- Catherine Hall

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  • BP is committed to operating in such a way that it causes ; “ No Accidents, No Harm to People and No Damage to the Environment”. Further, we have committed to work with others, our partners, suppliers competitors and regulators to raise the standards of our industry in general. The BP group has identified the Environment as an area that we must be especially attentive to and one in which we believe we can be truly distinctive in our contribution to it’s protection. Any marine venture carries an inherent risk with it. That risk must be assessed, then managed if safe and proper to do so, or the proposal must be rejected.
  • BP Group considers Risk Management for Marine activities essential and has delegated this responsibility to BP Shipping. Share a little info on BPS: - Values - Role - People
  • Fleet – expertise across oil and gas - from VLCCs to 2kt coastal vessels
  • BP OTC Fleet Trading Patterns This slide shows the movement of BP tonnage but it does also show fairly typical tanker trading patterns – and it does also highlight the bottle necks i.e. narrow in places such as the entrance to the Baltic, the Black Sea and the Malacca straights which tends to generate concern regarding security of supply through these locations. The BP strategy to manage marine risk is to carry approx 50% of our own cargoes on BP operated or TC vessels, in 2008 this was 45% We shipped over 280m tonnes on over 7,500 voyages and overall our fleet was utilised 82% of the time on BP voyages, so little carriage of 3 rd party cargoes. This is in line with our strategy, that our vessels are in our fleet to manage BP’s risk. Our focus on a new and expanding fleet started in 2000, when average age of fleet was 15 years, now 2.5 years
  • So how do we put in place risk management of our marine activities? Talked of strategy to have our own operated and TC fleet – so that we can control design, build, operation, procedures, maintenance, deployment etc For other 55% of business, the spot market, we work within industry to raise standards and we set standards for BP use e.g. age, double hull, operating procedures We use inspection, management audit and structural review to confirm our assessment
  • Risk management on a good ship involves: Procedures. Properly documented, comprehensive, easily accessible and understood by those onboard. The organisation responsible for the daily operation of the vessel must state what is expected of the staff onboard the vessel regarding their duties and how the vessel is to be operated. People. The staff onboard and ashore must be properly trained for their duties. They must be motivated and committed to using the management systems. Superintendency. To support the vessel, to ensure it is properly equipped, maintained and operated. To provide a monitoring and internal audit function (essential for proper evaluation and feedback).
  • Another way of looking at this is to approach risk management in 3 ways; Strategic, Operational and through Influencing From a strategic angle we set out Shipping policies for the Group’s activities to follow, these do take into account Risk and Reward. This is where the commercial input comes in, risk cannot be assessed on it’s own, reward also needs to be understood and so we input the returns our vessels are making on key routes, by class of vessel. We prefer to carry ‘riskier’ cargoes on our own vessels e.g. persistent oils, US coastal voyages and use risk/reward data to further inform our decisions on our fleet shape. Operational control varies depending on whether vessels are owned, time chartered or voyage chartered, we aim to control quality to minimise risk through design, operation, audit and vetting Influencing within the shipping industry is key 3 rd leg of risk management e.g. through OCIMF, TSCF, IMO committees and policies
  • The Assurance team is the key team in putting this risk management into place It is the risk associated with the use of the many voyage chartered vessels that the BP Group Ship Vetting Service is charged with assessing and managing. It is their task to assure the BP group that risk has been minimised through careful assessment and management. We must stay ahead of public expectations and as such must be pro-active in developing and raising industry standards. We work with owners through regular meetings and open dialogue.
  • As only a minority of worldwide tanker fleet meets BP standards we need to have vetting in place (where a ship is deemed unacceptable unless it can be shown otherwise) as a key tool to reduce risk Ships which are BP approved are five times less likely to have an incident that non-approved ships BP’s vetting is based on a number if key policies…
  • The Vetting decision is the start of business for the Chartering team, without a ‘yes’ the team will not consider a vessel for business and the Commercial team fully supports the standards by which BP Shipping operates. If we see a benefit in doing business on a vessel that is not approved we will raise this to the Vetting team who are very proactive in reviewing a vessel’s assessment and will work to support the owner in improving their vessel so that it can meet the right standard. Owners Reputation . - An owners reputation can be a key element in a difficult decision, it may allow us to accept a warranty regarding corrective action that we would not accept from another owner. Owner Audits . - About 20 / year. Either nominated by other BP Group businesses with exposure to the shipping companies, or are specifically selected because of poor inspection results leading to concern regarding the whole fleet operation either in People, Procedures or Management. Ship Inspection . + Sire Reports / CDI Reports . Terminal Feedback. - Our terminals are required to submit terminal feedback on all vessels calling at BP owned or operated terminals. Charterer Feedback . - Our charterers are required to submit voyage performance feedback on all vessels fixed on a BP account. Flag Changes . - Changes of flag, particularly if with change of class, requires review, looking at vessel age, and special survey / docking cycle. Market Intelligence . - Vessel detentions under Port State Control action. Industry gatherings and publications. Casualty Data . - Data is purchased from Lloyds. Any data received is directly referred back to the owner for an explanation. Manning / Management Changes . - Recalling our focus on People and Procedures , any change to the manning or management arrangements on the vessel would cause the vessel status to be reviewed. Classification Society Changes . - Reason for any change of class needs to be understood.
  • An independent measure of our effectiveness in managing risk is achieved through the use of the Lloyds Casualty Data. The number of casualties reported on “OK” vessels is compared with the number reported on “NO” vessels, the comparison produces a simple ratio. Today that ratio is just over 20% which means that there are just over five times more casualties being reported on “NO” status vessels than there are on “OK” vessels. The reality of the situation is that the managers operating the “NO” vessels are probably having more casualties and incidents than they freely report. Definitions of casualty and risk may not align with ours, but, the system used consistently over a period of time does give a very good “trend” as to whether our effectiveness is improving or not. In conclusion, I go back to BP Shipping’s values, Clean seas, Safe ships and Commercial success – quality standards and risk management are key to making sure that we carry out BP’s marine activity in line with these values and the Assurance and Commercial teams in BP Shipping work hard together to achieve this aim.
  • - Catherine Hall

    1. 1. Quality Assurance and Risk Management in BP Catherine Hall
    2. 2. HSSE <ul><li>BP Group HSSE Goals are simple … </li></ul><ul><ul><li>No Accidents </li></ul></ul><ul><ul><li>No Harm to People </li></ul></ul><ul><ul><li>No Damage to the Environment </li></ul></ul><ul><li>Wherever BP have control or influence we will work with others , our partners, suppliers, competitors and regulators to raise the standards of our industry. </li></ul><ul><ul><li>Environment is an area that we (BP Group) have chosen </li></ul></ul><ul><ul><li>to be distinctive in. </li></ul></ul>
    3. 3. BP Shipping Clean Seas, Safe Ships, Commercial Success <ul><li>BP Shipping is the centre of shipping expertise for BP group </li></ul><ul><li>providing safe, environmentally responsible marine and shipping solutions in support of BP Group Strategy </li></ul><ul><li>providing assurance on ‘all that floats’ </li></ul><ul><li>value adding through commercial operation of oil tanker assets, using a combination of spot, time charter and BP operated vessels. </li></ul><ul><li>technical operation of group controlled assets </li></ul>the people 594 shore staff 1280 officers 12 0 cadets 960 ratings
    4. 4. Current Fleet SUEZMAX 3-1990’S BUILT H CLASS BP operated 4 x VLCCs 1 x Shuttle Tanker 8 x LNG 4 x LPG 20 x 100kdwt 12 x 47kdwt 7 x 37kdwt 21 Regional Vessels (US Flag, UK Coasters and East Med Fleet) time chartered 101 Vessels BP Shipping carries 50% of group cargoes Total: 178 vessels
    5. 5. HYDROCARBON ON WATER 45% of Group Cargo carried on Operated or TC tonnage Total cargo volume shipped: 283 m tons Total number of voyages: 7,502 Utilization of OTC fleet on BP business 50% (2000) to 82% (2008) Value of Owned Fleet: US$5.5bln (est.) Apprec. >30% Average Age of Vessels (>9k dwt) 15 yrs (2000) 2.5 yrs (2006)
    6. 6. It is all about reducing the risk to BP target Approx 50% of group cargo carried on operated and T/C vessels objective no accidents, no harm to people no damage to the environment Operated & Time chartered Spot BP’s controls tanker industry improve global tanker standards by influencing through pool of vessels used by BP improve quality by 12,000 ships in database 2000-3000 ships acceptable for BP business tankers used by BP <ul><li>oil majors </li></ul><ul><li>Ship owners </li></ul><ul><li>legislation </li></ul><ul><li>setting standards </li></ul><ul><ul><li>age </li></ul></ul><ul><ul><li>double hull policy </li></ul></ul><ul><ul><li>operational requirements </li></ul></ul><ul><ul><li>operating procedures </li></ul></ul><ul><ul><li>manning training </li></ul></ul><ul><li>confirmed by </li></ul><ul><ul><li>inspection </li></ul></ul><ul><ul><li>management audit </li></ul></ul><ul><ul><li>structural review </li></ul></ul><ul><li>design </li></ul><ul><li>build </li></ul><ul><li>operation </li></ul><ul><li>procedures </li></ul><ul><li>maintenance </li></ul><ul><li>people </li></ul><ul><li>deployment </li></ul><ul><li>Disposal </li></ul><ul><li>Tc assurance </li></ul>
    7. 7. <ul><li>PROCEDURES - Management Systems and Guidance. E.g. ISM Code, SOLAS, MARPOL, ISGOTT, Company operating procedures (Procedural Risk Control) </li></ul><ul><li>PEOPLE - Experienced & Motivated staff committed to the management systems - both onboard the ship and ashore. (Active Risk Control) </li></ul><ul><li>SHORE MANAGEMENT - Providing self regulating audit and support functions. Ensuring adequate design and maintenance. (Procedural + Active + Inherent Risk Control). </li></ul>Risk Management on a good Ship…
    8. 8. Control of Shipping Risk Control quality to minimise risk <ul><ul><li>Strategic </li></ul></ul>Operational Influencing IMO TSCF OCIMF Flag/Port State Legislation Owned Set standards-Audit-Vetting Design-Operation-Audit Shipping policies Balance risk reward Voyage chartered Time Chartered Set standards-Operations-Audit Raise standards so BP quality control not req’d
    9. 9. <ul><li>To provide Assurance to the BP Group that the risk involved in moving oil/gas/dry bulk around the Globe has been minimised as much as possible. </li></ul><ul><li>To constantly improve that level of Assurance ahead of public expectations. </li></ul><ul><li>To work with the BP Group to facilitate business in a safe and proper manner by working with “owners” to develop their understanding and appreciation of our goals. </li></ul><ul><li>To work with the industry to raise standards. </li></ul>Assurance Team - Role
    10. 10. Raising The Bar <ul><li>A ship is considered unacceptable unless positively identified as otherwise. </li></ul><ul><li>The ship vetting team assesses ships for suitability for BP business, based on a range of criteria including management, operations, crewing and structural standards, using its own inspection reports combined with those shared across the industry. </li></ul><ul><li>BP Shipping conducts time charter executive CEO forums to improve the safety performance and standardize the reporting of the time chartered fleet </li></ul>
    11. 11. BP - Direction on Double Hull <ul><li>The following changes to the BP Group shipping policy will apply to all sea-going movements which are subject to be vetted (1) . </li></ul><ul><li>From January 2008, all vessels greater than 600 dwt carrying hydrocarbons (i.e. including non-persistent or 'clean' oils) shall be double hulled. </li></ul><ul><li>Notes: (1) The policy applies to all vessels carrying hydrocarbons in bulk except barges (being vessels which are trading exclusively in inland waters, harbours and estuaries) (2) In brief this will cover all crude oils, residual fuel oils, vacuum gas oil, atmospheric and vacuum residues, lubricating oil and lubricating base oils, but please consult the BP Shipping Assurance team for further detail. </li></ul>
    12. 12. BP - Direction on Age <ul><li>The following changes to the BP Group shipping policy will apply to all sea-going movements which are subject to be vetted (1) . </li></ul><ul><li>From January 2008, all vessels greater than 5,000 dwt shall be less than 20 years of age, and all vessels below 5,000 dwt shall be less than 25 years of age . </li></ul><ul><li>Notes: (1) The policy applies to all vessels carrying hydrocarbons in bulk except barges (being vessels which are trading exclusively in inland waters, harbours and estuaries) </li></ul><ul><li>(2) This date applies to the date on which the vessel is vetted, and not the date on which the voyage takes place. </li></ul><ul><li>(3) Excluding LNG carriers where the age limit will be 40 years, and all other gas carriers where the age limit will be 25 years, both age limits applying up to and beyond 2008. </li></ul>
    13. 13. Other BP Requirements <ul><li>Vessels (ex. LNG) > 15 years of age and > 20,000 dwt </li></ul><ul><li>The vessel should hold a Condition Assessment Programme (CAP) rating of 1 or 2, issued under an acceptable scheme. This should be obtained by the first dry dock after the vessel’s 15th anniversary of delivery date, and should include a hull fatigue analysis. The CAP certificate will be acceptable to BP Shipping for three years. A three month period is allowed after the relevant dry dock to allow the Classification Society to produce the documentation. An extension to four months may be permitted on production of a Class attestation. </li></ul><ul><li>Tanker Management Self Assessment (TMSA) </li></ul><ul><li>Vessel manager must have submitted a TMSA to OCIMF to be considered for BP business. </li></ul>
    14. 14. The Vetting Decision YES NO More info Required Making the decision Positive Information MUST be available on a vessel to allow an assessment to be carried out. OWNER REPUTATION SHIP INSPECTIONS SIRE REPORTS CDI REPORTS TERMINAL FEEDBACKS CHARTER FEEDBACKS CASUALTY DATA FLAG CHANGES MANNING/MANAGEMENT CHANGES CLASSIFICATION SOCIETY CHANGE MARKET INTELLIGENCE OWNER AUDITS STRUCTURAL ASSURANCE
    15. 15. Does Vetting Work ?

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