Operator Guide to Chevron Shipping Company Marine Assurance Use of TMSA 3

An international tanker operator guide toChevron Shipping Company Marine Assurance use of TMSA 3 August 2017 © 2017 Chevron • Nothing should be inferred about acceptability of an operator or its fleet of vessels for future transactions involving Chevron from the contents of this guidance document. there are a number of factors that are used in and that can influence any marine risk assessment made when a vessel or vessels are nominated for clearance by MA. Disclaimer • This operator guide to TMSA 3 is intended for general guidance to third party tanker and gas carrier operators as to how Chevron Shipping Company (CSC) Marine Assurance (MA) currently utilizes TMSA 3 in its marine risk management processes as well as detailing specific MA expectations for named KPIs. and MA’s use of TMSA. © 2017 Chevron 2 . These factors. can and will change over time. and commercial support. Introduction to Chevron Shipping Co. LLC Marine Assurance • Chevron Shipping Company (CSC) is the corporate marine center of expertise for Chevron corporation and its affiliates for marine operations and projects. reliable and cost-competitive marine transportation. including the provision of safe. • All vessels chartered by a Chevron corporation or Chevron affiliate entity. • Marine Assurance (MA) is the organization within CSC responsible for the management of marine risk associated with third party marine transportation (including associated cargo operations) of bulk liquids and gas cargoes. marine technical matters. managing marine risk. © 2017 Chevron 3 . Singapore and Perth. calling at a Chevron marine facility (owned. California with offices in Houston. operated or leased). or carrying cargo owned by a Chevron affiliate entity must be approved by the Marine Assurance organization. London. • MA is a global organization headquartered in San Ramon. • TMSA is an important element of the overall risk management process used by MA. © 2017 Chevron 4 . voyage transit. MA will consider the following:* • The quality of the vessel and the operator. and discharge locations. port state control. incident history and TMSA/operator reviews. Chevron terminal feedback. allowing an assessment of the vessel operator’s safety management system and its effective application on a vessel operator’s fleet. Marine risk assessment In assessing the marine risk associated with a particular transaction. MA will review and analyze a variety of factors not limited to but including SIRE inspection history. • The dimensional and equipment fit of the vessel for the intended transaction. • Load. • In assessing quality. * The above list is not exhaustive but is merely indicative of the types of factors MA will review. MA requirements for a TMSA review to be conducted Chevron MA will request a TMSA review of an operator for a variety of different business reasons. • Response to operational performance issues. © 2017 Chevron 5 . • Significant change in fleet size or composition. • Business exposure–operator subject to a high volume of clearance nominations. for example: • Evaluation for term contract suitability. Additionally. © 2017 Chevron 6 . • Identifies any gaps in meeting Chevron expectations. • Clear. • Sets out Chevron expectations for selected KPIs that may be beyond the requirements of TMSA best practice guidance. internal risk assessment models to identify high focus KPIs irrespective of TMSA Stage. objective picture of performance and the identification of gaps within each of the elements. • Reviews and assesses the self-assessment accuracy. MA also utilizes a TMSA review as a risk assessment tool and as such: • Uses proprietary. Tanker Management Self-Assessment (TMSA 3) The purpose of this document is to provide information around the use and application of a TMSA review by MA in its risk management processes. • Identification of 13 elements of management practice that are required for the safe effective management and operation of vessels. MA’s view of TMSA is that as a best practice guide it provides an: • Industry standard framework for the assessment of a company’s SMS. • Identifies any gaps in meeting high focus KPIs. As part of the TMSA review the following items are used in any evaluation: • Accuracy of submission. TMSA reviews are used as a risk assessment in conjunction with other sources of information in forming an overall view of Operator performance and/or risk. particularly time charter eligibility–especially when analyzed in conjunction with other performance data. • Non-conformance to Chevron expectations may have an implication on certain transaction acceptability. • Operational performance and transparency of incident reporting. Tanker Management Self-Assessment (TMSA 3) MA’s use of TMSA findings: • Conclusions around Operator acceptability should not be inferred from the results of any MA TMSA review. © 2017 Chevron 7 . but will be noted as an expectation shortfall). • Effectiveness of corrective actions to observations raised. • Conformance to Chevron expectations (non-conformance will not affect the rating of an operator’s TMSA review. The results of TMSA reviews should not be viewed in any way as the sole determinant in Operator acceptability. or an average score for all elements combined in assessing Operator suitability for CVX business. • Number of high focus findings (as determined by MA proprietary analysis). • MA does not require a minimum stage score for each element individually. 3. Chief Engineer. 3. (Where applicable Gas engineer and electro-technical officer will also be considered a senior officer. 3. Chevron Shipping Company Marine Assurance TMSA 3 KPI expectations 1. Chief Officer.1 Senior officers will be considered to include Master.2 Vessel to technical superintendent ratio is no greater than 4:1.5 Candidates for Master and Chief Engineer will attend the Head Office or branch office (with technical. Second Engineer.1.1.2.) 3A. Vessel to Marine Superintendent ratio is no greater than 8:1.2. (For LNG carriers a Gas Engineer is included and if applicable an Electro-Technical Officer).3.3 Operator analyses the results of the two-year retention rates at least annually and where retention has fallen significantly previous years or has fallen below 70% the underlying reasons should be documented in the management review meeting. Second Engineer and Chief Officer. 3. Chief Engineer. marine and commercial oversight) during the interview process or prior to assignment to their first vessel.2. 2. 2. 3A.5 Key personnel includes Master.4 Operator analyses the results of the two-year retention rates at least annually and where retention has fallen significantly from previous years or has fallen below 80% the underlying reasons should be documented in the management review meeting.3 Evidence that shore based senior managers regularly attend fleet vessels/company activities such as officer seminars and there is a metric in place for the number of senior manager visits to vessels.1 Operator has developed a standard manning level for each type of vessel in the fleet and has defined the conditions in which the manning requirements will be increased. © 2017 Chevron 8 .3. 3 (Time charter requirement) The person conducting the assessment is a master mariner with senior officer experience.1.3.2 The person conducting the assessment is a master mariner with senior officer experience. © 2017 Chevron 9 .3 (Time charter requirement) A procedure is in place to ensure a vessel is inspected by an appropriately qualified superintendent at least once in any 12 month period under a sailing condition to confirm adherence to company maintenance standards.4.3 (Time charter requirement) Each vessel shall have a navigational audit during a period of navigation conducted by a suitably qualified member of the shore staff at least once in a 12 month period 5.2.3.3.1. 5.1 The person conducting the assessment is a master mariner with senior officer experience. 4. Chevron Shipping Company Marine Assurance TMSA 3 KPI expectations 3A. 5. 5.1 Each senior officer will have attended a company seminar in a two-year interval.3 Once replicated.2. the Fleet Manager / Technical Manager reviews (as per the Best Practice Guide) at least on a monthly basis the status of the PMS. 5.2 Procedures ensure any navigation related instructions in the charterer’s voyage orders are reviewed and documented in the vessel’s passage plan. 4. 1. manuals. 6a.2. Procedures for ballasting cargo tanks and shore line flushing will include the requirement for authorization from shore management.3. Chevron Shipping Company Marine Assurance TMSA 3 KPI expectations 6. 6a.2.1 Methodology used to determine root causes is defined in the procedure. Where there are insufficient officers onboard to cover the mooring station and bridge team requirements.4 MOC request form confirms. 8. 8. which documents.3 At least one member of shore based staff has attended an external incident investigation training course in the investigation methodology documented in company procedures.3 Ballast procedures will address precautions to prevent hydraulic shock (water hammer) in the ballast pipeline. the company has specified its expectations with regards to supervision by appropriately qualified & trained personnel. plans and drawings were changed upon completion of the MOC and that the relevant index is updated. 7. by name and location.1 SMS specifies that each mooring station is supervised by an officer. © 2017 Chevron 10 . 6.2. ballast or bunker operations in the charterer’s voyage orders are reviewed and documented in the vessel’s port and cargo operations plans.2.2.1 Procedures ensure any instructions related to cargo.4 Generic risk assessment developed for tug operations. 2.1 A Stop Work Policy is in existence 11. there is a documented procedure for sharing. 9a.3 Operator either uploads incident investigation reports to the OCIMF SIRE database or where this is not done.5 A procedure is developed requiring a documented familiarization process for all visiting contractors.2.3. etc. 9. rate of drift of a disabled vessel.2 The shore based emergency response plan requires calculations relevant to each emergency scenario. drift rate of any spilled oil considering wind and current. © 2017 Chevron 11 . maximum possible oil outflow. e. Chevron Shipping Company Marine Assurance TMSA 3 KPI expectations 8. 9a.1.4 A documented record of daily work meeting as per KPIs is required to be maintained onboard the vessel.1.g. 2.1.1.3.1 4. Recruitment & Management of Shore-based Personnel 2.3.1. 4a.1.3. 4a.2.1.2. 6. 5. 4a.A Wellbeing of Vessel Personnel 3a.4.1.2. 6.4.3. 6.5 3.1.4.1 6.1. 6a. 2. 6.1.2.1. Cargo Ballast.1.2.3.1.2. Tank Cleaning & Bunkering Operations 6.2. 6. 4.3. Chevron Shipping Company Marine Assurance High Focus KPIs 2. 3.1.2.2.3. Navigational Safety 5.5.1.1.1.A Mooring & Anchoring Operations 6a. 6.2.A Vessel Reliability & Maintenance (Critical Equipment) 4a. 3.2.1.1.4.3. 5.1. 6.2 6.1.1.2 3.2.1.4. Vessel Reliability & Maintenance 4. 4a.2. 4a. © 2017 Chevron 12 .2.3 4.1.1.2 5. Recruitment & Management of Vessel Personnel 3.2. 5. 6. 2. 13.1.3. 7.2.3.2.2. Emergency Preparedness & Contingency Planning 11. 9. 9a.1. 7.2 12.2.1. Measurement.2.1.2. Safety Management – Shore-based Monitoring 9. 13.1.2.2.Inspections 12.1.1. Investigation & Analysis 8.1. Incident Reporting.1. 11.3 8.1.4. Maritime Security 13. Chevron Shipping Company Marine Assurance High Focus KPIs 7. 9a.3.1 9. Safety Management – Fleet Monitoring 9a.1. 7.5 9. 8.1. 9.3 © 2017 Chevron 13 . 9.4.2. 9a.2.1.2.1. Analysis & Improvement .2.4.A.3.2 13. 9.1. Management of Change 7.2. 9. 11.4.2.1.3. 9.