Developments in the Black Sea from an Industry Perspective

Istanbul Bilgi University, May 15, 2003 Captain Kjell Landin, Marine Representative © ChevronTexaco 2002

Presentation Outline

1. Oil pollution sources and threats in context 2. The oil transportation picture 3. Reducing the risk: prevention and preparedness a) Good Example & Results.

b) International & Industry Initiatives.

4. Example of Industry Initiative.

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Black Sea; Drain Basin for Large & Polluted Area Drainage from 2 Milj Km 2 , 23 Countries & approx. 160 Milj People.

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Black Sea; Many Ports - 30 For Liquid Cargoes = Terminals with Vessel Quality Control (Vetting & Clearance) Azov Batumi Berdyansk Burgas Caucasus Constanta CPC* Eregli Feodosia Ilichevsk Kafkaz Kerch Kherson Mariupol Midia Novorossiysk Odessa Oktyabrskiy Poti Reni Rostov Samara Saratov Sevastopol Supsa* Syzran Tuapse Varna Volgograd Yuzhny 4

Black Sea: Estimated Oil Inputs

Accidental spills River Danube

Total

110,000 ton / year Domestic Sewage Systems Rivers (other) Land-based Industry e.g. coastal vessel operations

Source: BSEP Transboundary Diagnostic Analysis

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Global Context; Oil Release Estimates

Atmosphere Aircraft

Total

1.3 M tonne / year General shipping operations Natural seeps Non tanker spills Land-based Marine terminals Tanker operations Tanker spills Pipelines Exploration & Production

Source; US National Research Council

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Black Sea; Environmental Threats

 Eutrophication (excess nutrients –farming; P, N & C)  Chemical pollution (toxic substances)  Suspended matters pollution  Solid wastes  Oil spills Source; UNEP-GIWA  Chronic oil pollution from sources not related to shipping (e.g. rivers and domestic) are a major concern.

 Operational discharges (sometimes illegal) are the major sources of pollution from shipping – oil & indigenous species.

 Operational Discharge; lack of reception facilities & enforcement  Modern Oil tankers not a source of operational discharges.

 A maritime incident could lead to accidental spill.

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Black Sea; Oil Transport Volumes 2002

All Figures in Million Ton [MTA] 53.9

FSU refined products 26.7

Ukraine

33.9

Russian Federation

Caspian

Romania

11.9

Bulgaria

10.4

6.5

33.9

45.8

Black Sea

5.0

12.2

6.8

3.6

Georgia Kazakhstan Turkmenistan

<2 9.7

Azerbaijan

120

Turkey Year: 2002 IR Iran

1.9

Data source: CERA

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Black Sea; Oil Transport Volumes 2010

All Figures in Million Ton [MTA] 71.9

FSU refined products 59.3

Ukraine

21.2

Russian Federation

5

Caspian

Romania

19.1

Bulgaria

7.5

0.9

21.2

57.0

Black Sea

5.0

52.0

7.9

1.2

134

Turkey Year: 2010

47.0

Georgia Kazakhstan

51

Azerbaijan Turkmenistan

2

IR Iran

8.6

Data source: CERA

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Black Sea; Oil Transportation & Threats

Best estimates of Oil transportation from FSU indicates a relatively moderate increases into the Black Sea.

Medium and Heavy Fuel Oil transportation presents significant risk from both probability and consequence.

Industry recognizes the risks of oil transportation and its role in effective prevention and preparedness.

Absence of enforcement of a - for the region harmonized legal framework based on international standards & experiences increases pollution & risks for accidental spills.

“It seams that today the countries of the Black Sea are in a kind of intermediate stage; on one hand environmental law are already passed or in discussion but on the other hand in practice they are not performed yet.” -NATO/CCMS/METU-

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Oil Pollution Prevention; Experience From a Legal Framework

Spills Reduced by 95% after Introduction of Legal Framework.

Framework Focus;  Prevention (“Prevention through people” & Double Hull)  Preparedness (Contingency Plans, Aboard & Ashore)    Response (Organizational Capability) Liability & Compensation (Deterrent to pollute) Research & Develop. (Prevention & Response Techniques) Double Hull Tankers, Is It the Answer to all issues ? Partly, and Only if;  Maintained at high Standard  Operated by Personnel, Well Trained and Committed to Job.

 Designed and Built to High Standard.

Prevention through Enforcement of Legal Framework, Yes!

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Oil Pollution Prevention – U.S. Experience Spills from All Vessels in US Waters

Volume of spills (000 bbls)

or

Number of spills >100 gallons ( ÷ 2) 300 Volume of spills 275 250 225 200 175 150 125 100 75 50 25 0 Number of spills Legal Framework Introduced Data source: USCG and MMS

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Oil Pollution Prevention; International & Industry Initiatives IMO

Maintain Lead and Legal Framework; Source for International and Regional Cooperation Combating Shipboard Pollution.

MARPOL 73/78, OPRC, CLC, LDC, STCW 78/95 etc.

& in Broad Cooperation from Industry Supported thorough; IPIECA, OCIMF, API, MOIG, ICS, etc. by Initiatives Such as; Global Initiative, SIRE Tanker vetting, ISGOTT, Regional Response Drills etc.

All with the Aim to Support a Cleaner and Sustainable Black Sea, as Identified by Leading Regional Sources [UNEP, BSEP etc.]

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Black Sea; One of Industry’s Initiatives

Six IPIECA* members have recently concluded an Oil Spill Preparedness Study for the Caspian and Black Seas:  Recommendations now being implemented.

 Promoting cooperation with governments & others.

 Supporting regional and national planning efforts.

 Response training and exercising programmes.

ChevronTexaco Supports & is Committed to this Effort & Cooperation, Enhancing the Maritime Safety & Environmental Standards in the Black Sea.

* International Petroleum Industry Environmental Conservation Association

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THANK YOU !

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