Intertanko Vetting Seminar Doug McCormick-Manager Marine Assurance Houston Tanker Event 2007 March 26, 2007 Notes go here.

Chevron Shipping Marine Assurance

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.

Marine Assurance Clearance System Active, Rules Based Decision Process using Real 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

Operational Excellence Chevron’s Corporate Culture Operational Excellence is the systematic management of safety, health, environment, reliability and efficiency to achieve world-class performance. This Section Lead by: Leader OEMS Overview 15 Minutes Review slide Definition of OE 3 major ideas to articulate Systematic management 5 OE subject areas – in a balanced way We want to achieve world-class performance The take-aways Systematic management – we did HES and reliability for a long time. Systematic management is one of the major differences that will set us up for success. (The other is the line management leading the OE) And as leaders we are responsible to ensure systematic management We’ll manage all 5 OE areas in a balanced way. We are doing this for improving CVX OE performance to world class which is on the next slide 7 5 6 12 11 10 8 4 2 1 9 3 TIME OEMS Overview

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 “World Class”) 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 This Section Lead by: Leader Explain OE Vision is derived directly from the Corporate vision World-Class Performance: To better describe what “world-class” performance looks like for each of the five subject areas of OE, and to also provide some strategic direction to our business units, these OE Objective statements have been established. Say systematic management is important and an objective in itself In Shipping, our main objective is maintaining momentum in our safety program as the number of injuries approaches zero: Execute our “Plan for Zero” Close OEMS gaps, and deploy OEMS company wide Execute ship construction projects without incident Execute US Flag replacement program OEMS Overview

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.

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.