7. Special Vetting Arrangements

7.1. Vessels owned, operated, managed and/or bareboat chartered by the ADNOC Group shall:

(a)

submit a request for an initial inspection and/or assessment by the ADNOC Ship Vetting Department to determine the particular vessel's suitability for use an ADNOC Group company;

(b)

the initial inspection report or assessment shall not be submitted to SIRE unless the ADNOC Ship Vetting Department is requested to do so;

(c)

the initial inspection or assessment shall not replace or supersede the charterer's prechartering inspection or other internal or commercial requirements specific to the charterer; and

(d)

based on the initial inspection and/or assessment, the vessel shall be granted a vetting validity period that will expire on the occurrence of one or more of the following events:

(i)

expiry of the operating and management agreement or bareboat charter agreement;
(ii) change of vessel ownership;
(iii) negative terminal or operational feedback;
(iv) changes in the vessel's condition status;
(v) the vessel reaching the maximum age limit for its type;
(vi) international or national law and/or legislative changes; and/or
(vii) any alterations in this Policy.


7.2. Vessels time chartered to the ADNOC Group and vessels operating under COAs for a period longer than three (3) months, shall be subject to the provisions set out in 7.1 (a) to 7.1 (c) above and, additionally:

(a)

the vetting inspection validity period shall be determined and granted based on the inspection outcome. There shall be no inspection required to be conducted within the granted validity period unless deemed necessary by the ADNOC Ship Vetting Department; and

(b)

time chartered vessels shall be re-assessed following a further physical inspection which will be undertaken upon expiry of the vetting validity period.


7.3. If a vessel does not fall within the scope of 7.1 or 7.2 above, but falls within 4.1, the general provisions of this Policy shall apply.


7.4. Where 7.1 and 7.2 apply, and in the ADNOC Ship Vetting Department's opinion are considered to present a significant risk during the term of their contract, they may be denied entry to the Petroleum Port Limits and/or to any Petroleum Port and/or may be prevented from conducting operations which involve vessels owned, chartered or operated by the ADNOC Group until the risks have been sufficiently mitigated to the satisfaction of the ADNOC Ship Vetting Department. The ADNOC Ship Vetting Department might require the vessel to undergo a reinspection for this purpose.


7.5. The owners, operators, managers and/or charterers of the vessels as specified in 7.1 and 7.2 above shall, without delay, inform the ADNOC Ship Vetting Department about any deficiencies that they become aware of, that may affect safe operations and/or the environment, along with any corrective actions taken . Should no such information be provided by the vessel owners, operators, managers and/or charterers to the ADNOC Ship Vetting Department, it shall be assumed that the vessel has no such deficiencies.


7.6. Vessels specified under 7.1 and 7.2 shall be monitored by the PPA representatives and/or terminal representatives who shall provide the ADNOC Ship Vetting Department with feedback on each and every occasion a vessel is considered not to meet the ADNOC's/PPA's operating standards. Should no adverse feedback be provided by the PPA representative and/or terminal representative to the ADNOC Ship Vetting Department, it shall be assumed that the vessel meets ADNOC's required safe operating standards as set out in ADNOC's Code of Practices COPV4-08.


7.7. It is the responsibility of each Group Company to be aware of ADNOC's and its own exposure to shipping risks in its business transactions and to ensure that this Policy is correctly applied in all such cases.


7.8. No vessel to which this Policy applies shall be utilized for ADNOC Group business unless it has first been vetted by the ADNOC Ship Vetting Department and a written acceptance for its use has been obtained from the ADNOC Ship Vetting Department.