1. INTERTANKO MEETING Houston Presented by Eric Osen 24 September 2002 ChevronTexaco Shipping Company LLC Clearance & Vetting System

2. ChevronTexaco Shipping Company LLC (CTS) the Company Established in 1896 The exclusive provider of marine transportation and services to the ChevronTexaco companies Provides day-to-day support to Logistics & Trading Manages 30 vessels including FSOs and FPSOs and LPG carriers Negotiates spot, period and bareboat charters Provides marine and analytical expertise for upstream and downstream projects Responsible for all ChevronTexaco marine activities

3. ChevronTexaco Shipping Company LLC Clearance & Vetting Organization

4. ChevronTexaco Shipping Company LLC Definitions Third-party Vessel – A vessel which is not owned, managed, chartered or in any way directly controlled by ChevronTexaco. Clearance – The approval or disapproval of a chartering or cargo trading transaction. Each Clearance consists of an approval or disapproval of a vessel, and if approved, the associated vessel/terminal combinations are either approved or disapproved. Vessel Inspection – An onboard inspection conducted in accordance with the OCIMF SIRE or CDI Inspection Program Format. Terminal Feedback – An assessment of a vessel’s performance and/or condition made in conjunction with the vessel’s call at a marine terminal.

5. ChevronTexaco Shipping Company LLC Clearance – What is it? A Commitment to Protecting People and the Environment An opportunity to minimize the risks associated with using third-party vessels. An opportunity to balance risk and reward! A tool which enables charterers to choose the lowest risk alternative.

6. ChevronTexaco Shipping Company LLC Why Clear Ships and Barges? The quality of tank vessels varies across a broad range. Industry policing bodies are not effective enough. Casualties can result in severe consequences. Operational mishaps can be costly and can disrupt the supply chain. Public Scrutiny of tanker incidents is intense. Charterers have a choice!

7. ChevronTexaco Shipping Company LLC How do we assess risk? Vet Vessels / Operators Inspection Data –Vessel age and condition –Crew Quality –Management System Shore Organization ChevTex Experience –Charter & Terminal Casualty History Port State History Industry Information Overall Quality –Owner and Fleet Screen Each Transaction Charter or FOB Type Charter –(VC, TC, Parcel) Type cargo System Relationship Environmental Sensitivity Port/Terminal Risks Quality of nominated Vessel and Owner Alternatives & Costs

8. Per Year Per Year ChevronTexaco Inspections1700 SIRE/CDI Inspections Reviewed2000 Terminal Feedback Reports1000 Vessels Nominated for Clearance9000 ChevronTexaco Shipping Company LLC Activity Level Since Merger

9. ChevronTexaco Shipping Company LLC Clearance Process

10. ChevronTexaco Shipping Company LLC Onboard Inspection Program Passing an onboard inspection does not guarantee acceptability for ChevronTexaco service. Vessels without an inspection on file with SIRE are generally not acceptable. ChevronTexaco participates in and fully supports OCIMF’s SIRE program. The inspection performance of one ship can effect our view of the entire fleet. We are working to keep the costs of inspections at a reasonable level.