Latin American Panel November 1, 2011 INTERTANKO OVERVIEW REPORT JOSEPH ANGELO MANAGING DIRECTOR

MEMBERSHIP BUDGET SECRETARIAT WORKPLAN CURRENT MAJOR ISSUES TANKER INCIDENTS WEB SITE INFORMATION ANNUAL TANKER EVENT

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

MEMBERSHIP Million dwt / number of members Number of ships

Average age membership fleet

BUDGET (Actual) (Budget)(Draft Budget) Total Operating Income (US$)7,381,600 7,572,6507,288,449 Total Operating Expenses (US$)7,062,8567,217,4507,396,323 Operating Result 318, , ,874 Non-operating Income/expenses -21, , ,000 Result for Year 297, , ,874

BUDGET Large operating surplus for 2009 year end - Virtual retention of all members in 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 2012 membership fees reduced by 5%

SECRETARIAT 20 STAFF MEMBERS IN 4+ OFFICES Oslo (8), London (10), Singapore (1) USA (1) + Brussels, Manila (consultant) STAFF INCLUDES - Managing Director - Deputy Managing Director - Technical Director - Director, Regulatory Affairs - Marine Director - General Counsel

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

CORE PURPOSES SAFETY/TECHNICAL SEAFARERS ENVIRONMENT MARINE OPERATIONS REGULATORY/LEGAL TANKER INFORMATION

EXCOM/COUNCIL ISSUES Budget (5% cut in fees) High level discussions with OCIMF* Piracy Greenhouse gas emissions* Workplan priorities Sustainability*

DISCUSSIONS WITH OCIMF High Level discussions (Chairmen) – “Best the relationship has ever been” Issues Greenhouse gas emissions Piracy – Armed guards Tanker officer competency and experience Vetting matters Mercury in crude oil, safety aspects Sustainability of the Tanker industry

GREENHOUSE GAS Policy of implementation of IMO Energy Efficiency Design Index (EEDI) requirements - 4 year waiver - method of compliance Policy on Market Based Measures (MBM) Better acceptance of “Virtual Arrival” project with charterers

SUSTAINABILITY Deep concern that the current tanker market rates are consistently below ship owners’ operating costs. INTERTANKO’s Chairman, Capt Graham Westgarth “If these rate levels continue for a long period, this could lead to a situation where sustainability of the oil transportation industry is threatened.” “Our Members operate tankers to the highest standards and will continue to do so. Operating for a prolonged period in an environment where tanker owners are not even covering their operating costs is obviously not a situation that can be maintained.”

SUSTAINABILITY Dialogue with OCIMF on Charter Party speed clauses with the aim of providing environmental benefit Discussions with Round Table shipping associations (BIMCO, ICS and INTERCARGO) and other stakeholders on ways to ensure there is no erosion of safety and quality standards

Tanker Incidents and accidental pollution Includes all tankers types and sizes Number incidents Source: INTERTANKO, based on data from LMIU, ITOPF + others ‘000 tonnes pollution

Tanker Incidents and accidental pollution Includes all tankers types and sizes % Source: INTERTANKO, based on data from LMIU

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

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

ANNUAL TANKER EVENT Venue – Singapore May 9 – Council dinner May 10 – Council meeting May 11 – Tanker Seminar - Tanker market - Piracy - Technical session

MUCHAS GRACIAS!!