1. 1 Corrosion Resistant Steel for Pitting Corrosion on COTs of Crude Oil Carrier The NSGP ® -1 Nippon Steels Green Protect-1 Nov. 2008

2. 2 Outline of the NSGP ® -1 A typical example of chemical analysis, AH32 mass%) Chemical composition of NSGP ® -1 meets the IACS rule CSiMnPSAlTiCeq NSGP ® -10.1240.331 Conventional0.1400.201.090.0180.0060.0310.0140.322 IACS Standard 0.18 0.50.9 1.6 0.035 0.035 0.02 0.02 0.36 meets IACS Standard (including all alloy elements) NSGP ® -1 provides superior corrosion resistance (NaCl 10wt.% pH around 0.8)

3. 3 NSGP-1 NSGP ® -1 has been applied to actual vessel (All COT bottom have been built with NSGP-1) Ship TAKAMINE (Built by Mitsubishi Heavy Industry) Construction completed with no problem #3 and #4 COTs : without painting 1 st Dock inspection : at 2.3 year after launching

4. 4 Very low frequency Only shallow pits NSGP ® -1 Inspection result after 2.3 years service No need to repair 777 20 4 27 0 200 400 600 800 1000 1200 1400 3P3C3S4P4C4S Pit Count less than 4mm 2.3 years

5. 5 2 nd Inspection After 4.2 years service Inspected Area 3P & 4P

6. 6 NSGP ® -1 NSGP ® -1 No pit over 4mm depth even after 4.2 years No pit over 4mm depth NSGP ® -1 ® -1 0 0 200 400 600 800 1000 1200 1400 3P4P Pit Count Over 4mm depth NSGP ® -1 ® -1 ® -1 ® -1 4.2 years 0

7. 7 Pit depth after 2.3 and 4.2 years service Maximum pit depth did not change with time COT #4P COT #3P Max. 2.6mm : 2.3 years Max. 2.5mm : 4.2 years Max. 3.1mm : 2.3 years Max. 3.1mm : 4.2 years

8. 8 Depth at 2.3 and 4.2 years = absolutely proportional No change in pit depth Pit growth stopped after COT cleaning and drying Pitting Corrosion Growth Termination

9. 9 NSGP ® -1 Potential for Repair-free NSGP ® -1 + COT Cleaning Repair-free

10. 10 Summary of the NSGP ® -1 1 Confirmed excellent corrosion resistance in actual VLCC 2) Potential for repair free for whole ship life 3 Excellent mechanical properties and weldability 4 No dependence on condition of application 4 No dependence on condition of application 1 Confirmed excellent corrosion resistance in actual VLCC 2) Potential for repair free for whole ship life 3 Excellent mechanical properties and weldability 4 No dependence on condition of application 4 No dependence on condition of application

11. 11 Practical Advantages of the NSGP ® -1 for Ship Owners By using NSGP ® -1 for COT of crude oil carriers, Great improvement in the safety and reliability of marine vessels and in the protection of the global environmentGreat improvement in the safety and reliability of marine vessels and in the protection of the global environment Corrosion protective coating is not necessary, as do coating agents and volatile organic compounds.Corrosion protective coating is not necessary, as do coating agents and volatile organic compounds. Repair freeRepair free NYK decided to use the NSGP ® -1 on all new VLCCs from now on NYK decided to use the NSGP ® -1 on all new VLCCs from now on By using NSGP ® -1 for COT of crude oil carriers, Great improvement in the safety and reliability of marine vessels and in the protection of the global environmentGreat improvement in the safety and reliability of marine vessels and in the protection of the global environment Corrosion protective coating is not necessary, as do coating agents and volatile organic compounds.Corrosion protective coating is not necessary, as do coating agents and volatile organic compounds. Repair freeRepair free NYK decided to use the NSGP ® -1 on all new VLCCs from now on NYK decided to use the NSGP ® -1 on all new VLCCs from now on

12. 12 Draft SOLAS amendment on protection of COT of tankers accepted usage of alternative means (W.G. of DE51 08.2) What is going on at IMO? 3 All cargo oil tanks of crude oil tankers shall be:.1 coated during the construction of the ship in accordance with the Performance standard for protective coatings for cargo oil tanks of crude oil tankers, adopted by the Maritime Safety Committee by resolution …. or.2 protected by alternative means of corrosion protection, the effectiveness of which shall be no less than the objectives.... 4 The Administration may exempt a crude oil tanker from the requirements of paragraph 3 of this regulation to allow the use of novel prototype alternatives to the coating system specified in paragraph 3.1, …. NSGP ® -1 could be an alternative mean

13. 13 NYK LINE Hidehiko Sato : hidehiko_sato@jp.nykline.com Nippon Steel Corporation Tatsuro Nakai: nakai.tatsuroh@nsc.co.jp NSGP ® -1 Nippon Steels Green Protect ® -1 NSGP ® -1 Nippon Steels Green Protect ® -1 Note: NSGP: is a registered trade mark or trade mark of Nippon Steel Corporation in Japan and other countries.