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Marine Vetting and Audit Criteria Manual for Tankers and Barges Document No. COP-UMA-GOV-005
Recommended Document Retention: ADM220 Administrative, Policy, and Procedures; Policy, Directives, and Procedures.
Rev. No.
Originator
Reviewed By
Approved By
Date
Description
7
Tim Stambolis
Karen Stacey
Linda Viens
1 May 2012
Issue for Use
Marine Vetting and Audit Criteria Manual for Tankers and Barges
Issue Date: 01/05/2012 Revision: 7.0
TABLE OF CONTENTS 1.0
GENERAL ............................................................................................................................... 4
2.0
OBJECTIVE ............................................................................................................................ 4
2.1 3.0 3.1 3.2 3.3 3.4 3.5
Vessels Subject to ConocoPhillips Global Vetting Criteria (bulk liquid): ................................. 4 VESSEL ACCEPTANCE REQUIREMENTS: SHIPS / NON-U.S. flag Tugs/Barges............... 5 Additional Criteria for Marine Movements involving Lightering (Vessel to Vessel Transfers): 5 Time Charted Vessels ............................................................................................................. 6 Structural Criteria for Ships and Non-U.S. flag Tugs/Barges: ................................................. 6 Compliance with Local and International Conventions and Regulations - Ship ...................... 6 Protection and Indemnity (P&I) Club – Ship ............................................................................ 7
4.0
VESSEL ACCEPTANCE REQUIREMENTS - U.S. BARGE, TUG, TOWBOAT (ONLY) ....... 7
5.0
ADDITIONAL CRITERIA FOR ALL VESSELS........................................................................ 8
5.1 5.2 5.3 5.4 5.5 5.6
ConocoPhillips Double Hull and Age Criteria for Ships and Barges ....................................... 8 Drug and Alcohol Policy .......................................................................................................... 9 Flag State / Nationality ............................................................................................................ 9 Acceptance and Rejection on Status Changes ..................................................................... 10 Conditions resulting in Vessel and/or Operators Being Placed “On Hold” or “On Notice”..... 10 Voyage Risk Assessment (Piracy/High Risk Transits) .......................................................... 11
6.0
CONTACT INFORMATION ................................................................................................... 11
6.1
EMAIL ................................................................................................................................... 11
6.2
MAILING ADDRESSES: ....................................................................................................... 11
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Marine Vetting and Audit Criteria Manual for Tankers and Barges Revision 6.0
Date 10/01/2011
Description of Changes Updated and changed to one document. This document combines two COP MRM publications: Marine Vetting & Audit Criteria Process Summary for Trade Floor and Marine Vetting & Audit Criteria for Vessel Operators Rev 5.0. Added Piracy Risk Assessment
Issue Date: 01/05/2012 Revision: 7.0
Owner Director, Vetting
5.0
11/30/2009
Updated barge technical criteria
Director, Vetting
4.0
09/16/2009
Double Hull Criteria updated for US carriers conference
Director, Vetting
3.0
03/13/2009
Revision for posting through Intertanko publication
Director, Vetting
2.0
06/2006
Updated/edited for external sharing through SIS link
Director, Vetting
1.0
08/2003
Original Summary after corporate merger
Director, Vetting
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Approved by Manager Marine Risk Management
Manager, Marine Risk Management Manager, Marine Risk Management Manager, Marine Risk Management Manager, Marine Risk Management Manager, Marine Risk Management
Marine Vetting and Audit Criteria Manual for Tankers and Barges
1.0
Issue Date: 01/05/2012 Revision: 7.0
GENERAL
ConocoPhillips (COP) is an Exploration and Production Company, and deals in marine movement of hydrocarbons and related chemicals globally; while participating in several industry organization forums, such as Oil Companies International Marine Forum (OCIMF), American Waterways Association (AWO) and Society of International Gas Tanker and Terminal Operators (SIGTTO), the company incorporates the guidelines, recommendations and best practices set forth by these industry forums and regulatory agencies in its vetting criteria. ConocoPhillips in partnership with certain other oil companies, owns and utilizes the internet based vetting system known as SIS3 or the Ship Information System (SIS, found at www.SIS3.com) to store and process technical information regarding Ships, Barges, Tugs, and Towboats. The SIS database allows certain information to be shared amongst the Partner companies, thus reducing the workload and redundancy of requests to the Vessel Operators. Acceptance or non acceptance of vessels is not shared amongst the Partners and such information remains private to each individual company. ConocoPhillips also participates in and supports the OCIMF SIRE program. The scheduling of the SIRE inspections is achieved through the SIS3 system.
2.0
OBJECTIVE
ConocoPhillips’ core objective is to meet its Marine Transportation needs in the most responsible manner by placing special emphasis on protecting people, the environment, its assets and reputation. ConocoPhillips expects to achieve this by using good quality vessel operators and vessels that remain accident / pollution-incident free. 2.1
Vessels Subject to ConocoPhillips Global Vetting Criteria (bulk liquid): 1. All vessels carrying ConocoPhillips owned bulk liquid commercial cargo (including vessels
carrying part cargoes). 2. All vessels calling at a ConocoPhillips owned/operated/leased marine terminals for bulk liquid
commercial cargo. 3. All vessels calling at a ConocoPhillips leased terminal with COP titled or owned bulk liquid
commercial cargo, with the exception of vessels calling for FOB/DES cargoes at third party terminals where ConocoPhillips leases tankage (unless specifically required by contract). 4. All vessels calling at a ConocoPhillips owned/operated offshore field/installation carrying bulk
liquid hydrocarbon or chemical commercial cargoes. 5. All vessels chartered by or on behalf of ConocoPhillips with the purpose of carrying bulk liquid
hydrocarbon or chemical commercial cargoes. 6. All vessels involved in a STS (Ship To Ship) transfer of a ConocoPhillips commercial cargo,
including both the discharge vessel, receiving vessel and STS Service Provider Company.
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Marine Vetting and Audit Criteria Manual for Tankers and Barges
Issue Date: 01/05/2012 Revision: 7.0
3.0 VESSEL ACCEPTANCE REQUIREMENTS: SHIPS / NON-U.S. FLAG TUGS/BARGES Prior to contracting, use, and/or periodically when under contract, all applicable vessels under 2.1 above shall be nominated into the Vetting System SIS for vetting assessment. Only vessels accepted by COP Assurance and Vetting may be used to carry bulk liquid hydrocarbon or call to ConocoPhillips terminals. Hull Criteria is governed by Section 5 of this document. Additionally, each Ship and Non-U.S flag barge being considered for a potential Marine Movement must meet the following criteria: Be nominated by a ConocoPhillips or ConocoPhillips Joint Venture entity. Be reviewed and accepted by the ConocoPhillips Vetting Team. Include the submission and assessment of a current and valid Ship Questionnaire (SQ) submitted to www.SIS3.com with a date-stamp not exceeding one month. The SQ shall be submitted by the vessel’s technical operator, defined as the entity stated on the vessel’s current Document of Compliance. Have been inspected by an OCIMF member or CDI participant within the past 6 months and the report made available in the appropriate database. At least one acceptable discharge SIRE or CDI report is required within the past 12 months. Except on tugs/barges, the combined sea-going experience of the Master and Chief Officer on ‘any type of tanker’ should be no less than 6 years. Except on tugs/barges, the combined in-rank experience of the Master and Chief Officer must be at least 3 years actual sea-time on tankers. For all Gas Ships, in addition to the above, the Master must have a minimum 1 year sea-time experience as a senior office on LNG and/or LPG and the Chief Officer must have a minimum 1 year sea-time experience as an Officer of the Watch on LNG and/of LPG. 3.1
Additional Criteria for Marine Movements involving Lightering (Vessel to Vessel Transfers): 1. Vessel operator should meet the guidelines of OCIMF STS recommendations or equivalent standard. 2. Overall capability of vessel and staff experience will be considered. 3. The STS operation must be performed with the support of a ConocoPhillips approved STS Service Provider company. 4. The Ship to be Lightered (STBL’s) must be reviewed and accepted by the COP Vetting Team if any COP titled cargo is transferred. 5. STS operations do not include vessel bunkering, barge to ship, or barge to barge operations. 6. Barges involved in Vessel to Vessel cargo transfers require the following: 7. Confirmation that the vendor has lightering procedures in place 8. A lightering representative may be required to attend as deemed necessary by the regional vetting team.
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Marine Vetting and Audit Criteria Manual for Tankers and Barges 3.2
Issue Date: 01/05/2012 Revision: 7.0
Time Charted Vessels
To be accepted for greater than a 6 month time charter requires a ConocoPhillips SIRE report less than 6 months old; thereafter one ConocoPhillips SIRE and one OCIMF submitting member SIRE annually shall be provided for review. Any vessel currently engaged or being considered for time charter equal to or greater than 6 months must possess the following: A ConocoPhillips Inspection annually, irrespective of vessel age. A valid and accepted ConocoPhillips TMSA verification audit report. If the charter exceeds a term contract of more than 24 months, an additional audit shall be conducted twice in five years. A ship questionnaire (SQ) in www.SIS3.com with a date stamp not exceeding one month. An updated Class Survey Status Report with a date stamp not exceeding one month. A current, valid, accepted SIRE or CDI report from any OCIMF member conducted within the last 6 months. The vessel’s age is not to exceed 20 years within the Time Charter. (A COA contract is not considered as a Time Charter.) 3.3
Structural Criteria for Ships and Non-U.S. flag Tugs/Barges:
A technical review is required for vessels that have been subject to a conversion, major modification, vessels that were potentially damaged or have reached a nominal age. Conversions include, but are not limited to, double hull conversions or vessel designation changes (e.g. OBO to tanker). Major modifications include, but are not limited to, extending wheelhouses or repowering projects. 1. OBO’s may be accepted up to 15 years, subject to CAP requirements. A regular pattern of cargo changes from wet to dry are acceptable as long as the previous cargo was wet. 2. All ships over the age of 20 years and Combination Carriers over 10 years must be enrolled in a Condition Assessment Program (CAP) by an IACS member Class Society. A current minimum CAP 2 rating for hull is required for ship acceptance. 3. Commencing end of January 2012, for crude and product tankers a minimum CAP 2 rating will be required for machinery and cargo systems. A CAP rating is not to exceed 3 years (from first survey or per the report’s validity date). 4. A new-build vessel being nominated on the maiden voyage shall be evaluated on a case by case basis. The vessel technical operator shall follow the ConocoPhillips new build acceptance process. This is available upon request. 3.4
Compliance with Local and International Conventions and Regulations - Ship
The Vessel Technical Operator must certify, through completion of the on-line SIS SQ Statement, compliance with all Local and International Conventions and Regulations. Ships trading internationally must have a valid Shipboard Oil Pollution Emergency Response Plan (SOPEP/SMPEP). In addition, ships trading to the United States must have a valid Vessel Response Plan (VRP) accepted in accordance with all applicable United States laws and regulations. The VRP and SOPEP may be incorporated into one document.
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Marine Vetting and Audit Criteria Manual for Tankers and Barges 3.5
Issue Date: 01/05/2012 Revision: 7.0
Protection and Indemnity (P&I) Club – Ship
The ship shall be insured with a member of the International Team of P&I Clubs. Clubs not included on this list may be reviewed and accepted on a case-by-case basis. Ships shall carry P & I insurance coverage (pollution and other third part liabilities) which shall be no less than the minimum required by the international/national authorities for the trading areas operated, including US waters.
4.0 VESSEL ACCEPTANCE REQUIREMENTS - U.S. FLAG BARGE, TUG, TOWBOAT (ONLY) Vessel hull criteria is governed by Section 5 of this document. Additionally, each U.S. flag Barge, Tug or Towboat being considered for a potential Marine Movement must meet the following criteria: 1. All barges must have an acceptable SIRE inspection report less than 12 months old available in
the OCIMF SIRE system. It is the intent of the Marine Barge & Tug Vetting Process that all Time/Term Chartered Tugs and Towboats maintain a current SIRE Inspection Report. The SIRE Inspection Report may be considered valid for up to 12 months from the date of inspection. Non-time chartered tugs and towboats may be required to have a Sire inspection and/or be vetted by the Vetting Team to verify compliance with this criteria and process on a case by case basis. 2. Any double hull barge 15 years or older must have an acceptable thickness gauging/(UT) report
available that is not more than 10 years old. 3. All marine tank barges, tugs, and towboats must be operated under a safety and/or quality
management system structured and adhering to practices identified in Standards such as the ISM code if applicable, or, in the USA, the AWO “Responsible Carrier Program” (RCP) or a similarly COP accepted program, depending on the region where the equipment is being operated. Certifications must be valid and current at all times during the vessel usage. 4. Inland barges, tugs, towboats, and self propelled barges may not be required to comply with
International Conventions or be classed with a Classification Society. While a vessel operator may adopt such options, the absence of such does not preclude ConocoPhillips entities from utilizing such equipment if found acceptable by the Vetting Team. 5. If a barge is chartered by ConocoPhillips and participates in the TAIP program, the vessel
operator will comply with the USCG requirements associated with the Tank Barge Alternate Inspection Protocol. 6. Where a barge is classed, a recent Class Survey Report may be requested by the COP Barge
Vetting Team. 7. Full perimeter spill rails must be installed on all US barges, excluding liquefied flammable gas
vessels.
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Marine Vetting and Audit Criteria Manual for Tankers and Barges
5.0
ADDITIONAL CRITERIA FOR ALL VESSELS
5.1
ConocoPhillips Double Hull and Age Criteria for Ships and Barges
Issue Date: 01/05/2012 Revision: 7.0
ConocoPhillips has enhanced the Double Hull and age criteria with the following effective dates: Non U.S. flag Ocean Going Vessels Compliance Date
Size
Hull Type
Age
January/1/2010
Over 6000 DWT
Double Hull
Less than 25 years
January/1/2010
Less than 6000 DWT and Double Hull carrying Heavy Grade Oil (HGO) 1
Less than 25 years
January/1/2010
Gas Carriers
Double Hull
Less than 30 years
January/1/2012
All vessels (except Gas Carriers)
Double Hull
Less than 20 years
Non U.S. flag Inland Vessels Compliance Date
Size
Hull Type
Age
August/31/2010
Greater than 600 DWT
Double Hull
Less than 35 years
January/1/2010
Less than 6000 DWT and Double Hull carrying Heavy Grade Oil (HGO)
Less than 35 years
January/1/2012
All vessels
Less than 30 years
Double Hull
U.S. Flag Ships There are trade provisions for US Flag – Jones Act Trade Vessels. Please contact the ConocoPhillips Marine Vetting Team for information about ships at
[email protected]
1
Heavy Grade Oil (HGO) as defined in MARPOL: Under the new regulation, HGO means any of the following: i) Crude oils having a density at 15ºC higher than 900 kg/m3; ii) Fuel oils having either a density at 15ºC higher than 900 kg/ m3 or a kinematic viscosity at 50ºC higher than 180 mm2/s; iii) Bitumen, tar and their emulsions.
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Marine Vetting and Audit Criteria Manual for Tankers and Barges
Issue Date: 01/05/2012 Revision: 7.0
U.S. flag Ocean Going Barges Compliance Date
Size
Hull Type
Age
January/1/2010
All barges
Double Hull
Less than 35 years
Compliance Date
Size
Hull Type
Age
January/1/2010
All barges
Double Hull
Less than 40 years
U.S. flag Inland Barges
U.S. flag Tugs and Push Boats (Time Charter only) Compliance Date
Size
Hull Type
Age
August/31/2009
All
N/A
Less than 50 years
01 June 2012
All
N/A
Less than 40 years
The use of any vessel beyond the nominal age criteria requires detailed technical evaluation prior to utilization. The list of technical review documents to be furnished for these vessels will be provided upon request to ConocoPhillips. 5.2
Drug and Alcohol Policy
The technical operator shall certify that it has in effect a Drug and Alcohol Policy, complying with OCIMF “Guidelines for the Control of Drugs and Alcohol Onboard Ship”, unless not permitted by the Flag State. 5.3
Flag State / Nationality
While it is recognized that individual ships should not be overly burdened by their flag where casualty or detention history documented by a Port State Authority results in a targeted flag designation by that Authority, this designation will be considered in the review process. Additionally, ConocoPhillips can exclude certain flag States, if they have been found not to comply with ConocoPhillips’ associated processes or criteria.
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Marine Vetting and Audit Criteria Manual for Tankers and Barges
Issue Date: 01/05/2012 Revision: 7.0
ConocoPhillips shall follow all US Regulations regarding trade with sanctioned countries and/or Restricted Parties. All vessels owned, technically managed or commercially operated by a company headquartered in, or flying flags of US Sanctioned countries shall be rejected. 5.4
Acceptance and Rejection on Status Changes
Vessel acceptance as a result of the vetting process is integral to the successful conclusion of any fixture and is a continuing requirement thereafter. Vessel Vetting acceptance may become invalid with any change of ownership, classification society, P&I Club, technical or operational management, or due to significant technical or procedural changes on board the vessel, or defects that may be deemed to affect meeting the designated factors. Additionally, casualties and other incidents, or port state detentions, unsatisfactory reports from a marine terminal, and any other factors judged by ConocoPhillips to be material which arise before, during or after the conclusion of a fixture that are deemed likely to impact negatively on ConocoPhillips ability to use the vessel, then ConocoPhillips reserves the right to withdraw acceptance in all such circumstances. However, where a vessel has changed ownership but otherwise the technical management shows a continuity including the vessel and shore technical management, the vessel can be considered for COP service. 5.5
Conditions resulting in Vessel and/or Operators Being Placed “On Hold” or “On Notice”
Definitions: “On Notice”
A warning given by ConocoPhillips to the technical operator due to concern caused by negative operational or HSE trends or a one-off event; this is generally used to notify the technical operator and assure corrective and preventative actions are taken.
“Technical Hold”
A temporary rejection given by ConocoPhillips of a vessel(s) and/or technical operator for continued use of their fleet, due to an extraordinary event or significant negative trends or cause. A technical hold is effective until corrective actions and/or answers acceptable to COP Assurance and Vetting are received and deemed satisfactory by the Manager, Assurance and Vetting..
Examples where Vetting Technical Hold may apply: Office Audit of vessel technical operator - an unsatisfactory assessment by a ConocoPhillips office Audit review team. In the event a vessel nominated for ConocoPhillips service is deemed unacceptable or below standard on more than one consecutive occasion, a ConocoPhillips SIRE inspection may be warranted. If the results of this inspection indicate in no improvement to the vessel’s status, the vessel may be placed ‘on technical hold’ and will require a ConocoPhillips re-inspection. However, the vessel may not be eligible for re-inspection until after 3 months from the date of original inspection. This period of time is necessary in order to allow the vessel operator and staff sufficient time to develop, implement and verify the effectiveness of corrective actions taken.
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Marine Vetting and Audit Criteria Manual for Tankers and Barges
Issue Date: 01/05/2012 Revision: 7.0
A vessel previously accepted for ConocoPhillips service will be placed on ‘Technical Hold’ in the event the vessel is deemed ‘unseaworthy’ or a high risk to ConocoPhillips prior to the commencement of service. The vessel will remain on Technical Hold until a satisfactory class report, causal analysis and corrective actions/lessons learned are received by COP and deemed satisfactory. 5.6
Voyage Risk Assessment (Piracy/High Risk Transits)
Vessels planning to traverse areas subject to risk of piracy must have in place sufficient anti-piracy operational plans and countermeasures in accordance with current best management practices for piracy as per OCIMF Guidelines, flag State directives, and technical operator’s applicable insurance provider’s directives in order to mitigate the risk from piracy. ConocoPhillips utilizes the BIMCO Automated Voyage Risk Assessment (AVRA) tool in order to ensure that individual voyage risks due to piracy threat are evaluated against the most detailed and timely information possible. Vessels traversing areas subject to piracy risk are expected to submit a current AVRA report, complete an AVRA information form or complete a detailed high risk assessment report for the vessels antipiracy practices/route and submit this for review by ConocoPhillips. Vessels with risk assessment scores or results above an acceptable level as determined by the ConocoPhillips vetting team, may be either rejected by the Vetting Team for that voyage or the vessel technical operator may revise its’ available anti-piracy measures and update the AVRA/risk assessment to provide additional Best Management Practices/countermeasures in order to lower the risk assessment score to an acceptable level prior to entering areas subject to risk of piracy.
6.0
CONTACT INFORMATION
6.1
EMAIL
For ship vetting information, contact:
6.2
[email protected]
MAILING ADDRESSES: ConocoPhillips Company (Corporate Headquarters – Houston, Texas USA) 600 N. Dairy Ashford Houston, Texas 77079 USA +1 281 293 1000 ConocoPhillips (Singapore) One Temasek Avenue Millenia Tower #40-02
Singapore 039192 +65 6536 0010
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