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©2003-8 Electronic Shipping Solutions. All rights reserved. 1

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Overview of ESS Presentation for

Intertanko Council18 Nov 08


AGENDA

1. ESS

2. Legal Approvals

3. Benefits (i.e., risk, cost, operational, etc.)

4. Current Rollout Status

5. Demo (sign eDocs)

6. Q&A


MOTIVATION

“Our Age of Anxiety is, in great part,

the result of trying to do today's jobs

with yesterday's tools....”

- Marshall McLuhan


ESS


OVERVIEW

Services ESS provides on-demand eDocs Services which enable users to replace key paper shipping documents, such as the negotiable bill of lading, cargo manifest and certificate of origin with original electronic documents (eDocs)

Scope ESS focuses on the eDocs required to trade and import water-borne cargoes , commencing in the liquid bulk market

Exchange ESS provides its eDocs Services through the ESS-Databridge™ eDocs Exchange, which it owns and operates

Company ESS is a neutral shipping eDocs Service Provider. The company was established in 2003. Employ close to 50 people globally, including Athens, London, Mumbai, New York and Malta

Customers Our customers include 7 of the top 20 companies in the 2008 Fortune Global 500

DDG Our Users Association (the DDG) includes oil companies, traders, banks, ship agents, tanker operators and NGOs such as the World Customs Organization and UNCTAD


RefineriesRefineries

Equity HoldersEquity Holders

Oil MajorsOil Majors

Oil TradersOil Traders

eDOCS USER NETWORK: CRUDE OIL

ShipownersShipowners

BanksBanks

Ship AgentsShip

Agents

Ship Managers

Ship Managers


ESS-DATABRIDGE™ EXCHANGE

The Exchange establishes the rights and obligations that a trading party would have under the equivalent paper documentation

Processes (‘Best eDocs Practices’) built into the Exchange have been developed with users over the last 4 years

Legal Framework (DSUA) was developed with the assistance of key stakeholder groups over last 4 years

The Exchange is implemented to provide high availability

The Exchange supports B2B data interchange

ESS provides eDocs Services through the ESS-Databridge™, its shipping eDocs ExchangeESS provides eDocs Services through the ESS-Databridge™, its shipping eDocs Exchange


eDOCS SERVICES EXAMPLE: CRUDE OIL

Terminal Services Terminal Services Carrier Services Carrier Services

Exchange Services Exchange ServicesFor Terminals and Refineries

Enable users to:

Draft or upload documents and review onlineSign / issue documents electronically

For ship operators and ship managers For Importers, Exporters, Traders, Banks and End Receivers

Enable users to:

Review and sign /issue documents onlineManage requests for amendments Accept production of eB/L and accomplish eB/L

Enable users to: Receive eB/Ls and accompanying eDocsEndorse to another Exchange userPresent to bank(s)Request amendments, if requiredProduce to carrier at discharge port to receive the goods


LEGAL APPROVALS


APPROVALS

Reviewed and approved by:

- IG representing all shipowners (obtained April 2007) – comprehensive review by US (Holland & Knight) and UK (Michael Collett) Counsel for IG

- IG are currently examining mutualising the incremental risks of using eB/Ls

- ITIC representing leading ship agents (obtained April 2007)

- LEAP representing oil majors, trading houses & banks (obtained Jan 2008)

Legal Workshops

- ESS has conducted Legal Workshops which have been attended by, inter alia, BP, STASCO, ExxonMobil, LEAP and the IG

ESS’ Users Agreement has been vetted by key stakeholders ESS’ Users Agreement has been vetted by key stakeholders


BENEFITS


Eliminates need to accept LOIs at discharge port – enabling shipowners to remain within their P&I cover

Improves transparency as all eB/Ls, even drafts, can be seen across the fleet

Enables faster turnaround at ports where paper documentation causes delay, due to faster creation, review, transmission and signing

Eliminates pain of managing amendments to documents

Allows for convergence of processes that are otherwise duplicated such as creating shipping documents and Customs/Government required information such as AMS manifests

CARRIER BENEFITS

Carriers can significantly reduce risk, improve visibility and improve operational efficiencies by adopting eDocsCarriers can significantly reduce risk, improve visibility and improve operational efficiencies by adopting eDocs


ROLLOUT STATUS


ROADMAP

Proof-of-Concept Pilots

Run with several oil majors

North Sea rollout

- Statoil offshore

- Teesside

- Hound Point

- Sullom Voe

- Sture

- Mongstad

Trade finance capability

Leading commodity trading houses

Leading banks

TodayGeographical expansion

Product expansion

2007-2008

1H 2009

2H 2009


DEMO


EVOLUTION

“The telephone is an interesting device

– I predict that one day every city will have one”

Mayor of Chicago, 1891


Q&A


ESS EMEA Office71-81 Whitfield StreetLondon W1T 4HGUnited KingdomTel: +44 (203) 102 6600Email: [email protected]

ESS Americas OfficeNew York, USA

ESS Asia Pacific OfficeWanchai, Hong Kong, China


APPENDIX: WHY NOW

Compliance (SOX)Requirements

Homeland Security and eCustomsRequirements

Cost Savings through Outsourcing

Drive for OperationalEfficiencies

Drive to be more Green

Adoption of worldwideeSignature Acts & eUCP

Documents

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