Hydrocarbon management HM 95. Guidelines for marine petroleum cargo superintendents

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1 Hydrocarbon management HM 95 Guidelines for marine petroleum cargo superintendents

2 1st edition January 2016 Published by ENERGY INSTITUTE, LONDON The Energy Institute is a professional membership body incorporated by Royal Charter 2003 Registered charity number

3 The Energy Institute (EI) is the chartered professional membership body for the energy industry, supporting over individuals working in or studying energy and 250 energy companies worldwide. The EI provides learning and networking opportunities to support professional development, as well as professional recognition and technical and scientific knowledge resources on energy in all its forms and applications. The EI s purpose is to develop and disseminate knowledge, skills and good practice towards a safe, secure and sustainable energy system. In fulfilling this mission, the EI addresses the depth and breadth of the energy sector, from fuels and fuels distribution to health and safety, sustainability and the environment. It also informs policy by providing a platform for debate and scientifically-sound information on energy issues. The EI is licensed by: the Engineering Council to award Chartered, Incorporated and Engineering Technician status; the Science Council to award Chartered Scientist status, and the Society for the Environment to award Chartered Environmentalist status. It also offers its own Chartered Energy Engineer, Chartered Petroleum Engineer and Chartered Energy Manager titles. A registered charity, the EI serves society with independence, professionalism and a wealth of expertise in all energy matters. This publication has been produced as a result of work carried out within the Technical Team of the EI, funded by the EI s Technical Partners. The EI s Technical Work Programme provides industry with cost-effective, value-adding knowledge on key current and future issues affecting those operating in the energy sector, both in the UK and internationally. For further information, please visit The EI gratefully acknowledges the financial contributions towards the scientific and technical programme from the following companies BP Exploration Operating Co Ltd RWE npower BP Oil UK Ltd Saudi Aramco Centrica Scottish Power Chevron SGS CLH Shell UK Oil Products Limited ConocoPhillips Ltd Shell U.K. Exploration and Production Ltd DCC Energy SSE DONG Energy Statkraft EDF Energy Statoil ENGIE Talisman Sinopec Energy (UK) Ltd ENI Tesoro E. ON UK Total E&P UK Limited ExxonMobil International Ltd Total UK Limited Kuwait Petroleum International Ltd Tullow Oil Maersk Oil North Sea UK Limited Valero Nexen Vattenfall Phillips 66 Vitol Qatar Petroleum World Fuel Services However, it should be noted that the above organisations have not all been directly involved in the development of this publication, nor do they necessarily endorse its content. Copyright 2016 by the Energy Institute, London. The Energy Institute is a professional membership body incorporated by Royal Charter Registered charity number , England All rights reserved No part of this book may be reproduced by any means, or transmitted or translated into a machine language without the written permission of the publisher. ISBN Published by the Energy Institute The information contained in this publication is provided for general information purposes only. Whilst the Energy Institute and the contributors have applied reasonable care in developing this publication, no representations or warranties, express or implied, are made by the Energy Institute or any of the contributors concerning the applicability, suitability, accuracy or completeness of the information contained herein and the Energy Institute and the contributors accept no responsibility whatsoever for the use of this information. Neither the Energy Institute nor any of the contributors shall be liable in any way for any liability, loss, cost or damage incurred as a result of the receipt or use of the information contained herein. Hard copy and electronic access to EI and IP publications is available via our website, Documents can be purchased online as downloadable pdfs or on an annual subscription for single users and companies. For more information, contact the EI Publications Team. e: pubs@energyinst.org

4 CONTENTS Page Foreword...5 Acknowledgements...6 Preface Introduction Scope General The role of the Superintendent Health, safety and environment General Safety induction courses Safety aspects of equipment Safety at sampling points Static electricity Health hazards Entry into enclosed spaces Personnel transfer offshore Reporting of unsafe practices Reporting of incidents involving the vessel Fatigue policy Nomination and preparation Nomination Preparation For ship loading or discharge at a terminal For STS (ship to ship transfers) Typical buying/selling terms Activities and responsibilities Equipment Key meeting (and closing meeting) Loading terminal Vessels loading Vessels discharging Receiving terminal Crude oil washing (COW) Ship to ship transfers (STS) On board blending (loading) Sampling Automatic in-line sampling Introduction of additives Laboratory attendance Time log

5 Contents continued Page 5 Investigation of discrepancies After loading After discharge Measurement accuracy Reporting Reporting process Documentation requirements Archiving...28 Annexes Annex A Glossary of terms...29 Annex B Bibliography

6 FOREWORD The Energy Institute (EI) Hydrocarbon Management Committee is responsible for the production and maintenance of standards and guidelines covering various aspects of static and dynamic measurement of petroleum. The Hydrocarbon Management Subcommittee 3 (HMC-3) deals primarily with the independent inspection issues, focusing in particular on marine cargoes. HMC-3 is made up of expert representatives from independent inspection companies, oil companies, service companies and loss control consultants. Additional participation in document development is also provided by members of the EI Hydrocarbon Management Asian Forum, based in Singapore. The EI maintains liaison with parallel working groups of the American Petroleum Institute s Committee on Petroleum Measurement, and other organisations concerned with quantitative measurement in other countries and in other industries. The EI Hydrocarbon Management Guidelines (formerly Petroleum Measurement Manual and Petroleum Measurement Papers) are widely used by the petroleum industry and have received recognition in many countries by consumers and the authorities. In order to promote international good practice the EI works via the British Standards Institute to develop standards through the International Standards Organization s technical committee TC-28 Petroleum Products and related products of synthetic or biological origin and its subcommittee TC28/SC2 Measurement of petroleum and related products. A full list of Hydrocarbon Management guidelines is available on request from the Energy Institute. The EI Hydrocarbon Management guidelines are recommended for general adoption but should be read and interpreted in conjunction with safety, environmental, weights and measures, customs and excise and other regulations in force in the particular country in which they are to be applied. Such regulatory requirements have precedence over corresponding clauses in the EI document except where the requirements of the latter are more rigorous, when its use is recommended. Users should also consider contractual constraints imposed by charterers, cargo owners, ship owners and any other interested party. Although it is believed that adoption of the recommendations of this guideline will assist the user, the Energy Institute cannot accept any responsibility, of whatsoever kind, for damage or alleged damage arising or otherwise occurring on vessels or in or about premises where this document has been applied, as final responsibility for adequate preparation of the vessel to receive a cargo lies with the parties controlling this task. Users of these guidelines are invited to send comments, suggestions, or details of relevant experience to: Technical Department Hydrocarbon Management Energy Institute 61 New Cavendish Street London W1G 7AR United Kingdom 5

7 ACKNOWLEDGEMENTS Members of the EI Hydrocarbon Management Committee 3 (HMC-3) have been associated with the production of these guidelines. Membership at the time of publication is as follows: BP Oil International Ltd BV Inspectorate Cargo Inspection Group Chevron Products Company Ian Couldridge Consultant Intertek Marine Cargo Experts Ltd Malcolm Maunder Consultant Minton Treharne and Davies Phillips 66 Limited Saudi Aramco Saybolt SGS Shell 6

8 PREFACE The documents published by the EI dealing with procedures for cargo measurements are: HM 28 Procedures for crude oil cargo inspections HM 29 Procedures for petroleum product cargo inspections HM 30 Procedures for LPG cargo inspections HM 51 Procedures for bulk liquid chemical cargo inspections HM 68 Procedures for bulk liquid fatty acid methyl esters (FAME) and blended biodiesel cargo inspections HM 95 Guidelines for marine petroleum cargo superintendents 7

9 1 INTRODUCTION 1.1 SCOPE This document provides guidelines for use primarily by Marine Petroleum Cargo Superintendents (also known as Loss Control Consultants, Cargo Expeditors or Charterers Representatives) during cargo transfer operations and presents recommended practices and/or procedures directed at minimising cargo contamination and losses. In the absence of, or in conjunction with, specific guidelines from the Principal, the following document should be considered a summary of good practice. These guidelines may become contractual between the Principal and the cargo superintendent company if reference is made in either a nomination or acknowledgement. 1.2 GENERAL The superintendent is primarily concerned with the overall cargo transfer operation and issues which could detrimentally affect the cargo in terms of losses and/or contamination. The superintendent will also be concerned with any delays and demurrage and will witness cargo inspection procedures to ensure accuracy of measurement, reporting any suspected inaccuracies. Typical operations will include custody transfer at load port, discharge port or ship to ship transfer. The superintendent will consider the nature of the cargo and its handling properties for safe carriage and for the most effective transfer, vessel and terminal performance, and crude oil washing (COW) operations. The superintendent will also perform intermediate and overall voyage reconciliation and will investigate losses if necessary. The superintendent should not inhibit the activities of the cargo inspector or affect their independence. Superintendents are generally retained or nominated by one party (Principal); however, there may be occasions when attendance costs are handled on a 50/50 basis by buyer and seller. 'Principal' is used throughout this document to refer to the party or parties who have nominated the superintendent. The superintendent should be aware of the terms of the trading contract; on what basis the quantity and quality of the cargo has been bought and sold, and any specific requirements which are of concern to the Principal. It is generally the Principal s concerns regarding one or more points of the custody transfer within the terms of the contract which dictate the need for superintendency. Due to the sensitive nature of the contractual information it is of paramount importance that the superintendent retains this information, and any other acquired information relating to the operation, on a private and confidential basis except where consent has been obtained or where there is a legal or professional duty to disclose to parties other than the Principal. This document describes the practice and procedures which superintendents should follow and provides references to EI, ISO and API documents relating to detailed inspection procedures. It must be stressed, however, that these written practices and procedures are not comprehensive and the superintendent would be expected to use their experience and expertise to ensure that the Principal s requirements are met. 8

10 Safety matters and related responsibilities are defined in section 2 and emphasis is placed on the need for superintendents to be continually conscious that safety requirements take precedence over all other considerations. Superintendents should be suitably experienced and trained in loss control, cargo handling, measurement and expediting procedures and have a detailed knowledge of the safety requirements and the practices covered in section 2 of this document and of the International safety guide for oil tankers and terminals (ISGOTT). They should also have detailed knowledge of all applicable industry standards relating to their work. When appointed they should ensure that their Principal s interests are not compromised, and they should be free of any conflict of interest in the performance of their professional duties. They shall not engage or embark in any unethical, fraudulent or other illegal practices, nor should they be influenced by or exert influence on any third party prior to, during or following the provision of the superintending service. 1.3 THE ROLE OF THE SUPERINTENDENT So far as custody transfer arrangements are concerned, superintendents should ensure that the methods of measurement, sampling and testing which are used are in accordance with industry standards, and they should identify and report immediately to their Principal any anomalies or discrepancies in measurement and operational procedures. They should verify the accuracy of all measurements and observe, investigate and report as required on the custody transfer operation. Superintendents should note that: Appropriate personal protective equjpment and intrinsically safe electrical equipment shall be worn/used at all times in accordance with industry standards (see section 2). International and local regulations regarding loading/unloading including regulations on marine pollution shall be complied with. The superintendent should personally witness all measurements, sampling and analysis arrangements with the explicit permission of the vessel/terminal representative. The superintendent should carry out independent cargo quantity calculations. Whilst every effort should be made to reconcile differences, any unresolved discrepancies relating to calculated quantities and quality determinations should be investigated, recorded and reported. All data recording should follow current industry standards and to ensure the validity of the observations data should be recorded in a permanent written record at the time the procedures are performed. If for any reason the superintendent is unable to perform or is restricted in the performance of their duties then the Principal shall be informed immediately. Other than letters issued to the Master/Terminal in relation to their Principal s requirements, and also their own generated letters of protest (where appropriate), the superintendent should not sign any documents. Where necessary, the superintendent may recommend that remarks are entered onto ships/terminal documents. The superintendent should report to the Principal the reason for any delays and stoppages prior to, during and following the operation. The superintendent would normally be expected to issue recommendations for future similar operations for the benefit of the Principal in their final report. 9

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