PHASE – OUT

Dragos Rauta

INTERTANKO NORTH AMERICAN PANEL October 4th, 2005

Houston, TX

PHASE–OUT OF S.H. TANKERS

• USA – OPA 90 unchanged/clear/simple– 2010 drop date for all US ports– 2015 final drop date for all offshore & lightering

areas

• IMO – many rule changes - 1992/2001/2003– Reg. 13G – initial clear/complex after amendments– Reg. 13H – restricts # of cargoes on SH tankers

REG. 13G/20 (as amended 2001/2003)• the ”25/30 years” criterion replaced with• a (similar to) OPA 90 phase-out type schedule• phase-out by ship type & ship delivery date

– type 1 (pre-MARPOL) – out by end 2005– type 2 (PL/SBT) S.H. - out by end 2010 except when

Administration allows until the 25th anniverssary but not later that 2015 (13G(7))

– type 2 - DS/DB (as of 07/01/2001) – 25th anniverssary (pending Adminsitration approval; 13G(5))

– type 3 (all tankers under 20K DWT) – as ship type 2• CAS – ships 15 years and over – survey planning

compulsory (work with your Flag/RO well before due time)• BUT, 13G(8) gives Port State the right to deny entry

NEW REG. 13H/21 (amended 2005)

• ”heavy grade of oil” (HGO)• HGO is any oil with

– density 900 kg/cub.m and over (at 15 Celsius) OR

– kinematic viscosity 180 sq.mm/s (at 50 Celsiuis)

– plus bitumen, tar and their emulssions

• Application:– 04/05/2005 in DH only for ships above 5,000 dwt

– ship’s anniverssary date in 2008 in DB/double containment for ships between 600 dwt and 5,000 dwt

NEW REG. 13H/21(possible) Exemptions

• DS/DB (as was 12/4/2003) may transport HGO up to 25th anniverssary if Administration allows (13H(5))

• SH tankers over 5,000 dwt may transport crude oil with density up to 944.9 kg/cub.m up to 25th anniverssary if Adminsitration allows (13H(6)(a))

• SH tankers between 600 dwt and 5,000 dwt may transport HGOs up to 25th anniversary if Administration allows (13H86)(b))

• SH tankers or FPSO/FSU may transport/store HGOs in one country’s waters, if allowed (13H(7))

• BUT Port States can deny entry of any of the above (13H(8))

INTERTANKO Service

• http://www.intertanko.com/phaseout/

• phase-out calculator

• implementation policies (Flag & Port States)

• table with crude oil densities

• list of Parties to MARPOL

Flag / Port States 13G (5) 13G (7) 13G (8)(b) 13H (5) 13H (6)(a) 13H (6)(b) 13H (7) 13H (8)(b)

Australia Y1 N Y N N N N Y

Bahamas Y Y N/A Y Y Y Y N/A

Barbados Y Y N Y Y Y 7 N

EU Member States Y1 N Y N N N N Y

Greece N N N Y Y Y Y N

Hong Kong Y1 Y2 N N N N N Y

India Y Y N Y Y Y Y N

Japan Y1 Y N Y1 N Y3 - N4

Liberia Y Y N/A Y Y Y Y N/A

Marshall Islands Y Y N/A Y Y Y Y N/A

Mexico Y N Y N N N N Y

Panama Canal AuthorityPanama Maritime Authority

-Y

-Y

case by case basis

N-Y

-Y

-Y

-N

case by case basis

N

People's Republic of China Y N Y Y2 N N N Y

Republic of Korea - - - N5 N5 N5 N5 Y

Romania Y N Y N N N N Y

Singapore Y Y N Y Y Y Y N

United States N/A N/A N/A N/A N/A N/A N/A N/A

1 – not later than 20152 - 2015 or 20th anniversary which one is earliest3 - Japanese flag tankers until 2015 only if they have DB or DS4 – SH foreign flag tankers until 2008; DB or DS foreign flag tankers until their 25th anniversary5 – Korean and foreign flag tankers will not be allowed to enter Korean ports with HGOs as from 5 April 2006

DH Tankers - Age Distribution

Source: Joint Tanker Project

Tanker fleet double-hull development

Source: Fearnleys/INTERTANKO

%

622

51 59 67 70 73 76 84

9478

4941 33 30 27 24 16

0

20

40

60

80

100

1991 1997 End02

End03

End04

End05

End06

End07

End10*

DH SH/DB/DS

% dwt share*:

* Assumes phase out according to regulations (rounded upwards, 25 years after 2010.

Tanker incidents and age development

Source:LMIS/Informa/INTERTANKO

%

0

220

440

660

880

1100

0.0

3.2

6.4

9.6

12.8

16.0

Incidents

Age

Tanker pollution and age development

Source:LMIS/Informa/INTERTANKO

000 ts

0

130

260

390

520

650

78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04P05

0.0

3.2

6.4

9.6

12.8

16.0

Pollution

Age

Years