Shipping in Shell

8/9/2019 Shipping in Shell

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Shippingin Shell

Shell International Trading & Shipping Company LimitedShell CentreYork RoadLondonSE1 7NAUnited Kingdom

Email: [email protected] website: www.shell.com/shippingInternal website: sww.shell.com/shipping

Registered address: 80 Strand, London, WC2R 0ZA.Registered in England and Wales. Registered number: 525037.

Details correct at time of going to print.

Shell International Trading & Shipping Company Limited (Shell Trading).Permission should be sought from Shell Trading before any part of this publicationis reproduced, stored in a retrieval system or transmitted by any other means.Agreement will normally be given, provided that the source is acknowledged. In thisbrochure the expression Shell, is sometimes used for convenience wherereferences are made to companies within the Shell group or to the group in general.Likewise, the words we, us and our are also used to refer to Shell companiesin general or those who work for them. These expressions are also used where nouseful purpose is served by identifying specific companies.


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Shipping is the worlds most environmentally friendly, cost effective and efficientmeans of transporting goods and people, per tonne mile

The Energy Challenge P01-02Managing the risk from our operations P03-04The Shipping network P05-06Creating lasting partnerships P07-08

What we do P09-10Providing maritime expertise to group businesses P11Day in the life of a Maritime Technical Adviser P12Customer connectivity P13-14Technical project excellence P15-16Our values P17-18How we work P19-20

Contents


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The shipping of oil liquids and natural gases is vital to maintaining energy security,particularly in regions where indigenous resources cannot keep up with demand for powerand mobility. Equally, oil and natural gas exporting countries depend heavily on shipping tohonour their contracts with importers.

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Many companies including Shell areinvesting to develop alternative andrenewable sources of energy. But oil andgas will remain very important in theenergy mix to 2050 and beyond. Duringthat time, about three million moreconsumers will be added to the worldspopulation.

And living standards in fast-growing,highly populous economies suchas China and India are expectedto see dramatic change. The globaleconomy and global energy consumption

will undoubtedly continue to fluctuate, butthe underlying trend in energy use will stillbe up and so will demand for shipping.

Shipping TodayThe Energy Challenge

Meeting the increased demand forenergy presents shipping withquite a challenge. There arechallenges on other fronts as well.

Environmental and regulatory requirementsforshippingare becomingmore demanding.For oil and natural gas shipping, these are

compounded by the ongoing shift ofoperating locations into more extremeclimates (such as big ice) and the inherentrisk that shipping carries compared to mostindustries. Additional hazards fromextreme weather events to piracy giveshipping a unique risk profile.

The challenges ahead

Did you know? More than 90% of global commerce is conducted through shipping. The industry is one of

the worlds largest employers, with about one and a quarter million seafarers and manymore on land.

Each year we undertake more than 100,000 cargo transfer operations almost 12 an hour and generate an annual freight bill of more than $2 billion.

Shipping in Shell is about reducing and managing risks. Its about achieving and deliveringthe highest standards of governance, health, safety, security of supply and environmentalperformance, and working with international bodies to promote industry standards. Its aboutcombining and deploying the right technologies, and giving the most appropriate advice for

each business, project and location. Its about supporting our colleagues across Shell andplaying our part in delivering the group business strategy of more upstream, profitabledownstream.

The 12,000 tonne oil products tanker Achatina in heavy seas.


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Oilspills present seriousrisksto anyoil and gas company risks ofinjury to people, damage to theenvironment, reputation, businessdisruption, and more.

Shells Multi-business Oil (and Chemical)Spill Advisory Group (MOSAG) began lifeas a committeeof representatives fromShells

variousglobal businesses.They establishedaset of guidelines to help businesses preparethemselves adequately against oil spills.However, communication and enforcementofthoseguidelineswas hampered bylackofa central responsibility for them untilShippingemployeda fulltime dedicatedstaffto coordinate all MOSAG activities andprovide Shell with a global resource for oilspill preparedness.

MOSAG works with group HSE, theInternational Department, group CrisisManagement and the Country Chairs. TheMOSAG website on Shells intranetprovides a one-stop shop for all oil spillpreparedness issues across the group.

The requirements for oil spill preparednessthat have been developed by MOSAG andcommunicated across the businesses arenow mandatory, included in the ShellGlobal Environmental Standard. MOSAGcontinues to develop tools to give businessesmore accountability for their oil spillpreparedness, provide advice, train andrun contingency exercises involving internaland external stakeholders.

Shell Shipping leads the way in the mitigationand control of marine pollution risk

De-icing a Single Buoy Mooring (SBM) near Sakhalin Island, Russia

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Shell ShippingManaging the risk from our operations


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The Shell Shipping organisation is based in London, with specialist centres in Houston,The Hague, Singapore, Perth and Tokyo - networked to maritime professionals across theglobe. Offering high level expertise and decades of experience, we provide group businessesand operations with an unmatched and vital resource.

Shell Shippings work supports many ofShells success stories: For example, inliquefied natural gas (LNG), and in marineelements of floating production and storagesystems. Shell Shipping enables the Tradingorganisation to deliver safely on its contracts.

We safeguard Shells standards andreputation regarding maritime safety,environment, vessel quality assurance,oil spill preparedness, port and berthassessments, and emergency management.

We carry out audits as a governanceassurance process for all group businesses

with exposure to maritime activities andshipping.

Shell ShippingThe Shipping Network

Did you know? Shell started as a shipping company, bringing exotic sea shells and then kerosene from the East to

Europe in the late 1800s. Shell is the largest charterer of oil tonnage in the world. In addition, we manage our own large fleet

of oil and gas tankers. LNG cargoes have been delivered safely from Shell and joint venture operations for over 40 years. In the last decade, we successfully completed 450,000 million tonne sea miles of LNG

transportation. Around a quarter of the worlds LNG carriers are linked to Shell and our joint venture partners. We work with shipping agents in about 250 ports.

About 3,500 seafarers work for us. We train LNG seafarers around the world. Our ship inspections around 4,700 in 2008 help to continually assure standards in the industry.

Consultants from Shell Shippinghave provided advice on complextechnical port and ship projects inover 40 countries since 2005.

We work with government organisations,design and construction companies, and amyriad of the worlds tanker owners.

Shell Shipping is an active partner inindustry bodies such as the Oil CompaniesInternational Marine Forum (OCIMF), the

Society of International Gas Tanker Ownersand Terminal Operators (SIGTTO) andthe International Petroleum IndustryEnvironmental Conservation Association(IPEACA) in order to establish the rightframework for international operations andgovernment representation. We seecollaboration as the key to dealing with thechallenges our industry faces for example,around carbon, sulphur and nitrogen oxideemissions, double hull use, tank cleaning orinspection systems.

Global experience

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ere are few jobs where you have an opportunitylike this to make such a difference to the success ofthe whole business.


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Shell ShippingCreating lasting partnerships

Since the end of 2006 Shell andNakilat Shipping (Qatar) Ltd., a

wholly owned subsidiary of QatarGas Transport Company Ltd.(Nakilat), have operated a formalagreement whereby Shell providesshipping and maritime services toNakilats fleet of 25new-buildLNGcarriers, currentlythe largestin the

world.

Under the agreement Shell Shippingprovides a full range of services, includingstaff recruitment, training and operationalmanagement of all the vessels.

The intention of the agreement is todevelop Nakilats shipping expertise, so

that operational management of the shipscan be transferred to Nakilat 8-12 yearsafter delivery of their last vessel.

Establishing a world-class LNG shippingoperation in this way is a vital element inQatars strategy to lead the world in LNGproduction.

Trusted advisers

Nakilat Shipping (Qatar) Limiteds LNG carrier Mozah,the largest such vessel in the world.

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What we doThe organisation

How Shell Shipping helped China constructtheir first own-built LNG carrier

Shell Shipping is not just aboutships, our services span fourkey areas.

On the Commercial front, we give strategicand economic advice, including businesscase development and market analysis forchartering and tendering fit-for-purpose

vessels. This includes assisting localdownstream operations through the wholeprocess of chartering small ships andbarges; currently in this area we controlexpenditure of about $500 million covering150 vessels.

Our Nautical and Technical servicesinclude advice on a wide range of nautical,marine engineering and technical issuesacross the project life cycle, for newprojects, construction phases, operationalexcellence and disposal. Risk managementand project management are particularShell Shipping strengths. We bring a wealthof expertise and experience related to

vessel terminals and ports to each project.

Standards and Governance constitute keyShell values and are foremost in Shippingspriorities.Weprovideindependentassuranceof shipping standards, and advise ongovernance of maritime activity. ThroughHSEadviceand hazardanalysis,vettingandclearance-for-use services, we help Shellcompanies trade safely and efficiently. Ourprocesses for oil spill and emergencypreparedness and response place Shell in a

very strong position if there is an emergency.

Vessel Management services provided byShell Shipping cover the manning andoperations for tankers and gas carriersowned or leased by Shell companies, joint

ventures and third parties who areconnected to other Shell businesses.

Chinas first own-built LNG carrier,the Dapeng Sun, was successfullynamed and delivered from theHudong-Zhonghua shipyard inShanghai in 2008. Shell Shipping

was involved in the conceptualdesign, plan approval, andconstruction activities. We alsoacted as the owners technicaladviser from the beginning ofconstruction in 2004 to delivery.

The vessel is the first of five sister vessels tobe constructed at the shipyard. It willoperate between Australia and China,supplying 3.3 million tonnes a year to aChinese buyer consortium. The secondsister vessel, the Dapeng Moon alsooverseen by Shell Shipping was deliveredthree months later.

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The naming ceremony of China LNGs Dapeng Sun.


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What we doProviding maritime expertise to group businesses

Setting the standards for ship recyclingTraditionally, the industry hasb ea ch ed o ld s hips o n theshorelines of developing countries,after which they were dismantledby local workforces withoutadequate safety equipment.

When the tanker Estrella Pampeanareached the end of a trading life thatspanned some 27 years, the mostresponsible option for disposal was to

break the ship into her constituent partsand look to re-use as much as possibleelsewhere.

Shell Shipping guided the process ofpreparing the Estrella Pampeana fordisposal, working with the vessels ownerShell Compania Argentina de Petroleo intransporting the tanker and handing it oversafely to the Changjiang Ship Breaking

Yard in China.

My morning a Marine TechnicalAdvisor in the Cte dIvoire

As I arrive at the office about 7.30 am, the

phone is already ringing. There is an urgentrequirement to inspect a barge in Nigeria:The operations manager needs to checkthat the barge can be used; if we dontcheck there could be HSE implications as

well as to our reputation if things were togo wrong, and our relationships with boththe government and the community, as wellas disruption to the business. I give himadvice and promise to call by in theafternoon once Ive checked out industrydata on the barge.

I start to read my email and the phonerings again. This time its the waterfrontmanager from the local port authority, torequest an appointment next week to discuss

some plans she has received. This project isa big investment locally, and she is keen toincorporate an oil company perspective as

well as making sure that standards are up tothe expectations of the users of the port; thegovernment is hoping to attract morebusiness by improving the local facilities.

Mid-morning, I join a telephone discussiongroup with the other Marine Technical

Advisers in Africa. Its part of a regularcommunication programme to ensure that

we all know what is going on and what thepriorities are there are only 4 of us tocover the whole of Africa so the workloadcan be huge and needs managing. I lead

the discussion about providing support to anoil industry safety seminar in Morocco. Itsagreed that I will represent Shell at theevent. Better book my travel straight away.

By lunch time, Im ready to start work onmy next project two new tankers aregoing to be chartered by Shell Cape Verdeand I need to make sure that the ships aregoing to be suitable and that the team inCape Verde is ready to operate the ships .Its never dull here!

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Shell Shipping engages in extensive communication. Our prime objective is to be theguardian of the groups maritime activity, so it is incumbent on us to communicate allmaritime matters within and across the group.

Our connectivity with different customergroups in Shell focuses on the aspects oftheir business where we can add most

value. In Exploration and Production, forexample, our relationships encompassprojects and logistics on both a regionaland a global level. We work with our Gasand Power colleagues on multiple projectsincluding port developments andfreight trading of their LNG ships. Inthe downstream, we collaborate withorganisations such as Manufacturing,Supply and Distribution and Shell MarineProducts to support the safe managementand shipment of a whole range of productssuch as bitumen, lubricants and chemicals.

Our technology experts include mastermariners, naval architects, marineengineers and electrical engineers. We areinvolved in projects ranging from design,conversion and disposal to port andterminal projects and operations. We focuson delivering robust, cost effective solutionsappropriate for each set of requirementsand constraints.

A core part of our strategy is skillpooldevelopment to meet Shells maritimeand shipping needs. A key aim is tomaintain a pipeline of experienced marineprofessionals who can easily fit into Groupoperations around the world. As part of this

skillpool activity we support local andregional businesses to maintain maritimeexpertise. In the area of vessel management

we support localisation and have helped,for example, Brunei and Nigeria in theirsuccessful programmes for the training anddevelopment of their own staff.

What we doCustomer connectivity

Did you know? We have more than 75 maritime experts, offering technical and operational guidance to Shell

businesses across the global regions. We provide category management services for the chartering of more than 350 vessels by the

downstream businesses. OurMaritime Servicesteam carries outmorethan 300Shelland thirdpartyterminalandmaritime

facility inspections each year. We conduct around 40 Shipping Marine Business Reviews each year, leading to assisting the

close-out of more than 450 review findings and action items.

A refuelling barge in the Houston Shipping Channel.

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Shell has been involved in the building andconversion of floating production, storageand offloading units (FPSOs) since the1960s.

Converting an oil tanker into an FPSO inparticular is a major piece of work whichinvolves evaluating the structural strengthand making modifications to the hull toensure that it is capable of operating in theoffshore environment.

We deal with commissioning, sea trials,integration and construction to make surethe right equipment is in place and makesure it works.

Our technology experts include mastermariners, architects, naval engineers andsurveyors. We are involved in projectsranging from ship design, conversion ordisposal to port and terminal facility projectsand operations, and floating productionand storage systems for oil and gas.

We focus on identifying and deploying theright technologies to deliver robust,responsible solutions for each set ofrequirements and constraints.

What we doTechnical project excellence

Making connections

The journey of the floatingproduction,storage and offloading

vessel (FPSO) for the Bonga fieldbeganhalf a worldawayin Korea.Thehull constructed there wasthentowed to Newcastle in the UK forfitting-out before finally beingtowed to site offshore Nigeria.

Shell Shipping connected with many partsof the Exploration & Production businessand played an important role in manystages of the project, from hull design andconstruction, through float-out and towage,to onsite hook-up and operational start-up.

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Shell ShippingOur values

Standards provide the foundations for safe and efficient operations. Shell Shippings standardsare generally those of the industry and we continually work with industry bodies to developguidelines and systems for ensuring safe shipping activity.

Health, safety, security and environmentare of paramount importance not only toensure we dont injure anyone or do anydamage while oil and gas is kept moving,but also to retain Shells licence to operateand underpin our reputation as aresponsible company committed tosustainable development of the worldsresources. Working with industrybodies, ourbusiness partners, governments andneighbouring communities, we are engagedin a constant improvement effort.

Carbon managementis essential to countertheclimate changeimplicationsof theworldsincreasing energy use. While shipping in

general contributes only a small proportionof the global emissions total, there is still acontribution this sector can make toimproving the global outlook. We supportdevelopments to achieve more accuratemeasurement of shipping emissions, andlook for ways to reduce our own operationalimpact through energy efficiency, equipmentspecification, and more.

Security can be difficult to maintain intodays geopolitical and commercial climate.In Shipping we collaborate with private andpublic bodies across the spectrum in orderto develop and deploy robust systems forsecurity management.

Comprehensive hazard analysis and aholistic viewlie at the heart of our approachtoanticipating andmanagingany challengingsituation whetherit ispreparingthegroundfor a new project, overseeing day-to-dayoperations, or dealing with an oil spill or anact of piracy.

Concerns about protecting the environment touch on every aspectof shipping operations, including the prevention of oil spills, ballast

water management, ship rec ycling and emissions.

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Inspecting the main engine gearboxs gears onboard the 137,000 cubic metre LNG carrier Sokoto


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Shell ShippingHow we work

Commercial Shipping focuses onsupporting Gas & Power, EP andDownstream projects.

Ship Management has the expertise inmanaging our vessels and work for ourpartners, security, crisis management,procurement and port relationship matters.

Shipping Technology provides specialistknowledge and experience ranging fromshipbuilding and conversion to floatingsystems and beyond.

Shipping Standards delivers an assuranceservice to the group businesses as well asshipping related standards advice andlearning programmes.

Maritime Services works with Downstream,Gas & Power and Exploration & Productionoperations to ensure the businessescompliance with group standards, and todevelop strategies and systems foroperating units.

Shipping North America takes care ofportfolio management, quality assuranceand port and terminal safety for US andCanadian entities.

Nakilat UK collaborates with Qatar GasTransport Company, managing shippingservices and the ongoing transition of shipmanagement to Qatar.

Strategic Planning deals with long termstrategy development, business planning,business integration, and communications,including reputation management.Security Consultancy is responsible forregional security initiatives, securityrelationships and navy liaison.

Human Resources offers services aroundrecruitment, development, retention andsuccession planning.

Legal has expertise ranging from contractdevelopment to incident resolution,providing support through disputes and thecourt process if necessary.

Finance provides a comprehensive range ofservices including tax advice, treasury,credit and debtor management,management information and planning.

Communications. The Communicationsteam provides internal and externalcommunications expertise, including issuesidentification and management, mediarelations, key messaging and crisisresponse strategy development.

SHELL

SHIPPING

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Shipping in Shell

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