intertanko vetting seminar athens – may 15, 2007 tim plummer president tesoro maritime company
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Intertanko Vetting SeminarAthens – May 15, 2007
Tim PlummerPresident
Tesoro Maritime Company
Tesoro Corporation
3
4Tesoro Today
2006
Fortune “150” # 132
Global “500” # 406
Revenues $ 18.1 billion
Refining & Marketing 100%
Enterprise Value $ 5.1 billion*
First refinery operated 1969
* As of January 26, 2007
5
Anacortes, Washington
• 115 mbpd• 8.2 complexity• Key product:
Gasoline• 69 retail sites
Mandan,North Dakota
• 58 mbpd• 7.8 complexity• Key products:
Gasoline & Diesel• 112 retail sites
Salt Lake City, Utah• 58 mbpd• 6.3 complexity• Key products:
Gasoline & Diesel• 117 retail sites
Kapolei, Hawaii• 94 mbpd• 4.5 complexity• Key product: Jet• 34 retail sites
The Tesoro System
Corporate Office
Denver Office
London Office
Singapore Office
Auburn Office
Long Beach Office
Martinez, California• 166 mbpd• 13.5 complexity• Key products:
CARB Gasoline & CARB Diesel
• 89 retail sites
Los Angeles, California• 100 mbpd• 16.4 complexity• Key products: CARB
Gasoline & CARB Diesel• Approximately 310
retail sites Calgary Office
Tesoro System Highlights• 7 Refineries• 663 mbpd total crude capacity• 9.7 complexity• Retail network of over 860 sites• Over 6,000 Employees
RETAIL BRANDS
Kenai, Alaska• 72 mbpd• 4.9 complexity• Key product: Jet• 96 retail sites
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Growth through Strategic Acquisitions Improve Financial Performance
Acqu
isitions
Improve Financial Performance
Over 500% Total Shareholder Return Since 2003
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Golden Eagle Acquired
Salt Lake City & Mandan Acquired
KapoleiAcquired
Anacortes Acquired L.A. Refinery
Acquisition Announced
7Marine Structure
Tesoro Corporation
Tesoro Maritime Company
Gold Star Maritime Company
Tesoro Far EastMaritime Company
U.S. Flag Activity Non U.S. Flag Activity
8Refinery Associated Berths -1
• Hawaii SPM Terminal– Kapolei Refinery on Oahu
– Crude & Products
– Max dwt = 150,000
– Max LOA = 945 ft. – Max Draft = 57 ft. – UKC = 12 ft.
• KPL Dock – Nikiski, Alaska– Kenai Refinery
– Crude & Products
– Max dwt – 125,000 (summer) – 70,000 (winter)
– Max LOA = 850 ft. – Max Draft 37 ft. – UKC = 5 ft.
– Max cargo volume = 500,000 gross bbls.
9Refinery Associated Berths - 2
• Anacortes Outside Berth– Anacortes, Washington Refinery
– Crude & Products
– Max dwt = 125,000 (State of Washington restriction)
– Max LOA = 987 ft. – Max Draft = 45 ft.
• Amorco Wharf – Golden Eagle Refinery, Martinez, California
– Crude
– Max dwt – 190,000
– Max LOA = 1000 ft. – Max Draft 38 ft. FW
10Refinery Associated Berths - 2
• Long Beach Terminal Berths 84A & 86– Los Angeles, California Refinery
– Crude & Products
– Max dwt = 130,000
– Max LOA = 1000 ft. – Max Draft = 45 ft.
11Tesoro Time Chartered Fleet
• 2 – Suezmax
• 3 – Aframax
• 5 – MR’s
– 9 are Double Hull, 1 is Double Bottom
• 11 – Barges (U.S. West Coast & Hawaii)
– 10 are double Hull
Vetting
13IMPORTANCE
• Protection of people
• Protection of the environment
• Financial exposure
• Business disruption
• Our relationship with stakeholders
• Our reputation as a publicly owned company
• In Alaska we are the coil spill plan holder
14WHEN
• Tesoro Corporation policy requires that all vessels
must be vetted and approved before they can:
Be chartered-in
Perform under a COA
Carry cargo which Tesoro has an interest
Call at a Tesoro facility
15WHY
• To ensure ships comply with applicable rules,
regulations and accepted industry practices in
respect to safety, pollution prevention and
operational procedures.
• To ensure that the quality of the ship, crew and
owner meet our requirements
• To ensure that a ship can safely arrive, moor and
depart our facilities in respect to a vessel’s
particulars, draft and mooring capabilities
16WHY
• We don’t think we know how to operate your
tankers better than you do,
BUT,
– Not all tankers are the same
– Not all crews are the same
– Not all operators/managers are the same
– Not all owners are the same
17HOW
• A dedicated vetting system - TASC
• A designated vetting group
• An established process
• Clearly established general criteria
18VETTING SYSTEM - TASC
• TASC – Tesoro Acceptance & Ship Clearance System
• Internet based
• Covers, tankers, barges & bulk carriers
• Linked with Q-88
• Linked with LMIU (Lloyd’s Marine Information Unit)
• One process and one set of records
• Feedback from Terminal feature
• Developed & supported by Marine Information Systems
19VETTING GROUP
• Designated group of seven
– 5 Marine Superintendents
– 1 Port Captain
– Myself as GM Shipping Operations
• All Unlimited Masters
20VETTING PROCESS - 1
• Vetting requests are submitted in TASC
• Detailed review of:
– Tesoro Vessel Questionnaires (owners submit
questionnaires via Q-88 (www.Q88.com)
– Lloyd’s MIU
– SIRE
– U.S. Coast Guard PSIX
– Equasis & Tokyo MOU
– Internal Facility Feedback
21VETTING PROCESS - 2
– Facility specific acceptability
• Draft, mooring, KTM, DWT, LOA, Beam, etc.
• Facility specific recommendation is made to
approve or reject
• Final determination to approve or reject is made
and sent to requestor
22GENERAL CRITERIA
• Red flags
– Single hulls
– CBT (Clean ballast tankers)
– Tankers without IGS
– OBO’s over 12 years old
– OBO’s not in continuous wet service for at least 3
consecutive voyages
– Vessels with non-approved P&I Club
23GENERAL CRITERIA
• Key criteria in Tesoro system
– Hawaii SPM ( official dwt, BMA, draft)
– Alaska (draft, cargo volume, mooring)
– Puget Sound (dwt)
– San Francisco (draft, KTM)
24EXPERIENCE
• Will vet 600 – 700 vessels per year
• Rejection rate - 6.4% since Jan 06
– Poor SIRE reports
– Past experience with vessel/owner
– Inadequate mooring system
25SUMMARY
We really don’t think we know how to
operate your tankers better than you do,
but we have a lot on the line as well.
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Thank you !!