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

2. Chevron Shipping Marine Assurance

3. 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.

4. 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

5. 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

6. 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

7. 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.

8. 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.