even tough with a social plan there will be pain associated to the restructuring process, it can also be seen as an opportunity for the majority of the employees to safeguard a sustainable and safe future for the terminal. At least that is my own and our Board’s expectation, an expectation I have heard many of my colleagues in Rotterdam share with me.

An important question in this context is what we have learned so far? I could mention a number of things, but want to highlight just one. We know from experience that major accidents have in the past brought us into the spotlight of our stakeholder’s and the public’s attention, and as such have become costly and unpleasant incidents. At OTR, we fortunately have not had a major accident and from this perspective, the entire situation can be described as a near-accident; but a major and serious one. So a thing we have learned is that it does not only take a big accident to end up as a focus point of stakeholders and public attention. Of course the enhanced internal and

external scrutiny has revealed further weaknesses, which we should have detected via our quality management system. In this context however, we should consider this valuable insights for how to prevent this from happening here or elsewhere in the future. In other words, we need to better ensure that our ships and terminals are always properly maintained, rules and regulations adhered to and that safety is and stays an integral part of how we all plan and execute our work. In sum this means that we all have to take a more proactive approach to the risks we are faced with in our type of business. This is described in the Bow Tie Model, which you find more about in this issue of Quarterly. This Model will become one of the new fundamental components of our improved approach to safety. With safety we cannot be complacent, but always recognize that we can do better.

Understandably OTR has taken a lot of management attention lately. On top of that, unfortunately, the chemical tanker market took an unwelcome dip and has remained slow since last April/May. Our financial results suffer therefore, so it seems impossible now that 2012 is going to become what we had hoped and budgeted for. Our balance sheet and cash position, however, remain relatively strong, still leaving room to ‘maneuver’, although it goes without saying that we again have to put cost reductions on the agenda as we now are about to start the 2013 budgeting process.

The fact that we have the ability to maneuver is in fact proven by our ordering of four new coated ships to replace some of our recycled vintage tonnage, as well as our re-entry into the LPG/Ethylene sector. Both transactions seem to be good from a timing as well as price perspective, and the response from market specialists therefore, have been very positive. So the picture is not entirely negative...

The fact is, despite our many problems and challenges, that we are well positioned for the future, in possession of an abundant amount of resources and competence, and therefore will be able to carry through?

Let’s all roll up our sleeves and do it together!

magazineQUARTERLY

odfjell

Dear Colleagues,

Jan A. Hammer,President/CEO Odfjell SE

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w w w . o d fj e l l . c o m

HigHLigHTS odfjell quarterly magazine

in June, Odfjell decided to re-enter the gas tanker market by acquiring two modern LPg/Ethylene gas carriers of about 9,000 cbm carrying capacity. – Our ambition is to become one of the leading players in the market for small LPg carriers, says Jan A. Hammer, President/CEO of Odfjell.

The acquired vessels, from two Singaporean companies con-trolled by the BLT Group and built in 2008 at STX Shipbuilding in Korea, are renamed Bow Gallant and Bow Guardian. The vessels were delivered to us in August and September.

The decision to buy these vessels is a result of the sector’s growth potential and the Company’s experience in the market. – We have a lot of know-how and com-petence related to this market. Our brand name and global mar-keting/operational network will give us a competitive advantage, Jan A. Hammer says.

Favourable LPg market– The LPG market is favourable at the moment with a reasonable balance between supply and demand. With the right combi-nations in the present market

it is possible to make a positive contribution to the bottom line. Despite the optimistic condi-tions, our main focus is to learn the markets and the operation of the vessels. In the longer term the expectations are positive, and we think the U.S. shale gas developments will impact this market, hopefully in a positive way, says Knut H. Holsen, SVP Odfjell Gas. HistoryOdfjell was an operator in the petrochemical gas market in the ’70s and the ’80s with two vessels (Bow Elm and Hardanger) sailing in the Odfjell Westfal-Larsen Tankers pool. Flumar, fully owned subsidiary of Odfjell also operated a small LPG carrier until November 2011.

By Margrethe Gudbrandsen, Communication Manager, Bergen

Odfjell re-enters the gas market

LPg facts

Bow Gallant entered the Odfjell Gas Carriers fleet on 31 August 2012

LPG is used as an energy source for cooking in many households

gas is broadly divided into two categories, Liquid Natural gas (LNg) and Liquid Petroleum gas (LPg).

LPgLPG is the generic name given to the commercial gases propane and butane.

In addition to these cargoes, a significant number of LPG car-riers are also able to transport ammonia and petrochemical gases (‘petchem’) such as ethyl-ene, propylene, butadiene and vinyl chloride monomer (VCM).

LPG occurs naturally in crude oil and natural gas, and can also be found as a by-product of the various processes in an oil refin-ery. At normal temperature and pressure, LPG is gaseous. When placed in a reduced temperature environment and under moder-ate pressure, this gas condenses into a liquid, hence LPG.

LPg in daily life LPG is used for residential and commercial purposes.

• Residentially, LPG is used for heating, refrigeration, cooking and generating electricity.

• Commercially, LPG is used to produce and manufacture met-als, in engineering equipment and ships, as well as in ceramics and agriculture. LPG is also a source of fuel for LPG powered cars and buses. In comparison to petrol and diesel, LPG pro-duces less carbon monoxide, greenhouse gases and sulphur than traditional fuels, hence a positive environmental effect.

• The petrochemical gas ethyl-ene is derived from cracking

petroleum feedstock and is often used for plastics, car components, housing material and insulation.

• The petrochemical gases butadiene and propylene, are also derived from cracking petroleum feedstock, but the end product tends to be synthetic rubber tyres, paints, plastics, packaging and textiles.

LNg LNG is methane that has been cooled to around -163°C, at which temperature it liquefies and can be transported in insu-lated tanks aboard specialized vessels.

The majority of LNG carriers have historically been ordered on the basis of long-term arrange-ments for particular projects. However, this has taken a turn over the last few years and it is now not unusual for LNG carriers to be ordered independently of a specific project.

Demand for LNG has continued to increase in recent years with trade growth of 21.3% recorded in 2010 and an estimated rise, according to Clarksons, of 6.5% in 2011.

Bow Gallant

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Before going further into the market dynamics of LPg, it is useful to broadly understand the various segments within the trade. Dedicated LPg carriers vary in size and form. The gases are transported in liquid form because their physical and chemical properties do not allow them to be carried in vapour form. Typically, LPg carriers are divided into three main categories:

• Fully pressurized (F/P) • Semi-pressurized and refrigerated

(S/R) • Fully refrigerated (FR)

Fully pressurized vessels (F/P)F/P vessels are typically ranging in size from 3,000 to 7,500 cbm (according to DNV). A F/P vessel does not have any compressors and cannot discharge into refrigerated storage. Loading a F/P vessel from refrigerated stor-age can be very slow. The cargo is carried in cylindrical or spherical steel tanks at an appropriate storage temperature. The advantage of these vessels is that the cargo is carried at an ambient temperature and no re-liquefaction plant is required. The vessels are most economical in coastal trade.

Semi-pressurized andSemi-refrigerated vessels (S/R)A semi-refrigerated vessel is also called semi-pressurized. S/R vessel’s cargo system consists of a refrigeration plant and insulated pressure tanks with lower cargo tank design pressure as opposed to fully pressurized ves-sels. Cargo can be discharged to terminals with both pressure tanks or refrigerated tanks, due to booster pumps and both heating and cooling facilities fitted on board. Number of cargo tanks are typically ranging from 2-6. Advantages compared to fully pressurized vessels:• increased cargo cubic capacity• additional types and more advanced cargo can be carried• better operational flexibility

Fully refrigerated vessels (FR)A fully refrigerated vessel has compressors on board and maintains tank pressure at close to ambient pressure by cooling the LPG to below its boiling point (butane to just below 0 °C and propane to approximately –42°C).

Fully refrigerated tankers are built to carry liquefied gases at low temperature and will typically move between terminals equipped with fully refrigerated storage tanks. These carriers have prismatic-shaped cargo tanks, allowing the carriage of cargoes at temperatures as low as –48°C, marginally below the boiling point of pure propane.

Bow Gallant and Bow Guardian are both semi-pressurized gas carriers.

lPg marketsBy Christian Stensaker, VP Business Development & Projects, Bergen

The layout of Bow Gallant

The S/R and ethylene fleet is currently going through a transition, in that the idea of a 30-year commercial life for a vessel is about to be ended. The market should observe a positive effect of this as the new consensus is to reach a supply demand balance. Some of the newbuilding programmes now taking place among Odfjell’s competitors are merely replacement of aging tonnage.

As for development within tonnage size, these can be broadly grouped as follows:

• The 8,000 - 9,000 cbm size will increas-ingly be considered the size for short to medium haul trade as an extension of

the 6,500-7,200 cbm ethylene/petchem carriers.

• The 10,000 - 17,000 cbm size will gradually become the preferred size for long haul ethylene/petchem shipments, with 12,000 cbm representing the 'base size'.

There is only a handful of global ethylene operators. With few exceptions, they oper-ate under a pool or commercial manage-ment structure typically consisting of two or three members.

The five largest players have on average a fleet of 12-14 vessels. A few significant newbuilding orders have been placed

although uncertainty exists as to how many will finally be delivered. In addition, there are a few players that focus on a somewhat larger 20,000+ cbm segment with some ethylene capacity.

The market that Bow Gallant and Bow Guardian are entering has a controllable scope with a limited number of opera-tors dominating the scene. Interest from outsiders to enter the petchem/ethylene market is apparent but so far no-one has made any significant move.

As of today, the total fleet of ethylene car-riers stands at fewer than 130 units, hence it will not take much to make an impact.

LPg/Ethylene fleet and competitionBy Christian Stensaker, VP Business Development & Projects, Bergen

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The semi-refrigerated vessels (excluding ethylene carriers) and fully refrigerated carriers generally carry traditional LPg cargoes such as propane, butane and ammonia.

The Bow Gallant and Bow Guardian, however, are LPG carriers with ethylene-carrying capac-ity. Statistically, such vessels are employed in the ethylene market about 50% of the time, while they are used to carry petchems for the remaining 50%. Volumes of ammonia and LPG cargoes carried by ethylene carriers are therefore marginal.

Total volumes of LPG, ammonia andpetchem shipped in 2011 (Drewry Q2, 2012):LPG 63 million mt or about 70% Ammonia 14 million mt or about 16% Petchem 12 million mt or about 14%

Growth in seaborne trade for petrochemical gases is expected to be 4% in 2012, 2.7% in 2013 and 3.4% in 2014. These figures are in line

with or slightly above corresponding expected growth figures for ammonia and LPG. Middle East export accounts for about 42% of total LPG, ammonia and petchem volumes, with countries in South and North East Asia as the largest receivers.

This situation is not set to change, as new expansions in the Middle East are planned for the period 2014 to 2016. This expansion, coupled with Asian demand growth, is expected to be the bedrock of trade growth also in the years to come. The world’s larg-est single importer of LPG, Japan, reported imports of 12.4 tonnes in 2011, which is up from 10.2 million tonnes in 2010 and is the third consecutive year of post-recession improvement. (Source: Clarksons Spring 2012)

Shale gas and EthanolDue to the presence of large volumes of ethane in shale gas, ethylene will be an interesting cargo in the years to come. The US petrochemical industry is set to see significant

investments to monetize on the shale gas advantage. If and when all the projects come to fruition, the North American market will not be able to absorb all the additional deriva-tive capacity, and it is expected that some of the production will be earmarked for export markets. Some analysts describe the US Gulf Coast as the 'new Middle East' with large amounts of export-oriented capacity destined for countries outside North America. (Source: CMR, Shale Gas Impact on C2, C3 and C4 Derivatives)

By 2010, ethylene was produced by more than 110 companies in 55 countries. To meet the ever increasing demand for the product, pro-duction facilities keep being added globally and particularly in the Persian Gulf and China.

According to Chemical Market Resources Inc., a total of 15 new cracker investments and expansions have been announced in the US in the period 2012-2017, all relating to ethylene capacity.

The petchem marketBy Christian Stensaker, VP Business Development & Projects, Bergen

Odfjell in the Philippines (OiP) will work with Orient Ship Management(OSM) in managing the crew for Odfjell’s two gas tankers. The two manning companies will each provide an equal number of crew for the vessels.

The collaboration is a practical operational decision considering Odfjell’s gradual re-entry to the market with only two vessels. – The collaboration with OSM will provide us with experience in developing an excellent Odfjell crew pool to man our gas carriers. Odfjell is aiming to grow and become an important player in this sector. Once we add more car-riers and expand our fleet for the gas market, OiP will solely handle crew management, says Marites Villena, Crewing Manager for the gas carriers. OSM’s experience in crew manage-ment for gas tankers fuelled the partnership.

Training and Company familiarisation The gas carrier crew chosen from Odfjell and Orient Ship Management (OSM) to run the

Bow Gallant and Bow Guardian, took part in training at Odfjell Academy in Subic in July and August. The week-long training, led by experts from the Academy and Fleet Bergen, covered discussions on Odfjell familiarisation, systems and procedures, gas operations and other topics relevant to on board safety.

Captain Ole Breimo, Senior Marine Super-intendent from Fleet Bergen and trainer on Odfjell gas operation procedures said the

recent training has been very productive: – It was a good two-way communication. This is a good opportunity to develop the competence of officers and crew for our gas tankers, he said.

Odfjell Academy in collaboration with Fleet Asia, Fleet Bergen and the Crewing Department of Odfjell in the Philippines (OiP) organised and designed the materials for the training.

Captain Ole Breimo, Senior Marine Superintendent from Fleet Bergen, on Odfjell gas procedures

experienced gas carrier crew By Jennifer Franco, Information Officer, Manila

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Odfjell gas Carriers represents a new division within the Odfjell group. given that they are still quite a small part of the group, they will initially have to be quite self sufficient. Taking delivery of the new ships and ensuring that they have the right personnel in place for the Bow gallant as soon as it was delivered has meant that it has been a hectic start for this new division. in addition there have been other issues to manage such as finding office space and ensuring staff are released from previous positions.

Closing the last gas tradein 1987 and starting the first in 2012Knut H. Holsen is the newly appointed Senior Vice President for the unit which currently consists of three employees. With background in the gas industry he is in many ways representing the ‘red thread’ in the gas segment. Rumours say that you were the one who closed the last gas trade in 1987 and now here you are starting the first again in 2012: – In a way that is correct. The last of our gas ships were sold in 1987, and the vessel was fixed from South America to the Far East with a cargo of Propylene. It was done with a Japanese charterer through our office in Houston. And this week we have concluded the first cargo on the Bow Gallant and we are very excited, Knut H. Holsen says.

Various possibilities for expansionFor now, both the unit and the fleet is small.

– Within the next few years we want to become a respected player in the market for shipping of petrochemical gases worldwide. There are various ways this can be done and we are in the process of exploring these at the moment, Holsen continues. All of the shore based personnel have great knowledge and experience from the complex chemical tanker market. However, unlike the multiple cargo programmes and numerous ports of load/discharge that parcel tankers endure, the gas market is much smaller and most of the time it involves one cargo on each vessel per voyage, one load and one discharge port. – Nevertheless, even though the markets are different, there are still many synergies and we can take many advantages from our experience in the chemical market. Although our clients would be different people, many of the actual customers would be the same,

and we would be serving the same line of products and markets which is an advantage.

Why chose a ‘new’ playerOdfjell has a good standing as we are seen as a respectable and major player within the chemical tanker market. However, despite having a sound history with the chemical market, we will be regarded as a ‘new’ player within the gas market. Why should customers choose a ‘new’ player, such as Odfjell, above existing customers; what are the major advantages of using Odfjell?– I do believe we have a good name in the industry. Our customers should expect a high standard of performance. The ships we have acquired are good vessels and we expect that we shall be able to service our customers in a very favourable way, ends Holsen.

the odfjell gas unit By Margrethe Gudbrandsen, Communication Manager, Bergen

Odfjell Gas is currently run by a small unit. From left; Harald Folland, Knut H. Holsen and Christian Stensaker

Name: Knut Henrik HolsenPosition: SVP Odfjell GasPrevious experience: Spent over 25 years with Odfjell in various positions in Marketing/Chartering. During my early days as a trainee I got involved in the chartering of the gas vessels and at that time we operated four ships and they were trading in all corners of the world. Since the late ‘80s the main focus has been India/Middle East and later on Africa. This is a very exciting part of the world and it has lots of opportunities.

Name: Christian StensakerPosition: Vice President Business DevelopmentMain tasks: Business Development, Commercial operationPrevious experience: Experience as Service and Pool Manger for Chemical and CPP vessels. Managing Director for Iver Ships and later Brostrom Tankers in Singapore. Vice President in DNB Singapore, Corporate Banking Division for Shipping. Managing Director for Hellespont Tankers in Hamburg, Germany Why gas? It is an exciting new opportunity in an industry that indeed has a promising future.

Name: Harald FollandPosition: Senior Ship OperatorMain tasks: Safe and cost-efficient ship operation for vessels allocated.Previous Experience: 4 years Nautical studies at Ålesund Maritime College, Deck officer with Stolt Parcel Tankers, 9 year as operator/senior operator with Odfjell Tankers.Why Odfjell Gas? Intrigued by the possibility to be part of something new from the very beginning and working in a small organisa-tion with opportunities to affect the way we move forward.

THE gAS UNiT

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Odfjell gas in the ‘80s’By Knut H. Holsen, SVP Odfjell Gas, Bergen

Operating gas carriers is nothing new to Odfjell. in the early ‘80s the joint venture Odfjell Westfal-Larsen Chartering had the commercial management of Hardanger (owner Westfal-Larsen & Co AS) and Bow Elm (owner AS Rederiet Odfjell).

In 1983 the Norbelgas pool was formed, which included the vessels men-tioned above plus Einar Tambarskjelve (owner Norgas) and Coral Temse (owner Exmar in Belgium). This pool lasted until 1985. The vessels Hardanger, Bow Elm and Coral Temse were all about 8,000 cbm, with Einar Tambarskjelve as the ‘big sister’ of about 8,500 cbm, all ethylene carriers. Coral Temse and Einar Tambarskjelve were traded in the petrochemical gas market, while Hardanger and Bow Elm were so called ‘multi purpose’ carriers, first of its kind and were traded both with chemicals and gases, whatever gave the best return. The markets were very difficult in the early ‘80s’ with a substantial increase in the supply of tonnage both for chemi-cal tankers and gas ships. Odfjell and Westfal-Larsen & Co AS decided to leave this market in 1987 and focused their investments on their core business. Hardanger and Bow Elm were sold to Norgas and renamed Norgas Voyager and Norgas Discoverer.

Old Bow Elm (on top) and Hardanger

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LANDMARkS odfjell quarterly magazine

A second quarter 2012 EBiTDA of USD 27 million reflects primarily a soft chemical tanker market. The overall tank terminal earnings remained steady during the period, despite increasing challenges and costs at Odfjell Terminals (Rotterdam). Subsequent to this period of reporting, this terminal carried out a safety shut-down of operations.

For the chemical tankers business, second quarter of 2012 showed a weaker performance with reduced demand and softer freight rates. The time charter result ended down 15% compared to first quarter of this year.

The global economic outlook remains weak, as the uncertainty surrounding the European debt crisis continues and the macroeconomic

picture in China appears to be deteriorating. A moderate recovery of activity, particularly in the spot market, may stimulate some rate improvements, similar to those seen in fourth quarter 2011 and first quarter 2012.

We expect the situation at OTR to negatively impact the results of our tank terminal activi-ties for the remainder of the year.

Following extensive technical and commer-cial negotiations, four shipbuilding contracts were signed between Odfjell Chemical Tankers AS and Hyundai Mipo Dockyard (HMD) in Ulsan, korea on 31 July.

The contract price is below USD 40 million per unit, and we have also signed an option agreement for 2+2 contracts at the same price levels, to be declared within four and three months respectively. Delivery of the first four newbuildings will be January, March, May and July 2014.

The newbuildings will replace the P&F and KSEC class which is gradually being phased out by recycling. The specification, with eco-friendly design, has been made to what we call ‘Odfjell Standard’, including less fuel consumption in the range of 10-12% compared to other chemical tankers of the same size delivered the last four years.

Continued weak resultsBy Margrethe Gudbrandsen, Communication Manager, Bergen

odfjell orders four newbuildings with optionsBy Tore Jakobsen, SVP Corporate Investments, Bergen

The main dimensions and particulars of the vessels shall be:

Length overall max 182.7 mBreath, moulded 32.2 mDesign draught 12.5 mDeadweight, design draught 46,310 MTCargo capacity (100%) min 54,000 m3No of cargo tanks 20 +2Tank coating 25 % zinc / 75 % epoxy

The Hyundai Mipo Dockyard (HMD) in Ulsan, Korea

From the signing ceremony. Representatives of HMD management, headed by Senior Vice President T.D.Lee, R.S.Platou Shipbrokers, Petter Arentz and the Odfjell team, Senior Vice President Tore Jakobsen, Vice President Geir Almestad and Senior Project manager Arnt

Kaare Simonsen Meyer.

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This summer a new project was launched which focuses on understanding our requirements regarding a new Document Management System. Currently our documents are stored in several places; in file shares, as attachments to emails, in SharePoint Team Sites and in several lines of business applications. The many storage areas means it is time consuming to store, retrieve and dispose of docu-ments. A New Document Management System will introduce options for version control, document templates, security and compliance.

The reasons for starting this project are threefold:• to establish an information lifecycle strategy for document retention and deletion

• to have alignement. There are several initiatives present today, focusing on improving document management systems. With this project we are aiming to ensure that we do not end up with a series of competing systems

• a document management system can improve our overall effectiveness, especially with regards to the retrieval of documents, but it will also include better options for document control and security

The project group members are from all main departments and we will create a broader reference group that should ensure that all

offices are also kept informed during the project. We are now at the very start of the project and our focus is to grasp all our requirements for a Document Management System. We plan to have a report ready by early October which will list our main requirements and which will also including a project scope and budget.

new document management System ProjectBy Arne Sletten Helgesen, Project Manager, Bergen

LANDMARkS odfjell quarterly magazine

Odfjell established a 500 million Singapore dollar bond programme in the Singapore market in September.

Currently Odfjell has two NOK bonds on outstanding in the Norwegian market that matures in 2013 and 2017. We also have a history in the Singapore bond market, with a bond issued in 2006 that matured in 2011. – The intention was to refinance this bond at maturity, but as the market was unfavorable at that time we decided to wait for improvement in the market. To prepare for this, we have established a bond pro-gramme in Singapore where we may issue

bonds in the Asian investor market, says Tom A. Haugen, VP Finance in Odfjell SE.

And he continues: - Odfjell has the opportu-nity to participate in many exciting projects within the chemical tanker market, tank terminals market and in the gas carrier segment. The proceeds from a potential bonds issue may be employed to materialize these projects, to repay debt and for general corporate purposes.

odfjell issues new bond programme By Margrethe Gudbrandsen, Communication Manager, Bergen

The banks assisting Odfjell are DBS, HSBC and DNB Singapore Tom A. Haugen, VP Finance, Odfjell SE

The many storage areas means it is time consuming to store, retrieve and dispose of documents.

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QHSE odfjell quarterly magazine

in previous Quarterly issues we wrote about the environmental and safety situation at our Rotterdam terminal. Some far-reaching events have taken place since then.

Following the BRZO (Major Accidents (Risks) Decree) inspection by the authorities of March this year, Odfjell Terminals (Rotterdam) (OTR) has taken many steps into the right direction in order to meet the requirements that resulted from the BRZO inspection.

Safety shutdownOne of the requirements following the March inspection involved the live-testing of cooling and foam extinguishing lines. After having tested a number of tanks, OTR concluded that the tanks equipped with carbon steel firefighting lines were not working properly. As a result of unconfirmed rumours about the new parts of the terminal showing defective extinguishing equipment as well, OTR decided to declare a complete safety shutdown. The announcement was made on the 27 July.

ApprovalsTanks can only be taken back into service after approval by the authorities. Approval is given after the authorities have ascertained that the tanks’ fire fighting equipment is working properly and the tank inspection data are accepted. OTR’s inspection data are based on the latest Risk Based Inspection methodology EEMUA-159. By mid september the authorities had released 50 tanks, or 483,800 cbm capacity. At the same time, OTR made full use of the safety shutdown by performing additional safety checks to the storage tanks and the other infrastructure, and by carrying out repairs and upgrades where needed. Consequently, tanks will only be taken back into service when both the authorities and OTR give the green light.

Sympathy for customersOn the one hand, the safety shutdown is a disappointment: OTR has let its customers down. Many are depending on the services that OTR normally renders. OTR very much regrets putting its clients in this difficult posi-tion and wishes to express its apologies once

again. Unfortunately, OTR did not have any other option, given the circumstances. We put safety first. On the other hand, the authorities and OTR are scrutinising all tanks, ruling out any safety issues. In addition, OTR continues to improve its Safety Management System, thereby further increasing the control over safety risks.

Comprehensive modernisation planThe staff at OTR is determined to have as many tanks as possible back into safe service again as soon as possible. The tanks with the carbon steel fire fighting lines will be subject to a broader renovation plan. Consequently, substantial parts of the terminal will remain idle for a while since the technical upgrade will take place one tank pit at a time. OTR is now working on a comprehensive modernisation plan. Moreover, OTR is dedicated to improving the integrity of its tanks as well as permanently improving the safety and environmental per-formance at its terminal. OTR’s ambition is to comply with the highest industry standards.

Safety shutdown at odfjell terminals (rotterdam): – leaving nothing to chanceBy: Theo Kruithof, Communications Officer, Odfjell Terminals (Rotterdam)

OTR is testing the firefighting system Demolition of nine tanks in tankpit 9A

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Ship Management steadfast commitment to the reinforcement of safety culture means not only strengthening leadership involvement but also developing concrete actions to translate safety objectives into daily operations. This entails ensuring awareness and loyalty to the organisa-tion’s unequivocal vision, core values, message, expectations and goals that lead to excellent safety performance both on shore and on board.

The Officers Conference in Manila on 28-30 August, led by managers from Ship Management and Odfjell Tankers, proves our focus on guaranteeing the top man-agement’s competence and commitment in matters relating to sustained safety performance. The three-day workshop also underlined the continuous pursuit for positive improvement on the proactive approach to safety through various pro-grammes and safety message dissemination campaigns.

Proactive safety message:The Bow Tie ModelHelen von Hirsch Eriksen, Organisational Psychologist from Proactima and one of the principal presenters during the confer-ence stressed that Ship Management safety culture leans towards proactivity: - We aim to create a proactive safety culture where the emphasis is placed on putting barriers to stop incidents from happening, i.e. to reduce probability of an accident.

The shift to a proactive management of safety is a work in progress that entails consistent communication of the safety message, the Bow Tie Model. Ship Management has designed its own version of this internationally recognised model that defines a proactive approach to safety.

HSE Manager Harald Bauck said that Ship Management has already put in place necessary barriers to reduce consequences of an accident, but in order to develop a proactive safety culture, the focus must be on preventive actions. He added that understanding the Bow Tie Model and its implications on safety of operations is the

beginning of a real shift towards proactivity: - Our focus must move from the right-hand side to the left-hand side of the model.

Putting the safety message out - One of the elements in safety culture is values. They describe our identity and should be the baseline which motivates all actions for ship and shore staff, Senior Vice President of Ship Management Helge Olsen said in his presentation during the Officers Conference. To reinforce the Safety Culture campaign, we have included proac-tive safety culture in the core values which will frame the norms, attitudes and behav-iours of everyone in the organisation. Ship Management has also developed materials that will serve as visual representations of our commitment to move towards a more proactive management of safety. Posters and tarpaulins of the Bow Tie Model and core values are displayed on board vessels and in shore offices, and the use of the ‘Stop Work Authority’ card will be implemented soon. The ‘Stop Work Authority’ card will serve as a visual aid for all employees indicating that they need to ‘STOP WORK’ when the

activity poses a potential danger. This card will be given to all employees within Ship Management.

The efforts in making the safety message known both on board and on shore has been yielding optimistic results. Vice President of Fleet Management in Bergen, Geirmund Drivenes, shared that whilst the message is spreading, there is always a need to fight against complacency through a robust and continuous information campaign:-We need to renew and keep driving the message until we all think safety from top-level man-agement to everyone in the organisation.

But putting the message out is only the beginning of the cultural change. The real work lies in everyone’s combined effort to be proactive. This change has to start from the top of the organisation.

Leadership developmentto drive cultural changeAn organisation’s success in developing a safety culture is only as good as its leaders’ adherence to the safety philosophy. The

Safety culture towards sustainable performanceBy Jennifer Franco, Information Officer, Manila

Toralf Sørenes, SVP QHSE discussing corporate QHSE

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Safety culture towards sustainable performanceBy Jennifer Franco, Information Officer, Manila

Toralf Sørenes, SVP QHSE discussing corporate QHSE HSE Manager Harald Bauck discussing about the Bow Tie model with the officers

annual safety-themed Officers Conferences and rigorous competence trainings for Management Level Officers (MLOs) and Operational Level Officers (OLOs) are actions to tap leadership’s vital role in steering the cultural shift to proactive safety. Running in complement to these trainings is the awaited launch of the Leadership Development Programme for Mariners which will be spearheaded by Owner’s Representative of Odfjell in the Philippines, Tore Henriksen. This leadership training will be provided to all mariners starting with the MLOs and OLOs.

The RD 12 Inspection Regime, ‘The Technical/Marine Superintendent visits on board’, further involves leadership in the Ship Management safety culture programme. According to Mr. Drivenes, the RD 12 carries in it many of the most vital aspects when building and developing a healthy Safety Culture: - In Odfjell, both Technical and Marine Superintendents are required to visit their ships at regular intervals, and these visits are to be organised in accordance with the RD 12, he says.

The status of Odfjell’s safety culture according to the OfficersMLOs and OLOs present during the Officers Conference all agree that the awareness of Odfjell’s safety culture is starting to get a strong foothold both on shore and on board. However, everyone echoes the opinion that shifting to a proactive safety culture is still a work in progress. - In terms of safety, we have improved due to a heightened awareness on our safety expectations and goals. However, there is still a strong need to change people’s attitudes and behaviours towards safety, said Chief Engineer Dante A. Mangampat.

Chief Engineer Leo Gegajo, Head of Odfjell Academy, reiterated values as the spring-board of proactivity: - In my opinion, we still have work to do to establish a proactive safety culture in our organisation. We need to strengthen and align our values with our desired culture because our values frame our actions.

The road to sustainable safety performanceThe Safety Culture programme is a con-tinuous search for improvements and

best practices that will drive the wheel of cultural change in motion. Odfjell is a learning organisation whose sustainable safety performance depends on its people’s involvement, both on shore and on board, in ensuring that every vessel has zero accidents. The organisation aims to develop a working environment where reporting incidents is built on an atmosphere of trust and open-ness, to empower people to challenge unsafe actions and working conditions regardless of their rank and positions, and to harness loyalty of the workforce in matters pertaining to safety.

Several underpinning safety issues are yet to be addressed, but we already have our foot in the door. - We have to work hard and be patient. We cannot change culture in two days, but we can change culture in two years, and we will, Mr. Bauck concluded.

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the Bow tie modelBy Helen von Hirsch Eriksen, Organizational Psychologist Proactima

The picture above will for some of you be familiar. it is the Ship Management Bow Tie Model, and those of you that have been to a Captains workshop, an Officers Conference, or been visited by a superintendent for a Reference Document 12 (RD12) meeting, will be somewhat familiar with it.

We have developed the model further so that it is specific to our organisation and describes how risk is to be managed in all activities in Ship Management. It is also a very good way to visualize the type of culture we are developing in Ship Management; a preventative safety culture. It is vital that increased emphasis is placed on the reduction of probability or the likelihood that an activity should occur. In other words; we should work to eliminate risk before an activity is initiated. Thus we have a culture of proactivity. This is done through quality in planning activities.

The centre of the model represents a given activity and the word risk is included in this box to visualize that all activities hold an ele-ment of risk that must be managed. The white arrows passing from left to right represent the

risk itself. As you can see there are barriers stopping some of those arrows from passing through. These barriers represent an action we have done, or a physical barrier that we have put in place, to stop the risk.

The important thing to note here is that there are two types of barriers depending on which side of the activity it occurs. Barriers that are used before an activity are called probability reducing barriers, whilst those on the right are called consequence reducing barriers. Examples of probability reducing barriers (on the left side) are the Task Risk Assessment, the Pre Work Talk, competence and the Work Permit. Examples of conse-quence reducing barriers (on the right side) are Person Protective Equipment, detectors and fire-fighting measures.

I often use driving your car as a good way to exemplify this. The activity is driving. Consequence reducing barriers are seat-belt, airbags, ABS brakes. These reduce the consequences of a possible crash for the driver. However, to lessen the likelihood of a crash occurring in the first place, probability

reducing barriers such as slowing the speed, being a competent driver and following the rules of the road must be used. The very same rationale can be applied to any given activity we carry out.

I said earlier that the key to being proactive is quality of the probability reducing barriers. If we do not focus on the quality of prob-ability reducing barriers such as the Task Risk Assessment or the Pre-Work Talk they will not be effective in reducing risk. Only when the Task Risk Assessment is carried out in the right manner, with the right people talking about the right risks, and making sure that they have a common understanding of the elements in the activity, can we say that it is a quality barrier.

Therefore, Odfjell Ship Managements goal of establishing a proactive safety culture depends on increased attention to planning of activities, knowledge of the procedures, how we talk about risk in the Task Risk Assessment, Pre-Work Talk etc, and how well leaders follow up these activities.

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Safety should be an active element of everyday life when at work and at home. As an employer, Odfjell strives for and is engaged in many areas working to improve the Company’s safety culture. Being part of Odfjell we can and should all contribute to this and there are many things we can do which ‘costs little but has a good impact’ both on the business itself and on the image we are trying to create.

Start meetings with a ‘Safety Talk’One example which has had a positive effect and gives a lot of synergy is the idea of starting visits from external parties with a safety talk. Meetings at Odfjell locations with customers,

suppliers, colleagues from other destinations, contractors, other guests etc, should start with a safety talk. A typical example is when we first introduce someone to a site we describe the fire instruction. If a fire situation should occur we tell our guests how to evacuate the build-ing, where the emergency exits are, where the assembly area is and about available fire equipment.

This is a good example of improving safety culture because it is so simple. By repeating a simple message again and again, even if it is for same audience, it becomes embedded in you and forms a good habit.

Following on from the success of the Value for Money Campaign in 2010, the management decided to launch annual ‘themed’ campaigns in order to generate new ways in which we can improve various activities within our business.

The theme for this year’s campaign is ‘Energy Saving’. Several of Odfjell employ-ees are addressing energy saving as part of their responsibilities and tasks (such as weather routing, speed and consumption analysis, minimizing auxiliary running hours etc). However, many of you may have already thought of other possibilities to save energy in your daily work. If you have ideas and suggestions for potential changes in daily routines, work tasks, activities, equipment or habits, we would really appreciate to hear about them. Energy SavingThe winning criterion is ‘Energy Saving’. We are therefore looking for ideas that will

further reduce our use of energy and in turn reduce emissions to the environment, improve our earnings, reduce costs and allow us to fulfil our mission statement.

How to participate?All Odfjell employees can participate in this campaign, whether you are based at sea, at the terminals or in an office. Please send your ‘Energy Saving’ suggestions to the fol-lowing email: [email protected].

What happens to your suggestion?Your ideas will be reviewed initially by the Energy Saving Evaluation Committee. The Committee will then forward suggestions to the appropriate business unit or depart-ment for further evaluation and possible implementation.

Although your ideas/suggestions may be modified and further developed during this evaluation/implementation process, we will ensure that we give rec-ognition and in some cases grant possible

monetary awards based on the original email entry.

AwardsThe campaign was launched on 1 September. The best proposals each month will receive awards in the range of USD 100 – USD 1,000. The top prize of USD 10,000 will be awarded the best idea received during 2012. The winner will be presented during first quarter of 2013.

the good Habit – Safety talkBy Bjørn Ydse, HSE Manager, Bergen

New ideas for Energy Saving Campaign: - A chance to win USD 10,000! By Margrethe Gudbrandsen, Communication Manager, Bergen

Starts meetings with a ‘Safety Talk’

Stay safe and be proactive!!

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BRiEFiNgS odfjell quarterly magazine

global iCT Ship Support from the Manila officeBy Matt Duke, VP ICT, Bergen

in 2012 we have installed ‘Always On’ internet connections on 24 vessels. This gives additional opportunities and possibilities for remote support and connection to corporate iCT services, applications and other technical systems on board. This will increase the need for remote iCT Support for the vessels, and it is not cost effective to build such a large support team at the headquarters. The main principle of iCT strategy for ship support is that iCT in cooperation with the service owner, Ship Management, will advise and design the ‘iCT infrastructure’ on board, and we will build a skilled, enthusiastic and service minded team in Manila to support the solution.

By providing world class ICT support to our vessels 24/7 in a cost effective way, we have the clear goal that the crew will benefit from improved service, and ultimately ICT will play a role in providing the best possible customer service to our valued customers who transport chemicals with Odfjell. It is important in hard economic times that all areas of the business do their best to keep costs down, and ICT also must do its utmost to support this business need.

The Manila team is already providing a large number of support functions to our Ship Management department and it was a natural progression to increase this focus to also include ICT Support for the vessels. Therefore, the Manila organisation are skilled and experienced in the steps that are required to recruit the right staff and integrate them into the global organisation.

There will be a great deal of involvement from Corporate ICT and Ship Management in this project, and we will be on site to support and train our new colleagues. The undersigned is assigned project owner, and Gunnar Eide, Surveyor Maritime ICT & Automation will be project manager. In Manila, Marlon Panisan, Head of Documentation Department, will both participate actively in the project and then take over the local management of the newly formed ‘ICT Ship Support’ team. All members of the team in Manila and headquarters are positive and enthusiastic about this new opportunity for improved ICT support to our crew, and the new business possibilities and services that an ‘Always On’ fleet may benefit from.

First line ICT support for all vessels will be operated from Odfjell in the Philippines

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Since October 2011 Odfjell has successfully equipped 24 vessels with internet access by installing VSAT systems from Marlink. This has been the equivalent of two installations per month. The goal is to have all managed vessels equipped with VSAT online systems within the second quarter of 2013. So far we believe that our milestones will be reached.

The upgrade is complex and a successful installation involves many people. First the vessel receives the main VSAT system containing an antenna, a below deck unit and a backup satcom system. Then the vessel receives new phones on board, wireless access points, headsets for the office communicator, data cables and a firewall.

When all the equipment is in place, the crew on board mount the antennas, pull the antenna coax cables and fit the satcom below deck units. When the equipment is fully

installed a Marlink technician will commis-sion the systems and ICT personnel come on board to configure the wireless access points and firewall in order to connect the vessel ICT system to the new VSAT communication system.

Meanwhile onshore, Marlink and the ICT department have prepared network routes and firewall accesses in order for the vessel to connect to both the internet and Odfjell ICT systems in Bergen ready for when the vessel goes ‘online’.

So far the VSAT system from Marlink has performed as expected with few technical issues. Ship crew have been satisfied with the performance and the ICT department reports that maintaining and managing the new ship networks are as expected with less challenges than the previously tested VSAT pilot solutions.

‘always on’ status By Gunnar Eide, Surveyer Marlink ICT & Automation, Bergen

Odfjell publishes internal Corporate news on an intranet site named insite.

Due to the fact that Insite is not available to every vessel for the time being, the Manilla office is going to prepare and distribute an Odfjell Bulletin to all vessels on a weekly basis with all the corporate news that is published the same week.

The Bulletin contents will be the same as those published on the corporate intranet in the Odfjell offices.

odfjell Bulletin

Bow Fortune is now equipped with internet access

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The third quarter of 2012 at Odfjell Terminals (Charleston) (OTC) has seen the onslaught of heavy plant equipment grading (leveling) to the northwestern side of the terminal plot to accommodate the ‘Phase1’ tanks. This charge of activity has not been as simple as pushing dirt around with a bulldozer as there have been a few (anticipated) surprises!

The predominant use of the Charleston land prior to its acquisition by Odfjell was for bulk liquid storage, such as clean and dirty petroleum products rather than chemicals. There were also a number of different owners and operators of the pre-existing terminal(s). As was seemingly the fashion thirty plus years ago, pipelines that served liquid storage facili-ties were largely kept underground where the rationale for such placement was as a fire prevention precaution rather than an ‘out of sight, out of mind mentality'. Grading of our plot therefore has had to cope with ‘hidden treasures’ that have needed to be handled in an environmentally conscious manner and with the blessing of South Carolina Department of Health and Environmental Control.

Constructing with the community in mindAs well as taking precautions to deal with the unknown ‘hidden treasures’, there has also been test ‘piling’ carried out at the site and large steel piles have been hammered seventy five feet into the ground. OTC and our appointed project engineering contractor, ‘Professional Project Services’, along with ‘The Robert’s Company’ have not only had to manage the whole operation itself, calculat-ing at what depth the Marl (Marl or marlstone is a calcium carbonate or lime-rich mud or mudstone which contains variable amounts

of clays and silt) is reached, but they have also had to be aware of the noise pollution this operation may cause our close neighbours. A ‘Junttan’ pile driving rig is being used at OTC. This rig, aside from doing its intended task safely and efficiently is also friendly to the environment as this type of equipment generates less noise and reduces vibration and harmful emissions. We at OTC, took time to notify the local community leaders, businesses as well as the Police of our pile driving intentions weeks before the operation commenced. We carried out checks on noise pollution during the test operation and we are pleased to report that so far the Junttan rig has delivered on its environmental promise, causing minimal, certainly tolerable distur-bance. We have complied fully with the City of North Charleston Ordinance regarding times at which Industrial/construction related noise may be generated.

On site Safety Officer employedOn site, the storm water pond to the extreme eastern side of the plot is now nearing comple-tion and document wise…. well the list is endless and a huge amount of man hours has been devoted to the project. On the ‘big ticket’ items we have reached the 90% review mark on functions of the new dock, rail and fire protection systems. Safety on site remains the number one priority for Odfjell and our EPC contractor. An on site Safety Officer has been appointed and all personnel at the facility are inducted in construction site safety aware-ness. Access to site construction areas are only granted once this training has been giving. Next quarter we will provide further updates on the OTC project and details on Charleston itself, which has to be one of the best preserved North American cities, considering the severe weather conditions it endures.

Odfjell Terminals (Charleston) on track, but with hidden surprisesBy Mel Pinks, Terminal Manager OTC, Charleston

Grading at OTC

OTC is gradually taking form

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Since the start of the project, Odfjell Nangang Terminals (Tianjin) (ONTT) has steadily been moving forward to reach its goal of becoming a world class facility by including Odfjell engineering, technical and oper-ational expertise in the overall terminal design, construction and operation.

The team has made significant progress on obtaining the many different government approvals and licenses required for this project. We have successfully obtained the licenses required for the future operation of the marine jetties. Further, we completed an EIA evaluation, an operational safety evaluation, an energy saving evaluation and an industrial hygiene evaluation for both jetty and tank farm, which are all important and required to clear the path for the construction work.

The jetty is taking shapeEach day we are able to see the original concept of the jetty taking shape as the actual design is now reflected in the emerg-ing structures. So far, we have completed the dike slope, the jetty front basin dredging work, as well as the construction of the access bridge for berth 1#, 2#, 3#. 302 square piles have been driven into the waterbed. The overall jetty marine structure is about 38% completed and the land area is prepared for construction. This has been done with challenge of an unusually long rainy season this year. The land is now primed and ready for foundation piling and tank erection, which are both scheduled to start in September this year.

Customers interestConcurrently with the construction progress, we have also experienced good progress on the market development within the Nangang Industrial Park. New Greenfield production facilities are being constructed and will require ONTT’s logistics services. ONTT’s potential customers took part in ground breaking ceremonies in July and August and we are also happy to note that negotiations with potential users of ONTT’s facilities are underway and look promising.

Part of the uniqueness of the ONTT project is that it intends to serve the zone’s on site manufacturing customers as well as other local and international customers. The fact that ONTT is progressing with visible develop-ment, has brought to realization that ONTT is on schedule and will develop as designed and planned. Combined with an active marketing

approach from the Odfjell group, ONTT will get off to a good start.

Strict focus on QHSEONTT is striving to reach the high QHSE tar-gets during its present construction phase and following operation period. By the end of July, ONTT had achieved 93,638 man hours without lost time. This is a result of good QHSE focus, hard work and excellent cooperation between ONTT and its contractors. In order to monitor and support the general ‘site safety awareness’ among the contractor/subcontractors, ONTT has taken a very active role to ensure compli-ance with the QHSE requirements.

With the full scale piling, tank erection and jetty top side installation scheduled to take place, the ONTT team is motivated by the good progress and looking forward to the challenging tasks ahead.

odfjell nangang terminals (tianjin) going forwardBy Thomas Tao, Project Manager, Singapore

Construction of the jetty starting to take shape

ONTT employees together with Chairman of the Board, Laurence Odfjell

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Ok, so we have bought the best shipping software available in the market. What do we do now? In the autumn of 2007, before the decision was made to start the Shipping ERP project, Jan A. Hammer who was head of Odfjell Tankers at the time, was very clear on one thing; ‘Odfjell Tankers needs to use the best ICT tools available. However, if we start this initia-tive, we need to make sure that we use the opportunity to improve our work processes, not just replace our existing ICT tools’. This clear vision meant that, during the first year of the project, Business Process Owners (BPOs) were appointed, and we started map-ping and documenting the main processes at Odfjell Tankers. The process mapping activity provided the project team with a good overview of the roles involved as well as how the processes would interact with each other.Since then, we have created ‘To-be’ process diagrams to document how we see we can improve the workflows and do the work more efficiently using the new stack of tools available in our chosen software platform, IMOS. Using this approach, the different role’s interaction with the system is explicitly stated for each activity. From the diagrams, it’s easy to identify the activities which need to be supported by IMOS; hence the project can use this in order to list the required deliverables to the organisation.

Most recently, the project team has been busy discussing and detailing how the different activities within chartering/operations can best be performed using IMOS. The appointed

key users have started to do test-runs to verify and sign off the activities which are adequately supported and which activities are not. Issues which need further ‘follow-up’ are documented, and when solved, another test-run is performed. The remaining func-tionality we require to go live with IMOS will be delivered by Veson within the end of this year. Also, we are currently in the process of developing the interface to our accounts system, Agresso. The configuration and test-ing of IMOS will continue throughout this year and into 2013.

As we learn more about the capabilities of the IMOS system, we also develop ‘best practices’ for each type of activity. Hopefully, the work-flow diagrams and best practice documents will give valuable guidance to new users of the system. These documents can provide additional context to the activities which can be performed in IMOS, potentially improving the quality of training as well as getting users up to speed and becoming more efficient with their daily tasks. The implementation of new ICT tools is commonly used as a catalyst to introduce changes to process and organisation of work. Inherent in process improvement initiatives lays the wish to address our inefficiencies, and thus to change some of the current working habits, routines and even responsibilities. For instance, one of the objectives for the Shipping ERP project is to facilitate improved decision support at all levels in the organisation. Another objective is to provide easy access to relevant, accurate and timely information to all the participants in a process. This is crucial

in order to have efficient work processes, as well as to support decision making.

It should also be highlighted at this stage that without us all taking a joint responsibility for keeping the new system regularly and correctly updated during normal working routines, it will greatly reduce the Company’s ability to leverage and trust the new ICT tools for contributing to best in class service and operational efficiency to our customers. Trust is something which needs to be built over time. In the context of trusting information in an ICT system this means that it’s crucial that all users contribute continuously in keeping the information up to date at all times. This is really one of the key success factors to achiev-ing the objectives for this project, and it is important to realise that this is something we can all succeed in together.

The IMOS system will be introduced gradually on a ship-by-ship, voyage-by-voyage basis. One challenge, is that we need to make sure that we can complete the voyages in the OTIS system, and at the same time start the planning of consecutive voyages in IMOS. Thus, in the transition phase, the old tools will be used in parallel to the new ones. According to current plans, we will deploy IMOS for the first 4-5 vessels during second quarter of 2013. Our aim is to deploy the new Veslink on board solution simultaneously in order to facilitate an efficient and automatic flow of information between the vessels and our shore based organisation.


Shipping ERP on trackBy Einar Øye, ICT Business Process Architect, Bergen

As we learn more about the capabilities of the IMOS system, we also develop 'best practices' for each type of activity

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One of the long term objectives of Odfjell Terminals BV is to serve Odfjell managed terminals by one common integrated software application platform supporting main business processes like terminal management (from contract/order to invoice), finance and controlling, mainte-nance management, purchasing and human resource management. The new software platform will be based on the SAP Business Suite portfolio.

Main business objectives to be achieved by implementing the new integrated software application platform are:

• increased customer service level• cost reductions• improve quality of work• operational safety• enhanced asset utilization

The implementation process of the new soft-ware platform has been executed through sev-eral sub projects (TMS – Terminal Management System, CMMS – Computer based Maintenance Management System including purchasing, FICO – Finance and Controlling and HR – Human Recourse Management) supporting the various business areas.

The Terminal Management System (TMS - contract/order to invoice) has been in opera-tion at Odfjell Terminals (Houston) (OTH) since September 2008 and at Odfjell Terminals (Rotterdam) (OTR) since March 2010.

The Maintenance Management System (maintenance management and purchasing)

has been in operation at OTR since 2 April 2011 and will be implemented at OTH in parallel with implementation of SAP Finance.

A mini version of the Human Resource Management System has been implemented at both OTR and OTH in 2012.

Since the beginning of 2012 two projects have been under execution at OTH in order to implement SAP Finance/Controlling (FICO) and SAP Maintenance Management (CMMS). The projects have been staffed with key personnel from OTH, one consultant from Corporate ICT and external consultants with special SAP skills. The project teams have worked very hard and dedicated in order to have FICO and CMMS operational from the beginning of September.

The SAP Finance and Controlling (FICO) solution which will support the following main financial business processes:

• Business Planning and Performance Management• Treasury and Financial Risk Management• Operative Accounting, Controlling and Procurement• Financial Accounting, Closing and Reporting will replace the current finance/accounting solution and contribute to improvements within the area of finance and accounting.

The Maintenance Management solution which will be the main tool for planing and scheduling of maintenance tasks will support the following business processes:

• Corrective Maintenance• Preventive Maintenance• Refurbishment• Work Request Processing• Purchasing• Maintenance Budgeting

The new maintenance solution will also include an integrated Reliability Based Mechanical Integrity (RBMI) program from Lloyd’s Register Capstone. Planning and scheduling of maintenance inspections will be based on risk evaluations generated by the RBMI tool. This will assist the maintenance department in having main focus on critical equipment at the terminal and avoid/reduce down time of the equipment.

By completion of the FICO and CMMS projects OTH will be the first terminal which have implemented the complete integrated application platform. It will contribute to safe operations, improved cost control, improved reporting within all main business areas and improved management information related to operation of the terminal. Summarized the new software platform will be an important tool for operation and management of OTH.

The outstanding effort and dedication from key users of OTH is one of the main reasons for ‘going live’ with the new systems on time and budget.

We congratulate management and employees at OTH with the new solution.

New software platform for Odfjell Terminal (Houston) By Tor Jürgensen, Senior Project Manager, Bergen

The project team at OTH

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PORTRAiT odfjell quarterly magazine

Having accomplished a career spending almost 25 years at sea, in 1994, Tor k. Johansen decided to ‘go ashore’. Since then, he has had several positions within Ship Management and in 2011 he became Vice President Fleet Management - Singapore.

Following his three year period as Master of the old Bow Spring, Tor K. Johansen joined the shore based QA section, working mainly with implementation of the Safety and Quality Systems on the Odfjell vessels. He then progressed further to become the Maritime Manager in Ship Management Department for ten years before going to Singapore and becoming Fleet Manager Fleet Asia.

You have had a long and interesting career both at sea and on shore, what is the major difference between the two? - There are several similarities between ship and shore based ship management, but there are also many differences. One major difference is the shorter ‘command’ lines. The shipboard organisation is significantly smaller which makes it somewhat faster to make decisions and put into effect agreed actions. This of course requires a management on board that works well together as a team, he says.

The teambuilderEven though the aspects of working as a Master on board and the various positions ashore differ in many ways, there is one experience and skill in particular that is important for both areas: - Any organisation or entity needs to work together as a team in order to reach its objectives. Having the ability to build up team spirit and co-operation across lines is the key to success. To have a common understanding of our goals across the organisation, and to communicate this in an appropriate manner is something that I aim for.

international cultureLearning from his international experience he believes in building a common office culture:-In Singapore we may have an advantage as we are working in more of an international environment than other locations. We have a multicultural organisation which I strongly believe we benefit from, as it is much easier

to establish a common office culture in such an environment. My main priority here in Singapore, both as Fleet Manager and Manager Overseas Offices is to ensure that our activities handled by this office are well taken care of. In order to do so, I am of course dependent on the human resources we have here, and I need to make sure that they are well taken care of. To maintain the common office culture we have established in Singapore, which I also believe is an Odfjell culture, we must strive to continue to employ staff from various cultural backgrounds.

The chef One of the advantages of going ashore must have been the possibility to have unlimited access to a kitchen: - One of my greatest ‘hobbies’ is a ‘wannabe cook’! I try to use the opportunities that we have here in Singapore to broaden my horizon within ‘the art of cooking’. Apart from that I like to spend time at home enjoying a good book or just going for a walk along the River in the weekends to switch off and wind down, he ends. Tor K. Johansen

From sea to shoreBy Margrethe Gudbrandsen, Communication Manager, Bergen

The Singapore River - a place for mind resting

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oiP’s staff summer outing 2012 By Jennifer Franco, Information Officer, Manila

A seafarer’s family life is never ordinary. To some of us on shore, the thought of being away from our loved ones for months on end might seem unbearable, but this is just one of the sacrifices sea-farers have to make in order to work on board. They have endured Christmases without their families, sent birthday cards hoping that the simple treat could make up for their absence, and missed out on seeing important chapters of their children’s lives. All these sacrifices however become worth it when they come home to a strong and supportive family.

Since family is one of the inspirations of our mariners, Odfjell in the Philippines (OiP) has organised crew and family gatherings in four main cities in the country to relay the value of a strong household in a seafarer’s

successful career. Two of these gatherings were held in Cebu and Davao last June and July and two more will be arranged in Iloilo and Manila in September and November of this year.

Aside from making these occasions a real ‘family affair’, these events also serve as an opportunity for OiP to share recent news about the Company and developments in the crewing operation. More importantly, such activities reinforce Odfjell’s caring culture not only for the safety and security of the seafarers on board, but also those of their families onshore.

OiP would like to thank the crew and allottees present during the crew and family gatherings in Cebu and Davao. The enthusiasm and optimism you’ve shown

made the activity a success. To our ‘Odfjell’ families in Iloilo and Manila, we hope to see you in the upcoming gatherings for your area.

A gathering of Filipino seafarers’ familiesBy Jennifer M. Franco, Information Officer, Manila

Activities fit for the whole family were organised during the crew and family gathering

The Green Team, champion of this year’s summer outing ‘Amazing Race Challenge’

Odfjell in the Philippines (OiP) had the azure beaches of Olongapo City located in Zambales, Philippines, as the background of this year’s staff summer outing held on 12-13 May. But the story doesn’t end with just the sand, the sun, and the beach...

Divided into four teams, Red, Green, Yellow, and Blue, OiP staff competed to win the ‘Amazing Race Challenge’, a test of the staff’s teamwork, unity, and creativity. In the end, the Green team collected the most points and triumphed as this year’s best challengers.

Both new and longer term employees enjoyed the games and prepared for the outing. Competence Manager Per Morten Sakshaug said that the activity was a great way to get acquainted with his new colleagues: - It really is a great occasion to relax and to get to know your co-workers in a different setting than the normal office environment, he said.

The Summer Outing Committee headed by Bryan Saballo said that all the arrangements and activities planned were for the sake of giv-ing the employees a relaxing team-building activity, a needed break from the day-to-day operations at the office. From the feedback of the staff, the Committee had been greatly successful in this regard.

OiP would like to thank the Summer Outing Committee and the Employee Board for organising the event. We would also like to commend all the teams for their participation and high spirits. You’ve made this activity memorable for all who took part.

SEA AND SHORE odfjell quarterly magazine

24



Our annual golf tournament took place on 31 August at Fana golf Club in Bergen. The weather had not been very encour-aging leading up to the tournament but luckily the sun shone on the actual day and competitors were able to wear their short-sleeved shirts, sunglasses and suntan lotion!

This year’s event was played as a twelve holes round, Texas Scramble, Stableford competi-tion. Twelve players in six teams competed for the prestigious prizes and the travelling trophy. It was a close race, with only seven points difference between the top and bottom teams.

Proud winners and Odfjell Golf Champions

2012 were Nils Ole Lekven and Ole Ivar Steinsland. Second place went to Dag Kristian Amland and Rune Ask. Third place went to Christian Lillevik and Arild Viste.

Fredrik Fotland won the Longest Drive on the 3rd hole. Closest to the Pin on the 6th hole was won by Dag Kristian Amland.

Odfjell golf Tournament 2012By Rune Ask, Manager Marine Quality Assurance, Bergen

Winner Ole Ivar Steinsland with the First Prize and the Travelling Trophy. Nils Ole Lekven was not present during the prize ceremony

2nd place Ask and Amland with the second prizes and the Closest to the Pin prize

3rd place Lillevik and Viste

Odfjell Makana continues to support various local projects which aim to make a difference to the lives of disadvantaged individuals in the local community. Odfjell Makana’s most recent project has been to provide a new football kit for pupils at Emtshezi High School for an up and coming football tournament.

The request for sponsorship came following a regional football tournament, where the

Emtshezi High School football team successfully defeated all the other schools in the region. Winning the tournament was a great achievement and earned them an invitation to represent the Uthukela District at a provincial level in the Kay Matsepe Cup at Richards Bay.

We at Odfjell Makana wish them all the best in their forthcoming games.

odfjell makana sponsors emtshezi High SchoolBy Sayed Akimu Phiri, Commercial Assistant, Durban

The Odfjell Makana soccer kits

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While at Richards Bay in August , Bow Saga performed a safty training. Here launching and maneuvering of the rescue boat.

26



On 25 July Odfjell Asia hosted the annual Odfjell Futsal tournament for people in the Singapore chemical industry.

This year a record 22 teams participated in the tournament. The 14 men’s teams and the 8 ladies teams comprised of charterers like Cargill, Chevron and Wilmar. Major broker shops such as Clarksons, Eastport and SPI also participated in the tournament and competed for the coveted trophy.

The Tournament has been growing increas-ingly popular with the doubling of the ladies teams and this year Tradewinds even sent a representative down to cover the event! The level of technique and finesse is surprisingly high. Most of the ladies teams underwent weeks of training in preparation for the show-down at the tournament. Some teams even appointed coaches to improve performance!!

The Odfjell team was there in force to support our players as well as to ensure that the day ran smoothly. The matches went well with good sportsmanship and encouraging cheers were heard from all supporters.

Eventually it was the Chevron team who beat Eastport for the coveted men’s champion title. The ladies´ champion trophy went to the jubilant Wilmar team in a close finale game with Mcquilling.

The Odfjell Futsal tournament is now a regular event known in the industry in Singapore and it continues to grow in popularity. This year close to 500 people enjoyed the event!

Odfjell Champions League 2012 By Dan Foo, Ship Broker, Singapore

The Odfjell Hunks Team

The ladies champions

Once again, Odfjell co-sponsored the very popular Foskor F21 Marathon which was held in Richards Bay, kwaZulu Natal, South Africa on Saturday, 24 August 2012. This annual competition is organised by Foskor, and the Zululand Multi Sport Club, and Odfjell has been involved with this event since 2009.

The event was very well supported and this year many of the staff from Odfjell Makana SA (Pty) Ltd, Durban, participated in the 10 km walk and running races.

foskor f21 marathonBy Jody Morley, Office Administrator, Durban

Odfjell has been involved in the Foskor F21 Marathon since 2009

The ‘A’ Team. Back form left: Thami Gcaba (Thembani Shipping), Jaya Chetty, Kevin Chetty and Rhett Morley (seated).

Middle: Nkulu Mkhize (Thembani Shipping) and Shamlin Chetty Front: Joshua and Tylah Morley

Ingelin Jacobsen and Øivind Olsen with at the prize ceremony

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On 29 August, Odfjell awarded 12 Filipino Odfjell seafarers for their 25 years of loyal service. The long-serving mariners were honoured at the dinner and awards ceremony attended by Odfjell dignitaries from all over the world, shore staff of Odfjell in the Philippines and the award-ees’ families.

Executive Chairman of the Board Laurence Odfjell, Senior Vice President of Ship Management Division Helge Olsen and

Owner’s Representative of Odfjell in the Philippines Tore Henriksen conferred the certificates and token of appreciation to the awardees.

The wives, the heroes behind the success of the awardees, were also honored with flowers and commendations during the ceremony. Agnes Enesio, Head of Crew & Family Affairs, spoke on behalf of Odfjell to thank the wives for their support to the seafarers 25-year career with the Company.

Delivering an acceptance speech on behalf of the awardees was Captain Socrates Daymiel. His speech conveyed a message of gratitude to everyone who has been instrumental to the pioneers commendable career on board: - Tonight, being one of the recipients of this ‘25 year service award’ is a memorable moment in my life. I am very, very happy that Odfjell recognises my small but valuable contribution.’

Congratulations to our Odfjell pioneers!

Tribute to 12 Odfjell pioneersBy Jennifer Franco, Information Officer, Manila

The awardees with their wives. The awardees from left: Salvador S. Abubo, Chief Steward, Dennis A. Casino, Second Cook, Isidro V. Cruz, Chief Steward, Socrates M. Daymiel, Captain, Ferdinand M. Echano, Chief Engineer, Jovito C. Escanilla, Chief Steward, Dante A. Mangampat, Chief Engineer, Nelson D. Onda, Able Seaman, Renato T. Solidum, Chief Officer, Leopoldo M. Villanueva, Chief Steward and Raymundo V. Manual, Electrician

During the yearly Officers Conference in Bergen, Odfjell honoured five of our most loyal Norwegian Officers. The officers were rewarded with the Norwegian Ship owners Association Gold medal for 30 years in service. The event took place during the official dinner 20 September at Quality Hotell Edvard Grieg with approximately 150 guests present. The gold medals were handed over by our Chairman Laurence W. Odfjell.

Norwegian Ship Owners Association Gold medal for 30 years of service:

Captain Tor Gisle BjerknesPumpman Ove SlagstadChief Engineer Otto ÅnnelandVice President Risk Management Bernhard StienElectrician Magne Ivar Maurseth

Service awards Norwegian Officers

Back from left: SVP Ship Management Helge Olsen, Chief Engineer Otto Ånneland, Captain Tor Gisle Bjerknes and President/CEO Jan Hammer. Front from left: Pumpman Ove Slagstad, Chairman Laurence Odfjell, Vice President Risk Management Bernhard Stien and Electrician Magne Maurseth


PERSONNEL odfjell quarterly magazine

28

Ellingsgaard, Hjalgrim Senior Surveyor 13.08.12

Gosiewska, MonikaApplication Support Consultant 06.08.12

Kalvik, Svein Johan Marine Superintendent 01.07.12

Breimo, Ole Eivind Senior Marine Superintendent 01.07.12

Bracke, Stefan Ship Operator 01.06.12

Hooplot, Miquel José Assistant Controller/Business Analyst 01.07.12

Andeweg, Arie Pieter 2e Operator 01.06.12

Boerhof, Michiel Antonius Johannes Stock Coordinator 01.06.12

Van Eck, Daan Process Engineer 16.07.12

Ozdemir, Mustafa D-Operator 01.07.12

Klokkeide, Mads Otto Lid Ship Operator 01.06.12

Lugtenburg, JustinD-Operator 16.07.12

Van der Ree, Alex Pieter Stock Coordinator 16.06.12

Wagemaker, Pieter Bastiaan Maintenance Engineer 01.07.12

Klerks, Jarno Supervisor E&I&A 01.08.12

Zandboer, Marcel D-Operator 01.08.12

Kuijper, Mitchell Johannes Huibert D-Operator 01.08.12

Zwam, Joeri Benjamin Yannick van D-Operator 01.08.12

ROTTERDAM

BERgEN

NEW HiRES

Ødegård, Jan Ove Marine Manager 23.07.12

Harmon, Neferti Moura Senior Project Manager 25.06.12

Cates, Douglas Sales Representative 20.08.2012

Aarsæther, Hilde Accountant Accounts Payable 01.07.12

Jæger, Per Christian Senior Ship Broker 01.09.12

HOUSTON

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RELOCATiONSFrom Shanghai to Dubai

Iversen, Irgen RoarVP Special Projects 01.05.12

From Sea to Bergen

Møvik, ØyvindCargo Handling Advisor/Supercargo 27.06.12

Buenafe, Michele PMS Support 11.06.12

Sharma, Hyacinth RajcelCourse Developer 18.07.12

MANiLA

iN SERViCE FOR ODFJELLOtterspeer, Robert B-Operator 15.09.87

Næss, Olav Henning Tradelane Manager 17.08.87

Kool, W outer Franciscus Field Engineering 01.09.82

Kruiniger, Arie Lourens Operational SAP Specialist 01.09.82

Van den Bovenkamp, Wouter Field Techinician WTB 01.09.82

Maasoe, Petter Commercial Manager 16.06.82

Dudok, Peter Andrew C-Operator 21.09.77

Lundetræ, Liv Accountant, Accounts Payable 22.08.77

Knutsen, Atle SVP/Special Advisor 12.06.72

Abrahamsen, Ole Jakob Senior Technical Superintendent 25.09.72

25 YEARS

35 YEARS

40 YEARS

30 YEARS

Han, WeiOperation Assistant 21.05.12

Henrique da Silva Miranda, DiegoAccounting Auxiliary 06.07.12

SiNgAPORESAO PAULO

30


FLEET & TERMiNALS odfjell quarterly magazine

TiME CHARTERED YEAR STAiNLESS NUMBER SHiP BUiLT DWT CBM STEEL, CBM OF TANkS

UACC Masafi 2 012 45 352 52 565 - 22 NCC Najem³ 2012 45 499 52 590 - 22 NCC Shams³ 2012 45 468 52 590 - 22 SG Pegasus 2011 13 086 14 523 14 523 16 NCC Danah³ 2011 45 578 52 590 - 22 NCC Nasma³ 2011 45 550 52 590 - 22 NCC Safa³ 2011 45 544 52 590 - 22 NCC Amal³ 2011 45 544 52 590 - 22 NCC Huda³ 2011 45 459 52 590 - 22 NCC Noor³ 2011 45 565 52 590 - 22 Stream Luna 2010 19 998 22 161 22 161 20 Bow Tone 2009 33 625 37 974 37 974 16 Bow Hector 2009 33 694 37 384 37 384 16 Southern Ibis 2009 19 905 22 158 22 158 20 Southern Jaguar 2009 19 997 22 157 22 157 20 Stream Mia 2008 19 702 22 094 22 094 26 Bow Sagami 2008 33 641 38 000 38 000 16 Bow Harmony 2008 33 619 38 052 38 052 16 Bow Cape 2008 19 975 22 158 22 158 20 Bow Kiso 2008 33 641 37 974 37 974 16 Bow Heron 2008 33 707 37 365 37 365 16 NCC Haiel³ 2008 45 953 54 401 - 22 NCC Dammam³ 2008 45 965 54 401 - 22 NCC Sudair³ 2007 46 012 54 401 - 22 Bow Lima 2007 19 971 22 157 22 157 20 Bow Fuji 2006 19 805 22 140 22 140 22 Bow Plata 2006 19 807 22 143 22 143 22 Bow Engineer 2006 30 086 36 274 36 274 28 Crystal Topaz³ 2006 11 340 11 870 11 870 20 Crystal Diamond³ 2006 11 340 11 870 11 870 20 Bow Sky² 2005 40 005 52 126 52 126 40 Bow Architect 2005 30 058 36 290 36 290 28 Bow Rio 2005 19 999 21 851 21 851 22 Bow Santos² 2004 19 997 21 846 21 846 22 Bow Asia² 2004 9 901 11 088 11 088 20 Bow Singapore² 2004 9 888 11 089 11 089 20 Bow Americas 2004 19 707 22 735 22 735 36 Bow de Rich 2003 12 452 13 571 13 571 22 Bow de Feng 2002 12 514 13 571 13 571 22 Bow Andino 2000 16 121 17 622 17 622 30 Crystal Amaranto³ 1999 9 887 10 893 10 893 24 Crystal Skye³ 1998 9 554 10 442 10 442 24 Bow Jubail² 1996 37 499 41 488 34 209 52 Bow Mekka² 1995 37 272 41 606 34 257 52 Bow Riyad² 1995 37 221 41 492 34 213 52 Crystal Amethyst³ 1994 8 104 9 346 9 346 17 Crystal Emerald³ 1994 8 143 9 346 9 346 17 Crystal Pearl³ 1994 8 143 9 346 9 346 17 Bow Baha 1988 24 728 32 363 19 662 25 JBU Sapphire³ 2009 19 860 22 144 22 144 16 JBO Opal³ 2009 19 865 30 301 30 301 16 JBU Onyx³ 2008 19 865 21 712 21 712 16

COMMERCiAL YEAR STAiNLESS NUMBER MANAgEMENT BUiLT DWT CBM STEEL, CBM OF TANkS Northern Wolverine 2006 16 000 18 397 10 056 35 Northern Lynx 2003 16 533 18 397 10 056 35 Crystal Atlantica 2000 16 630 17 350 17 350 22

Number of ships: 95 2 676 171 3 042 815 1 944 714

¹ Vessel beneficially owned through financial lease. ² Vessel on bare-boat charter. ³ Vessel on variable time charter/pool.

as per 26 September 2012

CHEMiCAL TANkERS OWNED YEAR STAiNLESS NUMBER SHiP BUiLT DWT CBM STEEL, CBM OF TANkS Bow Fuling 2012 9 156 10 523 10 523 14 Bow Lind 2011 46 047 48 698 - 29 Bow Elm 2011 46 098 48 698 - 29 Flumar Brasil 2010 51 188 55 452 - 14 Bow Saga¹ 2007 40 085 52 126 52 126 40 Bow Sirius¹ 2006 49 539 52 155 52 155 40 Bow Sea 2006 49 511 52 107 52 107 40 Flumar Maceio 2006 19 975 21 713 21 713 22 Bow Summer 2005 49 592 52 128 52 128 40 Bow Spring ¹ 2004 39 942 52 127 52 127 40 Bow Star 2004 39 832 52 127 52 127 40 Bow Sun 2003 39 842 52 127 52 127 40 Bow Firda 2003 37 427 40 645 40 645 47 Bow Chain 2002 37 518 40 621 40 621 47 Bow Andes 2000 16 020 17 120 17 120 22 Bow Fortune 1999 37 395 40 619 40 619 47 Bow Master 1999 6 046 7 018 7 018 14 Bow Mate 1999 6 001 7 004 7 004 14 Bow Pilot 1999 6 008 7 005 7 005 14 Bow Sailor 1999 6 008 7 011 7 011 14 Bow Cecil 1998 37 369 40 515 33 236 47 Bow Flora 1998 37 369 40 515 33 236 47 Bow Balearia 1998 5 846 6 075 6 075 20 Bow Oceanic 1997 17 460 19 616 19 616 24 Bow Bracaria 1997 5 846 6 071 6 071 20 Bow Brasilia 1997 5 800 6 067 6 067 20 Bow Cardinal 1997 37 446 41 487 34 208 52 Bow Faith 1997 37 479 41 487 34 208 52 Bow Aratu 1997 13 843 15 834 15 834 29 Bow Querida 1996 10 106 11 181 11 181 18 Bow Cedar 1996 37 455 41 488 41 488 52 Bow Atlantic 1995 17 460 19 588 19 588 24 Bow Fagus 1995 37 375 41 608 34 329 52 Bow Clipper 1995 37 221 41 596 34 328 52 Bow Flower 1994 37 221 41 492 34 213 52 Bow Eagle 1988 24 728 32 347 19 662 25 Bow Cheetah 1988 40 257 43 811 - 29 Bow Leopard 1988 39 512 43 772 - 29 Bow Lion 1988 39 423 43 726 - 29 Bow Fraternity 1987 45 507 52 180 2 167 23 Bow Victor 1986 33 000 34 500 21 975 31

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TiME CHARTERED YEAR STAiNLESS NUMBER SHiP BUiLT DWT CBM STEEL, CBM OF TANkS

UACC Masafi 2 012 45 352 52 565 - 22 NCC Najem³ 2012 45 499 52 590 - 22 NCC Shams³ 2012 45 468 52 590 - 22 SG Pegasus 2011 13 086 14 523 14 523 16 NCC Danah³ 2011 45 578 52 590 - 22 NCC Nasma³ 2011 45 550 52 590 - 22 NCC Safa³ 2011 45 544 52 590 - 22 NCC Amal³ 2011 45 544 52 590 - 22 NCC Huda³ 2011 45 459 52 590 - 22 NCC Noor³ 2011 45 565 52 590 - 22 Stream Luna 2010 19 998 22 161 22 161 20 Bow Tone 2009 33 625 37 974 37 974 16 Bow Hector 2009 33 694 37 384 37 384 16 Southern Ibis 2009 19 905 22 158 22 158 20 Southern Jaguar 2009 19 997 22 157 22 157 20 Stream Mia 2008 19 702 22 094 22 094 26 Bow Sagami 2008 33 641 38 000 38 000 16 Bow Harmony 2008 33 619 38 052 38 052 16 Bow Cape 2008 19 975 22 158 22 158 20 Bow Kiso 2008 33 641 37 974 37 974 16 Bow Heron 2008 33 707 37 365 37 365 16 NCC Haiel³ 2008 45 953 54 401 - 22 NCC Dammam³ 2008 45 965 54 401 - 22 NCC Sudair³ 2007 46 012 54 401 - 22 Bow Lima 2007 19 971 22 157 22 157 20 Bow Fuji 2006 19 805 22 140 22 140 22 Bow Plata 2006 19 807 22 143 22 143 22 Bow Engineer 2006 30 086 36 274 36 274 28 Crystal Topaz³ 2006 11 340 11 870 11 870 20 Crystal Diamond³ 2006 11 340 11 870 11 870 20 Bow Sky² 2005 40 005 52 126 52 126 40 Bow Architect 2005 30 058 36 290 36 290 28 Bow Rio 2005 19 999 21 851 21 851 22 Bow Santos² 2004 19 997 21 846 21 846 22 Bow Asia² 2004 9 901 11 088 11 088 20 Bow Singapore² 2004 9 888 11 089 11 089 20 Bow Americas 2004 19 707 22 735 22 735 36 Bow de Rich 2003 12 452 13 571 13 571 22 Bow de Feng 2002 12 514 13 571 13 571 22 Bow Andino 2000 16 121 17 622 17 622 30 Crystal Amaranto³ 1999 9 887 10 893 10 893 24 Crystal Skye³ 1998 9 554 10 442 10 442 24 Bow Jubail² 1996 37 499 41 488 34 209 52 Bow Mekka² 1995 37 272 41 606 34 257 52 Bow Riyad² 1995 37 221 41 492 34 213 52 Crystal Amethyst³ 1994 8 104 9 346 9 346 17 Crystal Emerald³ 1994 8 143 9 346 9 346 17 Crystal Pearl³ 1994 8 143 9 346 9 346 17 Bow Baha 1988 24 728 32 363 19 662 25 JBU Sapphire³ 2009 19 860 22 144 22 144 16 JBO Opal³ 2009 19 865 30 301 30 301 16 JBU Onyx³ 2008 19 865 21 712 21 712 16

COMMERCiAL YEAR STAiNLESS NUMBER MANAgEMENT BUiLT DWT CBM STEEL, CBM OF TANkS Northern Wolverine 2006 16 000 18 397 10 056 35 Northern Lynx 2003 16 533 18 397 10 056 35 Crystal Atlantica 2000 16 630 17 350 17 350 22

Number of ships: 95 2 676 171 3 042 815 1 944 714

¹ Vessel beneficially owned through financial lease. ² Vessel on bare-boat charter. ³ Vessel on variable time charter/pool.

ON ORDER YARD DELiVERY DWT OWNER

ShinaSB (ex. SLS Shipbuilding) 2012 45 000 NCC 2 vessels Chongqing Chuandong Shipbuilding Industry Co.Ltd 2012 9 000 Odfjell " 2012 9 000 Odfjell Daewoo Shipbuilding and Marine Engineering Co Ltd 2013 75 000 Odfjell " 2013 75 000 NCC Hyundai Mipo Dockyard., Ltd 2014 46 000 Odfjell " 2014 46 000 Odfjell " 2014 46 000 Odfjell " 2014 46 000 Odfjell

Number of newbuildings: 10 487 000 STAiNLESS NUMBER TANk TERMiNALS OWNED LOCATiON SHARE CBM STEEL, CBM OF TANkS

Odfjell Terminals (Rotterdam) BV Rotterdam, NL 51 % 1 636 100 32 550 281 Odfjell Terminals (Houston) Inc Houston, USA 51 % 331 329 82 033 100 Odfjell Terminals (Jiangyin) Co Ltd Jiangyin, China 55 % 99 800 30 000 22 Odfjell Terminals (Dalian) Ltd Dalian, China 50 % 119 750 18 350 51 Odfjell Terminals (Korea) Co Ltd Onsan, Korea 50 % 313 710 15 860 85 Oiltanking Odfjell Terminal Singapore Ltd Singapore 50 % 365 000 13 520 79 Oiltanking Odfjell Terminal & Co. LLC Sohar, Oman 29.75 % 1 294 800 - Noord Natie Odfjell Terminals Antwerp, Belgium 12.5% 297 000 50 800 250 Exir Chemical Terminals PJSCO BIK, Iran 35 % 22 000 1 000 18 Vopak Terminal Ningbo Ltd Ningbo, China 12.5% 71 050 8 000 39

Total owned terminals 10 terminals 4 550 539 252 113 925

STAiNLESS ESTiMATEDPROJECTS AND EXPANSiONS OWNED LOCATiON SHARE CBM STEEL CBM COMPLETiON

Odfjell Terminals (Charleston) LLC Charleston, USA 51 % 79 491 - ready Q2 2013Odfjell Nangang Terminals (Tianjin) Co.,Ltd Tianjin, China 49 % 145 000 7 000 ready Q4 2013

Total expansion owned terminals 2 new terminals 224 491 7 000

STAiNLESS NUMBERTANk TERMiNALS PARTLY OWNED BY RELATED PARTiES*) LOCATiON CBM STEEL CBM OF TANkS

Depositos Quimicos Mineros S.A. Callao, Peru 52 980 1 600 43 Granel Quimica Ltda Santos I, Brazil 97 720 19 880 99 Granel Quimica Ltda Rio Grande, Brazil 61 150 2 900 32 Granel Quimica Ltda Sao Luis, Brazil 75 710 - 35 Granel Quimica Ltda Ladario, Brazil 8 060 - 6 Granel Quimica Ltda Triunfo, Brazil 12 030 - 2 Granel Quimica Ltda Teresina, Brazil 7 640 - 6 Odfjell Terminals Tagsa S.A. Buenos Aires, Argentina 38 826 530 56 Odfjell Terminals Tagsa S.A. Campana, Argentina 62 980 10 190 88 Terquim S.A. San Antonio, Chile 32 840 - 25 Terquim S.A. Mejillones, Chile 16 870 - 7 IMTT-Quebec Quebec, Canada 293 130 5 500 53

Total related parties partly owned terminals 759 936 40 600 452

PROJECTS AND EXPANSiONS PARTLY OWNED BY RELATED PARTiES*) LOCATiON CBM COMPLETiON

Granel Quimica Ltda Aracruz, Brazil 30 000 - ready Q3 2014 Granel Quimica Ltda Santos II, Brazil 52 000 - ready Q4 2013 Terquim S.A. Mejillones, Chile 50 000 - ready Q3 2013 Granel Quimica Ltda Palmas, Brazil 10 000 - ready Q2 2014

Total expansion terminals partly owned by related parties 3 new terminals 142 000 -

Grand total (incl. related tankterminals partly owned by related parties) 22 terminals 5 310 475 292 713

*) Tank terminals and projects partly owned by Odfjell family.

gAS CARRiERS OWNED YEAR NUMBERSHiP BUiLT DWT CBM TYPE OF TANkSBow Gallant 2 008 10 282 8 922 LPG/Ethylene 2 Bow Guardian 2 008 10 282 8 922 LPG/Ethylene 2

Number of ships: 2 20 564 17 844

MAiN OFFiCE ODFJELL

Odfjell SE - Odfjell Tankers ASconrad mohrsv. 29, P.o. Box 6101 Postterminalen5892 Bergen, norwaytel: +47 5527 0000fax: +47 5528 4741fax: +47 5527 9070 (chartering/operations)

MAiN OFFiCE TERMiNALS

Odfjell Terminals BVoude maasweg 6, P.o. Box 5010Harbour number 40403197 Kj rotterdam-Botlekthe netHerlandStel: +31 102 954 700fax: +31 102 954 719

Odfjell USA (Houston) Inc.12211 Port roadSeabrook, tX 77586, uSatel: +1 713 844 2200fax: +1 713 844 2211

Odfjell Singapore Pte Ltd6 Shenton way, # 27-08/09 dBS tower 2SingaPore 068809tel: +65 6349 1300fax: +65 6224 2285

Odfjell Japan Ltdogawa Bldg. 8f2-2 uchikanda 1-chomechiyoda-ku, tokyo 101-0047, jaPantel: +81 3 3259 8555fax: +81 3 3259 8558

Odfjell Netherlands BVoude maasweg 6, P.o. Box 50103197 Xc rotterdam-Botlekthe netHerlandStel: +31 102 953 666fax: +31 102 953 668

Odfjell Brasil Ltdaav. Paulista 460 - 18 andarceP 01310-000 Sao Paulo SP, Braziltel: +55 11 3549 5800fax: +55 11 3549 5808

Odfjell ShanghaiSuite B, 13fHuamin empire Plaza728 yan an west roadchangning districtShanghai 200050, P.r. cHinatel: +86 21 5239 9469fax: +86 21 5239 9897

Odfjell Argentina SAalicia moreau de justo 1960office no. 202 - Puerto madero1107 Buenos aires, argentinatel: +54 114 313 7837fax: +54 114 313 4619

Odfjell Australia Pty LimitedSuite 4, level 1443 little collins StreetP.o.Box 1279melbourne Vic 3001 auStraliatel: +61 3 9642 2210fax: +61 3 9642 2214

Odfjell Indiaa-26, nandbhuvan industrial estatemahakali caves road, andheri (east)mumbai 400093, indiatel: +91 22 6695 4701fax: +91 22 6695 4707

Odfjell Durban (Pty) Ltd 61 Bulwer road, glenwood P.o.Box 4045 durban 4021, SoutH africa tel.: +27 31 2770880 fax: +27 31 2770899

Odfjell Tankers AS, Korea Branchroom 1815 gwanghwamum officia Bldg.163 1-ga Shinmunnojongn-gu, Seoul, 110-999 Koreatel: +82 2 775 9760fax: +82 2 775 9761

Odfjell Korea Ltd.136, cheoyong-ri,onsan-eup, ulju-gunulsan, Korea 689-892tel: +82 52 227 5527fax: +82 52 227 5567

Odfjell Chile LTDArosario norte 100, office 304las condesSantiagocHiletel: +56 2 3307221fax: +56 2 3307948

Odfjell Philippines Inc.4th flr atlantis Beacon tower2315 leon guinto St. malate, manila 1004PHiliPPineStel: +6325280341fax: +6325262256

Odfjell (UK) Ltd14 Headfort Placelondon Sw1X 7dHunited Kingdomtel: +44 207 823 0605fax: +44 207 823 0606

Odfjell Peruav. enrique meiggs, 240urb. chacaritas,callao, Perutel: +51 1 614 0800fax: +51 1 614 0801

NCC Odfjell Chemical Tankers JLTroom 3101-3104, liwa Heightsjumeirah lake towersP.o.Box 214459dubai, united araB emirateStel: +971 4 440 1700fax: +971 4 441 1701

iNTERNATiONAL OFFiCES

Odfjell Asia Pte Ltd6 Shenton way, # 27-08/09 dBS tower 2SingaPore 068809tel: +65 6349 1300fax: +65 6224 2285

Flumar Transportes de Quimicos e Gases Ltdaav. Paulista 460 - 18 andarceP 01310-000 Sao Paulo SP, Braziltel: +55 11 3549 5800fax: +55 11 3549 5807

Odfjell Tankers Europe ASconrad mohrs veg 29P.o.Box 6101 Postterminalen5892 Bergen, norwaytel: +47 5527 0000fax: +47 5527 9070

REgiONAL OFFiCES

TERMiNALS

Odfjell Terminals (Rotterdam) BVoude maasweg 6, P.o. Box 5010Harbour number 40403197 Kj rotterdam-Botlekthe netHerlandStel: +31 102 953 400fax: +31 104 384 679

Odfjell Terminals (Houston) Inc.12211 Port roadSeabrook, tX 77586, uSatel: +1 713 844 2300fax: +1 713 844 2355

Odfjell Terminals (Charleston) LLC1003 east montagueP.o.Box 62589 north charlestonSouth carolina 29405, uSa

Odfjell Terminals (Dalian) Ltdnew Porteconomy & technologydevelopment zone 116601, dalian P.r. cHinatel: +86 411 8759 5500fax: +86 411 8759 5549

Odfjell Terminals (Jiangyin) Co., Ltd1314 west Binjiang roadShizhuangnew Harbour city, jiangyinjiangsu 214446 P.r. cHinatel: +86 510 8666 9111fax: +86 510 8666 9110

Odfjell Terminals (Korea) Co., Ltd136, cheoyong-rionsan-eup, ulju-gunulsan, Korea 689-892tel: +82 522 311 600fax: +82 522 376 636

Odfjell Nangang Terminals (Tianjin) Co., Ltd room d310, Section d office Building, Servicing area, teda (nan-gang industrial zone) tianjin 300280, Pr cHina

Oiltanking Odfjell Terminal Singapore Pte Ltd1 Seraya avenueSingaPore 628208tel: +65 6473 1700fax: +65 6479 4500

Oiltanking Odfjell Terminals & Co. Llc.P.o. Box 369Pc., 322 fajal al qubailSohar, Sultanate of omantel: +968 2670 0300fax: +968 2670 0306

Noord Natie Odfjell Terminals NVHaven 227-241Blauwe weg 442030 antwerp - Belgiumtel: +32 (0)3 543 99 00fax: +32 (0)3 543 99 38

Vopak Terminal Ningbo Ltd.no. 111 zhaobaoshan road, zhenhai districtningbo, P.r. cHina tel: +86 574 2769 5638fax: +86 574 8627 5931

Granel Quimica Ltdaav. Paulista 460, 18° andarceP 01310- 000 São Paulo, SPBraziltel: +55 11 3549 5800fax: +55 11 3549 5832

Tagsa S.Aav. alicia moreau de justo 1960,piso 4 of. 4021107 Buenos airesargentinatel: +54 11 4001 9700fax: +54 11 4001 9701

Terquim S.ABlanco encalada 840dept 702, San antoniocHiletel: +56 35 21 1050fax: +56 35 21 1161

DQM S.Aav.enrique meiggs, 240urb.chacaritas, callao,Peru tel: +51 1 614 0800fax: +51 1 614 0801

TANk TERMiNALS PARTLY OWNED BY RELATED PARTiES


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