HELLENIC MEDITERRANEAN PANEL March 10, 2011

1. HELLENIC MEDITERRANEAN PANELMarch 10, 2011 INTERTANKO OVERVIEW REPORT JOSEPH ANGELO MANAGING DIRECTOR

2. MEMBERSHIP BUDGET SECRETARIAT EXCOM ISSUES WEB SITE INFORMATION COUNCIL ISSUES

3. MEMBERSHIP • 250+ Members • 3,400+ Tankers • 270+ Million DWT • Members in 40+ countries • MORE THAN 75% OF THE INDEPENDENT TANKER FLEET • 330+ Associate Members

4. MEMBERSHIP Members/million dwt No. of tankers

5. BUDGET 2009 2010 2011 (Actual) (Year end (Budget) estimate) Total Operating Income (US$) 9,056,359 7,291,509 7,572,650 Total Operating Expenses (US$) 6,566,390 6,767,825 7,217,450 Operating Result 2,489,968 523,684 355,200 Non-operating Income/expenses 551,773 -25,000 -25,000 Result for Year 3,041,741 498,684 330,200

6. BUDGET • Reasons for large operating surplus for 2009 year end - Virtual retention of all members in 2009 - Disciplined control of discretionary expenditures (limiting of activities) - Expenditures benefiting from strong US dollar against British pound and Norwegian Kroner • 2010 membership fees reduced by 10% • No change in 2011 membership fees

7. SECRETARIAT • 22 STAFF MEMBERS IN 4+ OFFICES Oslo (8), London (12), Singapore (1) USA (1) + Brussels, Manila (consultant) • STAFF INCLUDES - Managing Director (New) - Deputy Managing Director (New) - Technical Director - Director, Regulatory Affairs - Marine and Chemical Director - General Counsel

8. EXCOM ISSUES Budget High level discussions with OCIMF Minimum safe operating costs Piracy Greenhouse gas emissions 2011 Workplan priorities

9. DISCUSSIONS WITH OCIMF High Level discussions (Chairmen) - “Best the relationship has ever been” Issues • Achievable greenhouse gas emission reduction targets for tankers • Piracy • Tanker officer competency and experience • Vetting matters • Mercury in crude oil, safety aspects • Guidance on generally accepted procedures for accident investigation/analysis/reporting.

10. SAFE OPERATING COSTS Concern – current rates are below the minimum cost levels required to operate vessels safely Issues • Costs to operate a ship and Worldscale versus equivalent charter rates • Quality is important to both owners and charterers • Anti-trust concerns • Could be counterproductive (perception of lowering the “quality bar”?) • Reluctance to share costs Item for discussion with OCIMF

11. PIRACY • Media campaign • Best Management Practice (BMP) compliance • Policy on armed guards • Marine Naval Liaison Officer (MNLO) supply

12. GREENHOUSE GAS • Continue to support mandatory Energy Efficiency Design Index for new ships • Seek further information and clarification of Market Based Measures (MBM) • Finalize development of industry assessment of potential CO2 reduction measures • Launch “Virtual Arrival” project with OCIMF

13. WORKPLAN PRIORITIES • Council approved workplan priorities • Executive Committee to overview detailed implementation of workplan • Secretariat developed detailed workplans for high priority workplan items (25) • Workplan is a “living document” • New workplan items to be submitted to Council for approval and appropriate priority

14. WEB SITE INFORMATION Databases • Terminal vetting • Port information (port costs, reception facilities) • Vetting inspection feedback • PSC inspection feedback • Confidential Accident Reporting (CARP)

15. WEB SITE INFORMATION Benchmarking (comparison with INTERTANKO fleet) • Vessel inspection questionnaire (VIQ) • TMSA 2 • Crew/officer retention • Lost time indictor

16. COUNCIL • Venue - Astir Palace hotel Athens, Greece • May 9 – Council dinner • May 10 – Council meeting • May 11 – Tanker Seminar - Opening Session - Tanker market - Piracy - Technical session Ballast water management Greenhouse gas emissions

17. COUNCIL ISSUES • Presentation “The ExxonMobil Approach to Assessing Marine Quality” • Piracy • Piracy campaign • Greenhouse gas emissions • Insurance/Documentary Committee • Membership criteria

18. THANK YOU!! WWW.INTERTANKO.COM