Intertanko

Vetting Seminar

Doug McCormick-Manager Marine Assurance

Houston Tanker Event 2007

March 26, 2007

© Chevron 2005 DOC ID

 Chevron Shipping Marine Assurance

© Chevron 2005 DOC ID 2

 Marine Assurance Clearance Process

There are no standing approvals. Vessels are assessed (SIRE and CDI Inspections) at
the time of nomination, for each and every nomination.
Clearance Decisions are always made within the context of the nominated transaction.
We consider the absence of information as potentially increased risk!
Operator performance weighs heavily into the Clearance decision.
Human error is the big issue! We look carefully at officer and crew experience and
competence.
We look carefully at quality of and compliance with onboard procedures. (SIRE and CDI
Inspections)
Alternatives are frequently considered.

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 Marine Assurance Clearance System

•Active, Rules Based Decision Process using Real Time

Information – SIRE and CDI Inspections
•Oracle database – Port And Vessel Information System
(PAVIS) – is a mission critical tool.
• Experienced Clearance Specialists make clearance decisions
based on clearly defined rules, guidelines and process.
•Experienced Marine Superintendents providing “eyes on
ships”.
•Management approval triggers ensure appropriate personnel
are involved in decisions.
•Data mining capability significantly enhances our
owner/operator knowledge. (Casualty/Port State History)
•Data review and spot-checks are regularly conducted to
assess performance and identify gaps.
•Substantial Management involvement i.e. Marine Assurance
Managers, Regional Marine Superintendents, Regional
Managers, Commercial Manager
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 Operational Excellence
Chevron’s Corporate Culture

Operational Excellence is
the systematic management of

safety, health, environment, reliability and

efficiency

to achieve world-class performance.

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 Operational Excellence
“The End Game”

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

communities as world class in all areas of Operational
Excellence.

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

 Achieve an injury-free workplace

 Eliminate spills and environmental incidents; identify and

mitigate key environmental risks
 Promote a healthy workplace and mitigate significant health
risks
 Operate incident-free with industry-leading asset reliability

 Maximize efficient utilization of resources and assets

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 Tenets of Operation
1. Always operate within design or environmental limits.
2. Always operate in a safe and controlled condition.
3. Always ensure safety devices are in place and
functioning.
4. Always follow safe work practices and procedures.
5. Always meet or exceed customers’ requirements.
6. Always maintain integrity of dedicated systems.
7. Always comply with all applicable rules and
regulations.
8. Always address abnormal conditions.
9. Always follow written procedures for high-risk or
unusual situations.
10.Always involve the right people in decisions that affect
procedures and equipment.
© Chevron 2005 DOC ID 7
 Chevron Shipping Marine Assurance
Officer Experience Matrix
•Senior Deck Officers have aggregate 5 years in rank, aggregate 2 years
with the company and each have 5 years minimum on tankers.

•Senior Engineering Officers have aggregate 5 years in rank and

aggregate 2 years with the company.

•For Time Charters to Chevron–Senior Deck Officers have aggregate 5

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

It is paramount that Senior Officers demonstrate

fluency in and compliance with their company’s
Safety Management System.

© Chevron 2005 DOC ID 8