Intertanko Vetting Seminar Athens – May 15, 2007 Tim Plummer President Tesoro Maritime Company

Tesoro Corporation

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3 Tesoro Today 2006 Fortune “150”# 132 Global “500”# 406 Revenues$ 18.1 billion Refining & Marketing100% Enterprise Value$ 5.1 billion* First refinery operated1969 * As of January 26, 2007

4 Anacortes, Washington 115 mbpd 8.2 complexity Key product: Gasoline 69 retail sites Mandan, North Dakota 58 mbpd 7.8 complexity Key products: Gasoline & Diesel 112 retail sites Salt Lake City, Utah 58 mbpd 6.3 complexity Key products: Gasoline & Diesel 117 retail sites Kapolei, Hawaii 94 mbpd 4.5 complexity Key product: Jet 34 retail sites The Tesoro System Corporate Office Denver Office London Office Singapore Office Auburn Office Long Beach Office Martinez, California 166 mbpd 13.5 complexity Key products: CARB Gasoline & CARB Diesel 89 retail sites Los Angeles, California 100 mbpd 16.4 complexity Key products: CARB Gasoline & CARB Diesel Approximately 310 retail sites Calgary Office Tesoro System Highlights 7 Refineries 663 mbpd total crude capacity 9.7 complexity Retail network of over 860 sites Over 6,000 Employees RETAIL BRANDS Kenai, Alaska 72 mbpd 4.9 complexity Key product: Jet 96 retail sites

5 Growth through Strategic AcquisitionsImprove Financial Performance Acquisitions Improve Financial Performance Over 500% Total Shareholder Return Since Golden Eagle Acquired Salt Lake City & Mandan Acquired Kapolei Acquired Anacortes Acquired L.A. Refinery Acquisition Announced

6 Marine Structure Tesoro Corporation Tesoro Maritime Company Gold Star Maritime Company U.S. Flag Activity Tesoro Far East Maritime Company Non U.S. Flag Activity

7 Refinery Associated Berths -1 Hawaii SPM Terminal –Kapolei Refinery on Oahu –Crude & Products –Max dwt = 150,000 –Max LOA = 945 ft. – Max Draft = 57 ft. – UKC = 12 ft. KPL Dock – Nikiski, Alaska –Kenai Refinery –Crude & Products –Max dwt – 125,000 (summer) – 70,000 (winter) –Max LOA = 850 ft. – Max Draft 37 ft. – UKC = 5 ft. –Max cargo volume = 500,000 gross bbls.

8 Refinery Associated Berths - 2 Anacortes Outside Berth –Anacortes, Washington Refinery –Crude & Products –Max dwt = 125,000 (State of Washington restriction) –Max LOA = 987 ft. – Max Draft = 45 ft. Amorco Wharf –Golden Eagle Refinery, Martinez, California –Crude –Max dwt – 190,000 –Max LOA = 1000 ft. – Max Draft 38 ft. FW

9 Refinery Associated Berths - 2 Long Beach Terminal Berths 84A & 86 –Los Angeles, California Refinery –Crude & Products –Max dwt = 130,000 –Max LOA = 1000 ft. – Max Draft = 45 ft.

10 Tesoro Time Chartered Fleet 2 – Suezmax 3 – Aframax 5 – MR’s –9 are Double Hull, 1 is Double Bottom 11 – Barges (U.S. West Coast & Hawaii) –10 are double Hull

Vetting

12 IMPORTANCE Protection of people Protection of the environment Financial exposure Business disruption Our relationship with stakeholders Our reputation as a publicly owned company In Alaska we are the coil spill plan holder

13 WHEN Tesoro Corporation policy requires that all vessels must be vetted and approved before they can: Be chartered-in Perform under a COA Carry cargo which Tesoro has an interest Call at a Tesoro facility

14 WHY To ensure ships comply with applicable rules, regulations and accepted industry practices in respect to safety, pollution prevention and operational procedures. To ensure that the quality of the ship, crew and owner meet our requirements To ensure that a ship can safely arrive, moor and depart our facilities in respect to a vessel’s particulars, draft and mooring capabilities

15 WHY We don’t think we know how to operate your tankers better than you do, BUT, –Not all tankers are the same –Not all crews are the same –Not all operators/managers are the same –Not all owners are the same

16 HOW A dedicated vetting system - TASC A designated vetting group An established process Clearly established general criteria

17 VETTING SYSTEM - TASC TASC – Tesoro Acceptance & Ship Clearance System Internet based Covers, tankers, barges & bulk carriers Linked with Q-88 Linked with LMIU (Lloyd’s Marine Information Unit) One process and one set of records Feedback from Terminal feature Developed & supported by Marine Information Systems

18 VETTING GROUP Designated group of seven –5 Marine Superintendents –1 Port Captain –Myself as GM Shipping Operations All Unlimited Masters

19 VETTING PROCESS - 1 Vetting requests are submitted in TASC Detailed review of: –Tesoro Vessel Questionnaires (owners submit questionnaires via Q-88 ( –Lloyd’s MIU –SIRE –U.S. Coast Guard PSIX –Equasis & Tokyo MOU –Internal Facility Feedback

20 VETTING PROCESS - 2 –Facility specific acceptability Draft, mooring, KTM, DWT, LOA, Beam, etc. Facility specific recommendation is made to approve or reject Final determination to approve or reject is made and sent to requestor

21 GENERAL CRITERIA Red flags –Single hulls –CBT (Clean ballast tankers) –Tankers without IGS –OBO’s over 12 years old –OBO’s not in continuous wet service for at least 3 consecutive voyages –Vessels with non-approved P&I Club

22 GENERAL CRITERIA Key criteria in Tesoro system –Hawaii SPM ( official dwt, BMA, draft) –Alaska (draft, cargo volume, mooring) –Puget Sound (dwt) –San Francisco (draft, KTM)

23 EXPERIENCE Will vet 600 – 700 vessels per year Rejection rate - 6.4% since Jan 06 –Poor SIRE reports –Past experience with vessel/owner –Inadequate mooring system

24 SUMMARY We really don’t think we know how to operate your tankers better than you do, but we have a lot on the line as well.

25 Thank you !!