1. Leading the way; making a difference Heidmar Marine Forum March 13, 2013 INTERTANKO OVERVIEW JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

2. Leading the way; making a difference FIVE YEAR STRATEGIC PLAN SUSTAINABILITY PIRACY BALLAST WATER MANAGEMENT OCIMF SIRE WG/INTERTANKO VC ANNUAL TANKER EVENT

3. Leading the way; making a difference Five-Year Strategic Plan Scenario planning looking at macro environment and influences Key influences: Market conditions Geo-political situation worldwide Environmental concerns Most likely scenario for the next five years – Strong environmental concerns within an unstable geopolitical situation

4. Leading the way; making a difference Five-Year Strategic Plan Major Issues Sustainability Human Element Tanker safety and performance Greenhouse Gas Emission reduction Air emissions reduction Ballast water management Maritime security threats

5. Leading the way; making a difference Five-Year Strategic Plan Desired Outcomes Sustainability Members have access to tools, models and information to enable them to continue operating safely Tanker Safety & Performance Members proactively positioned for top performance with regard to safety & performance

6. Leading the way; making a difference Five-Year Strategic Plan Desired Outcomes Human Element Criminalization of seafarers Visas and shore access Seafarer welfare and fair treatment Competence Availability

7. Leading the way; making a difference Five-Year Strategic Plan Greenhouse Gas Emission Reduction Members’ new tankers meet, preferably exceed, required EEDI values and CO 2 emission reductions targets Development of solid industry practices and a monitoring system relevant to GHG emission reductions from tankers in operation, in cooperation with other stakeholders such as OCIMF, allowing Members’ tanker fleets to achieve & demonstrate increases in efficiency While legislation on MBMs is not justified at this time, if it were to be implemented, the Association will support/ promote the most practical and transparent MBM alternative at IMO, but not at regional level

8. Leading the way; making a difference Five-Year Strategic Plan Desired outcomes Air Emission Reduction Promote global switch to MGO Members fully advised on best choices for compliance with ECA requirements (and on how to assess/select scrubbers) Revised EU Sulphur Directive aligned with MARPOL Ballast Water Management Members able to achieve compliance with current and future discharge standards (both regionally and internationally)

9. Leading the way; making a difference Five-Year Strategic Plan Desired outcomes Global Maritime Security Threats Members suitably informed to protect vessels and crew from maritime security threats Key stakeholders develop policies and positions benefiting the whole industry to ensure freedom of navigation Members suitably informed of sanctions that affect their trading patterns to enable them to make informed decisions on lawful trade

10. Leading the way; making a difference SUSTAINABILITY INTERTANKO Council (May 2012) agreed to: 1. development of an optimal speed model to show the relationship between the time charter equivalent earnings and CO 2 emissions, based on a known freight rate for a specific route and different tanker speeds.

11. Leading the way; making a difference TC equivalent and emission at various speeds $/day Tonnes CO2 emisson

12. Leading the way; making a difference 2. expand scope of the INTERTANKO WorldScale Committee to include commercial issues that have an impact on tanker operations, including: proper promotion of speed optimization rising fuel costs broker’s fees certain charter party clauses regarding purging and cargo heating; and possible decoupling the fuel costs from the commercial transactions.

13. Leading the way; making a difference COUNCIL (Nov 2012) agreed that INTERTANKO should develop an action plan to raise the profile of sustainability to the top level of the oil companies’ thinking, and that safety was an essential component of this. It also agreed that the INTERTANKO should continue to engage directly with other stakeholders by holding level meetings. EXCOM (Feb 2013) general consensus that there is a need for a sustainability campaign. Initial focus should be on practical issues that might be changed in the short term e.g. Worldscale and payment terms. Next steps would be to develop key messages and to identify key areas for the campaign to impact. Submit to Nov 2013 Council meeting for final approval.

14. Leading the way; making a difference 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 - 75 attempted incidents - 14 hijackings (18% of incidents) - 7 commercial ships, 5 dhows, 2 fishing

15. Leading the way; making a difference 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 IMO

16. Leading the way; making a difference IMO Maritime Safety Committee MSC.1/Circ.1443 – Interim guidance to private maritime security companies providing privately contracted armed security personnel on board ships in the High Risk Area MSC.1/Circ.1444 – Interim guidance for flag States on measures to prevent and mitigate Somalia-based piracy (compilation, in a single reference document, the best practices, codes and standards developed by IMO to date) IMO

17. Leading the way; making a difference IMO MSC requests International Standards Organization (ISO) to develop standard for guidelines and the certification of private maritime security companies providing PCASP Standard to be based upon MSC.1/Circ.1443 – Interim guidance to private maritime security companies ISO Publicly Available Specification (PAS) 28007 developed Made available to IMO MSC 91meeting in Nov 2012 ISO

18. Leading the way; making a difference GUARDCON Contract for the employment of security guards on vessels Developed by BIMCO to provide clearly worded and comprehensive standard contract to conclude agreements with security services Reviewed by INTERTANKO Documentary Committee and endorsed for use by members

19. Leading the way; making a difference Rules on Use of Force (RUF) BIMCO Guidance on Rules for the Use of Force (RUF) by Privately Contracted Armed Security Personnel (PCASP) adopted after significant consultation with broad industry, insurance and legal sectors supplements GUARDCON 100 Series Rules - An International Benchmark for Commercial Maritime Rules for the Use of Force (RUF) developed UK attorney intended to supplement ISO PAS 28007

20. Leading the way; making a difference West Coast of Africa 2011 Statistics (IMB) - 37 attempted incidents - 10 hijackings 2012 Statistics (IMB) - - 49 attempted incidents - 10 hijackings 2013 Statistics (IMB and Dryad) - 7 attempted incidents - 5 hijackings

21. Leading the way; making a difference West Coast of Africa Piracy off the west coast of Africa is worsening Initially, the model is for ships to be taken, barges filled with cargo then ships released New name – Extended Duration Robbery (EDR) These pirates are much more violent in pursuing their objective However, more recently, crew are being taken for ransom

22. Leading the way; making a difference West Coast of Africa INTERTANKO action: Drafted guidance for Members specific to the piracy problem in West Africa Interim guidance issued by RT in Dec 2012 RT letter to IMO Secretary General requesting matter be brought to the attention of the UN Security Council with a request for assistance to local constabulary activity in the area (Feb 2013) In addition, UK Foreign Office and OCIMF working together on launching a co-ordination center in the region

23. Leading the way; making a difference Ballast Water Management May 2012 - INTERTANKO Council recommends comprehensive document detailing technical, operational and compliance challenges and proposing solution to be sent to IMO and proposing solutions be sent to IMO August 2012 – Joint submission to IMO’s MEPC 64 co-sponsored with Liberia, the Marshall Islands, Panama, BIMCO, CLIA, INTERCARGO, InterManager, IPTA, NACE and WSC

24. Leading the way; making a difference IMO MEPC 64 (Oct 2012) Submission Explains the challenges being faced for effective implementation of the BWM Convention and to provide proposals to address those challenges Submission covered FOUR key areas: 1. 1.Guidelines for approval of ballast water management systems (G8); 2. 2.Availability of Ballast Water Management Systems (BWMS); 3. 3.Survey and certification requirements 4. 4.Procedures for port State control

25. Leading the way; making a difference OUTCOME OF MEPC 64 1.Revision of the G8 Guidelines Decided not to amend the G8 guidelines (at this time), BUT agreed to request BLG subcommittee to develop additional guidelines on the application of the G8 guidelines to address the issues raised in our submission 2. Availability of BWMS Established a correspondence group (lead by Japan) to develop an Assembly resolution regarding the implementation of Regulation B-3

26. Leading the way; making a difference OUTCOME OF MEPC 64 3.Survey and certification requirements Agreed with our proposal to issue an MEPC Circular 4.Sampling and analysis procedures for PSC Agreed with INTERTANKO proposal to instruct BLG (and FSI) Subcommittee that sampling and analysis procedures for PSC should be no more stringent than what is required for type approval of BWMS

27. Leading the way; making a difference BLG 17 (Feb 2013) Type approval. INTERTANKO joint submission on type approval guidelines accepted. Increased transparency of type approval process and more info provided to ship operators on BWM system capabilities and limitations. PSC procedures. Agreed to undertake a trial period for port state control sampling and analysis. The trial will commence once the BWM Convention has entered into force and will initially run for two years. During trial period, it is agreed that port state control officials will refrain from initiating criminal sanctions against the vessel and its crew should the sampling show that the discharged ballast water does not meet the standards in the BWM Convention.

28. Leading the way; making a difference BLG 17 (Feb 2013) Assembly resolution on implementation dates Agreement amongst a large majority of the group that there should be an extension of the implementation schedule for existing ships. Opposing views which were almost equally divided as to whether this extension should apply to new ships. Extension being considered for both new and existing ships is to delay the installation dates until the ship’s first renewal survey after the entry into force of the BWM Convention. INTERTANKO will continue to push for the extension to apply to both new and existing ships.

29. Leading the way; making a difference OCIMF Sire WG/INTERTANKO Vetting VC Initiated by INTERTANKO VC Chairman Initial focus was “the decline in the use of the SIRE system by OCIMF members” Meetings in Nov 2012 and Jan 2013 Issued discussed included: - - Increased sharing of ship inspection statistical data - Improved feedback systems on ship inspections and inspectors - - Development of best practice guidance on important areas of marine risk assurance - Development of matters related to crew competency

30. Leading the way; making a difference ANNUAL TANKER EVENT Venue – Grand Hotel, Oslo, Norway Dates – May 28 – 31, 2013 Events:Executive Committee Meeting Council Dinner and Meeting Annual General Meeting Gala Dinner Tanker Seminar (Sustainability) Workshops

31. Leading the way; making a difference THANK YOU!!WWW.INTERTANKO.COM