Kuwait Petroleum International
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Marine Safety and Vetting
Seminario Vetting Confitarma
Rome
07/11/2011
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Agenda
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About Kuwait Petroleum International
KPI Vetting Department
OCIMF objectives and guidelines
Ship quality chain of responsibility and reasons to go for quality
Management of an increasing risk
How the risk is evaluated
How Oil Majors vet
Where are the shipping risks
Arriving at the decision
Conclusions & Questions
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About Kuwait Petroleum International
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Kuwait Petroleum International is the international marketing arm of Kuwait Petroleum
Corporation.
Our business encompasses the marketing and sales, research, refining and manufacturing of
petroleum products, predominantly in Europe and the Far East.
Our activities are underpinned by strong ethical values that demonstrate the greatest concern
for safety and care of the environment.
KPI Markets
Retail
Aviation
Road Diesel
Direct
Lubricants
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KPI European OUs & Terminals
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Kuwait Petroleum Italia
Sundsval
Kuwait Petroleum Spain
Halmstad
Kuwait Petroleum Aviation
Kuwait Petroleum Europoort
Kuwait Petroleum Belgium
Kuwait Petroleum Denmark
Arhus
Goteborg
Aalborg
Vastervick
Antwerp
Esbjerg
Stochkolm
Avonmouth
Rotterdam
Le Havre
Koper
OK Q8
Genova
Venice
Livorno
Milazzo
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KPI Vetting Department
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All vessels offered to KPI Affiliates for loading or discharging of crude oils,
feedstocks, intermediates, products and any hazarous chemicals are required to be
in compliance with the KPI Vessel Acceptance Policy (and Marine Minimum Safety
Criteria)
KPI has elected to provide centralised vetting activities on behalf of its Affiliates.
Operating guidelines in the Vessel acceptance procedure to ensure that such
objective is met in the most effective way by ensuring that all vessels calling at a of
KPI terminal, including the ones on behalf of third parties, always meet the
standards of quality and safety laid down by KPI
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Vessel screening process
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A vessel screening is a process of examination and evaluation referring to the performance
background of the vessel as resulting from following databases:
Ship Inspection REport (SIRE) system. Oil Companies being part of OCIMF (Oil Companies
International Marine Forum) share via the joint database reports of inspections carried out
on vessels. Such inspections are performed by OCIMF accredited inspectors and are carried
out according to a standard format and a uniform inspection procedure developed by the
Organisation and periodically reviewd. Such standards are settled in the Vessel Inspection
Questionnaire (VIQ)
Cemical Distribution Institute reports database (for Chemical and gas carriers)
Lloyds List. An intelligence online service offering information on vessels, Companies, Port
State Controls, vessel incidents, casualties, detentions as well as credit reports
KPI Vetting database. History of performance records with the KPI Affiliates
Being Kuwait Petroleum member of OCIMF, the evaluation process is based on a mixed
approach: screenings + inspections performed by our contracted inspectors
About OCIMF mission and objectives
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Helping to improve the safe and environmentally responsible operation of oil tankers and
terminals since 1970
Being the foremost authority on oil tankers, terminals and offshore suport vessels
Promoting continuous improvement in standards of design and operation
Standards. To identify safety and environmental issues facing oil tanker, barge, terminal and
offshore marine operations and develop and publish recommended standards that will serve
as technical benchmarks
Regulatory. To contribute to the developoment of international conventions and regulations
that enhance the safe construction and operation of oil tankers, barges, offshore support
vessels and terminals, working with the IMO and other regulatory bodies, both regional and
national
Enforcement and Consultation. To encourage Flag States, Port States and Classification
Societies in their nforcement of international conventions and regulations
Promotion. To actively promote OCIMF’s role in the development of safety and
environmental guidelines and recommendations, harmessing the skills and experience of
OCIMF members and holding industry events addressing the issues
Promulgation. To facilitate access by charterers and authorities to data on tankers, barges
and offshore support vessels relating to safety and pollution prevention, through the SIRE
Ships’Quality: The Chain of Responsibility
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Enforcement of Regulations is made by IMO and
Flag States
Responsibility to ensure compliance with national laws and regulations
Implement IMO Conventions
Establish an Administration to conduct surveys, casualty investigations and issue safe
manning documents, seafarers’ certificates, etc..
Port State Control
Provide for control procedures on ships calling at foreign ports (SOLAS 74, Loadline 66,
MARPOL 73/78
Role extended to cover operational requirements in addition to some flag states’
responsibilities
Port States required to inspect 25% of all ships calling at their ports (50% in Asia/Pacific
Region)
Classification Societies
Ensure ships are built to adequate strength and maintained to meet Class Rules
Increasingly delegate responsibilities from Flag States to conduct statuory surveys and issue
cerfificate
Adherence is made by
Ship Operators
Hold prime responsibility for ensuring that ships’ quality, seaworthiness, Manning levels and
competence meet IMO Convention requirements
Reasons to go for quality and risks
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Why…
A single pollution incident can have devastating consequences to even the largest Oil
Company
Public opinion
Political pressure
Financial liability
Commercial reality
Influence of tanker casualties
Increase the knowledge of actual vessel condition
The Shipping risk
Owned vessels
- Least risk
- Greatest control
Time Chartered Vessels
- Better than “spot” but fails short of owning
Voyage Spot Chartered Vessels
- Most voyages
- Greatest risk
- Least knowledge of quality by the charterer
Risk management
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How do Oil Majors evaluate the risk?
Through proper risk assessment teams: Vetting departments
How do Oil Majors evaluate vet?
All Oil Majors have theri own quality assurance schemes
Schemes vary due to company size, scope and diversity of activities, attitude to marine risks
and use of real time information and the quality of analysis
Some may use 3 rd party Vetting
All companies input/extract reports from OCIMF database
Determination of vessel utilisation is solely at each company’s discretion
Liability concerns dictate how individual companies approache the vetting issue
Increasing use of auto-vetting
Arriving at the decision
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Combination of some or all elements
Acceptance matrix
Guidelines/Minimum Marine Safety Criteria
Substantiated positive information
The SIRE Inspection Report
A decision to utilise a particular vessel means that the risk has been analysed and
deemed to be acceptable
Conclusion & Questions
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 What is a suitable SIRE report (age, conditions, product)?
 Do you access CDI?
 Do you compare with other Majors’ vetting policy?
 How often do you inspect T/C or COA vessels?
 Do you consider INCOTERMS in your evaluation process?
 Do you screen vessels each and every time they are nominated for employment?
 Do you rate vessels’ performance?
 Is other Majors’ approval needed for your vessel approval?
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Thank you for your attention