5 Essential Tips in Crude Oil Tanker Operations
Commercial success in the crude oil trade depends not only on strict adherence to existing legislation but best practice which protect the commercial interests of the ship owner. Whilst the ship is working cargo, there will be a number of different parties monitoring and measuring the operations, in terms of efficiency and quality. Each party will be doing their utmost to protect their own interests. The shippers (exporting terminal), the so-called independent cargo surveyors, the charterers and ship owners need to be aware of both their own interests and those of their partners. Therefore, an awareness of such interests is crucial to be commercially successful.
To succeed, below are 5 Essential Tips in Crude Oil Tanker Operations:
1. Ensure all parties involved in measurement do so accurately, taking into account trim / list corrections, temperature and density.
Bulk liquid cargoes should be measured and quantified in accordance with the ASTM tables. All variables must be assessed accurately, not just level measurement but density and temperature. The trim and list of the vessel must be noted in order that the appropriate corrections can be applied. Apparently small discrepancies on large cargoes can result in significant commercial loss.
2. Only undertake as much crude oil washing as necessary, in addition to the ‘MARPOL Minimum’
The lighter crude oils evaporate easily and unlike liquefied gas cargoes, cannot be reliquefied. What evaporates is effectively lost. Turbulence will encourage evaporation, so Crude Oil Washing should be minimised for this purpose. The IMO Crude Oil Washing Systems advises that each heavy weather ballast tank has to be washed, whether needed or not, and 25% of the remainder in a rota. The build-up of residue, less likely with lighter crudes, will be the most likely indicator for washing.
3. Study and apply Institute of Petroleum / Energy Institute guidelines when measuring cargo
Measurement and quantity calculation techniques should be standard, as advised by the API Manual of Petroleum Measurement Standards. It cannot be expected that every individual calculating the cargo quantities will come up with exactly the same figure but unless unable to, the shore located proven flow meters will do so. Calculations made by ship and shore staff, as well as by independent surveyors, simply check the figures provided.
4. Ensure the Overboard Discharge Monitoring equipment is in good, operational order, however little it is used. All inspections will scrutinise it
If there is one area where any ship inspector (regulatory or commercial) is likely to focus, it is the recording of pollution prevention activity. Any equipment related to overboard discharges will be inspected closely, however related to the purpose of the inspection. A vast number of penalties have been applied to inadequate record keeping and pollution prevention equipment which is less than functional.
5. Assess junior officers in routine calibration of gas detection equipment
In a similar vein to the above, inspectors will frequently ask junior officers to demonstrate their familiarity with the calibration procedure for portable as detecting equipment. The reason it is such a frequent occurrence, is that many junior officers are unable to do so. It is an easy deficiency to record, which justifies the job of the inspector. Do not allow them such an easy opportunity.
The political machinations of traditional oil producing countries, has failed to prevent a recent revival in crude oil prices, resulting the confidence returning to the crude oil industry. As storage facilities release crude oil back onto the market there will be a surge of tanker business and freight rates will inevitably rise therefore. Do not be left behind as the oil industry returns to prosperity.
To know more about the best practices in this industry, you are invited to join PetroKnowledge’s training course entitled Crude Oil Tanker Cargo Operations Best Practices scheduled in Dubai, U.A.E. Take the initiative now and advance your professional development to the next level!
