WHO WE ARE 2007

BP SHIPPING

clean seas safe ships commercial success

BP Shipping is the centre of shipping expertise for the BP group

• Providing safe, environmentally responsible marine and shipping solutions in support of BP Group Strategy

• Providing assurance on ‘everything that floats’• Value adding through commercial operation of oil tanker assets, using a combination of

spot, time charter and BP operated vessels• Technical operation of group controlled assets

the officesSunbury Canary WharfHoustonSingaporeChicagoAberdeenLos AngelesTexas CityAnchorageHong KongShanghaiZhuhaiMelbournePerthAthensGelsenkirchenCape Town

Clean Seas, Safe Ships, Commercial Success

current fleet

BP operated4 x VLCCs1 x Shuttle Tanker7 x LNG3 x LPG20 x 100kdwt12 x 47kdwt10 x 37kdwt24 Regional Vessels

time chartered100 vessels

Total Dec 2006: 181 vessels

the people

BP operated400 shore staff800 officers130 cadets1000 ratings

HYDROCARBON ON WATER

Total cargo volume shipped: 251.7 m tons

Total number of voyages: 6,902

Utilization of OTC fleet on BP business

50% (2000) to 85% (2006)

Value of Owned Fleet:

US$5.5bln (est.)

Apprec. >30%

Average Age of Vessels (>9k dwt)

15 yrs (2000)5 yrs (2006)

Target: 50% of Group Cargo carried on Operated or TC tonnage

target 50% of group cargocarried on controlled tonnage

objectiveno accidents, no harm to people no damage to the environment

controlled spot

BP Shipping controls: improve global tanker standards in the industry by influencing through:

pool of vessels used by BPimprove quality by

12,000 ships in database

2000-3000 ships

acceptable forBP business

tankers used by BP

It is all about reducing the risk to BP

•oil majors•ship owners•legislation

•setting standards– age– double hull policy– operational requirements– operating procedures– manning training

•confirmed by– inspection– management audit– structural review

•design•build•operation•procedures•maintenance•people•deployment•disposal•T/C assurance

HSE GoalsHSE Goals

BP Group HSE Goals are simple…

No Accidents

No Harm to People

No Damage to the Environment

Wherever BP have control or influence we will work

with others, our partners, suppliers, competitors and

regulators to raise the standards of our industry

MARINE ASSURANCE STRATEGY

To improve the Group’s control of shipping and marine risk through:

• Broadening the scope of the Group’s existing Marine Assurance policies, including the establishment of minimum criteria for ports and terminals.– All tankers in international trade and used on BP business

to be double hull and younger than 20 years old by 2008.

• Encouraging the use of the higher quality end of the pool of acceptable vessels;

• Promoting improved standards in the barging industry and increasing our use of double-hulled barges.

OWNER REPUTATION

SHIP INSPECTIONS

SIRE REPORTS

CDI REPORTS

TERMINAL FEEDBACKS

CHARTER FEEDBACKS

CASUALTY DATA

FLAG CHANGES

MANNING/MANAGEMENT CHANGES

CLASSIFICATION SOCIETY CHANGE

MARKET INTELLIGENCE

OWNER AUDITS

The Vetting Decision

YES

NO

More infoRequired

STRUCTURAL ASSURANCE

Making the decision

YES -VESSEL MAY BE USED (SUBJECT TO CERTAIN CONDITIONS)

NO - VESSEL MUST NOT BE USED

SV - REFER TO SHIP VETTING FOR DECISION / LATEST SITUATION WITH VESSEL

Vetting Enquiry Results

VETTING STATISTICS

Vessels on the Database (Aug 2006)3036

4884

21995

Yes

No

Unassessed

Result of last 300 vetts(15th August 2006)

77%

12%

11% Yes

No

Unassessed

More than just tankers Varies between 75% and 85%

* Further assessment required; typicallyA further 8% will be yes & 3% no.

*

Inspection Scheme

POLICIES – NOW & FUTURE

• Age– From January 2007 all vessels greater than

5,000 dwt shall be less than 22 years of age– From January 2008, all vessels greater than

5,000 dwt shall be less than 20 years of age, and all vessels below 5,000 dwt shall be less than 25 years of age

• Double Hull– From January 2007 all vessels over 5,000 dwt– From January 2008 all vessels over 600 dwt,

with exceptions for some barges until 2010

Thank You