1. 26 th April 2014 MIPS 2014 – Capability through Partnership David Cotterell. 28 October 2014D

2. Oil Industry view of risk and risk assessment. The value of the Military – Merchant relationship The importance of the protection of shipping - mariners, ships cargo, and environment – securing energy supply. The need to build and maintain trust – before you need it. Examples of effective partnerships between governments, navies, and industry. Executive Summary

3. Risk Management TerminalPortVoyagePortTerminal MTISMTMSASIRETMSAOVIDOVMSAMTIS Inherent

4. The safety of life is paramount, protecting our mariners is front and centre when we plan operations at sea. Governments and the general public are rightly intolerant of marine pollution. – Our industry explores for and produces oil from deep beneath the oceans. – We transport the worlds energy needs by sea, all around the world. In the form of crude oil, refined products, petrochemicals and liquefied gasses. These activities have inherent risks to be mitigated The consequences of tanker incidents are serious The default is caution and prudent over-reaction to risk indicators. This must be taken into account when there is a need to keep energy flowing through areas of high risk RISK

5. Contemporary History gives many example where naval forces and merchant vessels have needed to work closely together. For this to be successful both parties need a good understanding of how each party operates, communicates and is likely to react when faced with uncertain circumstances. This is something that needs to be practiced and exercised regularly and well in advance of need. From the tanker wars in the Arabian Gulf in the 1980’s, to the current tensions in the near east today the lessons remain broadly unchanged – but we do need to preserve and apply the learning's The Value of Military – Merchant Relationships

6. The search and production of Oil and Gas has moved offshore into increasing challenging waters in the last decade. Trade routes have changed Mariners increasingly have to load their ships in waters where maritime security risks are high or transit through waters where they are targeted by organised crime intent on capturing the ship, the cargo or taking mariners for ransom. World trade routes pass through choke points where political tensions or military conflicts pose a threat and the ship being constrained in a narrow waterway becomes vulnerable. With increasing risk the need for preparation, counter measures and protection remains all important. Protection

7. Let’s think about this. In the event of an incident the first thing decision makers look for is verified information. Because good decisions are based on sound data, knowledge and experience. But here’s the problem. If I contact a naval ops room seeking information and they have no idea who I am or who I represent the chances of me getting good information is nil. So my risk assessment defaults to stop the ship until I get good information to make another decision. So industry and military have just stopped oil flowing – the exact opposite result to what we are tasked with. Building Trust

9. You cannot surge trust – you have to build it slowly over many years. In advance of need. “Th ere is a vast difference between forgiveness and trust. Forgiveness is given. Trust is earned.” Dr John C. Maxwell Thankfully, this is a lesson well learned and we have been doing that in many places for many years. – OCIMF has built relationships with NAVCENT Bahrain – Supplies merchant shipping into the Lucky Mariner and MCMEX exercises each year and runs global incident command centres to practice communications and build that all important trust. – The CEO’s of the big energy companies prioritise the relationship which has been tested in real incidents. Building Trust

11. Perhaps the biggest change in merchant shipping is the mariners themselves. National fleets no longer predominate. Traditional Seafaring nations are in two decades of decline. Flag states such a Panama and Liberia dominate with over half a billion deadweight tonnes between them. GPC ActivitiesEnergy Shipping 2014 The seafarers are increasingly from Philippines, India and China with Europe and USA declining. Irrespective of size total crew size is typically 35 or less.

12. Examples of Great Military Merchant Cooperation CENTCOM – A great initiative to place an Industry advisor into the desert dome in Bahrain at times of need. OCIMF have enjoyed a close, working relationship with CENTCOM for over five years, and continues to deliver mutual value. The Industry advisor is there to support the mission by providing advice on how to communicate and coordinate with merchant shipping effectively. Also has direct access to expertise and technical data. Direct access to the the leaders that control energy shipping movement

13. GPC Activities Examples of great Military Merchant Cooperation On April 14 th 2014, MTISC – GoG declared initial operational capability. The project was managed by OCIMF with resources from governments of the USA, UK, Norway, Netherlands, Denmark and Australia. Great practical support from the US Navy, AFRICOM, RN and the UK Hydrographic Office and the RMU. Manned by Navy watch keepers from Ghana, Togo, Liberia and Senegal along with merchant navy watch keepers from OCIMF member companies active in the Gulf of Guinea. Resident Interpol officer on staff MNLO ex UK MTO.

14. MTISC-GoG

15. I could tell a similar story of cooperation in Asia and Latin America. The value of shared vision, common understanding and the need to share enough information to inform good decisions is widely recognised. But we cannot get away from a foundation of trust, from which, over time partnership evolves. GPC ActivitiesGlobal Partnerships OCIMF has a long-term vision of replicating these partnerships, information sharing centres and above all the trust. The vision of a network of trusted centres sharing information and keeping mariners safe across the worlds shipping routes can be achieved through cooperation.

16. A Voice for Safety OCIMF.com Oil Companies International Marine Forum 29 Queen Anne's Gate, London, SW1H 9BU Tel: +44 (0) 20 7654 1200 Fax: +44 (0) 20 7654 1205 GPC ActivitiesThank You