Classification: Internal Status: Draft

StatoilHydro Ship Vetting

Bergen Maritime Personalforum 12.11.2008

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OIL TRADING AND SUPPLY

Stavanger

Jan Karl Karlsen

Stavanger

Risk management Lars Mølster

Stavanger

Finance and control

Olav Leivestad

Stavanger

People and organisation

Solveig Holter

Stavanger

Health, safety and environment

Leif Solem Farstad

Stavanger

CRUDE

Martin JonesStavanger

PRODUCTS

Stavanger

GAS LIQUIDS

Heidi Aakre Stavanger

REFINING AND SUPPLY

OPTIMISATION

Bent Pedersen Stavanger

STRATEGY, ANALYSIS AND

BUSINESS DEVEL. Øyvind Paulsen Stavanger

SHIPPING

Marit LundeSingapore

ASIA PACIFIC*

Marthe HoffStamford

NORTH AMERICA*

Luann Smith

MANUFACTURING & MARKETING

Oil Sales Trading and Supply (O&S) organisation structure

Ståle Endre Berg

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OTS HSE

LEIF SOLEM FARSTAD

OTS HSE MARITIME TJENESTER

JAKOB S. EMMERHOFF

OTS HSE SHIPPING POLICY

TORE TOLLEFSEN

M&M OTS HSE ORGANISATION:

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Total : ≈ 90 mill. Tons / ≈ 4500 shipments

Shipping activity (2007)

• 60 mill tonnes crude, 590 shipment

– Aframax, Suezmax, VLCC andShuttle Tanker contracts – DP1 and DP2 vessels

• 16,2 mill. tons products, 2583 shipments

– From 2,000 dwt up to LR2 17 TCs + 2 to be delivered + large number of CoAs

• 13 mill. tons LPG, 1000 shipments

– From 2,000 dwt thru to VLGC 16 TCs + CoAs

• 1 mill. tons Methanol, 200 shipments

– Currently in smaller size chemical tankers1 TC + CoAs

LNG shipment started from Melkøya in 2007

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Present vetting strategy

• Maintain a database containing a large number of pre approved vessels

– 1500 – 1800 SIRE inspections annually

– Reduce risk for vessels to be rejected by a terminal

• All time screening

– Latest SIRE report required prior to any approval of a vessel

• More stringent requirements for TC and COA than for Spot

– Age, Office vetting, SIRE insp.

• Open dialog with ship-owners/-operators

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General Ship Vetting Trends

• StatoilHydro Ship Vetting has recently benchmarked their vetting organisation against 5 Oil Majors

– A polarisation

• SIRE inspection only on internal request

• A clear border between the vetting and commercial department

• Reduce vulnerability in terms of legal ”protections”

• A subjective reflection: Companies partly owned by state of origin on one side and exclusively private owned companies on the other side

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Challenges ahead from SH Ship Vettings point of view

• Further development of methods to measure quality within shipping

– Rating

– Improve use of available information

• To which degree shall we copy the majors or find our own way?

– Internal organisation

– Requirements

– Grade of involvement with owners/operators

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Changes in wake of the manning challanges

• Increased need for office vettings

– Reduced sailing periods

– Increased need for well organized crew training

– Less loyalty to employer

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The “quality” indicator

• Near miss reporting (demonstration of the safety culture)

– Involvement from top management

• Set an example

– Number and quality of reports

• More reports leads to fewer incidents

– Use of reports

• Feedback