1. WHO WE ARE 2007 BP SHIPPING clean seas safe ships commercial success

2. BP Shipping is the centre of shipping expertise for the BP group Providing safe, environmentally responsible marine and shipping solutions in support of BP Group Strategy Providing assurance on ‘everything that floats’ Value adding through commercial operation of oil tanker assets, using a combination of spot, time charter and BP operated vessels Technical operation of group controlled assets the offices Sunbury Canary Wharf Houston Singapore Chicago Aberdeen Los Angeles Texas City Anchorage Hong Kong Shanghai Zhuhai Melbourne Perth Athens Gelsenkirchen Cape Town Clean Seas, Safe Ships, Commercial Success current fleet BP operated 4 x VLCCs 1 x Shuttle Tanker 7 x LNG 3 x LPG 20 x 100kdwt 12 x 47kdwt 10 x 37kdwt 24 Regional Vessels time chartered 100 vessels Total Dec 2006: 181 vessels the people BP operated 400 shore staff 800 officers 130 cadets 1000 ratings

3. HYDROCARBON ON WATER Total cargo volume shipped: 251.7 m tons Total number of voyages: 6,902 Utilization of OTC fleet on BP business 50% (2000) to 85% (2006) Value of Owned Fleet: US$5.5bln (est.) Apprec. >30% Average Age of Vessels (>9k dwt) 15 yrs (2000) 5 yrs (2006) Target: 50% of Group Cargo carried on Operated or TC tonnage

4. target 50% of group cargo carried on controlled tonnage objective no accidents, no harm to people no damage to the environment controlledspot BP Shipping controls:improve global tanker standards in the industry 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 It is all about reducing the risk to BP oil majors ship owners legislation setting standards –age –double hull policy –operational requirements –operating procedures –manning training confirmed by –inspection –management audit –structural review design build operation procedures maintenance people deployment disposal T/C assurance

5. HSE Goals BP Group HSE Goals are simple… No Accidents No Harm to People No Damage to the Environment Wherever BP have control or influence we will work with others, our partners, suppliers, competitors and regulators to raise the standards of our industry

6. MARINE ASSURANCE STRATEGY To improve the Group’s control of shipping and marine risk through: Broadening the scope of the Group’s existing Marine Assurance policies, including the establishment of minimum criteria for ports and terminals. –All tankers in international trade and used on BP business to be double hull and younger than 20 years old by 2008. Encouraging the use of the higher quality end of the pool of acceptable vessels; Promoting improved standards in the barging industry and increasing our use of double-hulled barges.

7. 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 The Vetting Decision YES NO More info Required STRUCTURAL ASSURANCE Making the decision

8. YES -VESSEL MAY BE USED (SUBJECT TO CERTAIN CONDITIONS) NO - VESSEL MUST NOT BE USED SV - REFER TO SHIP VETTING FOR DECISION / LATEST SITUATION WITH VESSEL Vetting Enquiry Results

9. VETTING STATISTICS More than just tankersVaries between 75% and 85% * Further assessment required; typically A further 8% will be yes & 3% no. *

10. Inspection Scheme

11. POLICIES – NOW & FUTURE Age –From January 2007 all vessels greater than 5,000 dwt shall be less than 22 years of age –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 Double Hull –From January 2007 all vessels over 5,000 dwt –From January 2008 all vessels over 600 dwt, with exceptions for some barges until 2010

12. Thank You