1. PHASE – OUT Dragos Rauta INTERTANKO NORTH AMERICAN PANEL October 4th, 2005 Houston, TX

2. PHASE–OUT OF S.H. TANKERS USA – OPA 90 unchanged/clear/simple –2010 drop date for all US ports –2015 final drop date for all offshore & lightering areas IMO – many rule changes - 1992/2001/2003 –Reg. 13G – initial clear/complex after amendments –Reg. 13H – restricts # of cargoes on SH tankers

3. REG. 13G/20 (as amended 2001/2003) the ”25/30 years” criterion replaced with a (similar to) OPA 90 phase-out type schedule phase-out by ship type & ship delivery date –type 1 (pre-MARPOL) – out by end 2005 –type 2 (PL/SBT) S.H. - out by end 2010 except when Administration allows until the 25th anniverssary but not later that 2015 (13G(7)) –type 2 - DS/DB (as of 07/01/2001) – 25th anniverssary (pending Adminsitration approval; 13G(5)) –type 3 (all tankers under 20K DWT) – as ship type 2 CAS – ships 15 years and over – survey planning compulsory ( work with your Flag/RO well before due time ) BUT, 13G(8) gives Port State the right to deny entry

4. NEW REG. 13H/21 (amended 2005) ”heavy grade of oil” (HGO) HGO is any oil with –density 900 kg/cub.m and over (at 15 Celsius) OR –kinematic viscosity 180 sq.mm/s (at 50 Celsiuis) –plus bitumen, tar and their emulssions Application: –04/05/2005 in DH only for ships above 5,000 dwt –ship’s anniverssary date in 2008 in DB/double containment for ships between 600 dwt and 5,000 dwt

5. NEW REG. 13H/21 (possible) Exemptions DS/DB (as was 12/4/2003) may transport HGO up to 25th anniverssary if Administration allows (13H(5)) SH tankers over 5,000 dwt may transport crude oil with density up to 944.9 kg/cub.m up to 25th anniverssary if Adminsitration allows (13H(6)(a)) SH tankers between 600 dwt and 5,000 dwt may transport HGOs up to 25th anniversary if Administration allows (13H86)(b)) SH tankers or FPSO/FSU may transport/store HGOs in one country’s waters, if allowed (13H(7)) BUT Port States can deny entry of any of the above (13H(8))

6. INTERTANKO Service http://www.intertanko.com/phaseout/ phase-out calculator implementation policies (Flag & Port States) table with crude oil densities list of Parties to MARPOL

7. Flag / Port States13G (5)13G (7)13G (8)(b)13H (5)13H (6)(a)13H (6)(b)13H (7)13H (8)(b) AustraliaY1Y1 NYNNNNY BahamasYYN/AYYYY BarbadosYYNYYY7N EU Member StatesY1Y1 NYNNNNY GreeceNNNYYYYN Hong KongY1Y1 Y2Y2 NNNNNY IndiaYYNYYYYN JapanY1Y1 YNY1Y1 NY3Y3 -N4N4 LiberiaYYN/AYYYY Marshall IslandsYYN/AYYYY MexicoYNYNNNNY Panama Canal Authority Panama Maritime Authority -Y-Y -Y-Y case by case basis N -Y-Y -Y-Y -Y-Y -N-N case by case basis N People's Republic of ChinaYNYY2Y2 NNNY Republic of Korea- --N5N5 N5N5 N5N5 N5N5 Y RomaniaYNYNNNNY SingaporeYYNYYYYN United StatesN/A 1 – not later than 2015 2 - 2015 or 20 th anniversary which one is earliest 3 - Japanese flag tankers until 2015 only if they have DB or DS 4 – SH foreign flag tankers until 2008; DB or DS foreign flag tankers until their 25 th anniversary 5 – Korean and foreign flag tankers will not be allowed to enter Korean ports with HGOs as from 5 April 2006

8. DH Tankers - Age Distribution Source: Joint Tanker Project

9. Tanker fleet double-hull development Source: Fearnleys/INTERTANKO %

10. Tanker incidents and age development Source:LMIS/Informa/INTERTANKO %

11. Tanker pollution and age development Source:LMIS/Informa/INTERTANKO 000 ts Years