INTERTANKO Vetting Seminar Captain M C Madayya Regional Manager, Marine Assurance Chevron Singapore Tokyo 25 June 2014
Provide safe, reliable and cost-competitive marine transportation, and manage marine risk Add value through operational, technical, and commercial support to customers 2
Chevron Shipping Company Marine Assurance Organization Chart Marine Assurance General Manager MA Manager Houston MA Manager London MA Manager Singapore MA Manager San Ramon 3 Clearance Specialists 5 Regional Marine Superintendents 3
Chevron Marine Assurance Working With Our Partners in Our Industry Public expectation of oil and gas companies is zero incidents Highest priority is to assure safe, incident-free marine transportation provided by our 3 rd Party partners Marine Assurance is primarily focused on managing Process Safety or Avoiding the Big Incident 4
Process Safety Low probability, high consequence events that have catastrophic effects and can result in multiple injuries, fatalities, and substantial economic, property and environmental damage. The Big Incidents: Collision/Allision/Grounding Fire/Explosion Loss of Containment (e.g. oil spills) Structural Failure Fatalities
2014 Third Party Process Incidents Explosion and sinking of small crude tanker with a fatality and multiple injuries. Laden VLCC allision with wharf causing oil spill and severe damage to wharf and vessel Three collisions in Singapore waters in 13 days spilling 760 tonnes Collision and oil spill off South Korea Explosion on tanker in shipyard with 7 fatalities 6
Marine Assurance How Do We Assess Risk? Standard process applied across four global offices - Port and Vessel Information System (PAVIS) Historical and current information is analysed by Clearance Specialist Vessel Suitability for the Intended Voyage Vessel Design and Equipment Compliance - Equipment - Ice Class - Terminal Fit 7
Marine Assurance How Do We Assess Risk? Assessing Vessel Quality: - SIRE: any OCIMF member, less than six months old, discharging - Casualty Data: investigation reports; close-out? - PSC: Port State Control Reports - TF: vessel Terminal feedback reports, close-out Old Age Guidelines Crew Matrix Security Arrangements Operator Quality Fleet performance 8
Marine Assurance Old Age Guidelines Increasingly stringent vessel age requirements are applied considering: - SIRE inspection quality - Time under current management - Class society and status - Ballast tank coatings - PSC history - Casualty history - CAP Rating 9
How Do We Assess Risk? Operator Engagements and Vessel Inspections Operator Quality: initial operator reviews, annual reviews. - Fleet Performance: SIRE, PSC, VETF, Casualty - Vessel Approval Record: Rejections for non-compliance with matrix - SIRE inspections Interval (less than 6 months) Vessel Quality: Initial ship inspection / Annual re-inspection. - Conducted by CSC MA Regional Marine Superintendents - Inspections based on review of n of the operator s management system implementation rather than the SIRE format TMSA: Initial audit, Annual follow-up, Three yearly re-audit. - Focused on Process Safety: navigation, cargo operations, and reliability. Operator Engagement: regular contact / Open lines of communication. - Understand mutual business needs and business drivers 10
Operators Engagement and Incident Reviews Key Areas of Concern: - Bridge Team Management (BTM) and Bridge Resource Management (BTM) practices not adequately followed - Monitoring of onboard navigation practices are not effective - Fires and explosions on non IGS vessels - Less than adequate incident investigation and corrective action process - Limited use of the Safety Management System on board - Officer competency assurance - Effectiveness of training - Accountability not defined 11
Best Practice Navigation - BTM/BRM behavioral aspects - Navigational audit process, including VDR reviews - ECDIS as Navigation Aid. Management of vessel personnel: - Master and C/E assignments to specific vessels. - Trade specific manning - Competency assurance for Masters and C/E s. Incident investigation process: - Identify systemic root causes and corrective actions. - Effective incident and near miss analysis (Process) Safety Management - Permit to work system - Risk assessments 12
Summary Focus on Process Safety and Avoiding the Big Incident Vessel clearance is transaction based Operators demonstrate commitment to safe operations and avoiding incidents Operating environment is becoming more demanding Risk and exposure is constantly evolving what was acceptable yesterday may not be tomorrow 13
Partnering with Ship Managers/Operators Strong relationship with Operator, Owner, Master and Officers Shared commitment to Zero incidents Transparency Truth, honesty and integrity Willingness to work together Mutual respect 14
Questions Answers 15