BP Shipping Ltd

BP Shipping Ltd

2008 / 2010 HSSE Performance Contract

Time Charter and Third Party Managers

“Scorpio Ship Management s.a.m.”

Our Goals are simply stated

Getting Better- together

No Accidents, No Harm to People, No Damage to the Environment

 BP SHIPPING 2008 / 2010 HSSE PERFORMANCE CONTRACT

Executive Summary
The purpose of this contract is to promote and improve the Health Safety
Security and Environmental performance of our partners, allow benchmarking
and to share lessons learned.

This HSSE contract forms part of your contractual agreement with BP Shipping.

This iteration of the HSSE contract will run from September 2008 until 31 st
December 2010. The contents of the contract will be reviewed during the proposed
Spring CEO’s conference of 2009 and any changes incorporated into the 2010 /
2012 HSSE contract. Reporting frequency will be six monthly commencing
December 31st 2008 via the Partners SharePoint site, this supersedes the previous
requirement to submit date on a three monthly basis.

New companies joining the time charter partners will be expected to submit their
HSSE performance contract within two months of the date of the commencement
of their time charter party.

The 2008 / 2010 HSSE performance targets are structured into three clearly
defined sections. The first two apply to all time charter and third party managers,
the third section applies ONLY to time charter companies and third party
managers who have had a BP “Getting HSSE Right audit” completed. The three
sections are:

CONTENTS
The contents of this contract are split into three annex’s as detailed below.

Annex 1 BP HSSE Performance Indicators & Targets. Page 3

Annex 2 Improvement of crew HSSE behaviors leading Page 10

to improved HSSE performance based around
the retention and behaviour of the vessel’s
crews.
Annex 3 1 Development and Implementation of Getting Page 11
HSSE Right Programmes.
1
Section 3 is aimed at companies that have completed a BP Getting HSSE Right (gHSSEr) Audit and subsequently
implemented an HSSE plan.

Annex 1 (Back To Contents)

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BP HSSE Performance Indicators & Targets.

 Safety Targets (Personal Injury) Page 4

AIM Company and individual improvement on oil, chemical and

Liquid gas tankers, to attain a higher level of personal safety.

 Integrity Targets (Loss of Containment / Spills) Page 5

AIM No spill in excess of one barrel of oil, chemical or gas escaping to

the environment.
Of spills that do not escape to the environment, a cumulative
maximum of four spills in excess of one barrel across the BP
Shipping time charter fleet. This is a reduction of one spill on the
previous year.

 Environmental Targets (Atmospheric Emissions) Page 6

AIM To reduce emissions to the environment from marine

transportation.

 Ethical Compliance Targets (Conduct and Behaviours) Page 8

AIM To conduct our business in an ethical manner in total

compliance with the BP Code of Conduct.

These performance criteria will apply to all time charter managers, 3 rd Party
Managers and also to all vessels that BP internally manages.

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Safety Targets (Personal Injury) (Back To Index)

AIM. For company and individual personal safety improvement on oil,

chemical and gas tankers to attain a higher level of personal
safety.

BP Shipping will work with each company to measure current position and
develop a strategy for a 10% reduction in DAFWCFR 1 (Day away From
Work Case Frequency Rate) and RIFR (Recordable Injury Frequency
Rate) in 2008 / 2010 This is to address the entire fleet of “wet” vessels
managed by each manager not just vessels on business with BP
Shipping.

(NOTE: “Wet Vessels” are defined as vessels designed to transport

oil, chemicals or gas products in bulk.)

1 DAFWAF Rate
Each vessel manager will produce data for their DAFWFR 1
Action clearly stating if this is per million man hours exposure or per
200,000 man hours exposure for their wet fleet. This should
include data for the previous six months and 12 month rolling
frequency.
Target The group target is set at a maximum DAFWCFR 0.05
Managers The Company DAFWFR figures for the previous 6
Comments months is 5.08 and for the 12 month rolling is 2.75 per
million man hours exposure. The Company is striving to
reduce these to the target level set for the upcoming
period.

2 RIF Rate
Each vessel manager will produce data for their RIFR
Action (Recordable Injury Frequency Rate) clearly stating if this is per
million man hours exposure or per 200,000 man hours exposure for
their entire wet fleet. This should include data for the six monthly
actual frequency and the 12 month rolling frequency.
Target The group target is set at a maximum RIFR of 0.4

Managers The Company RIFR figures for the previous 6 months is

Comments 5.08 and for the 12 month rolling is 4.13 per million man
hours exposure. The Company is striving to reduce
these to the target level set for the upcoming period.

Standard reporting definitions have been supplied by BP Shipping .

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The descriptions of Medical Treatment Injuries (MTI) and lower level incidents
are contained within the third party managers manual.
1
Note that BP Shipping uses the term Day Away From Work Case in place of the term
Lost time Injury. For reporting purposes these can be considered the same.

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Integrity Targets (Loss of Primary Containment / Spills) (Back To Index)

AIM No spill of oil, chemical or release gas to the environment.

Of spills that do not enter the environment, a cumulative
maximum of four spills in excess of 1 barrel (or the equivalent
volume of gas ) across the BP Shipping time charter fleet.

Target Zero spills in excess of 1bbl to the environment.

The time charter and BP shipping group 2008 / 2010 target for spills
in excess of one barrel to environment (spills that physically enter the
water and additionally in the case of gas carriers, the equivalent
volume of gas released to atmosphere) is zero per year.

Target Maximum of 4 spills in excess of 1bbl that do not enter the

environment.
The cumulative target, of spills not entering the water in excess of 1
barrel for the time charter group for 2008 / 2010 is a maximum of
four for each year. (a reduction of one)

BPS will work with each manager who has experienced a number of spills
to reduce this figure such that the annual cumulative total on Time Charter
vessels for 2008 / 2010 does not exceed four spills in excess of 1 bbl.

BP Shipping will report the cumulative to the time charter group on a six
monthly basis.

BP Shipping will supply standard reporting definitions for this target for
both spills and physical incidents.

Targets as specified above are to be used for 2008 /2010. All companies
will commit to working together to ensure data set is available and a
reduction plan can be put in place.

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Environmental Targets (Atmospheric Emissions) (Back To Index)

AIM To reduce our impact in doing our business on the marine

environment and to reduce the emission of harmful substances to
the environment from marine transportation.

1 Energy Audit
To conduct an audit on the use of energy onboard your company
Action ships and share the findings. The depth of the energy audit is to be
determined by the individual companies. The results of this audit will
be used by the individual companies to formulate an energy saving
plan for future use.
BP Shipping will host a protocol and summary of findings for these
audits. This will be hosted on the partners SharePoint site to reduce
complexity.
Managers The Company has not conducted an Energy Audit on board the
Response vessels of its fleet, but instead is utilizing the findings of BP Shipping
energy audits, as shared with TC partners in order to formulate
energy saving plans on board.

2 Port waste reception and packaging

To encourage the diligent reporting of inadequate facilities that are
Action encountered and to apply pressure to port states to take appropriate
action for improvement.  The reporting form and web link can be
found on the Environmental section of the Partners share point site.

To raise awareness of Good port and inadequate port reception facilities

Focus on 15 most critical ports including one new build shipyard
and two dry docks, and audit the disposal of pyrotechnics, ships
medicines and electronic waste

Update to ship’s staff on Intertanko website and IMO status

including compulsory port requirements for all ports reception
facilities

To identify and reduce the use of unsuitable packaging and to use

environmentally friendly packaging for consumables.

Consider the setting of KPI’s for the use of and submission of the
IMO port reception document for all ports reception facilities

Send up dates periodically to sea staff ports with good or bad waste
facilities.
Managers The Company has highlighted to ship staff the importance of diligent
Response reporting of inadequate shore reception facilities, utlising the forms

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provided by Flag State. Frequent updates are being provided to ship

staff on available reception facilities.

In the period under consideration the Company will focus on 15 most

critical ports (including two dry docks, the Company has no NB
programme envisaged for the moment) to audit the disposal of
pyrotechnics, ships medicines and electronic waste at these ports.

Reports received from ships will be monitored more closely with the
aim of achieving improvements in this regard, the setting and use of
KPI’s will be strongly considered.

3 Environmental Education of workforce

To Creating an environmental culture onboard the vessels and in the office.

Action Each time charter company will undertake internal education
programmes with staff to ensure the issue of environmental
awareness is raised to a higher level. Details of these programmes
should be communicated to your Superintendent

To consider setting of KPI’s around environmental training.

( incorporating the duration of the training course and the number
attending)

Promote the sharing of best practice, Ships submit great ideas on a

regular basis but how is this information used – BP will host a best
practice guide on the partners share point site to store and share
this data.

To support the introduction of environmental training into

certification and standards of training of ships offices and crew.
Managers The Company will be putting it’s shore staff through intensive HSQE
Response training over the next few months utilizing the services of the ABS
Academy, this will include a familiarization course for all employees
and auditing courses for key staff. Based on the training received in
the office, the opportunity will be utilized during ship visits to further
train ship staff, backing up the environmental training they receive
ashore. The Company has KPI’s for environmental training included
in the Training Plan for ashore staff.

4 Measurement of Emissions

Each time charter company will commit to accurate measurement

Action and reporting of measurements obtained for environmental
emissions. Each company will detail in their plan how they will be
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undertaking this measurement and reporting it.

To accurately measure and record emissions through BPOSS, or if

BPOSS not fitted via the environmental work book.

To consider the setting common standard around EAI standards and

data to allow benchmarking
Managers The Company carries out environmental emissions measurement
Response and reporting across the fleet, for TC vessels reporting is via BPOSS.
Benchmarking is carried out by comparison with figures obtained by
other similar operators, as part of sharing of information at forums.

Ethical Compliance Targets (Conduct and Behaviours) (Back to Index)

AIM To conduct our business in an ethical manner in total compliance

with the BP Code of Conduct

The ethical behaviour of all persons working for the BP group is covered in
the Code of Conduct. The subject of ethics and ethical behaviour, unlike the
previous subject matter, is non negotiable. The code of conduct details how
BP employees are expected to behave. It is a fundamental requirement of
doing business with BP, that the highest standards of behaviour will be
observed at all times.

Details of the BP Code of Conduct and Open Talk Internet addresses are
included on the group share point site along with a copy of the Code of
Conduct.

1 Code of Conduct
Each company will review the Code of Conduct and will conduct its
Action business with BP following this code’s requirements. Each
company will ensure that this requirement and details of this
requirement are clearly communicated to all concerned individuals.
Each company will detail how they will achieve this and the

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measurable that they will put in place to ensure compliance.

Managers BP Code of Conduct requirements are clearly communicated to all

Response concerned individuals and ships on BP TC business for compliance
at all times.

2 Facilitation payments
Facilitation payments – the request for payment of goods or monies
Action for services that are ordinarily provided by a port or terminal should
be discouraged by the vessels managers. Details of the facilitation
payments made during 2007 and the geographical areas are hosted
on the partners SharePoint site. Managers should endeavour to
encourage moderation and restraint in this area.
Managers Facilitation payments are discouraged by the vessels managers and
Response Masters are strongly encouraged to show moderation and restraint
when confronted and having to deal with such situations.

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Annex 2 (Back To Contents)

Improvement of HSSE behaviors producing improved HSSE

performance based around
 Officer and Crew retention rates
 and HSSE behaviour of the vessel’s crew.

A set of individual targets and 'stretch 1' targets’ for your company’s HSSE
plan should be produced. The submission of an HSSE plan is, as you will all
be aware part of the time charter agreement with BP. (SECTION 3 of the BP
Time 3 additional clauses) Each company should aim to take part in the
following seven points

1 Participation in the Maritime Forum

Each company should aim to attend or participate in the marine
Action Forum.

Managers Company aims to actively attend or participate in the marine forum.

Response

2 Record and improve officer & crew retention rates

Using the standard “Interetanko” descriptions for retention each
Action company should calculate the retention rates for their wet fleet and
set a target retention rate
Managers Company calculates and sets targets for the retention rates for it’s
Response wet fleet using the standard “Intertanko” formula.

3 To use a behavioural based tool.

To improve safety performance within your workforce by rolling out or
Action promoting a behavioral based safety tool, (such as TAKE 5, STOP,
SOC or any bespoke company based behavioral performance tool.)

Managers The Company will aim to improve safety performance within it’s fleet
Response by means of SOC or similar behavior based performance tool.
Or
3 The development and use of a root cause analysis
investigation tool.
Detail of tool being proposed should be provided along with a set of
Action measurable targets around deployment, training and measuring how
effective the tool is.

Managers The Company at the present does not utilize a specific RCA tool,
Response investigation following an incident is based on the training of the
individual involved with the investigation guided by a checklist.

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4 Introduce or develop a near miss report system

Setting of individual vessel or total fleet targets for the number of
Action near miss reports to be submitted within 2008 / 2010 should be
considered along with a stretch to this target 1. It should also be
considered how the information gained from the near miss reporting
will be used to improve vessel safety.
Managers The Company has a functional Near Miss Reporting System. Setting
Response of a target number of near miss reports has not been considered as it
had been found to have inflated near miss reporting and lowered the
quality of reports being received in the past. Encouragement is given
to ship staff to increase near miss reporting as a means to promoting
a safety culture on board.

5 Promotion of risk assessment

The promotion of task risk assessment on board all vessels (or a
Action similar system) with measurable target associated with this.
Managers The Company has it’s own in house task based risk assessment
Response system, the submission of RA’s is strongly encouraged.

6 Run of two targeted safety programs in 2008 / 2010

Develop two safety programs based on recent incidents or
Action experience, taking of feedback on the effectiveness of the programs
from those involved and use this feedback to improve performance.
Managers The Company will run two safety campaigns based on feedback and
Response follow up to two recent incidents or experience where a certain area
of safety was felt to have been weak over the past few months.

7 Develop a five year HSSE strategy in conjunction with their

managers and operational assurance superintendent

Action
Managers Matter to be discussed between Company and Ops. Assurance
Response Superintendent.
1
STRETCH TARGET – This is when a target is set that is believed to be achievable by the
majority with a stretch target that is considered achievable by the extraordinary minority.

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Annex 3 (Back To Top)

Development of the Getting HSSE Right Program.

It is BP Shipping’s aspiration that all companies with vessels on time charter

to BP will have a gHSSE audit conducted on them within this period 2008 /
2010. New companies will have a gHSSE right audit within six months of the
commencement of the time charter.

This section only applies to companies that have taken part in a BP Getting
HSSE Right audit.

gHSSE Right Action Plan

Each company will detail progress on their existing HSSE
Action improvement plan and will consolidate outstanding issues in to the
2008 / 2010 HSSE plan in this section detailing the outstanding
action points, the action plan and the assigned person or persons
responsible. Each item will be assigned a completion date.
Managers The last gHSSE audit was conducted on 01 & 02 April 08 during
Response which the flwg item was noted for completion by 010109.

Element 11: Crisis and Emergency Management

“To conduct a risk assesment to verify (Or not) the risks associated
with the emergency response plans to demonstrate that the plans in
place have considered all risk”

We confirm that such risk assessments to verify the risks associated

with the emergency response plans in order to be sure that the
plans in place have taken into consideration all associated risks.

All other items raised as outstanding during the last gHSSE Audit
are being worked on at this time.

Note gHSSE Right will be replaced in 2010 with an OMS audit schedule.

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