Intertanko Vetting Seminar

1. IntertankoVetting Seminar Doug McCormick-Manager Marine Assurance Houston Tanker Event 2007 March 26, 2007

2. Chevron Shipping Marine Assurance

3. 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.

4. Marine Assurance Clearance System • Active,Rules BasedDecision Process usingReal 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

5. Operational Excellence Chevron’s Corporate Culture • Operational Excellence isthe systematic management of • safety, health, environment, reliability and efficiency • to achieve world-class performance.

6. 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 “WorldClass”) • 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

7. Tenets of Operation • Always operate within design or environmental limits. • Always operate in a safe and controlled condition. • Always ensure safety devices are in place and functioning. • Always follow safe work practices and procedures. • Always meet or exceed customers’ requirements. • Always maintain integrity of dedicated systems. • Always comply with all applicable rules and regulations. • Always address abnormal conditions. • Always follow written procedures for high-risk or unusual situations. • Always involve the right people in decisions that affect procedures and equipment.

8. 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.