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© 2014 Chevron Corporation. All Rights Reserved.
INTERTANKO Vetting Seminar
Captain M C Madayya Regional Manager, Marine Assurance Chevron Singapore Tokyo 25 June 2014
© 2014 Chevron Corporation. All Rights Reserved.
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Provide safe, reliable and cost-competitive marine transportation, and manage marine risk
Add value through operational, technical, and commercial support to customers
© 2014 Chevron Corporation. All Rights Reserved.
Chevron Shipping Company Marine Assurance Organization Chart
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Marine Assurance General Manager
MA Manager Singapore
MA Manager Houston
MA Manager London
MA Manager San Ramon
3 Clearance Specialists
5 Regional Marine Superintendents
© 2014 Chevron Corporation. All Rights Reserved.
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 3rd Party partners
Marine Assurance is primarily focused on managing Process Safety or Avoiding the Big Incident
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© 2014 Chevron Corporation. All Rights Reserved.
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 Chevron Corporation. All Rights Reserved.
2014 Third Party Process Incidents
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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
Explosion on tanker in shipyard with 7 fatalities
Collision and oil spill off South Korea
© 2014 Chevron Corporation. All Rights Reserved.
Marine Assurance How Do We Assess Risk?
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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
© 2014 Chevron Corporation. All Rights Reserved.
Marine Assurance How Do We Assess Risk?
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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
© 2014 Chevron Corporation. All Rights Reserved.
Marine Assurance Old Age Guidelines
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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
© 2014 Chevron Corporation. All Rights Reserved.
How Do We Assess Risk? Operator Engagements and Vessel Inspections
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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
© 2014 Chevron Corporation. All Rights Reserved.
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
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© 2014 Chevron Corporation. All Rights Reserved.
Best Practice
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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
© 2014 Chevron Corporation. All Rights Reserved.
Summary
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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
© 2014 Chevron Corporation. All Rights Reserved.
Partnering with Ship Managers/Operators Strong relationship with Operator, Owner, Master and Officers
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Shared commitment to Zero incidents
Transparency Truth, honesty and integrity
Willingness to work together
Mutual respect
© 2014 Chevron Corporation. All Rights Reserved. 15
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