PETRONAS TECHNICAL STANDARDS

Oil, Chemical and Gas Tanker Vetting Requirement

PTS 20.10.01
November 2017

© 2017 PETROLIAM NASIONAL BERHAD (PETRONAS)

All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form
or by any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyright
owner. PETRONAS Technical Standards are Company’s internal standards and meant for authorized users only.
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FOREWORD

PETRONAS Technical Standards (PTS) has been developed based on the accumulated knowledge,
experience and best practices of the PETRONAS group supplementing National and International
standards where appropriate. The key objective of PTS is to ensure standard technical practice across
the PETRONAS group.

Compliance to PTS is compulsory for PETRONAS-operated facilities and Joint Ventures (JVs) where
PETRONAS has more than fifty percent (50%) shareholding and/or operational control, and includes
all phases of work activities.

Contractors/manufacturers/suppliers who use PTS are solely responsible in ensuring the quality of
work, goods and services meet the required design and engineering standards. In the case where
specific requirements are not covered in the PTS, it is the responsibility of the
Contractors/manufacturers/suppliers to propose other proven or internationally established
standards or practices of the same level of quality and integrity as reflected in the PTS.

In issuing and making the PTS available, PETRONAS is not making any warranty on the accuracy or
completeness of the information contained in PTS. The Contractors/manufacturers/suppliers shall
ensure accuracy and completeness of the PTS used for the intended design and engineering
requirement and shall inform the Owner for any conflicting requirement with other international
codes and technical standards before start of any work.

PETRONAS is the sole copyright holder of PTS. No part of this document may be reproduced, stored
in a retrieval system or transmitted in any form or by any means (electronic, mechanical, recording or
otherwise) or be disclosed by users to any company or person whomsoever, without the prior written
consent of PETRONAS.

The PTS shall be used exclusively for the authorised purpose. The users shall arrange for PTS to be
kept in safe custody and shall ensure its secrecy is maintained and provide satisfactory information to
PETRONAS that this requirement is met.
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Table of Contents
1.0 INTRODUCTION ..................................................................................................... 5
1.1 SCOPE .............................................................................................................................. 5
1.2 GLOSSARY OF TERM ........................................................................................................ 5
1.3 SUMMARY OF CHANGES ................................................................................................. 8
2.0 COMPLIANCE ON VESSEL VETTING ......................................................................... 9
2.1 APPLICABILITY TO COMPLY ............................................................................................. 9
3.0 ROLES AND RESPONSIBILITIES .............................................................................. 10
3.1 CHARTERERS/TRADERS ................................................................................................. 10
3.2 APPROVED VETTING COMPANY.................................................................................... 10
3.3 TERMINAL AND FIELD OPERATORS ............................................................................... 10
3.4 RACI CHART (RESPONSIBLE / ACCOUNTABLE / CONSULT / INFORM) .......................... 11
4.0 VESSEL VETTING PROCESS.................................................................................... 12
4.1 GENERAL VESSEL VETTING PROCESS ............................................................................ 12
5.0 VESSEL VETTING CRITERIA ................................................................................... 14
5.1 SIRE REPORT .................................................................................................................. 14
5.2 EQUASIS ........................................................................................................................ 14
5.3 LLYODS MARINE CASUALTY REPORT............................................................................. 14
5.4 PORT STATE CONTROL INSPECTION MOUs/DETENTION .............................................. 14
5.5 TERMINAL FEEDBACK .................................................................................................... 14
5.6 CHANGE OF CLASS......................................................................................................... 14
5.7 CHANGE OF TECHNICAL OPERATOR/TECHNICAL MANAGEMENT ................................ 15
5.8 NEW DELIVERED VESSEL ............................................................................................... 15
5.9 VESSEL DEPARTING SCHEDULED/UNSCHEDULED DRY-DOCK ....................................... 15
5.10 CREW COMPETENCY ..................................................................................................... 16
5.11 STRUCTURAL EVALUATION CAP REQUIREMENT .......................................................... 17
5.12 TANKER OPERATOR EVALUATION (TOE) ....................................................................... 17
5.13 TIME-CHARTERED (TC) VESSELS .................................................................................... 18
5.14 CONTRACT OF AFFREIGHTMNET (COA) AND CONTINUOUS VOYAGE CHARTER (CVC)
VESSELS .................................................................................................................................... 18
6.0 BIBLIOGRAPHY .................................................................................................... 19
APPENDIX 1 : VESSEL VETTING PROCESS ......................................................................... 21
APPENDIX 2 : TYPICAL CRUDE/PRODUCT TRADING SCENARIOS ....................................... 23
APPENDIX 3 : TYPICAL LNG TRADING SCENARIOS ............................................................ 25
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APPENDIX 4 : OFFICER MATRIX ....................................................................................... 26

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1.0 INTRODUCTION

This PTS provides the minimum technical requirements and operational safety guidelines on
vessels intended to be used and while in the service for PETRONAS Group of companies.

This PTS adopts an International Standard based on the relevant Codes and regulations
published by the International Maritime Organization (IMO) and Oil Companies International
Marine Forum (OCIMF)

1.1 SCOPE

1.1.1 This PTS shall apply when determining the suitability of vessels for the carriage of bulk crude
oil, refined products, petro-chemicals and liquefied gases intended to be:
i. Chartered by or on behalf PETRONAS Group
ii. Calling at PETRONAS owned and/or operated ports and marine terminals, OR
iii. Carrying cargo in which PETRONAS has an interest, OR
iv. Undertaking ship to ship (STS) transfer operation; discharging and receiving
vessels and STS service provider company.

1.2 GLOSSARY OF TERM

1.2.1 General Definition of Terms & Abbreviations

Refer to PTS 00.01.03 for PTS Requirements, General Definition Of Terms, Abbreviations &
Reading Guide.

1.2.2 Specific Definition of Terms

No Term Definition

1 Charterer PETRONAS Holding Company Unit(s), PETRONAS

Operating Unit(s) and PETRONAS Group of
Companies that charter the vessel.

2 COA – Contract of Refers to a Ship-owner/operator and a charterer

Affreightment who enters into a contract to carry a specific
quantity of cargo between named port or region
on mutual agreed terms and condition over a
specified period of time. Each shipment is taken
as a new voyage charter between two parties.

3 Condition Assessment A specialized survey program which offers

Programme (CAP) owners a detailed assessment of a ship's actual
condition, based on strength, evaluation, and
fatigue strength analysis as well as a detailed on
site systematic inspection of the hull, machinery
and cargo systems.
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No Term Definition

4 Competent Person A person who possess knowledge and skills on

various type of tankers operations and meet
the following criteria:
a) Class 1 Certificate of Competency for
Deck Officer for vessel of 3000 GRT or
More, or Class 1 Certificate of
Competency for Marine Engineer Officer
for vessel of 3000KW or More

Possess at least 5 years’ experience serving on

board tankers, of which not less than 2 years in
senior position.

5 EQUASIS The EQUASIS information service presents

safety and quality-related information on the
world's merchant fleet with a particular focus on
information on port state control inspections,
class and P&I cover. The data is accessible freely
on the internet at http://www.equasis.org/

6 Marine Facilities Locations as determined by the relevant

authority where vessel/port interface takes
place which may include area of land or water,
or land and water, anchorage, awaiting berth
and approaches from seaward used either
wholly or partially in connection with the
loading or unloading of vessels. This facility
comprises of water-side restricted area and
land-side restricted area.

7 Marine Vetting Companies PETRONAS appointed or approved marine

vetting companies to conduct tanker (Oil,
Chemical & Gas) vessel vetting.

8 Member-SIRE report A SIRE report that has been uploaded unto the
SIRE database by an OCIMF member other than
PETRONAS.

9 PETRONAS Terminal Marine facilities including but not limited to

single point mooring, floating storage units or
floating production storage operated by or for
Terminal Operators.

10 R.A.C.I Chart (Responsibility, A clear division of roles and responsibilities

Accountability, Consult and between business units that applicable to the
Inform) PTS implementation and compliance.
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No Term Definition

11 Ship to Ship Transfer (STS) STS Operation is defined as an operation during

which all or part of a liquid or gaseous cargo
consisting of gas, chemical or oil products is
transferred from one tanker to another tanker
of more than 5000 m3 at designated
transhipment areas approved by local flag state.

12 Tanker Management Self- An OCIMF program used as a tool to assess

Assessment (TMSA) measure and improve the management system
of a vessel operator towards safety and
environmental excellence.

13 Tanker Operator Evaluation An examination of a company of its operational

(TOE) management structure, whether a company
presents a risk to PETRONAS Group of
Companies.

14 Terminal Operator Refers to PETRONAS Holding Company Unit(s),

PETRONAS Operating Unit(s) and PETRONAS
Group of Companies and PETRONAS Associated
Companies that operate PETRONAS terminals

15 Time Chartered Vessel Chartering of a vessel over a specific period of

time.

16 Vessel Includes every description of watercraft,

propelled or non-propelled including barges,
used or capable of being used as a means of
transportation on water.

17 Vessel Operator A company or an entity which exercises the day

to day technical responsibility for a vessel

18 Vessel Vetting Risk assessment, management and assurance in

determining a vessel’s suitability for her
intended purpose

19 Vessel Vetting System and Tools A designated system for risk assessment and
management of vetting process developed by
PETRONAS approved marine vetting company.

20 Voyage Charter Employment of a vessel for a specific and certain

voyage to load cargo(s) at one or more named
ports/terminals to be transported to a named
discharge port(s)/terminal(s).
Table 1.1: Specific Definition of Terms
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1.2.3 Specific Abbreviations

No Abbreviation Description

1 OCIMF Oil Companies International Marine Forum

2 SIRE Ship Inspection Report Database.

Table 1.2: Specific Abbreviations

1.3 SUMMARY OF CHANGES

This PTS 20.10.01 (November 2017) replaces PTS 20.10.01 (December 2014).
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2.0 COMPLIANCE ON VESSEL VETTING

Established requirement on vessel vetting is an extended standard based on Mandatory

Control Framework (MCF).

2.1 APPLICABILITY TO COMPLY

2.1.1 Compliance on vessel vetting is compulsory and apply to:

i. All business units described within this document as per RACI Chart.
ii. Any vessel for the carriage of bulk crude oil, refined products, petro-chemicals
and liquefied gases covered within the scope of this PTS shall be positively
vetted by competent person who possesses and meet OCIMF criteria.

2.1.2 Demonstration of compliance on vessel vetting is via positive vetting which shall consist of,
but not limited to the physical inspection report of the vessel including assessment of any/all
information before the vessel is accepted for PETRONAS utilization. Vessels that are not
positively vetted shall not be utilized for PETRONAS business.

2.1.3 Any vessels engaged are required to comply with all applicable international and national
legislations. They shall be operated to best industry standards and practices.
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3.0 ROLES AND RESPONSIBILITIES

3.1 CHARTERERS/TRADERS

3.1.1 Shall ensure that only safe and efficient vessels are chartered or used for intended purposes
as per vessel vetting criteria.

3.1.2 Shall capable to assure that vessel vetting criteria is complied with at all times via established
controls and/or standard operating procedures.

3.1.3 In the absent of internal capability, shall prior to such nomination consults and confirms with
the approved vetting company on the suitability and acceptability of the vessel.

3.2 APPROVED VETTING COMPANY

3.2.1 Shall provide charterers and ship owner/operator with access to an established vetting
system to verify the status or search a vessel intended for used.

3.2.2 Shall ensure and provide the availability of the vetting system and database for registered
users.

3.2.3 Shall serve as solution provider and provide active intervention when any deviation or
variations from vessel vetting criteria.

3.2.4 Shall provide competent, trained and accredited inspectors for the purpose of ship inspection.

3.2.5 Shall conduct regular audit on quality assurance of inspectors’ competency.

3.3 TERMINAL AND FIELD OPERATORS

3.3.1 Shall responsible and accountable to ensure that all vessels nominated to call at PETRONAS
Terminal has been vetted and conditionally accepted.

3.3.2 Shall responsible to submit any feedback to the approved vetting company on any observation
found or unsafe practices encountered on board during the vessel stay at the terminal.

3.3.3 Shall exercise its responsibility by not accepting, berthing or un-berthing any ship that found
unsafe during nomination, acceptance or ship/terminal interface.
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3.4 RACI CHART (RESPONSIBLE / ACCOUNTABLE / CONSULT / INFORM)

Approved
Charterers/ Field
Tasks Terminals Vetting
Traders Operators
Company
Vessel Nomination C/I R/A C/I C
Vessel Vetting Criteria C R/A C C
Vessel Acceptance A R A C/I

Vessel in Service C/I R/A C/I C

Termination of Service and/or End of
I R/A I I/C
Contracted Period
Table 3.1: RACI Chart
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4.0 VESSEL VETTING PROCESS

The process shall apply to vessels for the carriage of bulk crude oil, refined products, petro-
chemicals and liquefied gases intended to be used.
Vessel Vetting Process is as per APPENDIX 1.

4.1 GENERAL VESSEL VETTING PROCESS

4.1.1 Vessel vetting processes comprise of the following elements:

i. Vessel Nomination

ii. Vessel Vetting Criteria

iii. Vessel Acceptance

iv. Vessel in Service

v. Termination of Service and/or End of Contracted Period

4.1.2 Vessel vetting comprises of risk assessment, management and assurance processes of a vessel
for engagement as screened against global sanction and enforcement data that may include
but not limited to:

i. SIRE Inspection Reports

ii. Officers Matrix

iii. CDI Reports

iv. Port State Control Databases

v. Marine Casualty Reports

vi. Terminal Compatibility

vii. Terminal Feedback

viii. Trading Scenarios and Contract Clauses

ix. Tanker Management Self-Assessment (TMSA)

x. Class Status and/or Condition of Class

xi. New delivered vessel or vessel departing dry dock

xii. and/or other resources that may become available from time to time
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4.1.3 Vessels “carrying cargo in which PETRONAS has an interest” is as per APPENDIX 2 and
APPENDIX 3. The list includes all trading scenarios existing at the time this document was
prepared based on the existence or transfer of both title and risk. It shall be updated from
time to time as the business develops.

4.1.4 Vessels undertaking ship to ship (STS) transfer operation; discharging and receiving vessels
and STS service provider company shall comply to MARPOL 1973, Annex 1 and MEPC 186 (59)
for prevention of pollution during transfer of oil cargo between oil tankers at seas.

4.1.5 Other than Time-Chartered, Vessels are required to be vetted each and every time she is
nominated for PETRONAS group wide business. Validity of vessel vetting status shall remain
for the entire intended engagement; so long the vetting criteria remain unchanged.
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5.0 VESSEL VETTING CRITERIA

The following information shall be assessed in completing a vetting process.

5.1 SIRE REPORT

5.1.1 Apply to any vessel of not more than 25 years old.

5.1.2 Latest SIRE report shall be not more than 6 months’ old at the end of vessel engagement.

5.1.3 The second latest SIRE reports shall not be under the same submitting members, where
applicable.

5.1.4 Time chartered vessels shall possess valid PETRONAS SIRE.

5.2 EQUASIS

5.2.1 Screening shall include review of an EQUASIS report.

5.3 LLYODS MARINE CASUALTY REPORT

5.3.1 Screening shall include review of Lloyds Marine Casualty Report for vessels involved in a
marine accident.

5.3.2 Vessel vetting status shall be suspended immediately upon receiving an initial notification of
incident by the ship operator.

5.3.3 Vessel vetting status shall be re-instated, upon satisfactory review of the investigation report
and Class Survey Records. In case of an unsatisfactory review, the vessel shall be subject to
a re-inspection.

5.4 PORT STATE CONTROL INSPECTION MOUS/DETENTION

5.4.1 Screening shall include a review of the latest Port State Control inspection report.

5.4.2 Any adverse report shall impose an in depth assessment of which further justification from
the vessel operator may be sought.

5.5 TERMINAL FEEDBACK

5.5.1 Any adverse report or feedback from a terminal operator shall impose an in-depth assessment
of which further response from the vessel operator may be sought.

5.6 CHANGE OF CLASS

5.6.1 Any change of Class shall be within a classification society of International Association of
Classification Societies (IACS) members, otherwise a re-inspection report shall be required.
All other classes shall be considered on a case to case basis.
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5.7 CHANGE OF TECHNICAL OPERATOR/TECHNICAL MANAGEMENT

5.7.1 SIRE report validity shall cease with immediate effect and vessel shall not be recommended
for PETRONAS use.

5.7.2 A valid report under new management shall be used for screening purpose.

5.8 NEW DELIVERED VESSEL

New delivered vessels on maiden voyage other than time chartered vessel may be considered
for utilization subject to the following conditions:

5.8.1 For vessels with a SIRE report:

i. The vessel shall be physically inspected by the approved vetting company at her
maiden discharge port upon successful review of her SIRE report.

5.8.2 For vessels without a SIRE report:

i. New built vessels shall complete her sea trial and equipment commissioning
prior the inspection. Relevant documentation by Classification Society
(Statutory/Flag State), makers/manufacturers and shipyard shall be readily on
board for inspection. Vessel operator to ensure that vessel is in state of
readiness for first loading prior requesting an inspection by the approved
vetting company after delivery from the yard.

ii. The inspection shall be completed in at least two (2) sessions; initial inspection
to be carried out prior her first loading and followed-up during her first
discharging operation.

iii. High risk observations, significantly large numbers of medium risk observations
or poor physical appearance of a vessel are regarded as evidence of a
substandard or poorly managed vessel and shall be rejected for use/charter.

5.9 VESSEL DEPARTING SCHEDULED/UNSCHEDULED DRY-DOCK

5.9.1 Vessels departing dry-dock; either scheduled or unscheduled, shall require a placement of an
operator representative on board, preferably a marine or technical superintendent whom
has the capacity to make decision on behalf of operator.

5.9.2 The representative shall be held jointly responsible and accountable with the ship’s personnel
to ensure the cargo operation during first loading and discharging at PETRONAS terminal(s) is
being undertaken safely within the operational safety standards and parameters.
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5.10 CREW COMPETENCY

5.10.1 The competence of ship’s crew, particularly senior deck and engineering officers, can have a
significant impact on the safe operation of vessels and that poorly qualified and under
trained staff contribute substantially to marine incidents.

5.10.2 All masters shall have sufficient and appropriate experience as Master or Chief Officer. For
recently promoted Master this should include:

i. A master with less than three (3) years sea time in rank, or who has practical
experience of less than thirty (30) port entry/departure as master, must have at
tended a ship handling course or have sufficient practical experience. Practical
experience shall include training at chief officer rank under a master’s
supervision, provided this is properly documented. This shall also include:

ii. Have attended an approved ship handling simulator course to comply with IMO
Model Course 1.22 of STCW at a training institution capable of simulating the
manoeuvrings characteristic of such a vessel.

iii. In the event that the master has in excess of ten (10) years’ experience, Clause

iv. 7.1.3 above shall not be applicable.

v. All officers in direct control of cargo and/or bunker oil handling operations shall
be proficient in English.

vi. All officers shall possess valid original certificates/licenses appropriate to their
rank and/or position on the vessel, and the intended trade. Officers who are left
alone in charge of cargo or ballast transfer operation which include making a
decision without the authority of the officer in charge shall possess Specialized
Training Certification applicable to the vessel type.

vii. In addition to compliance with the vessel’s Safe Manning Certificate, vessel
engaged in twenty-four (24) hour or more continuous operations shall have
procedures to include provisions for monitoring and controlling maximum hours
worked and fatigue avoidance, especially for vessel on short voyage.

viii. Crew matrix is as per APPENDIX 4.

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5.11 STRUCTURAL EVALUATION CAP REQUIREMENT

5.11.1 Vessel more than twenty-five (25) years old from date of delivery shall not be utilized for
PETRONAS use. Date of delivery shall be based on date of delivery from original builder.

5.11.2 Oil, Chemical and LPG vessels more than fifteen (15) years old above 20,000 deadweight
tonnage (DWT) and all LNG vessels more than twenty (20) years old from date of delivery shall
have at least a Condition Assessment Programme (CAP) rating two (2) for hull/structure,
machineries and cargo systems by a PETRONAS appointed vetting company.

5.11.3 Vessels more than twenty (20) years, and above 20,000 DWT shall also be required to submit
a Fatigue Analysis Report.

5.11.4 A CAP report shall be valid up to thirty-six (36) months from the date of completion of the
survey by CAP provider.

5.11.5 LNG vessels more than twenty-five (25) years old from date of delivery may be considered for
PETRONAS business subject to satisfactory submission and review of a longevity assessment
to access residual life such as an Enhanced Structural Inspection or similar Structural
Inspection to extend a ship’s service period.

5.11.6 Non-convention vessels of more than 25 years old from date of delivery engaged on specific
routes within domestic near coastal waters or riverine may be considered for PETRONAS
business subject to satisfactory demonstration of a maintenance program on hull, structure
and machinery. In the event that the physical structural condition of the vessel is found
unsatisfactory, the vessel shall not be utilized until the risk has been mitigated to an
acceptable level. CAP requirement is not applicable to these vessels.

5.12 TANKER OPERATOR EVALUATION (TOE)

5.12.1 An examination of a company of its operational management structure, whether or not a

company presents a risk to PETRONAS Group of Companies as a charterer.

5.12.2 The process shall include an audit of the operator office with the primary aim of making
verification as to the accuracy of an operator’s management system against listed key
performance indicator.

5.12.3 TOE shall apply to operators of time chartered vessels on a 5-year time charter or more and
may include other operators on a selective basis. This process does not seek to define or
dictate criteria for vessel selection.

5.12.4 In implementing TOE, PETRONAS recognizes OCIMF’s initiative on Tanker Management Self-
Assessment (TMSA) Programme that encourages vessel operators to achieve a high standard
of vessel management and continuous improvement towards safety and environmental
excellence. PMSSB adopts the TMSA programme as a tool to achieve TOE objectives.

5.12.5 PETRONAS requires operators to demonstrate at least a TMSA Rating Stage 2.

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5.13 TIME-CHARTERED (TC) VESSELS

5.13.1 This clause shall apply without exception to all time chartered vessel and its operators.

5.13.2 PETRONAS SIRE inspection report shall remain valid up to a maximum of six (6) months except
for LNG vessels where the report may remain valid up to a maximum of twelve (12) months.

5.13.3 A member-SIRE report may also be utilized for vetting a TC vessel intended for use.

5.13.4 The use of non-PETRONAS SIRE reports is by no means exhaustive and vessel operators are
required to ensure their vessels have a SIRE report in the database for subsequent use up to
a maximum of 6 months. A PETRONAS inspection is required after that period.

5.13.5 All TC vessel operators with a TC of more than 5 years shall have in place a Tanker
Management Self-Assessment (TMSA) programmed with a recommended minimum Stage 2.

5.13.6 Verification on TMSA Audit shall be carried out by PETRONAS or approved vetting company
periodically.

5.14 CONTRACT OF AFFREIGHTMNET (COA) AND CONTINUOUS VOYAGE CHARTER (CVC)

VESSELS

5.14.1 COA and CVC vessels shall be considered as spot vessel and shall comply with the
requirements of vessel other than time-chartered vessels.

5.14.2 Notwithstanding the vessel vetting criteria as per items 5.0 to 5.14, a physical or an
extended inspection shall be imposed to a vessel. The list is not exhaustive and limited to:

i. Non-conformance to any of pre-requisite vetting criteria during nomination

stage.

ii. Non-conformance to any of vessel vetting criteria whilst in service either TC or

non-TC vessel.

iii. Vessel is rejected by a terminal during arrival, whilst moored or ship/shore

interface on the safety infringement.

iv. The operator of a vessel does not subscribe to TMSA or possess TMSA rating of
less than 2.

v. A situation where the result of the vessel vetting has raised significant concern
that may impact PETRONAS assets and operations.
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6.0 BIBLIOGRAPHY

In this PTS, reference is made to the following Standards/Publications. Unless specifically

designated by date, the latest edition of each Standards/Publications shall be used, together
with any supplements/revisions thereto:

PETRONAS TECHNICAL STANDARDS

Index to PTS PTS 00.01.01
PTS Requirements, General Definition of Terms, Abbreviations & PTS 00.01.03
Reading Guide

MALAYSIAN STANDARDS
Merchant Shipping Ordinance (MSO) 1952 MSO 1952
Merchant Shipping Ordinance (MSO) 1960 Sabah MSO 1960 Sabah
Merchant Shipping Ordinance (MSO) 1960 Sarawak MSO 1960 Sarawak

INTERNATIONAL STANDARDS
Code of Safe Working Practices for Merchant Seaman
Guidelines for the Control of Drugs and Alcohol on Board Ships
(OCIMF)
ICS Tanker Safety Guide for Chemical and Gas Carrier
International Chamber of Shipping (ICS) Bridge Procedures Guide
International Chamber of Shipping (ICS) Publications
International Code for the Construction and Equipment of Ships
Carrying Dangerous Chemicals in Bulk (IBC Code)
International Code for The Construction and Equipment of Ships
Carrying Liquefied Gases in Bulk (IGC Code)
International Convention on the Prevention of Pollution from
Ships, 1973 as modified by the Protocol of 1978 (MARPOL 73/78)
International Convention on the Safety of Life at Sea (SOLAS) 1974
International Convention on Standards of Training,
Certification and Watch Keeping Code for Seafarer 1978, as
amended 1995 (STCW 95)
International Safety Guide Oil Tankers and Terminal
(ISGOTT)
International Safety Management Code (ISM)
International Ship and Port Facility Security Code (ISPS)
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Merchant Shipping Notices (“M” Notices)

OCIMF Vessel Inspection Questionnaire (VIQ) / OCIMF
Vessel Particular Questionnaire (HVPQ )
OCIMF Ship Inspection Report Programme (SIRE) Database
Oil Companies International Marine Forum (OCIMF)
Guidelines
Society of International Gas Tanker and Terminal Operators
(SIGTTO)
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APPENDIX 1 : VESSEL VETTING PROCESS

ROLES PROCESSES

CHARTERERS / TRADERS VESSEL NOMINATION

APPROVED VETTING COMPANY / VESSEL VETTING CRITERIA

CHARTERERS / TRADERS /
TERMINAL

TERMINAL / FIELD OPERATOR VESSEL ACCEPTANCE / TRADERS / TERMINAL

CHARTERERS / TRADERS / VESSEL IN SERVICE

TERMINALS / FIELD OPERATOR

CHARTERERS / TRADERS VESSEL TERMINATION AND/OR END OF CONTRACTED

PERIOD
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CHARTERES / TRADES A.V.C / CHARTERES TRADES / TERMINAL / F.O CHARTERES / TRADES / TERMINAL CHARTERES / TRADES

INPUT VESSEL VETTING

INPUT
CRITERIA (V.V.C)

CONTINUOUS
RISK MONITORING
ASSESMENT
MANAGEMENT

START
VESSEL
NOMINATION
REQUIRE TERMINATION
N V.V.C
N FURTHER VESSEL IN
END OF END
RESULT ACTION SERVICE
CONTRACTED
PERIOD
NOT
CONTINUOUS
ACCEPTABLE
MONITORING
Y

NOT RECOMMENDED VESSEL

RECOMMENDED FOR USE ACCEPTANCE
FOR USE OUTPUT
OUTPUT

NON COMPLIANCE CASES FOR VESSEL IN SERVICE

FLOW START END

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APPENDIX 2 : TYPICAL CRUDE/PRODUCT TRADING SCENARIOS

PMSSB
PETC Marine
No PETCO Title & Risk Example of Vetting
O Remarks Risk
. Sell Transfer Loadport/ Disport Requir
Buy Involved
ement

1) Ready buyer
AG - China/Japan,
Immediately 2) Cargo might/might not loaded on board
US-Europe,
1 CFR CFR upon fixing the vessel during fixing the deal NO NO
US- Asia
the deal 3) Vessel not calling PETRONAS terminal
Pacific/Africa
4) Vessel not chartered by PETCO

NO - if
cargo
1) No ready buyer - trader to hold the cargo not
for few days loade
Immediately
2) Cargo might/might not loaded on board d yet
2 CFR CFR upon fixing AG - China/Japan NO/YES
the vessel during fixing the deal YES - if
the deal
3) Vessel not calling PETRONAS terminal cargo
4) Vessel not chartered by PETCO alread
y
loade
d
Title being 1) Cargo might/might not loaded on board
Delivery to
transferred the vessel during fixing the deal
3 CFR CFR Indonesia YES YES
later than 2) Vessel not calling PETRONAS terminal
(Pertamina)
risk 3) Vessel not chartered by PETCO

1) Vessel chartered by PETCO

4 FOB FOB At loadport S'pore - Prai YES YES
2) Vessel not calling PETRONAS terminal

India - S'pore 1) Vessel chartered by PETCO

5 FOB CFR At loadport YES YES
AG - Japan 2) Vessel not calling PETRONAS terminal

S'pore - Indo 1) Vessel chartered by PETCO

6 FOB CIF/CFR At loadport YES YES
(PTPNI) 2) Vessel not calling PETRONAS terminal

India - P. Klang 1) Vessel chartered by PETCO

7 FOB - At loadport YES YES
(storage tanks) 2) Vessel not calling PETRONAS terminal

India - P. Klang 1) Vessel not chartered by PETCO

8 CFR - At disport YES YES
(storage tanks) 2) Vessel not calling PETRONAS terminal

P. Klang (storage 1) Vessel chartered by PETCO (L&C) for PDB

9 - FOB At loadport YES YES
tanks) - Kapar 2) Vessel not calling PETRONAS terminal
FOB
Ex-wharf P. Klang (storage 1) Vessel not chartered by PETCO
10 - At loadport NO NO
(Bunker tanks) - TBA 2) Vessel not calling PETRONAS terminal
barges)

P. Klang (storage 1) Vessel chartered by PETCO

11 - CFR At loadport YES YES
tanks) - TBA 2) Vessel not calling PETRONAS terminal

Deliv
Delivere
ered
d P. Klang - 1) Vessel not chartered by PETCO
12 (DES At disport YES YES
(DES/DA Singapore 2) Vessel not calling PETRONAS terminal
/DA
P)
P)

1) Deal done while cargo already onboard

Immediately
2) Normally for blending components
13 CFR - upon fixing TBA - Tg. Langsat YES YES
3) Vessel not chartered by PETCO
the deal
4) Vessel not calling PETRONAS terminal
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PMSSB
Marine
No PETCO PETCO Title & Risk Example of Vetting
Remarks Risk
. Buy Sell Transfer Loadport/ Disport Requir
Involved
ement
1) FSU chartered by PETCO
14 - - - 2) Space is 100% or partially chartered from YES YES
Owner
1) Loading to vessel/barges
15 - FOB - FSU - TBA 2) STS operation YES YES
3) Vessel not chartered by PETCO
1) Loading to vessel/barges
16 - CFR - FSU - TBA 2) STS operation YES YES
3) Vessel chartered by PETCO
At load ENGEN - P. 1) Vessel chartered by ENGEN
17 CFR - YES YES
port Klang/FSU 2) Vessel not calling PETRONAS terminal
1) FSU not chartered by PETCO
At load 2) Vessel chartered by PETCO
18 FOB CFR FSU - TBA YES YES
port 4) STS operation
3) Vessel not calling PETRONAS terminal
Bunker barge - 1) Vessel not chartered by PETCO
DES/D DES/D Bunkering
19 PETCO TC / 2) Vessel transfer bunker to PETCO TC / NO NO
AP AP activities
buyer’s vessels buyer’s vessels
At load 1) Vessel not chartered by PETCO
20 CIF CIF - YES YES
port 2) Vessel not calling PETRONAS terminal
DES/D S'pore - 1)Vessel chartered by PETCO
21 FOB At disport YES YES
AP Chittagong 2) Vessel not calling PETRONAS terminal
1) Ready/not ready buyer
2) Cargo might/might not loaded on board
the vessel during fixing the buy deal
3) Buy deal usually conclude 1 to 3 days
Title and prior loading depending on market
risk may or conditions
may not 4) Limited vessels available for arbitrage
22 CFR CFR being US - Far East/SEA voyage (based on market conditions) may YES YES
transferred cause Seller (in US) is being given a limited
immediatel time to clear a vessel by Owner (especially
y in time difference between US and Asia)
5) Vessel not calling PETRONAS terminal
6)Vessel not chartered by PETCO
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APPENDIX 3 : TYPICAL LNG TRADING SCENARIOS

PMSSB
Marine
No PLL PLL Title & Risk Example of Vetting
Remarks Risk
. Buy Sell Transfer Loadport/ Disport Require
Involved
ment
1) Vessel is chartered by PLL
Scenario 1 2) Vessel is calling PETRONAS
Nigeria –
At Load terminal
Melaka
Port 3) Vessel is carrying PETRONAS
cargo

23 FOB DES Scenario 2 YES YES

Algeria – Brazil
At Load
1) Vessel is chartered by PLL
Port
2) Vessel is carrying PETRONAS
cargo
Scenario 3
Egypt -
At Load
Argentina
Port

Scenario 1
N/A 1) Vessel is not chartered by PLL
Scenario 2 2) Vessel is not calling PETRONAS
N/A Terminal
24 FOB FOB N/A NO NO
3) Vessel is not carrying
Scenario 3 PETRONAS Cargo
N/A

Scenario 1 1) Vessel is not chartered by PLL

At Norway – 2) Vessel is calling PETRONAS
Discharge Melaka Terminal NO YES
Port 3) Vessel is not carrying
PETRONAS Cargo
25 DES DES Scenario 2 1) Vessel is not chartered by PLL
N/A 2) Vessel is not calling PETRONAS
N/A
Terminal NO NO
Scenario 3 3) Vessel is not carrying
N/A
PETRONAS Cargo

NOTE: The above cargo trading scenarios are not exhaustive and may change from time to time.
 CIF – Cost, Insurance and Freight
 CFR – Cost and Freight
 DAP – Delivered at Place
 DES – Delivered Ex-Ship
 FOB – Free on Board
 FSU – Floating Storage Unit
 L&C – Logistics and Chartering
 TBA – To be announced
 TC – Time Chartered Vessel
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APPENDIX 4 : OFFICER MATRIX

Rank MASTER CHIEF OFFICER CHIEF ENGINEER 2ND ENGINEER

Service with
2* 2*
current operator

Services in rank 3 3

Service on type
of tanker 6 6
inspected

NOTE:
1) (*Asterisk) Refers to combined calendar years.
2) (NON * asterisk) refer to combined sea time.