An international tanker operator guide to

Chevron Shipping Company Marine Assurance

use of TMSA 3
August 2017

© 2017 Chevron
 Disclaimer

• This operator guide to TMSA 3 is intended for general guidance to third party tanker and
gas carrier operators as to how Chevron Shipping Company (CSC) Marine Assurance
(MA) currently utilizes TMSA 3 in its marine risk management processes as well as
detailing specific MA expectations for named KPIs.

• Nothing should be inferred about acceptability of an operator or its fleet of vessels for
future transactions involving Chevron from the contents of this guidance document; there
are a number of factors that are used in and that can influence any marine risk
assessment made when a vessel or vessels are nominated for clearance by MA. These
factors, and MA’s use of TMSA, can and will change over time.

© 2017 Chevron 2
 Introduction to Chevron Shipping Co. LLC
Marine Assurance
• Chevron Shipping Company (CSC) is the corporate marine center of expertise for
Chevron corporation and its affiliates for marine operations and projects, including the
provision of safe, reliable and cost-competitive marine transportation, managing marine
risk, marine technical matters, and commercial support.

• Marine Assurance (MA) is the organization within CSC responsible for the management
of marine risk associated with third party marine transportation (including associated
cargo operations) of bulk liquids and gas cargoes.

• MA is a global organization headquartered in San Ramon, California with offices in

Houston, London, Singapore and Perth.

• All vessels chartered by a Chevron corporation or Chevron affiliate entity, calling at a

Chevron marine facility (owned, operated or leased), or carrying cargo owned by a
Chevron affiliate entity must be approved by the Marine Assurance organization.

© 2017 Chevron 3
 Marine risk assessment
In assessing the marine risk associated with a particular transaction, MA
will consider the following:*

• The quality of the vessel and the operator.

• The dimensional and equipment fit of the vessel for the intended transaction.

• Load, voyage transit, and discharge locations.

• In assessing quality, MA will review and analyze a variety of factors not limited to but
including SIRE inspection history, port state control, Chevron terminal feedback, incident
history and TMSA/operator reviews.

• TMSA is an important element of the overall risk management process used by MA,
allowing an assessment of the vessel operator’s safety management system and its
effective application on a vessel operator’s fleet.

* The above list is not exhaustive but is merely indicative of the types of factors MA will
review.

© 2017 Chevron 4
 MA requirements for a TMSA review
to be conducted

Chevron MA will request a TMSA review of an operator for a variety of

different business reasons, for example:

• Evaluation for term contract suitability.

• Business exposure–operator subject to a high volume of clearance nominations.

• Response to operational performance issues.

• Significant change in fleet size or composition.

© 2017 Chevron 5
 Tanker Management Self-Assessment (TMSA 3)
The purpose of this document is to provide information around the use and
application of a TMSA review by MA in its risk management processes.

MA’s view of TMSA is that as a best practice guide it provides an:

• Industry standard framework for the assessment of a company’s SMS.

• Identification of 13 elements of management practice that are required for the safe effective
management and operation of vessels.

• Clear, objective picture of performance and the identification of gaps within each of the elements.
Additionally, MA also utilizes a TMSA review as a risk assessment tool and as such:
• Uses proprietary, internal risk assessment models to identify high focus KPIs irrespective of TMSA
Stage.

• Sets out Chevron expectations for selected KPIs that may be beyond the requirements of TMSA
best practice guidance.

• Reviews and assesses the self-assessment accuracy.

• Identifies any gaps in meeting high focus KPIs.

• Identifies any gaps in meeting Chevron expectations.

© 2017 Chevron 6
 Tanker Management Self-Assessment (TMSA 3)
MA’s use of TMSA findings:
• Conclusions around Operator acceptability should not be inferred from the results of any MA TMSA
review. TMSA reviews are used as a risk assessment in conjunction with other sources of information
in forming an overall view of Operator performance and/or risk. The results of TMSA reviews should not
be viewed in any way as the sole determinant in Operator acceptability.

• MA does not require a minimum stage score for each element individually, or an average score for all
elements combined in assessing Operator suitability for CVX business.

• Non-conformance to Chevron expectations may have an implication on certain transaction

acceptability, particularly time charter eligibility–especially when analyzed in conjunction with other
performance data.

As part of the TMSA review the following items are used in any evaluation:
• Accuracy of submission.

• Number of high focus findings (as determined by MA proprietary analysis).

• Conformance to Chevron expectations (non-conformance will not affect the rating of an operator’s
TMSA review, but will be noted as an expectation shortfall).

• Operational performance and transparency of incident reporting.

• Effectiveness of corrective actions to observations raised.

© 2017 Chevron 7
 Chevron Shipping Company Marine Assurance
TMSA 3 KPI expectations
1.2.3 Evidence that shore based senior managers regularly attend fleet vessels/company activities such as
officer seminars and there is a metric in place for the number of senior manager visits to vessels.
2.3.2 Vessel to technical superintendent ratio is no greater than 4:1. Vessel to Marine Superintendent ratio is
no greater than 8:1.

2.3.3 Operator analyses the results of the two-year retention rates at least annually and where retention has
fallen significantly previous years or has fallen below 70% the underlying reasons should be documented
in the management review meeting.
3.1.5 Key personnel includes Master, Chief Engineer, Second Engineer, Chief Officer. (For LNG carriers a
Gas Engineer is included and if applicable an Electro-Technical Officer).
3.2.5 Candidates for Master and Chief Engineer will attend the Head Office or branch office (with technical,
marine and commercial oversight) during the interview process or prior to assignment to their first
vessel.
3.3.1 Senior officers will be considered to include Master, Chief Engineer, Second Engineer and Chief Officer.
(Where applicable Gas engineer and electro-technical officer will also be considered a senior officer.)
3A.1.1 Operator has developed a standard manning level for each type of vessel in the fleet and has defined
the conditions in which the manning requirements will be increased.
3A.2.4 Operator analyses the results of the two-year retention rates at least annually and where retention has
fallen significantly from previous years or has fallen below 80% the underlying reasons should be
documented in the management review meeting.

© 2017 Chevron 8
 Chevron Shipping Company Marine Assurance
TMSA 3 KPI expectations
3A.3.1 Each senior officer will have attended a company seminar in a two-year interval.

4.1.3 Once replicated, the Fleet Manager / Technical Manager reviews (as per the Best Practice Guide) at
least on a monthly basis the status of the PMS.
4.2.3 (Time charter requirement)
A procedure is in place to ensure a vessel is inspected by an appropriately qualified superintendent at
least once in any 12 month period under a sailing condition to confirm adherence to company
maintenance standards.
5.1.2 Procedures ensure any navigation related instructions in the charterer’s voyage orders are reviewed and
documented in the vessel’s passage plan.
5.2.2 The person conducting the assessment is a master mariner with senior officer experience.

5.3.3 (Time charter requirement)

The person conducting the assessment is a master mariner with senior officer experience.

5.3.3 (Time charter requirement)

Each vessel shall have a navigational audit during a period of navigation conducted by a suitably
qualified member of the shore staff at least once in a 12 month period
5.4.1 The person conducting the assessment is a master mariner with senior officer experience.

© 2017 Chevron 9
 Chevron Shipping Company Marine Assurance
TMSA 3 KPI expectations
6.2.1 Procedures ensure any instructions related to cargo, ballast or bunker operations in the charterer’s
voyage orders are reviewed and documented in the vessel’s port and cargo operations plans.
6.2.3 Ballast procedures will address precautions to prevent hydraulic shock (water hammer) in the ballast
pipeline. Procedures for ballasting cargo tanks and shore line flushing will include the requirement for
authorization from shore management.
6a.1.4 Generic risk assessment developed for tug operations.

6a.3.1 SMS specifies that each mooring station is supervised by an officer. Where there are insufficient officers
onboard to cover the mooring station and bridge team requirements, the company has specified its
expectations with regards to supervision by appropriately qualified & trained personnel.
7.2.4 MOC request form confirms, by name and location, which documents, manuals, plans and drawings
were changed upon completion of the MOC and that the relevant index is updated.

8.2.1 Methodology used to determine root causes is defined in the procedure.

8.2.3 At least one member of shore based staff has attended an external incident investigation training course
in the investigation methodology documented in company procedures.

© 2017 Chevron 10
 Chevron Shipping Company Marine Assurance
TMSA 3 KPI expectations
8.3.3 Operator either uploads incident investigation reports to the OCIMF SIRE database or where this is not
done, there is a documented procedure for sharing.

9.2.5 A procedure is developed requiring a documented familiarization process for all visiting contractors.

9a.1.4 A documented record of daily work meeting as per KPIs is required to be maintained onboard the vessel.

9a.2.1 A Stop Work Policy is in existence

11.1.2 The shore based emergency response plan requires calculations relevant to each emergency scenario,
e.g. rate of drift of a disabled vessel, maximum possible oil outflow, drift rate of any spilled oil considering
wind and current, etc.

© 2017 Chevron 11
 Chevron Shipping Company Marine Assurance
High Focus KPIs
2. Recruitment & Management of Shore-based Personnel 2.1.1; 2.1.2; 2.3.2

3. Recruitment & Management of Vessel Personnel 3.1.1; 3.1.4; 3.2.5

3.A Wellbeing of Vessel Personnel 3a.1.1

4. Vessel Reliability & Maintenance 4.1.1; 4.2.3

4.A Vessel Reliability & Maintenance (Critical Equipment) 4a.1.1; 4a.1.2; 4a.1.3; 4a.1.4; 4a.2.1; 4a.2.2

5. Navigational Safety 5.1.2; 5.1.3; 5.3.3; 5.4.1

6. Cargo Ballast, Tank Cleaning & Bunkering Operations 6.1.1; 6.1.2; 6.1.4; 6.2.1; 6.2.2; 6.2.3; 6.2.4; 6.2.5;
6.3.2
6.A Mooring & Anchoring Operations 6a.1.1; 6a.2.3;

© 2017 Chevron 12
 Chevron Shipping Company Marine Assurance
High Focus KPIs
7. Management of Change 7.1.1; 7.1.2; 7.2.4; 7.3.3

8. Incident Reporting, Investigation & Analysis 8.1.3; 8.2.1

9. Safety Management – Shore-based Monitoring 9.1.3; 9.1.4; 9.2.1; 9.2.2; 9.2.3; 9.2.4; 9.2.5

9.A. Safety Management – Fleet Monitoring 9a.1.2; 9a.1.4; 9a.2.1; 9a.2.2.

11. Emergency Preparedness & Contingency Planning 11.1.1; 11.1.2

12. Measurement, Analysis & Improvement - Inspections 12.1.2

13. Maritime Security 13.1.3; 13.2.1; 13.2.3

© 2017 Chevron 13