1. Heidmar Marine Forum IV March 29, 2012 INTERTANKO OVERVIEW JOSEPH ANGELO MANAGING DIRECTOR

2. INTERTANKO WORKPLAN PRIORITIES CURRENT MAJOR ISSUES TANKER INCIDENTS WEB SITE INFORMATION ANNUAL TANKER EVENT

3. INTERTANKO INTERTANKO MISSION Provide Leadership to the Tanker Industry in serving the World with the SAFE, ENVIRONMENTALLY SOUND AND EFFICIENT seaborne transportation of oil, gas and chemical products

4. INTERTANKO PRIMARY GOAL Lead the CONTINUOUS IMPROVEMENT of the Tanker Industry’s Performance in striving to achieve the Goals of: Zero Fatalities Zero Pollution Zero Detentions

5. MEMBERSHIP MEMBERSHIP is open to independent tanker owners and operators of oil and chemical tankers (i.e. non-oil companies and non-state controlled tanker owners) who meet the membership criteria. ASSOCIATE MEMBERSHIP is available to any entity with an interest in the shipping of oil and chemicals.

6. MEMBERSHIP 230+ Members 3,200+ Tankers 280+ Million DWT Members in 40+ countries MORE THAN 75 % OF THE INDEPENDENT TANKER FLEET 330+ Associate Members

7. WORKPLAN PRIORITIES CORE PURPOSES SAFETY/TECHNICAL SEAFARERS ENVIRONMENT MARINE OPERATIONS REGULATORY/LEGAL TANKER INFORMATION

8. SAFETY/TECHNICAL Damage stability P Inert gas P Shipyard standards P Class standards P Fuel quality P Mercury in crude P Tanker design Structural integrity Machinery/equipment Fuel switching Safe tank entry Gas detection Biofuels Cargo properties

9. SEAFARERS Criminalization Crew competence Shore access Fair treatment of seafarers Crew visas Seafarer Id documents Accommodation spaces Cadet berthing Fatigue ILO/MLC 2006

10. ENVIRONMENT GHG emissions Ballast water Reception facilities Air emissions Ship recycling Anti-Fouling Waste management Noise pollution Response management Hull biofouling Ship striking mammals

11. MARINE OPERATIONS Piracy Vetting Port State Control Chemical operations Loadlines off South Africa Lifesaving appliances Pilotage Port & Terminals Navigation issues Offshore operations Ship/Ship transfer ISPS Code Security Officers Ship security alert systems Accident investigations

12. REGULATORY/LEGAL Sanctions Limits of liability Insurance Oil spill compensation Conflict in law UNCLOS Legislation Charter party FDIP Demurrage Intellectual property Worldscale Anti-corruption

13. TANKER INFORMATION Tanker market Panel meetings Web Sustainability (NEW) Weekly News Annual Review/Report Publications Presentations Tanker statistics Incident analysis Workshops Seminars Bulletins Global Political/ Economic Environment

14. EXCOM/COUNCIL ISSUES High level discussions with OCIMF Piracy Greenhouse gas emissions Sustainability

15. 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

16. PIRACY - Somalia 2010 Statistics (IMB) - 219 attempted incidents - 49 hijackings (21% of incidents) 2011 Statistics - 237 attempted incidents - 28 hijackings (11% of incidents) 2012 Statistics (Mar 19) - 36 attempted incidents - 7 hijackings (19% of incidents)

17. PIRACY INTERTANKO FOCUS Actions members can take to protect themselves Actions we want governments to take to protect our members

18. FOCUS AREAS - INDUSTRY Best Management Practices (BMP) Citadels Armed guards

19. BMP4 Three essential requirements that cannot be over emphasized: Register with MSCHOA Report to UKMTO Implement Self Protection Measures

20. BMP4 Released August 15, 2011 (BMP3 issued 6/2010) Updates in BMP4 include: - Revision to the boundaries of the High Risk Area - Clarification of reporting requirements for MSCHOA and UKMTO - New subsection on “Prosecution of Pirates – Assisting Law Enforcement Authorities”, produced with INTERPOL - Guidance on the assistance provided by INTERPOL. - New section on Armed Private Maritime Security Contractors

21. COMPLIANCE WITH BMP MSCHOA – currently issuing regular Monthly Compliance Report to Industry Report lists vessels which are not compliant with BMP by either: 1. not Registering with MSCHOA 2. not Reporting to UKMTO 3. having no visible self protection measures

22. COMPLIANCE WITH BMP Industry is responding by: Contacting Shipping Companies on list Emphasising need for compliance with BMP, in particular the 3 major elements in order to harden a vessel against attack Urging compliance even if armed guards are being carried Requesting feed-back as to why vessels are not complying Offering advice and support

23. CITADELS Since January 2010 there have been 27 recorded incidents of citadels being used by merchant crews under attack Reporting suggests that the citadel was decisive in foiling 23 of these attacks For 4, not all in citadel and/or no 2-way coms Pirates developing tactics to breach citadels Advise issued by the military regarding the use of CITADELS on MSCHOA web site

24. CITADELS Industry developed guidance on citadels Describes the construction and use of a Citadel in order to provide effective protection against determined intrusion Guidance does not recommend or endorse the use of a Citadel; aim to present the relevant facts to enable the Ship Owner/Operator to reach a reasoned conclusion as to whether or not to utilise a Citadel Guidance has been approved by NATO, EUNAFOR and CMF and is available on their web sites

25. ARMED GUARDS 50+ recorded incidents where onboard armed security teams were involved No recorded incidents of vessels with onboard armed security teams being pirated Military report use of armed guards rising If embarked, military request it is reported Military position – decision between shipowners and flag state

26. ARMED GUARDS INTERTANKO position regarding the use of armed guards INTERTANKO believes it is the responsibility of the international navies to ensure the right of free passage on the high seas including the use of vessel protection detachments on merchant ships INTERTANKO does not advocate the arming ships' crews INTERTANKO believes that the use of private armed guards or private security forces onboard merchant ships has to be a matter for each individual owner or manager to assess as part of their own voyage risk assessment

27. ARMED GUARDS IMO Maritime Safety Committee MSC.1/Circ.1405 – Interim Guidance to Shipowners, Ship Operators and Ship Masters on the use of Privately Contracted Armed Security Personnel on Board Ships in the High Risk Area MSC.1/Circ.1406 – Interim Recommendations for Flag States regarding the use of Privately Contracted Armed Security Personnel on Board Ships in the High Risk Area MSC.1/Circ.1408 – Interim Recommendations for Port and Coastal States regarding the use of Privately Contracted Armed Security Personnel on Board Ships in the High Risk Area

28. FOCUS AREAS - GOVTS Increased "Government Will" to eradicate piracy off Somalia Cease the use of mother ships Increased prosecution of convicted pirates Increased naval assets in the region Increased public awareness to drive the desired increase in "Government Will“ Action to address the root cause of piracy ashore in Somalia

29. SOS CAMPAIGN SOS CAMPAIGN SaveOurSeafarers (SOS) campaign initiated by INTERTANKO. Joined by BIMCO, ICS, ITF and INTERCARGO Contracted with PR firm to increase public, business and government awareness Phase One – - Ad in Financial Times and World Street Journal - www.SaveOurSeafarers.com web sitewww.SaveOurSeafarers.com - Letters to UN SG, Heads of State and EU President - Interviews with press and news media - Press releases after incidents

32. SOS CAMPAIGN Phase Two – - Social media (Blog, Twitter, Facebook, etc) - Actively engage policy makers - Further ads, press releases and interviews - Seek high profile name to assist in cause Wider industry involvement, now includes support from 30 maritime associations/organizations Steering committee established to brainstorm ideas, prioritize work items and manage budget Phase Three - More focus on high level politicians

33. RECENT DEVELOPMENT Feb 23 – London Somalia Conference Hosted by UK PM David Cameron 40+ senior government leaders Focus on seven areas, including piracy Major Concern – Cameron statement “…creating an international task force to discourage the payment of ransoms to pirates and other groups to eliminate the profit motive…”

34. GREENHOUSE GAS Energy Efficiency Design Index (EEDI) Amendments to the MARPOL Convention Enter into force Jan 1, 2013 for new ships Ship Energy Efficiency Management Plan (SEEMP) Applies to new and existing ships Ship-specific plan developed by the ship owner INTERTANKO guide on Tanker EEMP Market Based Measures (MBMs) Governments believe EEDI is not enough Nine proposals under consideration at IMO Fund, ETS, Efficiency incentive scheme

35. GREENHOUSE GAS Policy on implementation of IMO Energy Efficiency Design Index (EEDI) requirements - 4 year waiver – Apply equally to all new ships - Method of compliance – Improved hull design, propulsion efficiency and energy optimisation, rather than predominantly on reduced speed designs Policy on Market Based Measures (MBM) – MBMs are not justified at this time

36. 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.”

37. TANKER MARKET $/day

38. TANKER SUPPLY numberm dwt

39. TANKER SUPPLY m dwt Under above assumptions, 6% growth is necessary to regain same market balance in 2014 as in 2008

40. Tanker Incidents and accidental pollution Includes all tankers types and sizes

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

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

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

44. THANK YOU!! WWW.INTERTANKO.COM