Intertanko Vetting Seminar Athens – May 15, 2007

1. Intertanko Vetting SeminarAthens – May 15, 2007 Tim PlummerPresident Tesoro Maritime Company

2. Tesoro Corporation

4. Tesoro Today * As of January 26, 2007

5. The Tesoro System • Tesoro System Highlights • 7 Refineries • 663 mbpd total crude capacity • 9.7 complexity • Retail network of over 860 sites • Over 6,000 Employees • Kenai, Alaska • 72 mbpd • 4.9 complexity • Key product: Jet • 96 retail sites • Martinez, California • 166 mbpd • 13.5 complexity • Key products: CARB Gasoline & CARB Diesel • 89 retail sites • Salt Lake City, Utah • 58 mbpd • 6.3 complexity • Key products: Gasoline & Diesel • 117 retail sites • Mandan, • North Dakota • 58 mbpd • 7.8 complexity • Key products: Gasoline & Diesel • 112 retail sites • Anacortes, Washington • 115 mbpd • 8.2 complexity • Key product: Gasoline • 69 retail sites • Los Angeles, California • 100 mbpd • 16.4 complexity • Key products: CARB Gasoline & CARB Diesel • Approximately 310 retail sites Calgary Office London Office • Kapolei, Hawaii • 94 mbpd • 4.5 complexity • Key product: Jet • 34 retail sites Auburn Office Denver Office Long Beach Office Corporate Office RETAIL BRANDS Singapore Office

6. Over 500% Total Shareholder Return Since 2003 Anacortes Acquired L.A. Refinery Acquisition Announced Kapolei Acquired Golden Eagle Acquired Salt Lake City & Mandan Acquired

7. Marine Structure

8. Refinery Associated Berths -1 • Hawaii SPM Terminal • Kapolei Refinery on Oahu • Crude & Products • Max dwt = 150,000 • Max LOA = 945 ft. – Max Draft = 57 ft. – UKC = 12 ft. • KPL Dock – Nikiski, Alaska • Kenai Refinery • Crude & Products • Max dwt – 125,000 (summer) – 70,000 (winter) • Max LOA = 850 ft. – Max Draft 37 ft. – UKC = 5 ft. • Max cargo volume = 500,000 gross bbls.

9. Refinery Associated Berths - 2 • Anacortes Outside Berth • Anacortes, Washington Refinery • Crude & Products • Max dwt = 125,000 (State of Washington restriction) • Max LOA = 987 ft. – Max Draft = 45 ft. • Amorco Wharf • Golden Eagle Refinery, Martinez, California • Crude • Max dwt – 190,000 • Max LOA = 1000 ft. – Max Draft 38 ft. FW

10. Refinery Associated Berths - 2 • Long Beach Terminal Berths 84A & 86 • Los Angeles, California Refinery • Crude & Products • Max dwt = 130,000 • Max LOA = 1000 ft. – Max Draft = 45 ft.

11. Tesoro Time Chartered Fleet • 2 – Suezmax • 3 – Aframax • 5 – MR’s • 9 are Double Hull, 1 is Double Bottom • 11 – Barges (U.S. West Coast & Hawaii) • 10 are double Hull

12. Vetting

13. IMPORTANCE • Protection of people • Protection of the environment • Financial exposure • Business disruption • Our relationship with stakeholders • Our reputation as a publicly owned company • In Alaska we are the coil spill plan holder

14. WHEN • Tesoro Corporation policy requires that all vessels must be vetted and approved before they can: Be chartered-in Perform under a COA Carry cargo which Tesoro has an interest Call at a Tesoro facility

15. WHY • To ensure ships comply with applicable rules, regulations and accepted industry practices in respect to safety, pollution prevention and operational procedures. • To ensure that the quality of the ship, crew and owner meet our requirements • To ensure that a ship can safely arrive, moor and depart our facilities in respect to a vessel’s particulars, draft and mooring capabilities

16. WHY • We don’t think we know how to operate your tankers better than you do, BUT, • Not all tankers are the same • Not all crews are the same • Not all operators/managers are the same • Not all owners are the same

17. HOW • A dedicated vetting system - TASC • A designated vetting group • An established process • Clearly established general criteria

18. VETTING SYSTEM - TASC • TASC – Tesoro Acceptance & Ship Clearance System • Internet based • Covers, tankers, barges & bulk carriers • Linked with Q-88 • Linked with LMIU (Lloyd’s Marine Information Unit) • One process and one set of records • Feedback from Terminal feature • Developed & supported by Marine Information Systems

19. VETTING GROUP • Designated group of seven • 5 Marine Superintendents • 1 Port Captain • Myself as GM Shipping Operations • All Unlimited Masters

20. VETTING PROCESS - 1 • Vetting requests are submitted in TASC • Detailed review of: • Tesoro Vessel Questionnaires (owners submit questionnaires via Q-88 (www.Q88.com) • Lloyd’s MIU • SIRE • U.S. Coast Guard PSIX • Equasis & Tokyo MOU • Internal Facility Feedback

21. VETTING PROCESS - 2 • Facility specific acceptability • Draft, mooring, KTM, DWT, LOA, Beam, etc. • Facility specific recommendation is made to approve or reject • Final determination to approve or reject is made and sent to requestor

22. GENERAL CRITERIA • Red flags • Single hulls • CBT (Clean ballast tankers) • Tankers without IGS • OBO’s over 12 years old • OBO’s not in continuous wet service for at least 3 consecutive voyages • Vessels with non-approved P&I Club

23. GENERAL CRITERIA • Key criteria in Tesoro system • Hawaii SPM ( official dwt, BMA, draft) • Alaska (draft, cargo volume, mooring) • Puget Sound (dwt) • San Francisco (draft, KTM)

24. EXPERIENCE • Will vet 600 – 700 vessels per year • Rejection rate - 6.4% since Jan 06 • Poor SIRE reports • Past experience with vessel/owner • Inadequate mooring system

25. SUMMARY We really don’t think we know how to operate your tankers better than you do, but we have a lot on the line as well.

26. Thank you !!