Odfjell Quarterly October 2012

ODFJELLOCTOBER 2012www.odfjell.com

CONTENTSOdfjell QuarterlyEDITOR: Margrethe GudbrandsenEDITORIAL COMMITEE:Karin Ryland Blom, Brit A. Bennett, Matt Duke,Geirmund Drivenes, Leif Gunnar Alvær,Theo Kruithof, Henning LøsethCORRESPONDENTS:HOUSTON: Rebecca SnyderPHILIPPINES: Jennifer FrancoDeadline next issue: 9 November 2012Design: Bruno Blanchard, CoxGraphic production: Jannicke Gildernes, CoxPrint: Scanner Grafisk ASCover: Photo by Almanh HernalPhoto this page:Photo by: Almanh HernalHighlightsOdfjell re-enters the gas market 04LandmarksOdfjell orders four newbuildings with options 09Odfjell issues new bond programme10QHSESafety shutdown at Odfjell Terminals (Rotterdam)11Safety culture towards sustainable performance 12Energy Saving Campaign 15The Good Habit – Safety Talk 15BriefingsGlobal ICT Ship Support00from the Manila office 16‘Always On’ status 17Odfjell Terminals (Charleston) on track,00but with hidden surprises 18Odfjell Nangang Terminals (Tianjin) going forward 19Shipping ERP on track 20New software platform for Odfjell Terminal (Houston) 21Portrait 22Sea and shoreOiP’s staff summer outing 2012 23Odfjell Golf Tournament 2012 24Foskor F21 Marathon 26Tribute to 12 Odfjell pioneers 27Service awards Norwegian Officers 27Personnel 28Fleet and terminals 30Offices and addresses 32Texts submitted to Quarterly may be subject to editorial adjustments.

ODFJELLQUARTERLYmagazineJan A. Hammer,President/CEO Odfjell SEDear Colleagues,As many of you know, the most pressing issue during recentmonths has been the situation at our terminal in Rotterdam(OTR), which again became a major media topic at the endof July when we decided to execute a safety shut-down.The most typical question asked in this context is whathappened? To give a good and thorough answer is not thateasy since this is not the result of a single accident, althoughthe butane leakage last August can be said to have startedthe chain of events. Our problems, as they gradually havebeen revealed through internal and external investigations,go much further back in time and have to do with lackof systematic maintenance of certain critical systems, areactive safety culture and in general terms, a terminal thatwas not in compliance with the HSE standards we haveset for ourselves and also therefore of many stakeholders,including the regulatory authorities. The consequenceshave been and still are severe, with a particular constraintat the time of writing on our employees, the members ofthe Management Team and other key personnel. In lightof some of the unrest, let me make it very clear that wehave the full and strongest confidence in the ManagementTeam. Together with our partner, Lindsay Goldberg, wedecided recently and have already started preparation ofa recovery plan and reorganization that OTR will developtogether with the Works Council. It will require time, fundsand a lot of resources, but you can all rest assured: we willsucceed in bringing OTR to a state of the art terminal atthis important port and junction for petrochemicals andoil products. At the same time as the current situationhurts, and we recognize that even tough with a social planthere will be pain associated to the restructuring process,it can also be seen as an opportunity for the majority ofthe employees to safeguard a sustainable and safe futurefor the terminal. At least that is my own and our Board’sexpectation, an expectation I have heard many of mycolleagues in Rotterdam share with me.An important question in this context is what we havelearned so far? I could mention a number of things, butwant to highlight just one. We know from experiencethat major accidents have in the past brought us into thespotlight of our stakeholder’s and the public’s attention,and as such have become costly and unpleasant incidents.At OTR, we fortunately have not had a major accident andfrom this perspective, the entire situation can be describedas a near-accident; but a major and serious one. So athing we have learned is that it does not only take a bigaccident to end up as a focus point of stakeholders andpublic attention. Of course the enhanced internal andexternal scrutiny has revealed further weaknesses, whichwe should have detected via our quality managementsystem. In this context however, we should consider thisvaluable insights for how to prevent this from happeninghere or elsewhere in the future. In other words, we needto better ensure that our ships and terminals are alwaysproperly maintained, rules and regulations adhered toand that safety is and stays an integral part of how we allplan and execute our work. In sum this means that we allhave to take a more proactive approach to the risks weare faced with in our type of business. This is describedin the Bow Tie Model, which you find more about in thisissue of Quarterly. This Model will become one of the newfundamental components of our improved approach tosafety. With safety we cannot be complacent, but alwaysrecognize that we can do better.Understandably OTR has taken a lot of managementattention lately. On top of that, unfortunately, the chemicaltanker market took an unwelcome dip and has remainedslow since last April/May. Our financial results suffertherefore, so it seems impossible now that 2012 is going tobecome what we had hoped and budgeted for. Our balancesheet and cash position, however, remain relatively strong,still leaving room to ‘maneuver’, although it goes withoutsaying that we again have to put cost reductions on theagenda as we now are about to start the 2013 budgetingprocess.The fact that we have the ability to maneuver is in factproven by our ordering of four new coated ships to replacesome of our recycled vintage tonnage, as well as our reentryinto the LPG/Ethylene sector. Both transactions seemto be good from a timing as well as price perspective, andthe response from market specialists therefore, have beenvery positive. So the picture is not entirely negative...The fact is, despite our many problems and challenges,that we are well positioned for the future, in possession ofan abundant amount of resources and competence, andtherefore will be able to carry through?Let’s all roll up our sleeves and do it together!NR.03/ 123odfjell quarterly magazine

highlightsODFJELL QUARTERLY magazineOdfjell re-enters the gas marketBy Margrethe Gudbrandsen, Communication Manager, BergenLPG factsGas is broadly divided intotwo categories, LiquidNatural Gas (LNG) and LiquidPetroleum Gas (LPG).LPGLPG is the generic name given tothe commercial gases propaneand butane.4In June, Odfjell decided to reenterthe gas tanker marketby acquiring two modern LPG/Ethylene gas carriers of about9,000 cbm carrying capacity.– Our ambition is to becomeone of the leading playersin the market for small LPGcarriers, says Jan A. Hammer,President/CEO of Odfjell.The acquired vessels, from twoSingaporean companies controlledby the BLT Group andbuilt in 2008 at STX Shipbuildingin Korea, are renamed BowGallant and Bow Guardian. Thevessels were delivered to us inAugust and September.The decision to buy these vesselsis a result of the sector’s growthpotential and the Company’sexperience in the market. – Wehave a lot of know-how and competencerelated to this market.Our brand name and global marketing/operationalnetwork willgive us a competitive advantage,Jan A. Hammer says.Favourable LPG market– The LPG market is favourableat the moment with a reasonablebalance between supply anddemand. With the right combinationsin the present marketBow Gallant entered the Odfjell Gas Carriers fleet on 31 August 2012it is possible to make a positivecontribution to the bottom line.Despite the optimistic conditions,our main focus is to learnthe markets and the operationof the vessels. In the longer termthe expectations are positive,and we think the U.S. shale gasdevelopments will impact thismarket, hopefully in a positiveway, says Knut H. Holsen, SVPOdfjell Gas.HistoryOdfjell was an operator in thepetrochemical gas market inthe ’70s and the ’80s with twovessels (Bow Elm and Hardanger)sailing in the Odfjell Westfal-Larsen Tankers pool. Flumar,fully owned subsidiary of Odfjellalso operated a small LPG carrieruntil November 2011.Bow GallantIn addition to these cargoes, asignificant number of LPG carriersare also able to transportammonia and petrochemicalgases (‘petchem’) such as ethylene,propylene, butadiene andvinyl chloride monomer (VCM).LPG occurs naturally in crudeoil and natural gas, and can alsobe found as a by-product of thevarious processes in an oil refinery.At normal temperature andpressure, LPG is gaseous. Whenplaced in a reduced temperatureenvironment and under moderatepressure, this gas condensesinto a liquid, hence LPG.LPG in daily lifeLPG is used for residential andcommercial purposes.• Residentially, LPG is used forheating, refrigeration, cookingand generating electricity.• Commercially, LPG is used toproduce and manufacture metals,in engineering equipmentand ships, as well as in ceramicsand agriculture. LPG is also asource of fuel for LPG poweredcars and buses. In comparisonto petrol and diesel, LPG producesless carbon monoxide,greenhouse gases and sulphurthan traditional fuels, hence apositive environmental effect.• The petrochemical gas ethyleneis derived from crackingLPG is used as an energy source for cookingin many householdspetroleum feedstock and isoften used for plastics, carcomponents, housing materialand insulation.• The petrochemical gasesbutadiene and propylene, arealso derived from crackingpetroleum feedstock, butthe end product tends to besynthetic rubber tyres, paints,plastics, packaging and textiles.LNGLNG is methane that has beencooled to around -163°C, atwhich temperature it liquefiesand can be transported in insulatedtanks aboard specializedvessels.The majority of LNG carriershave historically been ordered onthe basis of long-term arrangementsfor particular projects.However, this has taken a turnover the last few years and it isnow not unusual for LNG carriersto be ordered independently ofa specific project.Demand for LNG has continuedto increase in recent years withtrade growth of 21.3% recordedin 2010 and an estimated rise,according to Clarksons, of 6.5%in 2011.www.odfjell.com

LPG marketsBy Christian Stensaker, VP Business Development & Projects, BergenBefore going further into the marketdynamics of LPG, it is useful to broadlyunderstand the various segments withinthe trade. Dedicated LPG carriers vary insize and form. The gases are transportedin liquid form because their physical andchemical properties do not allow themto be carried in vapour form. Typically,LPG carriers are divided into three maincategories:• Fully pressurized (F/P)• Semi-pressurized and refrigerated(S/R)• Fully refrigerated (FR)Fully pressurized vessels (F/P)F/P vessels are typically ranging in size from3,000 to 7,500 cbm (according to DNV). A F/Pvessel does not have any compressors andcannot discharge into refrigerated storage.Loading a F/P vessel from refrigerated storagecan be very slow. The cargo is carriedin cylindrical or spherical steel tanks atan appropriate storage temperature. Theadvantage of these vessels is that the cargois carried at an ambient temperature and nore-liquefaction plant is required. The vesselsare most economical in coastal trade.The layout of Bow GallantSemi-pressurized andSemi-refrigerated vessels (S/R)A semi-refrigerated vessel is also calledsemi-pressurized. S/R vessel’s cargo systemconsists of a refrigeration plant and insulatedpressure tanks with lower cargo tank designpressure as opposed to fully pressurized vessels.Cargo can be discharged to terminalswith both pressure tanks or refrigerated tanks,due to booster pumps and both heating andcooling facilities fitted on board. Number ofcargo tanks are typically ranging from 2-6.Advantages compared to fully pressurizedvessels:• increased cargo cubic capacity• additional types and more advancedcargo can be carried• better operational flexibilityFully refrigerated vessels (FR)A fully refrigerated vessel has compressors onboard and maintains tank pressure at closeto ambient pressure by cooling the LPG tobelow its boiling point (butane to just below0 °C and propane to approximately –42°C).Fully refrigerated tankers are built to carryliquefied gases at low temperature and willtypically move between terminals equippedwith fully refrigerated storage tanks. Thesecarriers have prismatic-shaped cargotanks, allowing the carriage of cargoes attemperatures as low as –48°C, marginallybelow the boiling point of pure propane.Bow Gallant and Bow Guardian are bothsemi-pressurized gas carriers.NR.03/ 125LPG/Ethylene fleet and competitionBy Christian Stensaker, VP Business Development & Projects, BergenThe S/R and ethylene fleet is currentlygoing through a transition, in that theidea of a 30-year commercial life for avessel is about to be ended. The marketshould observe a positive effect of thisas the new consensus is to reach asupply demand balance. Some of thenewbuilding programmes now takingplace among Odfjell’s competitors aremerely replacement of aging tonnage.As for development within tonnage size,these can be broadly grouped as follows:• The 8,000 - 9,000 cbm size will increasinglybe considered the size for short tomedium haul trade as an extension ofthe 6,500-7,200 cbm ethylene/petchemcarriers.• The 10,000 - 17,000 cbm size will graduallybecome the preferred size for long haulethylene/petchem shipments, with12,000 cbm representing the 'base size'.There is only a handful of global ethyleneoperators. With few exceptions, they operateunder a pool or commercial managementstructure typically consisting of twoor three members.The five largest players have on averagea fleet of 12-14 vessels. A few significantnewbuilding orders have been placedalthough uncertainty exists as to how manywill finally be delivered. In addition, thereare a few players that focus on a somewhatlarger 20,000+ cbm segment with someethylene capacity.The market that Bow Gallant and BowGuardian are entering has a controllablescope with a limited number of operatorsdominating the scene. Interest fromoutsiders to enter the petchem/ethylenemarket is apparent but so far no-one hasmade any significant move.As of today, the total fleet of ethylene carriersstands at fewer than 130 units, henceit will not take much to make an impact.odfjell quarterly magazine

highlightsODFJELL QUARTERLY magazineThe petchem marketBy Christian Stensaker, VP Business Development & Projects, Bergen6The semi-refrigerated vessels (excludingethylene carriers) and fully refrigeratedcarriers generally carry traditional LPGcargoes such as propane, butane andammonia.The Bow Gallant and Bow Guardian, however,are LPG carriers with ethylene-carrying capacity.Statistically, such vessels are employed inthe ethylene market about 50% of the time,while they are used to carry petchems for theremaining 50%. Volumes of ammonia andLPG cargoes carried by ethylene carriers aretherefore marginal.Total volumes of LPG, ammonia andpetchem shipped in 2011 (Drewry Q2, 2012):LPG 63 million mt or about 70%Ammonia 14 million mt or about 16%Petchem 12 million mt or about 14%Growth in seaborne trade for petrochemicalgases is expected to be 4% in 2012, 2.7% in2013 and 3.4% in 2014. These figures are in linewith or slightly above corresponding expectedgrowth figures for ammonia and LPG.Middle East export accounts for about 42% oftotal LPG, ammonia and petchem volumes,with countries in South and North East Asiaas the largest receivers.This situation is not set to change, as newexpansions in the Middle East are plannedfor the period 2014 to 2016. This expansion,coupled with Asian demand growth, isexpected to be the bedrock of trade growthalso in the years to come. The world’s largestsingle importer of LPG, Japan, reportedimports of 12.4 tonnes in 2011, which is upfrom 10.2 million tonnes in 2010 and is thethird consecutive year of post-recessionimprovement. (Source: Clarksons Spring 2012)Shale gas and EthanolDue to the presence of large volumes ofethane in shale gas, ethylene will be aninteresting cargo in the years to come. The USpetrochemical industry is set to see significantinvestments to monetize on the shale gasadvantage. If and when all the projects cometo fruition, the North American market willnot be able to absorb all the additional derivativecapacity, and it is expected that some ofthe production will be earmarked for exportmarkets. Some analysts describe the US GulfCoast as the 'new Middle East' with largeamounts of export-oriented capacity destinedfor countries outside North America.(Source: CMR, Shale Gas Impact on C2, C3and C4 Derivatives)By 2010, ethylene was produced by more than110 companies in 55 countries. To meet theever increasing demand for the product, productionfacilities keep being added globallyand particularly in the Persian Gulf and China.According to Chemical Market ResourcesInc., a total of 15 new cracker investmentsand expansions have been announced inthe US in the period 2012-2017, all relatingto ethylene capacity.Experienced gas carrier crewBy Jennifer Franco, Information Officer, ManilaOdfjell in the Philippines (OiP) will workwith Orient Ship Management(OSM) inmanaging the crew for Odfjell’s two gastankers. The two manning companies willeach provide an equal number of crew forthe vessels.The collaboration is a practical operationaldecision considering Odfjell’s gradual re-entryto the market with only two vessels. – Thecollaboration with OSM will provide us withexperience in developing an excellent Odfjellcrew pool to man our gas carriers. Odfjell isaiming to grow and become an importantplayer in this sector. Once we add more carriersand expand our fleet for the gas market,OiP will solely handle crew management, saysMarites Villena, Crewing Manager for the gascarriers. OSM’s experience in crew managementfor gas tankers fuelled the partnership.Training and Company familiarisationThe gas carrier crew chosen from Odfjell andOrient Ship Management (OSM) to run theBow Gallant and Bow Guardian, took part intraining at Odfjell Academy in Subic in Julyand August. The week-long training, led byexperts from the Academy and Fleet Bergen,covered discussions on Odfjell familiarisation,systems and procedures, gas operations andother topics relevant to on board safety.Captain Ole Breimo, Senior Marine Superintendentfrom Fleet Bergen and trainer onOdfjell gas operation procedures said theCaptain Ole Breimo, Senior Marine Superintendent from Fleet Bergen, on Odfjell gas proceduresrecent training has been very productive: – Itwas a good two-way communication. This is agood opportunity to develop the competenceof officers and crew for our gas tankers, hesaid.Odfjell Academy in collaboration withFleet Asia, Fleet Bergen and the CrewingDepartment of Odfjell in the Philippines (OiP)organised and designed the materials for thetraining.www.odfjell.com

The OdfjellGas unitBy Margrethe Gudbrandsen, Communication Manager, BergenOdfjell Gas Carriers represents a newdivision within the Odfjell Group. Giventhat they are still quite a small part of thegroup, they will initially have to be quiteself sufficient. Taking delivery of the newships and ensuring that they have the rightpersonnel in place for the Bow Gallant assoon as it was delivered has meant that ithas been a hectic start for this new division.In addition there have been other issues tomanage such as finding office space andensuring staff are released from previouspositions.Closing the last gas tradein 1987 and starting the first in 2012Knut H. Holsen is the newly appointedSenior Vice President for the unit whichcurrently consists of three employees. Withbackground in the gas industry he is in manyways representing the ‘red thread’ in the gassegment. Rumours say that you were theone who closed the last gas trade in 1987and now here you are starting the first againin 2012: – In a way that is correct. The last ofour gas ships were sold in 1987, and the vesselwas fixed from South America to the Far Eastwith a cargo of Propylene. It was done witha Japanese charterer through our office inHouston. And this week we have concludedthe first cargo on the Bow Gallant and we arevery excited, Knut H. Holsen says.Various possibilities for expansionFor now, both the unit and the fleet is small.Odfjell Gas is currently run by a small unit. From left; Harald Folland, Knut H. Holsen and Christian Stensaker– Within the next few years we want tobecome a respected player in the market forshipping of petrochemical gases worldwide.There are various ways this can be done andwe are in the process of exploring these atthe moment, Holsen continues. All of theshore based personnel have great knowledgeand experience from the complex chemicaltanker market. However, unlike the multiplecargo programmes and numerous ports ofload/discharge that parcel tankers endure,the gas market is much smaller and most ofthe time it involves one cargo on each vesselper voyage, one load and one discharge port.– Nevertheless, even though the marketsare different, there are still many synergiesand we can take many advantages from ourexperience in the chemical market. Althoughour clients would be different people, manyof the actual customers would be the same,and we would be serving the same line ofproducts and markets which is an advantage.Why chose a ‘new’ playerOdfjell has a good standing as we are seenas a respectable and major player within thechemical tanker market. However, despitehaving a sound history with the chemicalmarket, we will be regarded as a ‘new’ playerwithin the gas market. Why should customerschoose a ‘new’ player, such as Odfjell, aboveexisting customers; what are the majoradvantages of using Odfjell?– I do believe we have a good name in theindustry. Our customers should expect a highstandard of performance. The ships we haveacquired are good vessels and we expect thatwe shall be able to service our customers in avery favourable way, ends Holsen.NR.03/ 127The gas unitName: Knut Henrik HolsenPosition: SVP Odfjell GasPrevious experience: Spent over 25 years withOdfjell in various positions in Marketing/Chartering. During my early days as a traineeI got involved in the chartering of the gasvessels and at that time we operated fourships and they were trading in all cornersof the world. Since the late ‘80s the mainfocus has been India/Middle East and lateron Africa. This is a very exciting part of theworld and it has lots of opportunities.Name: Christian StensakerPosition: Vice President BusinessDevelopmentMain tasks: Business Development,Commercial operationPrevious experience: Experience as Serviceand Pool Manger for Chemical and CPP vessels.Managing Director for Iver Ships and laterBrostrom Tankers in Singapore. Vice Presidentin DNB Singapore, Corporate Banking Divisionfor Shipping. Managing Director for HellespontTankers in Hamburg, GermanyWhy gas? It is an exciting new opportunity inan industry that indeed has a promising future.Name: Harald FollandPosition: Senior Ship OperatorMain tasks: Safe and cost-efficient shipoperation for vessels allocated.Previous Experience: 4 years Nautical studiesat Ålesund Maritime College, Deck officerwith Stolt Parcel Tankers, 9 year as operator/senior operator with Odfjell Tankers.Why Odfjell Gas? Intrigued by the possibilityto be part of something new from the verybeginning and working in a small organisationwith opportunities to affect the way wemove forward.odfjell quarterly magazine

highlightsODFJELL QUARTERLY magazineOdfjell Gas in the ‘80s’By Knut H. Holsen, SVP Odfjell Gas, BergenOperating gas carriersis nothing new to Odfjell.In the early ‘80s the jointventure Odfjell Westfal-Larsen Chartering had thecommercial managementof Hardanger (ownerWestfal-Larsen & Co AS)and Bow Elm (owner ASRederiet Odfjell).8In 1983 the Norbelgaspool was formed, whichincluded the vessels mentionedabove plus EinarTambarskjelve (ownerNorgas) and Coral Temse(owner Exmar in Belgium).This pool lasted until 1985.The vessels Hardanger, BowElm and Coral Temse wereall about 8,000 cbm, withEinar Tambarskjelve as the‘big sister’ of about 8,500cbm, all ethylene carriers.Coral Temse and EinarTambarskjelve were tradedin the petrochemical gasmarket, while Hardangerand Bow Elm were so called‘multi purpose’ carriers, firstof its kind and were tradedboth with chemicals andgases, whatever gave thebest return. The marketswere very difficult in theearly ‘80s’ with a substantialincrease in the supply oftonnage both for chemicaltankers and gas ships.Odfjell and Westfal-Larsen& Co AS decided to leavethis market in 1987 andfocused their investmentson their core business.Hardanger and Bow Elmwere sold to Norgas andrenamed Norgas Voyagerand Norgas Discoverer.Old Bow Elm (on top) and Hardangerwww.odfjell.com

landmarksODFJELL QUARTERLY magazineOdfjell orders four newbuildings with optionsBy Tore Jakobsen, SVP Corporate Investments, BergenFollowing extensive technical and commercialnegotiations, four shipbuilding contractswere signed between Odfjell ChemicalTankers AS and Hyundai Mipo Dockyard(HMD) in Ulsan, Korea on 31 July.The contract price is below USD 40 millionper unit, and we have also signed an optionagreement for 2+2 contracts at the same pricelevels, to be declared within four and threemonths respectively. Delivery of the first fournewbuildings will be January, March, May andJuly 2014.The newbuildings will replace the P&F and KSECclass which is gradually being phased outby recycling. The specification, with eco-friendlydesign, has been made to what we call ‘OdfjellStandard’, including less fuel consumption inthe range of 10-12% compared to other chemicaltankers of the same size delivered the last fouryears.Continued weak resultsBy Margrethe Gudbrandsen, Communication Manager, BergenThe Hyundai Mipo Dockyard (HMD) in Ulsan, KoreaFrom the signing ceremony. Representatives of HMD management, headed by Senior Vice President T.D.Lee, R.S.Platou Shipbrokers,Petter Arentz and the Odfjell team, Senior Vice President Tore Jakobsen, Vice President Geir Almestad and Senior Project manager ArntKaare Simonsen Meyer.The main dimensions and particulars of the vessels shall be:Length overallmax 182.7 mBreath, moulded32.2 mDesign draught12.5 mDeadweight, design draught46,310 MTCargo capacity (100%)min 54,000 m3No of cargo tanks 20 +2Tank coating25 % zinc / 75 % epoxyNR.03/ 129A second quarter 2012 EBITDA of USD 27million reflects primarily a soft chemicaltanker market. The overall tank terminalearnings remained steady during theperiod, despite increasing challenges andcosts at Odfjell Terminals (Rotterdam).Subsequent to this period of reporting, thisterminal carried out a safety shut-down ofoperations.For the chemical tankers business, secondquarter of 2012 showed a weaker performancewith reduced demand and softer freight rates.The time charter result ended down 15%compared to first quarter of this year.The global economic outlook remains weak,as the uncertainty surrounding the Europeandebt crisis continues and the macroeconomicpicture in China appears to be deteriorating.A moderate recovery of activity, particularlyin the spot market, may stimulate some rateimprovements, similar to those seen in fourthquarter 2011 and first quarter 2012.We expect the situation at OTR to negativelyimpact the results of our tank terminal activitiesfor the remainder of the year.odfjell quarterly magazine

LandmarksODFJELL QUARTERLY magazineOdfjell issuesnew bond programmeBy Margrethe Gudbrandsen, Communication Manager, Bergen10Odfjell established a 500 million Singaporedollar bond programme in the Singaporemarket in September.Currently Odfjell has two NOK bonds onoutstanding in the Norwegian market thatmatures in 2013 and 2017. We also havea history in the Singapore bond market,with a bond issued in 2006 that matured in2011. – The intention was to refinance thisbond at maturity, but as the market wasunfavorable at that time we decided to waitfor improvement in the market. To preparefor this, we have established a bond programmein Singapore where we may issueNew DocumentManagement System ProjectBy Arne Sletten Helgesen, Project Manager, Bergenbonds in the Asian investor market, saysTom A. Haugen, VP Finance in Odfjell SE.And he continues: - Odfjell has the opportunityto participate in many exciting projectswithin the chemical tanker market, tankterminals market and in the gas carriersegment. The proceeds from a potentialbonds issue may be employed to materializethese projects, to repay debt and for generalcorporate purposes.The banks assisting Odfjell are DBS, HSBC and DNB SingaporeTom A. Haugen, VP Finance, Odfjell SEThis summer a new project was launchedwhich focuses on understanding ourrequirements regarding a new DocumentManagement System. Currently ourdocuments are stored in several places;in file shares, as attachments to emails,in SharePoint Team Sites and in severallines of business applications. The manystorage areas means it is time consumingto store, retrieve and dispose of documents.A New Document ManagementSystem will introduce options for versioncontrol, document templates, securityand compliance.• a document management system canimprove our overall effectiveness, especiallywith regards to the retrieval of documents,but it will also include better options fordocument control and securityThe project group members are from all maindepartments and we will create a broaderreference group that should ensure that allThe many storageareas means it is timeconsuming to store,retrieve and disposeof documents.offices are also kept informed during theproject. We are now at the very start of theproject and our focus is to grasp all ourrequirements for a Document ManagementSystem. We plan to have a report ready by earlyOctober which will list our main requirementsand which will also including a project scopeand budget.The reasons for starting this project arethreefold:• to establish an information lifecycle strategyfor document retention and deletion• to have alignement. There are severalinitiatives present today, focusing onimproving document management systems.With this project we are aiming to ensurethat we do not end up with a series ofcompeting systemswww.odfjell.com

QHSEODFJELL QUARTERLY magazineSafety shutdown atOdfjell Terminals (Rotterdam):– Leaving nothing to chanceBy: Theo Kruithof, Communications Officer, Odfjell Terminals (Rotterdam)In previous Quarterly issues we wroteabout the environmental and safetysituation at our Rotterdam terminal. Somefar-reaching events have taken place sincethen.Following the BRZO (Major Accidents (Risks)Decree) inspection by the authorities ofMarch this year, Odfjell Terminals (Rotterdam)(OTR) has taken many steps into the rightdirection in order to meet the requirementsthat resulted from the BRZO inspection.Safety shutdownOne of the requirements following the Marchinspection involved the live-testing of coolingand foam extinguishing lines. After havingtested a number of tanks, OTR concludedthat the tanks equipped with carbon steelfirefighting lines were not working properly.As a result of unconfirmed rumours about thenew parts of the terminal showing defectiveextinguishing equipment as well, OTR decidedto declare a complete safety shutdown. Theannouncement was made on the 27 July.ApprovalsTanks can only be taken back into service afterapproval by the authorities. Approval is givenafter the authorities have ascertained thatthe tanks’ fire fighting equipment is workingproperly and the tank inspection data areaccepted. OTR’s inspection data are based onthe latest Risk Based Inspection methodologyEEMUA-159. By mid september the authoritieshad released 50 tanks, or 483,800 cbm capacity.At the same time, OTR made full use of thesafety shutdown by performing additionalsafety checks to the storage tanks and the otherinfrastructure, and by carrying out repairs andupgrades where needed. Consequently, tankswill only be taken back into service when boththe authorities and OTR give the green light.Sympathy for customersOn the one hand, the safety shutdown is adisappointment: OTR has let its customersdown. Many are depending on the servicesthat OTR normally renders. OTR very muchregrets putting its clients in this difficult positionand wishes to express its apologies onceagain. Unfortunately, OTR did not have anyother option, given the circumstances. We putsafety first. On the other hand, the authoritiesand OTR are scrutinising all tanks, ruling outany safety issues. In addition, OTR continuesto improve its Safety Management System,thereby further increasing the control oversafety risks.Comprehensive modernisation planThe staff at OTR is determined to have asmany tanks as possible back into safe serviceagain as soon as possible. The tanks with thecarbon steel fire fighting lines will be subjectto a broader renovation plan. Consequently,substantial parts of the terminal will remainidle for a while since the technical upgrade willtake place one tank pit at a time. OTR is nowworking on a comprehensive modernisationplan. Moreover, OTR is dedicated to improvingthe integrity of its tanks as well as permanentlyimproving the safety and environmental performanceat its terminal. OTR’s ambition is tocomply with the highest industry standards.NR.03/ 1211OTR is testing the firefighting systemDemolition of nine tanks in tankpit 9Aodfjell quarterly magazine

QHSEODFJELL QUARTERLY magazineSafety culture towards suBy Jennifer Franco, Information Officer, ManilaShip Management steadfast commitmentto the reinforcement of safety culturemeans not only strengthening leadershipinvolvement but also developing concreteactions to translate safety objectives intodaily operations. This entails ensuringawareness and loyalty to the organisation’sunequivocal vision, core values,message, expectations and goals thatlead to excellent safety performance bothon shore and on board.12The Officers Conference in Manila on28-30 August, led by managers from ShipManagement and Odfjell Tankers, provesour focus on guaranteeing the top management’scompetence and commitmentin matters relating to sustained safetyperformance. The three-day workshopalso underlined the continuous pursuitfor positive improvement on the proactiveapproach to safety through various programmesand safety message disseminationcampaigns.Toralf Sørenes, SVP QHSE discussing corporate QHSEProactive safety message:The Bow Tie ModelHelen von Hirsch Eriksen, OrganisationalPsychologist from Proactima and one ofthe principal presenters during the conferencestressed that Ship Management safetyculture leans towards proactivity: - We aimto create a proactive safety culture wherethe emphasis is placed on putting barriersto stop incidents from happening, i.e. toreduce probability of an accident.The shift to a proactive management ofsafety is a work in progress that entailsconsistent communication of the safetymessage, the Bow Tie Model. ShipManagement has designed its own versionof this internationally recognised modelthat defines a proactive approach to safety.HSE Manager Harald Bauck said that ShipManagement has already put in placenecessary barriers to reduce consequencesof an accident, but in order to develop aproactive safety culture, the focus mustbe on preventive actions. He added thatunderstanding the Bow Tie Model and itsimplications on safety of operations is thebeginning of a real shift towards proactivity:- Our focus must move from the right-handside to the left-hand side of the model.Putting the safety message out- One of the elements in safety cultureis values. They describe our identity andshould be the baseline which motivatesall actions for ship and shore staff, SeniorVice President of Ship Management HelgeOlsen said in his presentation during theOfficers Conference. To reinforce the SafetyCulture campaign, we have included proactivesafety culture in the core values whichwill frame the norms, attitudes and behavioursof everyone in the organisation. ShipManagement has also developed materialsthat will serve as visual representations ofour commitment to move towards a moreproactive management of safety. Posters andtarpaulins of the Bow Tie Model and corevalues are displayed on board vessels and inshore offices, and the use of the ‘Stop WorkAuthority’ card will be implemented soon.The ‘Stop Work Authority’ card will serveas a visual aid for all employees indicatingthat they need to ‘STOP WORK’ when theactivity poses a potential danger. This cardwill be given to all employees within ShipManagement.The efforts in making the safety messageknown both on board and on shore has beenyielding optimistic results. Vice Presidentof Fleet Management in Bergen, GeirmundDrivenes, shared that whilst the messageis spreading, there is always a need to fightagainst complacency through a robust andcontinuous information campaign:-Weneed to renew and keep driving the messageuntil we all think safety from top-level managementto everyone in the organisation.But putting the message out is only thebeginning of the cultural change. The realwork lies in everyone’s combined effort tobe proactive. This change has to start fromthe top of the organisation.Leadership developmentto drive cultural changeAn organisation’s success in developing asafety culture is only as good as its leaders’adherence to the safety philosophy. Thewww.odfjell.com

stainable performanceNR.03/ 1213HSE Manager Harald Bauck discussing about the Bow Tie model with the officersannual safety-themed Officers Conferencesand rigorous competence trainings forManagement Level Officers (MLOs) andOperational Level Officers (OLOs) are actionsto tap leadership’s vital role in steering thecultural shift to proactive safety. Running incomplement to these trainings is the awaitedlaunch of the Leadership DevelopmentProgramme for Mariners which will bespearheaded by Owner’s Representative ofOdfjell in the Philippines, Tore Henriksen.This leadership training will be providedto all mariners starting with the MLOs andOLOs.The RD 12 Inspection Regime, ‘TheTechnical/Marine Superintendent visits onboard’, further involves leadership in theShip Management safety culture programme.According to Mr. Drivenes, the RD 12 carriesin it many of the most vital aspects whenbuilding and developing a healthy SafetyCulture: - In Odfjell, both Technical andMarine Superintendents are required to visittheir ships at regular intervals, and thesevisits are to be organised in accordance withthe RD 12, he says.The status of Odfjell’s safetyculture according to the OfficersMLOs and OLOs present during the OfficersConference all agree that the awareness ofOdfjell’s safety culture is starting to get astrong foothold both on shore and on board.However, everyone echoes the opinion thatshifting to a proactive safety culture is still awork in progress. - In terms of safety, we haveimproved due to a heightened awareness onour safety expectations and goals. However,there is still a strong need to change people’sattitudes and behaviours towards safety, saidChief Engineer Dante A. Mangampat.Chief Engineer Leo Gegajo, Head of OdfjellAcademy, reiterated values as the springboardof proactivity: - In my opinion, westill have work to do to establish a proactivesafety culture in our organisation. We needto strengthen and align our values with ourdesired culture because our values frameour actions.The road to sustainable safety performanceThe Safety Culture programme is a continuoussearch for improvements andbest practices that will drive the wheelof cultural change in motion. Odfjell is alearning organisation whose sustainablesafety performance depends on its people’sinvolvement, both on shore and on board, inensuring that every vessel has zero accidents.The organisation aims to develop a workingenvironment where reporting incidents isbuilt on an atmosphere of trust and openness,to empower people to challenge unsafeactions and working conditions regardlessof their rank and positions, and to harnessloyalty of the workforce in matters pertainingto safety.Several underpinning safety issues are yet tobe addressed, but we already have our footin the door. - We have to work hard and bepatient. We cannot change culture in twodays, but we can change culture in two years,and we will, Mr. Bauck concluded.odfjell quarterly magazine

QHSEODFJELL QUARTERLY magazine14The Bow Tie ModelBy Helen von Hirsch Eriksen, Organizational Psychologist ProactimaThe picture above will for some of you befamiliar. It is the Ship Management Bow TieModel, and those of you that have been to aCaptains workshop, an Officers Conference,or been visited by a superintendent for aReference Document 12 (RD12) meeting,will be somewhat familiar with it.We have developed the model further so thatit is specific to our organisation and describeshow risk is to be managed in all activities inShip Management. It is also a very good way tovisualize the type of culture we are developingin Ship Management; a preventative safetyculture. It is vital that increased emphasis isplaced on the reduction of probability or thelikelihood that an activity should occur. Inother words; we should work to eliminate riskbefore an activity is initiated. Thus we havea culture of proactivity. This is done throughquality in planning activities.The centre of the model represents a givenactivity and the word risk is included in thisbox to visualize that all activities hold an elementof risk that must be managed. The whitearrows passing from left to right represent therisk itself. As you can see there are barriersstopping some of those arrows from passingthrough. These barriers represent an actionwe have done, or a physical barrier that wehave put in place, to stop the risk.The important thing to note here is thatthere are two types of barriers depending onwhich side of the activity it occurs. Barriersthat are used before an activity are calledprobability reducing barriers, whilst thoseon the right are called consequence reducingbarriers. Examples of probability reducingbarriers (on the left side) are the Task RiskAssessment, the Pre Work Talk, competenceand the Work Permit. Examples of consequencereducing barriers (on the right side)are Person Protective Equipment, detectorsand fire-fighting measures.I often use driving your car as a good wayto exemplify this. The activity is driving.Consequence reducing barriers are seatbelt,airbags, ABS brakes. These reduce theconsequences of a possible crash for thedriver. However, to lessen the likelihood of acrash occurring in the first place, probabilityreducing barriers such as slowing the speed,being a competent driver and following therules of the road must be used. The very samerationale can be applied to any given activitywe carry out.I said earlier that the key to being proactiveis quality of the probability reducing barriers.If we do not focus on the quality of probabilityreducing barriers such as the Task RiskAssessment or the Pre-Work Talk they will notbe effective in reducing risk. Only when theTask Risk Assessment is carried out in theright manner, with the right people talkingabout the right risks, and making sure thatthey have a common understanding of theelements in the activity, can we say that it isa quality barrier.Therefore, Odfjell Ship Managements goalof establishing a proactive safety culturedepends on increased attention to planning ofactivities, knowledge of the procedures, howwe talk about risk in the Task Risk Assessment,Pre-Work Talk etc, and how well leaders followup these activities.www.odfjell.com

New ideas for Energy Saving Campaign:- A chance to win USD 10,000!By Margrethe Gudbrandsen, Communication Manager, BergenFollowing on from the success of theValue for Money Campaign in 2010,the management decided to launchannual ‘themed’ campaigns in order togenerate new ways in which we canimprove various activities within ourbusiness.The theme for this year’s campaign is‘Energy Saving’. Several of Odfjell employeesare addressing energy saving as partof their responsibilities and tasks (such asweather routing, speed and consumptionanalysis, minimizing auxiliary runninghours etc). However, many of you mayhave already thought of other possibilitiesto save energy in your daily work. If youhave ideas and suggestions for potentialchanges in daily routines, work tasks,activities, equipment or habits, we wouldreally appreciate to hear about them.Energy SavingThe winning criterion is ‘Energy Saving’.We are therefore looking for ideas that willfurther reduce our use of energy and inturn reduce emissions to the environment,improve our earnings, reduce costs andallow us to fulfil our mission statement.How to participate?All Odfjell employees can participate in thiscampaign, whether you are based at sea, atthe terminals or in an office. Please sendyour ‘Energy Saving’ suggestions to the followingemail: energysaving@odfjell.com.What happens to your suggestion?Your ideas will be reviewed initially by theEnergy Saving Evaluation Committee. TheCommittee will then forward suggestionsto the appropriate business unit or departmentfor further evaluation and possibleimplementation.Although your ideas/suggestions maybe modified and further developedduring this evaluation/implementationprocess, we will ensure that we give recognitionand in some cases grant possiblemonetary awards based on the originalemail entry.AwardsThe campaign was launched on1 September. The best proposals eachmonth will receive awards in the rangeof USD 100 – USD 1,000. The top prize ofUSD 10,000 will be awarded the best ideareceived during 2012. The winner will bepresented during first quarter of 2013.NR.03/ 1215The Good Habit – Safety TalkBy Bjørn Ydse, HSE Manager, BergenStay safe and be proactive!!Starts meetings with a ‘Safety Talk’Safety should be an active element ofeveryday life when at work and at home.As an employer, Odfjell strives for and isengaged in many areas working to improvethe Company’s safety culture. Being part ofOdfjell we can and should all contribute tothis and there are many things we can dowhich ‘costs little but has a good impact’both on the business itself and on the imagewe are trying to create.Start meetings with a ‘Safety Talk’One example which has had a positive effectand gives a lot of synergy is the idea of startingvisits from external parties with a safety talk.Meetings at Odfjell locations with customers,suppliers, colleagues from other destinations,contractors, other guests etc, should start witha safety talk. A typical example is when we firstintroduce someone to a site we describe thefire instruction. If a fire situation should occurwe tell our guests how to evacuate the building,where the emergency exits are, wherethe assembly area is and about available fireequipment.This is a good example of improving safetyculture because it is so simple. By repeatinga simple message again and again, even if itis for same audience, it becomes embeddedin you and forms a good habit.odfjell quarterly magazine

BriefingsODFJELL QUARTERLY magazineGlobal ICT Ship Supportfrom the Manila officeBy Matt Duke, VP ICT, Bergen16In 2012 we have installed ‘Always On’ internetconnections on 24 vessels. This gives additionalopportunities and possibilities for remotesupport and connection to corporate ICT services,applications and other technical systems onboard. This will increase the need for remoteICT Support for the vessels, and it is not costeffective to build such a large support team at theheadquarters. The main principle of ICT strategyfor ship support is that ICT in cooperation withthe service owner, Ship Management, will adviseand design the ‘ICT Infrastructure’ on board, andwe will build a skilled, enthusiastic and serviceminded team in Manila to support the solution.By providing world class ICT support to our vessels24/7 in a cost effective way, we have the clear goalthat the crew will benefit from improved service, andultimately ICT will play a role in providing the bestpossible customer service to our valued customerswho transport chemicals with Odfjell. It is importantin hard economic times that all areas of the businessdo their best to keep costs down, and ICT also mustdo its utmost to support this business need.The Manila team is already providing a large numberof support functions to our Ship Managementdepartment and it was a natural progression toincrease this focus to also include ICT Support forthe vessels. Therefore, the Manila organisation areskilled and experienced in the steps that are requiredto recruit the right staff and integrate them into theglobal organisation.There will be a great deal of involvement fromCorporate ICT and Ship Management in thisproject, and we will be on site to support and trainour new colleagues. The undersigned is assignedproject owner, and Gunnar Eide, Surveyor MaritimeICT & Automation will be project manager. InManila, Marlon Panisan, Head of DocumentationDepartment, will both participate actively in theproject and then take over the local managementof the newly formed ‘ICT Ship Support’ team. Allmembers of the team in Manila and headquarters arepositive and enthusiastic about this new opportunityfor improved ICT support to our crew, and the newbusiness possibilities and services that an ‘AlwaysOn’ fleet may benefit from.First line ICT support for all vessels will be operated from Odfjell in the Philippineswww.odfjell.com

‘Always On’ statusBy Gunnar Eide, Surveyer Marlink ICT & Automation, BergenSince October 2011 Odfjell has successfullyequipped 24 vessels with internet access byinstalling VSAT systems from Marlink. Thishas been the equivalent of two installationsper month. The goal is to have all managedvessels equipped with VSAT online systemswithin the second quarter of 2013. So far webelieve that our milestones will be reached.The upgrade is complex and a successfulinstallation involves many people. Firstthe vessel receives the main VSAT systemcontaining an antenna, a below deck unitand a backup satcom system. Then the vesselreceives new phones on board, wireless accesspoints, headsets for the office communicator,data cables and a firewall.When all the equipment is in place, thecrew on board mount the antennas, pullthe antenna coax cables and fit the satcombelow deck units. When the equipment is fullyinstalled a Marlink technician will commissionthe systems and ICT personnel come onboard to configure the wireless access pointsand firewall in order to connect the vesselICT system to the new VSAT communicationsystem.Meanwhile onshore, Marlink and the ICTdepartment have prepared network routesand firewall accesses in order for the vesselto connect to both the internet and OdfjellICT systems in Bergen ready for when thevessel goes ‘online’.So far the VSAT system from Marlink hasperformed as expected with few technicalissues. Ship crew have been satisfied withthe performance and the ICT departmentreports that maintaining and managing thenew ship networks are as expected with lesschallenges than the previously tested VSATpilot solutions.Bow Fortune is now equipped with internet accessNR.03/ 1217Odfjell BulletinOdfjell publishes Internal Corporate news on anintranet site named Insite.Due to the fact that Insite is not available to every vesselfor the time being, the Manilla office is going to prepareand distribute an Odfjell Bulletin to all vessels on aweekly basis with all the corporate news that is publishedthe same week.The Bulletin contents will be the same as those publishedon the corporate intranet in the Odfjell offices.odfjell quarterly magazine

iefingsODFJELL QUARTERLY magazineOdfjell Terminals (Charleston) on track,but with hidden surprisesBy Mel Pinks, Terminal Manager OTC, CharlestonThe third quarter of 2012 at OdfjellTerminals (Charleston) (OTC) has seenthe onslaught of heavy plant equipmentgrading (leveling) to the northwestern sideof the terminal plot to accommodate the‘Phase1’ tanks. This charge of activity hasnot been as simple as pushing dirt aroundwith a bulldozer as there have been a few(anticipated) surprises!18The predominant use of the Charleston landprior to its acquisition by Odfjell was forbulk liquid storage, such as clean and dirtypetroleum products rather than chemicals.There were also a number of different ownersand operators of the pre-existing terminal(s).As was seemingly the fashion thirty plus yearsago, pipelines that served liquid storage facilitieswere largely kept underground where therationale for such placement was as a fireprevention precaution rather than an ‘out ofsight, out of mind mentality'. Grading of ourplot therefore has had to cope with ‘hiddentreasures’ that have needed to be handled in anenvironmentally conscious manner and withthe blessing of South Carolina Department ofHealth and Environmental Control.Constructing with the community in mindAs well as taking precautions to deal withthe unknown ‘hidden treasures’, there hasalso been test ‘piling’ carried out at the siteand large steel piles have been hammeredseventy five feet into the ground. OTC andour appointed project engineering contractor,‘Professional Project Services’, along with ‘TheRobert’s Company’ have not only had tomanage the whole operation itself, calculatingat what depth the Marl (Marl or marlstoneis a calcium carbonate or lime-rich mud ormudstone which contains variable amountsof clays and silt) is reached, but they have alsohad to be aware of the noise pollution thisoperation may cause our close neighbours.A ‘Junttan’ pile driving rig is being used atOTC. This rig, aside from doing its intendedtask safely and efficiently is also friendly tothe environment as this type of equipmentgenerates less noise and reduces vibrationand harmful emissions. We at OTC, tooktime to notify the local community leaders,businesses as well as the Police of our piledriving intentions weeks before the operationcommenced. We carried out checks on noisepollution during the test operation and weare pleased to report that so far the Junttan righas delivered on its environmental promise,causing minimal, certainly tolerable disturbance.We have complied fully with the City ofNorth Charleston Ordinance regarding timesat which Industrial/construction relatednoise may be generated.Grading at OTCOn site Safety Officer employedOn site, the storm water pond to the extremeeastern side of the plot is now nearing completionand document wise…. well the list isendless and a huge amount of man hourshas been devoted to the project. On the ‘bigticket’ items we have reached the 90% reviewmark on functions of the new dock, rail andfire protection systems. Safety on site remainsthe number one priority for Odfjell and ourEPC contractor. An on site Safety Officer hasbeen appointed and all personnel at the facilityare inducted in construction site safety awareness.Access to site construction areas are onlygranted once this training has been giving.Next quarter we will provide further updateson the OTC project and details on Charlestonitself, which has to be one of the best preservedNorth American cities, considering the severeweather conditions it endures.OTC is gradually taking form

Odfjell Nangang Terminals(Tianjin) going forwardBy Thomas Tao, Project Manager, SingaporeSince the start of the project, Odfjell NangangTerminals (Tianjin) (ONTT) has steadilybeen moving forward to reach its goal ofbecoming a world class facility by includingOdfjell engineering, technical and operationalexpertise in the overall terminaldesign, construction and operation.The team has made significant progress onobtaining the many different governmentapprovals and licenses required for thisproject. We have successfully obtained thelicenses required for the future operationof the marine jetties. Further, we completedan EIA evaluation, an operational safetyevaluation, an energy saving evaluation andan industrial hygiene evaluation for both jettyand tank farm, which are all important andrequired to clear the path for the constructionwork.The jetty is taking shapeEach day we are able to see the originalconcept of the jetty taking shape as theactual design is now reflected in the emergingstructures. So far, we have completedthe dike slope, the jetty front basin dredgingwork, as well as the construction of the accessbridge for berth 1#, 2#, 3#. 302 square pileshave been driven into the waterbed. Theoverall jetty marine structure is about 38%completed and the land area is preparedfor construction. This has been done withchallenge of an unusually long rainy seasonthis year. The land is now primed and ready forfoundation piling and tank erection, whichare both scheduled to start in Septemberthis year.Customers interestConcurrently with the construction progress,we have also experienced good progresson the market development within theNangang Industrial Park. New Greenfieldproduction facilities are being constructedand will require ONTT’s logistics services.ONTT’s potential customers took part inground breaking ceremonies in July andAugust and we are also happy to note thatnegotiations with potential users of ONTT’sfacilities are underway and look promising.Part of the uniqueness of the ONTT projectis that it intends to serve the zone’s on sitemanufacturing customers as well as otherlocal and international customers. The factthat ONTT is progressing with visible development,has brought to realization that ONTT ison schedule and will develop as designed andplanned. Combined with an active marketingConstruction of the jetty starting to take shapeapproach from the Odfjell group, ONTT willget off to a good start.Strict focus on QHSEONTT is striving to reach the high QHSE targetsduring its present construction phase andfollowing operation period. By the end of July,ONTT had achieved 93,638 man hours withoutlost time. This is a result of good QHSE focus,hard work and excellent cooperation betweenONTT and its contractors. In order to monitorand support the general ‘site safety awareness’among the contractor/subcontractors, ONTThas taken a very active role to ensure compliancewith the QHSE requirements.With the full scale piling, tank erection andjetty top side installation scheduled to takeplace, the ONTT team is motivated by thegood progress and looking forward to thechallenging tasks ahead.ONTT employees together with Chairman of the Board, Laurence OdfjellNR.03/ 1219odfjell quarterly magazine

BriefingsODFJELL QUARTERLY magazineShipping ERP on trackAs we learn more about the capabilities of the IMOS system, we alsodevelop 'best practices' for each type of activityBy Einar Øye, ICT Business Process Architect, Bergen20OK, so we have bought the best shippingsoftware available in the market. What dowe do now?In the autumn of 2007, before the decision wasmade to start the Shipping ERP project, JanA. Hammer who was head of Odfjell Tankersat the time, was very clear on one thing;‘Odfjell Tankers needs to use the best ICTtools available. However, if we start this initiative,we need to make sure that we use theopportunity to improve our work processes,not just replace our existing ICT tools’.This clear vision meant that, during the firstyear of the project, Business Process Owners(BPOs) were appointed, and we started mappingand documenting the main processesat Odfjell Tankers. The process mappingactivity provided the project team with a goodoverview of the roles involved as well as howthe processes would interact with each other.Since then, we have created ‘To-be’ processdiagrams to document how we see we canimprove the workflows and do the workmore efficiently using the new stack of toolsavailable in our chosen software platform,IMOS. Using this approach, the different role’sinteraction with the system is explicitly statedfor each activity. From the diagrams, it’s easyto identify the activities which need to besupported by IMOS; hence the project can usethis in order to list the required deliverablesto the organisation.Most recently, the project team has been busydiscussing and detailing how the differentactivities within chartering/operations canbest be performed using IMOS. The appointedkey users have started to do test-runs toverify and sign off the activities which areadequately supported and which activitiesare not. Issues which need further ‘follow-up’are documented, and when solved, anothertest-run is performed. The remaining functionalitywe require to go live with IMOS willbe delivered by Veson within the end of thisyear. Also, we are currently in the processof developing the interface to our accountssystem, Agresso. The configuration and testingof IMOS will continue throughout thisyear and into 2013.As we learn more about the capabilities of theIMOS system, we also develop ‘best practices’for each type of activity. Hopefully, the workflowdiagrams and best practice documentswill give valuable guidance to new users ofthe system. These documents can provideadditional context to the activities which canbe performed in IMOS, potentially improvingthe quality of training as well as getting usersup to speed and becoming more efficient withtheir daily tasks.The implementation of new ICT tools iscommonly used as a catalyst to introducechanges to process and organisation of work.Inherent in process improvement initiativeslays the wish to address our inefficiencies, andthus to change some of the current workinghabits, routines and even responsibilities. Forinstance, one of the objectives for the ShippingERP project is to facilitate improved decisionsupport at all levels in the organisation.Another objective is to provide easy access torelevant, accurate and timely information toall the participants in a process. This is crucialin order to have efficient work processes, aswell as to support decision making.It should also be highlighted at this stage thatwithout us all taking a joint responsibilityfor keeping the new system regularly andcorrectly updated during normal workingroutines, it will greatly reduce the Company’sability to leverage and trust the new ICT toolsfor contributing to best in class service andoperational efficiency to our customers. Trustis something which needs to be built overtime. In the context of trusting information inan ICT system this means that it’s crucial thatall users contribute continuously in keepingthe information up to date at all times. This isreally one of the key success factors to achievingthe objectives for this project, and it isimportant to realise that this is somethingwe can all succeed in together.The IMOS system will be introduced graduallyon a ship-by-ship, voyage-by-voyage basis.One challenge, is that we need to make surethat we can complete the voyages in theOTIS system, and at the same time start theplanning of consecutive voyages in IMOS.Thus, in the transition phase, the old tools willbe used in parallel to the new ones. Accordingto current plans, we will deploy IMOS forthe first 4-5 vessels during second quarterof 2013. Our aim is to deploy the new Veslinkon board solution simultaneously in orderto facilitate an efficient and automatic flowof information between the vessels and ourshore based organisation.www.odfjell.com

New software platform for Odfjell Terminal (Houston)By Tor Jürgensen, Senior Project Manager, BergenOne of the long term objectives of OdfjellTerminals BV is to serve Odfjell managedterminals by one common integratedsoftware application platform supportingmain business processes like terminalmanagement (from contract/order toinvoice), finance and controlling, maintenancemanagement, purchasing and humanresource management. The new softwareplatform will be based on the SAP BusinessSuite portfolio.Main business objectives to be achieved byimplementing the new integrated softwareapplication platform are:• increased customer service level• cost reductions• improve quality of work• operational safety• enhanced asset utilizationThe implementation process of the new softwareplatform has been executed through severalsub projects (TMS – Terminal ManagementSystem, CMMS – Computer based MaintenanceManagement System including purchasing,FICO – Finance and Controlling and HR –Human Recourse Management) supportingthe various business areas.The Terminal Management System (TMS -contract/order to invoice) has been in operationat Odfjell Terminals (Houston) (OTH)since September 2008 and at Odfjell Terminals(Rotterdam) (OTR) since March 2010.The Maintenance Management System(maintenance management and purchasing)has been in operation at OTR since 2 April2011 and will be implemented at OTH inparallel with implementation of SAP Finance.A mini version of the Human ResourceManagement System has been implementedat both OTR and OTH in 2012.Since the beginning of 2012 two projects havebeen under execution at OTH in order toimplement SAP Finance/Controlling (FICO)and SAP Maintenance Management (CMMS).The projects have been staffed with keypersonnel from OTH, one consultant fromCorporate ICT and external consultants withspecial SAP skills. The project teams haveworked very hard and dedicated in order tohave FICO and CMMS operational from thebeginning of September.The SAP Finance and Controlling (FICO)solution which will support the followingmain financial business processes:• Business Planning andPerformance Management• Treasury and Financial Risk Management• Operative Accounting, Controllingand Procurement• Financial Accounting, Closing andReporting will replace the currentfinance/accounting solution andcontribute to improvements withinthe area of finance and accounting.The Maintenance Management solutionwhich will be the main tool for planing andscheduling of maintenance tasks will supportthe following business processes:• Corrective Maintenance• Preventive Maintenance• Refurbishment• Work Request Processing• Purchasing• Maintenance BudgetingThe project team at OTHThe new maintenance solution will alsoinclude an integrated Reliability BasedMechanical Integrity (RBMI) program fromLloyd’s Register Capstone. Planning andscheduling of maintenance inspections willbe based on risk evaluations generated by theRBMI tool. This will assist the maintenancedepartment in having main focus on criticalequipment at the terminal and avoid/reducedown time of the equipment.By completion of the FICO and CMMSprojects OTH will be the first terminal whichhave implemented the complete integratedapplication platform. It will contribute to safeoperations, improved cost control, improvedreporting within all main business areas andimproved management information relatedto operation of the terminal. Summarized thenew software platform will be an importanttool for operation and management of OTH.The outstanding effort and dedication fromkey users of OTH is one of the main reasonsfor ‘going live’ with the new systems on timeand budget.We congratulate management and employeesat OTH with the new solution.NR.03/ 1221odfjell quarterly magazine

PortraitODFJELL QUARTERLY magazineFrom sea to shoreBy Margrethe Gudbrandsen, Communication Manager, Bergen22Having accomplished a career spendingalmost 25 years at sea, in 1994, Tor K.Johansen decided to ‘go ashore’. Since then,he has had several positions within ShipManagement and in 2011 he became VicePresident Fleet Management - Singapore.Following his three year period as Master ofthe old Bow Spring, Tor K. Johansen joinedthe shore based QA section, working mainlywith implementation of the Safety and QualitySystems on the Odfjell vessels. He thenprogressed further to become the MaritimeManager in Ship Management Departmentfor ten years before going to Singapore andbecoming Fleet Manager Fleet Asia.You have had a long and interesting careerboth at sea and on shore, what is the majordifference between the two? - There are severalsimilarities between ship and shore basedship management, but there are also manydifferences. One major difference is the shorter‘command’ lines. The shipboard organisation issignificantly smaller which makes it somewhatfaster to make decisions and put into effectagreed actions. This of course requires amanagement on board that works well togetheras a team, he says.to establish a common office culture in suchan environment. My main priority here inSingapore, both as Fleet Manager and ManagerOverseas Offices is to ensure that our activitieshandled by this office are well taken care of.In order to do so, I am of course dependenton the human resources we have here, and Ineed to make sure that they are well taken careof. To maintain the common office culture wehave established in Singapore, which I alsobelieve is an Odfjell culture, we must strive tocontinue to employ staff from various culturalbackgrounds.The chefOne of the advantages of going ashore musthave been the possibility to have unlimitedaccess to a kitchen: - One of my greatest‘hobbies’ is a ‘wannabe cook’! I try to use theopportunities that we have here in Singapore tobroaden my horizon within ‘the art of cooking’.Apart from that I like to spend time at homeenjoying a good book or just going for a walkalong the River in the weekends to switch offand wind down, he ends.Tor K. JohansenThe teambuilderEven though the aspects of working as a Masteron board and the various positions ashore differin many ways, there is one experience andskill in particular that is important for bothareas: - Any organisation or entity needs towork together as a team in order to reach itsobjectives. Having the ability to build up teamspirit and co-operation across lines is the keyto success. To have a common understandingof our goals across the organisation, and tocommunicate this in an appropriate manneris something that I aim for.International cultureLearning from his international experience hebelieves in building a common office culture:-In Singapore we may have an advantage aswe are working in more of an internationalenvironment than other locations. We havea multicultural organisation which I stronglybelieve we benefit from, as it is much easierThe Singapore River - a place for mind restingwww.odfjell.com

Sea and shoreODFJELL QUARTERLY magazine2 nd place Ask and Amland with the second prizes and the Closestto the Pin prize24Winner Ole Ivar Steinsland with the First Prize and the Travelling Trophy. Nils Ole Lekven was not present during the prize ceremonyOdfjell Golf Tournament 2012By Rune Ask, Manager Marine Quality Assurance, Bergen3 rd place Lillevik and VisteOur annual golf tournament took placeon 31 August at Fana Golf Club in Bergen.The weather had not been very encouragingleading up to the tournament butluckily the sun shone on the actual dayand competitors were able to wear theirshort-sleeved shirts, sunglasses andsuntan lotion!This year’s event was played as a twelve holesround, Texas Scramble, Stableford competition.Twelve players in six teams competed forthe prestigious prizes and the travelling trophy.It was a close race, with only seven pointsdifference between the top and bottom teams.Proud winners and Odfjell Golf Champions2012 were Nils Ole Lekven and Ole IvarSteinsland. Second place went to Dag KristianAmland and Rune Ask. Third place went toChristian Lillevik and Arild Viste.Fredrik Fotland won the Longest Drive on the3rd hole. Closest to the Pin on the 6th hole waswon by Dag Kristian Amland.Odfjell Makana sponsorsEmtshezi High SchoolBy Sayed Akimu Phiri, Commercial Assistant, DurbanOdfjell Makana continues to supportvarious local projects which aim to makea difference to the lives of disadvantagedindividuals in the local community. OdfjellMakana’s most recent project has beento provide a new football kit for pupils atEmtshezi High School for an up and comingfootball tournament.The request for sponsorship came followinga regional football tournament, where theEmtshezi High School football teamsuccessfully defeated all the other schoolsin the region. Winning the tournament wasa great achievement and earned them aninvitation to represent the Uthukela Districtat a provincial level in the Kay Matsepe Cupat Richards Bay.We at Odfjell Makana wish them all the bestin their forthcoming games.The Odfjell Makana soccer kitswww.odfjell.com

NR.03/ 1225While at Richards Bay in August , Bow Saga performed a saftytraining. Here launching and maneuvering of the rescue boat.odfjell quarterly magazine

SEA AND SHOREODFJELL QUARTERLY magazineOdfjell Champions League 2012By Dan Foo, Ship Broker, SingaporeOn 25 July Odfjell Asia hosted the annualOdfjell Futsal tournament for people in theSingapore chemical industry.This year a record 22 teams participated inthe tournament. The 14 men’s teams and the8 ladies teams comprised of charterers likeCargill, Chevron and Wilmar. Major brokershops such as Clarksons, Eastport and SPI alsoparticipated in the tournament and competedfor the coveted trophy.26The Tournament has been growing increasinglypopular with the doubling of the ladiesteams and this year Tradewinds even sent arepresentative down to cover the event! Thelevel of technique and finesse is surprisinglyhigh. Most of the ladies teams underwentweeks of training in preparation for the showdownat the tournament. Some teams evenappointed coaches to improve performance!!Eventually it was the Chevron team who beatEastport for the coveted men’s champion title.The ladies´ champion trophy went to thejubilant Wilmar team in a close finale gamewith Mcquilling.The ladies championsThe Odfjell team was there in force to supportour players as well as to ensure that the dayran smoothly. The matches went well withgood sportsmanship and encouraging cheerswere heard from all supporters.The Odfjell Futsal tournament is now a regularevent known in the industry in Singapore andit continues to grow in popularity. This yearclose to 500 people enjoyed the event!The Odfjell Hunks TeamOdfjell has been involved in the Foskor F21 Marathon since 2009Foskor F21 MarathonIngelin Jacobsen and Øivind Olsen with at the prize ceremonyThe ‘A’ Team. Back form left: Thami Gcaba (Thembani Shipping),Jaya Chetty, Kevin Chetty and Rhett Morley (seated).Middle: Nkulu Mkhize (Thembani Shipping) and Shamlin ChettyFront: Joshua and Tylah MorleyBy Jody Morley, Office Administrator, DurbanOnce again, Odfjell co-sponsored the verypopular Foskor F21 Marathon which washeld in Richards Bay, KwaZulu Natal, SouthAfrica on Saturday, 24 August 2012. Thisannual competition is organised by Foskor,and the Zululand Multi Sport Club, and Odfjellhas been involved with this event since 2009.The event was very well supported and thisyear many of the staff from Odfjell MakanaSA (Pty) Ltd, Durban, participated in the 10km walk and running races.www.odfjell.com

The awardees with their wives. The awardees from left: Salvador S. Abubo, Chief Steward, Dennis A. Casino, Second Cook, Isidro V. Cruz, Chief Steward, Socrates M. Daymiel, Captain, Ferdinand M. Echano,Chief Engineer, Jovito C. Escanilla, Chief Steward, Dante A. Mangampat, Chief Engineer, Nelson D. Onda, Able Seaman, Renato T. Solidum, Chief Officer, Leopoldo M. Villanueva, Chief Steward and Raymundo V.Manual, ElectricianTribute to 12 Odfjell pioneersBy Jennifer Franco, Information Officer, ManilaOn 29 August, Odfjell awarded 12 FilipinoOdfjell seafarers for their 25 years ofloyal service. The long-serving marinerswere honoured at the dinner and awardsceremony attended by Odfjell dignitariesfrom all over the world, shore staff ofOdfjell in the Philippines and the awardees’families.Executive Chairman of the Board LaurenceOdfjell, Senior Vice President of ShipManagement Division Helge Olsen andOwner’s Representative of Odfjell in thePhilippines Tore Henriksen conferred thecertificates and token of appreciation to theawardees.The wives, the heroes behind the success ofthe awardees, were also honored with flowersand commendations during the ceremony.Agnes Enesio, Head of Crew & Family Affairs,spoke on behalf of Odfjell to thank the wivesfor their support to the seafarers 25-yearcareer with the Company.Delivering an acceptance speech on behalf ofthe awardees was Captain Socrates Daymiel.His speech conveyed a message of gratitudeto everyone who has been instrumentalto the pioneers commendable career onboard: - Tonight, being one of the recipientsof this ‘25 year service award’ is a memorablemoment in my life. I am very, very happythat Odfjell recognises my small but valuablecontribution.’Congratulations to our Odfjell pioneers!NR.03/ 1227Service awards Norwegian OfficersDuring the yearly Officers Conference in Bergen,Odfjell honoured five of our most loyal NorwegianOfficers. The officers were rewarded with theNorwegian Ship owners Association Gold medalfor 30 years in service. The event took place duringthe official dinner 20 September at Quality HotellEdvard Grieg with approximately 150 guestspresent. The gold medals were handed over byour Chairman Laurence W. Odfjell.Norwegian Ship Owners AssociationGold medal for 30 years of service:Captain Tor Gisle BjerknesPumpman Ove SlagstadChief Engineer Otto ÅnnelandVice President Risk Management Bernhard StienElectrician Magne Ivar MaursethBack from left: SVP Ship Management Helge Olsen, Chief Engineer Otto Ånneland, Captain Tor Gisle Bjerknes andPresident/CEO Jan Hammer. Front from left: Pumpman Ove Slagstad, Chairman Laurence Odfjell,Vice President Risk Management Bernhard Stien and Electrician Magne Maursethodfjell quarterly magazine

PersonnelODFJELL QUARTERLY magazineNEW HIRESBergenBracke, StefanShip Operator01.06.12Breimo, Ole EivindSenior MarineSuperintendent01.07.12Ellingsgaard,HjalgrimSenior Surveyor13.08.12Gosiewska, MonikaApplication SupportConsultant06.08.12Kalvik, Svein JohanMarineSuperintendent01.07.12Klokkeide,Mads Otto LidShip Operator01.06.12houstonØdegård, Jan OveMarine Manager23.07.12Aarsæther, HildeAccountant AccountsPayable01.07.12Jæger, Per ChristianSenior Ship Broker01.09.12Harmon,Neferti MouraSenior ProjectManager25.06.12Cates, DouglasSales Representative20.08.2012Rotterdam28Andeweg, Arie Pieter2e Operator01.06.12Boerhof, MichielAntonius JohannesStock Coordinator01.06.12Van Eck, DaanProcess Engineer16.07.12Hooplot, Miquel JoséAssistant Controller/Business Analyst01.07.12Klerks, JarnoSupervisor E&I&A01.08.12Kuijper, MitchellJohannes HuibertD-Operator01.08.12Lugtenburg, JustinD-Operator16.07.12Ozdemir, MustafaD-Operator01.07.12Van der Ree,Alex PieterStock Coordinator16.06.12Wagemaker,Pieter BastiaanMaintenanceEngineer01.07.12Zandboer, MarcelD-Operator01.08.12Zwam, Joeri BenjaminYannick vanD-Operator01.08.12www.odfjell.com

MANILABuenafe, MichelePMS Support11.06.12Sharma, HyacinthRajcelCourse Developer18.07.12Sao PauloSingaporeHenrique da SilvaMiranda, DiegoAccounting Auxiliary06.07.12Han, WeiOperation Assistant21.05.12In Service for Odfjell25years30yearsOtterspeer, RobertB-Operator15.09.87Næss, Olav HenningTradelane Manager17.08.87Kool, W outer FranciscusField Engineering01.09.82Kruiniger, Arie LourensOperational SAP Specialist01.09.82Van den Bovenkamp, WouterField Techinician WTB01.09.82Maasoe, PetterCommercial Manager16.06.82NR.03/ 1229RELOCATIONSFrom Shanghaito DubaiFrom Seato Bergen35yearsDudok, Peter AndrewC-Operator21.09.77Lundetræ, LivAccountant, Accounts Payable22.08.77Iversen, Irgen RoarVP Special Projects01.05.12Møvik, ØyvindCargo HandlingAdvisor/Supercargo27.06.1240yearsKnutsen, AtleSVP/Special Advisor12.06.72Abrahamsen, Ole JakobSenior Technical Superintendent25.09.72odfjell quarterly magazine

FLEET & TERMINALSODFJELL QUARTERLY magazineas per 26 September 201230CHEMICAL TANKERS OWNEDSHIPYEARBUILT DWT CBMSTAINLESSSTEEL, CBMNUMBEROF TANKSBow Fuling 2012 9 156 10 523 10 523 14Bow Lind 2011 46 047 48 698 - 29Bow Elm 2011 46 098 48 698 - 29Flumar Brasil 2010 51 188 55 452 - 14Bow Saga¹ 2007 40 085 52 126 52 126 40Bow Sirius¹ 2006 49 539 52 155 52 155 40Bow Sea 2006 49 511 52 107 52 107 40Flumar Maceio 2006 19 975 21 713 21 713 22Bow Summer 2005 49 592 52 128 52 128 40Bow Spring ¹ 2004 39 942 52 127 52 127 40Bow Star 2004 39 832 52 127 52 127 40Bow Sun 2003 39 842 52 127 52 127 40Bow Firda 2003 37 427 40 645 40 645 47Bow Chain 2002 37 518 40 621 40 621 47Bow Andes 2000 16 020 17 120 17 120 22Bow Fortune 1999 37 395 40 619 40 619 47Bow Master 1999 6 046 7 018 7 018 14Bow Mate 1999 6 001 7 004 7 004 14Bow Pilot 1999 6 008 7 005 7 005 14Bow Sailor 1999 6 008 7 011 7 011 14Bow Cecil 1998 37 369 40 515 33 236 47Bow Flora 1998 37 369 40 515 33 236 47Bow Balearia 1998 5 846 6 075 6 075 20Bow Oceanic 1997 17 460 19 616 19 616 24Bow Bracaria 1997 5 846 6 071 6 071 20Bow Brasilia 1997 5 800 6 067 6 067 20Bow Cardinal 1997 37 446 41 487 34 208 52Bow Faith 1997 37 479 41 487 34 208 52Bow Aratu 1997 13 843 15 834 15 834 29Bow Querida 1996 10 106 11 181 11 181 18Bow Cedar 1996 37 455 41 488 41 488 52Bow Atlantic 1995 17 460 19 588 19 588 24Bow Fagus 1995 37 375 41 608 34 329 52Bow Clipper 1995 37 221 41 596 34 328 52Bow Flower 1994 37 221 41 492 34 213 52Bow Eagle 1988 24 728 32 347 19 662 25Bow Cheetah 1988 40 257 43 811 - 29Bow Leopard 1988 39 512 43 772 - 29Bow Lion 1988 39 423 43 726 - 29Bow Fraternity 1987 45 507 52 180 2 167 23Bow Victor 1986 33 000 34 500 21 975 31Time CharteredYEAR STAINLESS NUMBERSHIP BUILT DWT CBM STEEL, CBM OF TANKSUACC Masafi 2 012 45 352 52 565 - 22NCC Najem³ 2012 45 499 52 590 - 22NCC Shams³ 2012 45 468 52 590 - 22SG Pegasus 2011 13 086 14 523 14 523 16NCC Danah³ 2011 45 578 52 590 - 22NCC Nasma³ 2011 45 550 52 590 - 22NCC Safa³ 2011 45 544 52 590 - 22NCC Amal³ 2011 45 544 52 590 - 22NCC Huda³ 2011 45 459 52 590 - 22NCC Noor³ 2011 45 565 52 590 - 22Stream Luna 2010 19 998 22 161 22 161 20Bow Tone 2009 33 625 37 974 37 974 16Bow Hector 2009 33 694 37 384 37 384 16Southern Ibis 2009 19 905 22 158 22 158 20Southern Jaguar 2009 19 997 22 157 22 157 20Stream Mia 2008 19 702 22 094 22 094 26Bow Sagami 2008 33 641 38 000 38 000 16Bow Harmony 2008 33 619 38 052 38 052 16Bow Cape 2008 19 975 22 158 22 158 20Bow Kiso 2008 33 641 37 974 37 974 16Bow Heron 2008 33 707 37 365 37 365 16NCC Haiel³ 2008 45 953 54 401 - 22NCC Dammam³ 2008 45 965 54 401 - 22NCC Sudair³ 2007 46 012 54 401 - 22Bow Lima 2007 19 971 22 157 22 157 20Bow Fuji 2006 19 805 22 140 22 140 22Bow Plata 2006 19 807 22 143 22 143 22Bow Engineer 2006 30 086 36 274 36 274 28Crystal Topaz³ 2006 11 340 11 870 11 870 20Crystal Diamond³ 2006 11 340 11 870 11 870 20Bow Sky² 2005 40 005 52 126 52 126 40Bow Architect 2005 30 058 36 290 36 290 28Bow Rio 2005 19 999 21 851 21 851 22Bow Santos² 2004 19 997 21 846 21 846 22Bow Asia² 2004 9 901 11 088 11 088 20Bow Singapore² 2004 9 888 11 089 11 089 20Bow Americas 2004 19 707 22 735 22 735 36Bow de Rich 2003 12 452 13 571 13 571 22Bow de Feng 2002 12 514 13 571 13 571 22Bow Andino 2000 16 121 17 622 17 622 30Crystal Amaranto³ 1999 9 887 10 893 10 893 24Crystal Skye³ 1998 9 554 10 442 10 442 24Bow Jubail² 1996 37 499 41 488 34 209 52Bow Mekka² 1995 37 272 41 606 34 257 52Bow Riyad² 1995 37 221 41 492 34 213 52Crystal Amethyst³ 1994 8 104 9 346 9 346 17Crystal Emerald³ 1994 8 143 9 346 9 346 17Crystal Pearl³ 1994 8 143 9 346 9 346 17Bow Baha 1988 24 728 32 363 19 662 25JBU Sapphire³ 2009 19 860 22 144 22 144 16JBO Opal³ 2009 19 865 30 301 30 301 16JBU Onyx³ 2008 19 865 21 712 21 712 16COMMERCIAL YEAR STAINLESS NUMBERMANAGEMENT BUILT DWT CBM STEEL, CBM OF TANKSNorthern Wolverine 2006 16 000 18 397 10 056 35Northern Lynx 2003 16 533 18 397 10 056 35Crystal Atlantica 2000 16 630 17 350 17 350 22Number of ships: 95 2 676 171 3 042 815 1 944 714¹ Vessel beneficially owned through financial lease.² Vessel on bare-boat charter.³ Vessel on variable time charter/pool.www.odfjell.com

GAS CARRIERS OWNEDYEARNUMBERSHIP BUILT DWT CBM TYPE OF TANKSBow Gallant 2 008 10 282 8 922 LPG/Ethylene 2Bow Guardian 2 008 10 282 8 922 LPG/Ethylene 2Number of ships: 2 20 564 17 844ON ORDERYARD DELIVERY DWT OWNERShinaSB (ex. SLS Shipbuilding) 2012 45 000 NCC 2 vesselsChongqing ChuandongShipbuilding Industry Co.Ltd 2012 9 000 Odfjell" 2012 9 000 OdfjellDaewoo Shipbuilding andMarine Engineering Co Ltd 2013 75 000 Odfjell" 2013 75 000 NCCHyundai Mipo Dockyard., Ltd 2014 46 000 Odfjell" 2014 46 000 Odfjell" 2014 46 000 Odfjell" 2014 46 000 OdfjellNumber of newbuildings: 10 487 000STAINLESSNUMBERTANK TERMINALS OWNED LOCATION SHARE CBM STEEL, CBM OF TANKSOdfjell Terminals (Rotterdam) BV Rotterdam, NL 51 % 1 636 100 32 550 281Odfjell Terminals (Houston) Inc Houston, USA 51 % 331 329 82 033 100Odfjell Terminals (Jiangyin) Co Ltd Jiangyin, China 55 % 99 800 30 000 22Odfjell Terminals (Dalian) Ltd Dalian, China 50 % 119 750 18 350 51Odfjell Terminals (Korea) Co Ltd Onsan, Korea 50 % 313 710 15 860 85Oiltanking Odfjell Terminal Singapore Ltd Singapore 50 % 365 000 13 520 79Oiltanking Odfjell Terminal & Co. LLC Sohar, Oman 29.75 % 1 294 800 -Noord Natie Odfjell Terminals Antwerp, Belgium 12.5% 297 000 50 800 250Exir Chemical Terminals PJSCO BIK, Iran 35 % 22 000 1 000 18Vopak Terminal Ningbo Ltd Ningbo, China 12.5% 71 050 8 000 39Total owned terminals 10 terminals 4 550 539 252 113 925NR.03/ 1231STAINLESSESTIMATEDPROJECTS AND EXPANSIONS OWNED LOCATION SHARE Cbm STEEL Cbm COMPLETIONOdfjell Terminals (Charleston) LLC Charleston, USA 51 % 79 491 - ready Q2 2013Odfjell Nangang Terminals (Tianjin) Co.,Ltd Tianjin, China 49 % 145 000 7 000 ready Q4 2013Total expansion owned terminals 2 new terminals 224 491 7 000STAINLESSNUMBERTANK TERMINALS Partly OWNED BY RELATED PARTIES*) LOCATION Cbm STEEL CBM OF tanksDepositos Quimicos Mineros S.A. Callao, Peru 52 980 1 600 43Granel Quimica Ltda Santos I, Brazil 97 720 19 880 99Granel Quimica Ltda Rio Grande, Brazil 61 150 2 900 32Granel Quimica Ltda Sao Luis, Brazil 75 710 - 35Granel Quimica Ltda Ladario, Brazil 8 060 - 6Granel Quimica Ltda Triunfo, Brazil 12 030 - 2Granel Quimica Ltda Teresina, Brazil 7 640 - 6Odfjell Terminals Tagsa S.A. Buenos Aires, Argentina 38 826 530 56Odfjell Terminals Tagsa S.A. Campana, Argentina 62 980 10 190 88Terquim S.A. San Antonio, Chile 32 840 - 25Terquim S.A. Mejillones, Chile 16 870 - 7IMTT-Quebec Quebec, Canada 293 130 5 500 53Total related parties partly owned terminals 759 936 40 600 452PROJECTS AND EXPANSIONSpartly OWNED BY RELATED PARTIES*) LOCATION Cbm COMPLETIONGranel Quimica Ltda Aracruz, Brazil 30 000 - ready Q3 2014Granel Quimica Ltda Santos II, Brazil 52 000 - ready Q4 2013Terquim S.A. Mejillones, Chile 50 000 - ready Q3 2013Granel Quimica Ltda Palmas, Brazil 10 000 - ready Q2 2014Total expansion terminals partlyowned by related parties 3 new terminals 142 000 -Grand total (incl. related tankterminals partly owned by related parties) 22 terminals 5 310 475 292 713*) Tank terminals and projects partly owned by Odfjell family.odfjell quarterly magazine

MAIN OFFICE ODFJELLOdfjell SE - Odfjell Tankers ASConrad Mohrsv. 29,P.O. Box 6101 Postterminalen5892 Bergen, NORWAYTel: +47 5527 0000Fax: +47 5528 4741Fax: +47 5527 9070 (Chartering/Operations)MAIN OFFICE TERMINALSOdfjell Terminals BVOude Maasweg 6, P.O. Box 5010Harbour Number 40403197 KJ Rotterdam-BotlekThe NETHERLANDSTel: +31 102 954 700Fax: +31 102 954 719INTERNATIONAL OFFICESOdfjell USA (Houston) Inc.12211 Port RoadSeabrook, TX 77586, USATel: +1 713 844 2200Fax: +1 713 844 2211Odfjell Singapore Pte Ltd6 Shenton Way, # 27-08/09DBS Tower 2SINGAPORE 068809Tel: +65 6349 1300Fax: +65 6224 2285Odfjell Japan LtdOgawa Bldg. 8F2-2 Uchikanda 1-ChomeChiyoda-ku, Tokyo 101-0047, JAPANTel: +81 3 3259 8555Fax: +81 3 3259 8558Odfjell Netherlands BVOude Maasweg 6, P.O. Box 50103197 XC Rotterdam-BotlekThe NETHERLANDSTel: +31 102 953 666Fax: +31 102 953 668Odfjell Brasil LtdaAv. Paulista 460 - 18 andarCEP 01310-000 Sao Paulo SP, BRAZILTel: +55 11 3549 5800Fax: +55 11 3549 5808Odfjell ShanghaiSuite B, 13FHuamin Empire Plaza728 Yan An West RoadChangning DistrictShanghai 200050, P.R. CHINATel: +86 21 5239 9469Fax: +86 21 5239 9897Odfjell Argentina SAAlicia Moreau de Justo 1960Office no. 202 - Puerto Madero1107 Buenos Aires, ARGENTINATel: +54 114 313 7837Fax: +54 114 313 4619Odfjell Australia Pty LimitedSuite 4, Level 1443 Little Collins StreetP.O.Box 1279Melbourne VIC 3001 AUSTRALIATel: +61 3 9642 2210Fax: +61 3 9642 2214Odfjell IndiaA-26, Nandbhuvan Industrial EstateMahakali Caves Road, Andheri (East)Mumbai 400093, INDIATel: +91 22 6695 4701Fax: +91 22 6695 4707Odfjell Durban (Pty) Ltd61 Bulwer Road, GlenwoodP.O.Box 4045Durban 4021, SOUTH AFRICATel.: +27 31 2770880Fax: +27 31 2770899Odfjell Tankers AS, Korea BranchRoom 1815 Gwanghwamum Officia Bldg.163 1-ga ShinmunnoJongn-gu, Seoul, 110-999 KoreaTel: +82 2 775 9760Fax: +82 2 775 9761Odfjell Korea Ltd.136, Cheoyong-Ri,Onsan-Eup, Ulju-GunUlsan, KOREA 689-892Tel: +82 52 227 5527Fax: +82 52 227 5567Odfjell Chile LTDARosario Norte 100,Office 304Las CondesSantiagoChileTel: +56 2 3307221Fax: +56 2 3307948Odfjell Philippines Inc.4th Flr Atlantis Beacon Tower2315 Leon Guinto St.Malate, Manila 1004PHILIPPINESTel: +6325280341Fax: +6325262256Odfjell (UK) Ltd14 Headfort PlaceLondon SW1X 7DHUNITED KINGDOMTel: +44 207 823 0605Fax: +44 207 823 0606Odfjell PeruAv. Enrique Meiggs, 240Urb. Chacaritas,Callao, PERUTel: +51 1 614 0800Fax: +51 1 614 0801NCC Odfjell Chemical Tankers JLTRoom 3101-3104, Liwa HeightsJumeirah Lake TowersP.O.Box 214459Dubai, UNITED ARAB EMIRATESTel: +971 4 440 1700Fax: +971 4 441 1701REGIONAL OFFICESOdfjell Asia Pte Ltd6 Shenton Way, # 27-08/09DBS Tower 2SINGAPORE 068809Tel: +65 6349 1300Fax: +65 6224 2285Flumar Transportesde Quimicos e Gases LtdaAv. Paulista 460 - 18 andarCEP 01310-000 Sao Paulo SP, BRAZILTel: +55 11 3549 5800Fax: +55 11 3549 5807Odfjell Tankers Europe ASConrad Mohrs veg 29P.O.Box 6101 Postterminalen5892 Bergen, NORWAYTel: +47 5527 0000Fax: +47 5527 9070TERMINALSOdfjell Terminals (Rotterdam) BVOude Maasweg 6, P.O. Box 5010Harbour Number 40403197 KJ Rotterdam-BotlekThe NETHERLANDSTel: +31 102 953 400Fax: +31 104 384 679Odfjell Terminals (Houston) Inc.12211 Port RoadSeabrook, TX 77586, USATel: +1 713 844 2300Fax: +1 713 844 2355Odfjell Terminals (Charleston) LLC1003 East MontagueP.O.Box 62589 North CharlestonSouth Carolina 29405, USAOdfjell Terminals (Dalian) LtdNew PortEconomy & TechnologyDevelopment Zone 116601, DalianP.R. CHINATel: +86 411 8759 5500Fax: +86 411 8759 5549Odfjell Terminals (Jiangyin) Co., Ltd1314 West Binjiang RoadShizhuangNew Harbour City, JiangyinJiangsu 214446 P.R. CHINATel: +86 510 8666 9111Fax: +86 510 8666 9110Odfjell Terminals (Korea) Co., Ltd136, Cheoyong-RiOnsan-Eup, Ulju-GunUlsan, KOREA 689-892Tel: +82 522 311 600Fax: +82 522 376 636Odfjell Nangang Terminals(Tianjin) Co., LtdRoom D310, Section DOffice Building, Servicing Area, TEDA(Nan-Gang Industrial Zone)Tianjin 300280, PR CHINAOiltanking OdfjellTerminal Singapore Pte Ltd1 Seraya AvenueSINGAPORE 628208Tel: +65 6473 1700Fax: +65 6479 4500Oiltanking Odfjell Terminals & Co. Llc.P.O. Box 369PC., 322 Fajal Al QubailSohar, SULTANATE OF OMANTel: +968 2670 0300Fax: +968 2670 0306Noord Natie Odfjell Terminals NVHaven 227-241Blauwe Weg 442030 Antwerp - BelgiumTel: +32 (0)3 543 99 00Fax: +32 (0)3 543 99 38Vopak Terminal Ningbo Ltd.No. 111 Zhaobaoshan Road,Zhenhai DistrictNingbo, P.R. CHINATel: +86 574 2769 5638Fax: +86 574 8627 5931TANK TERMINALS PARTLY OWNED BY RELATED PARTIESGranel Quimica LtdaAv. Paulista 460, 18° andarCEP 01310- 000 São Paulo, SPBRAZILTel: +55 11 3549 5800Fax: +55 11 3549 5832Tagsa S.AAv. Alicia Moreau de Justo 1960,piso 4 Of. 4021107 Buenos AiresARGENTINATel: +54 11 4001 9700Fax: +54 11 4001 9701Terquim S.ABlanco Encalada 840Dept 702, San AntonioCHILETel: +56 35 21 1050Fax: +56 35 21 1161DQM S.AAv.Enrique Meiggs, 240Urb.Chacaritas,Callao,PERUTel: +51 1 614 0800Fax: +51 1 614 0801www.odfjell.com