Members SEMINAR April 8, 2011

1. Members SEMINARApril 8, 2011 INTERTANKO Overview Report Joseph Angelo Managing Director

2. MEMBERSHIP BUDGET SECRETARIAT EXCOM ISSUES COUNCIL ISSUES

3. Membership 250+ Members 3,350+ Tankers > 285 000 000 DWT Members in 40+ countries >75% of the Independent Tanker Fleet 290+ Associate Members

4. Membership No. of tankers Members/million dwt

5. Budget & Accounts All figures US $2009 2010 2011 (Actual) (Actual) (Budget) Total Operating Income 9,056,359 7 381 600 7,572,650 Total Operating Expenses 6,566,390 7 062 856 7,217,450 Operating Result 2,489,968 318 744 355,200 Non-operating Income/expenses 551,773 -21,179 -25,000 Result for Year 3,041,741 297 565 330,200

6. Budget • Large operating surplus for 2009 - Virtual retention of all members in 2009 - Control of discretionary expenditure & limitation of activities - Expenditure benefiting from strong US$ against British pound and Norwegian Kroner • 2010 membership fees reduced by 10% • No change in 2011 membership fees

7. Secretariat 23 STAFF MEMBERS IN 5 OFFICES Oslo (9), London (12), Singapore (1) USA (1), Brussels, (Manila) STAFF INCLUDES - Managing Director (New) - Deputy Managing Director (New) - Technical & Marine Directors - Specialists for Regulatory Affairs & Legal Issues, Chemical, Oil and Gas shipping, Environmental Issues,

8. Executive Committee Issues High level discussions with OCIMF Minimum safe operating costs Piracy Greenhouse gas emissions 2011 Workplan priorities

9. Discussions with OCIMF High Level discussions (Chairmen) “Best the relationship has ever been” Issues • Achievable greenhouse gas emission reduction targets for tankers • Piracy • Tanker officer competency and experience • Vetting matters • Mercury in crude oil, safety aspects • Guidance on generally accepted procedures for accident investigation/analysis/reporting

10. Safe Operating Costs Concern: current rates are below the minimum cost levels required to operate vessels safely Issues • Costs to operate a ship and Worldscale versus equivalent charter rates • Quality is important to both owners and charterers • Anti-trust concerns • Could be counterproductive (perception of lowering the “quality bar”?) • Reluctance to share costs

11. Piracy • SOS Media campaign • Best Management Practice (BMP) compliance • Policy on armed guards • Marine Naval Liaison Officer (MNLO) supply

12. Greenhouse Gas • Continue to support mandatory Energy Efficiency Design Index for new ships • Seek further information and clarification of Market Based Measures (MBM) • Finalize development of industry assessment of potential CO2 reduction measures • Launch “Virtual Arrival” project with OCIMF

13. Workplan Priorities • Council approved workplan priorities • Executive Committee to overview detailed implementation of workplan • Secretariat developed detailed plans for high priority topics (25) • Workplan is a “living document” • New workplan items to be submitted to Council for approval and appropriate priority

14. Council Meeting • Astir Palace hotel, Athens, Greece • May 9 – Council dinner • May 10 – Council meeting • May 11 – Tanker Seminar - Opening Session - Tanker market - Piracy - Technical session Ballast water management Greenhouse gas emissions

15. THANK YOU WWW.INTERTANKO.COM