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SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

G. I. NUMBER Approved

2.400

ISSUING ORG. * MARINE DEPARTMENT

ISSUE DATE

03/20/2002

REPLACES

09/30/1990

SUBJECT: OFFSHORE OIL CONTINGENCY PLAN APPROVAL

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* CHANGE ** ADDITION NEW INSTRUCTIONS COMPLETE REVISION

Saudi Aramco 7180 (2/2002)

CONTENT:

This General Instruction describes the organization established by Saudi Aramco to coordinate response to offshore oil spillages. It contains the following information: 1 Purpose 2 Environmental Protection Policy and Objectives 3 Organization 4 Classification of Oil Spills 5 Alert System 6 Oil Spill Cleanup Equipment Drills

NOTE: (1) It is important to immediately inform Executive Management of any oil spill that may have an impact on vital Saudi Government or Saudi Aramco facilities or any environmentally sensitive areas. For reporting oil spills, refer to G.I. 2.104, "Leak and Spill Reporting –Arabian Gulf." and G.I. 2.402, "Leak and Spill Reporting –Red Sea” (2) This General Instruction does not cover Saudi Aramco's facilities at Yanbu. The cleanup of oil spills in the Port at Yanbu is handled by the King Fahad Industrial Port (SEAPA). However, Regional Oil Spill Coordinator-Western Region (ROSC/WR) can be contacted for assistance if required. (3) In case of simultaneous oil spill and offshore disaster and only limited resources available, the offshore disaster will take priority over oil spill for accessing those resources.

1.0 PURPOSE:

This Instruction and the Regional Oil Spill Contingency Plans describe how Saudi Aramco will respond to oil spills within its offshore operational areas. The Instruction describes: 1) Saudi Aramco's policy concerning oil spill response, and 2) the alert system and response organization established by the Company. The Regional Oil Spill Contingency Plans discuss, in depth, the items listed above and also includes Oil Spill Action Plans for each major Saudi Aramco operating area. Together this Instruction and the Regional Oil Spill Contingency Plans are designed to coordinate Saudi Aramco's resources effectively in the event of an oil spill.

2.0 ENVIRONMENTAL PROTECTION POLICY AND OBJECTIVES

2.1 POLICY OBJECTIVES: Saudi Aramco is committed to the prevention of oil releases due to the

normal operations of Saudi Aramco facilities to either the land or waters of Saudi Arabia. However, accidental oil discharges to the environment may occasionally occur.

In the event of an accidental oil release, the following are Saudi Aramco's priorities and objectives in

responding to the incident:



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2.2 The First Priority: The primary concern, during all phases of an oil spill response operation, is the protection of human life. At all times during a spill incident, the overriding concern shall be the safety of the public and the Saudi Aramco personnel affected or potentially affected by the spill.

2.3 The Second Priority: Protecting vital Saudi Arab Government and Saudi Aramco facilities such as

major desalinization or power plants. These facilities affect the health, safety and economy of a large segment of the people in Saudi Arabia.

2.4 The third priority is to minimize the disruption to the safe operation of the Saudi Aramco oil export

terminals and critical production facilities. The extreme importance of these facilities requires that all Saudi Aramco resources be made available to ensure their protection and safe continuous operation.

2.5 The fourth priority is the protection of sensitive marine areas of Saudi Arabian Red Sea Coast. Saudi Aramco will take immediate action upon receiving a report of a spill from a Saudi Aramco facility. A Saudi Aramco facility is considered to be any facility or piece of equipment owned, operated, leased or under construction by Saudi Aramco. To this end Saudi Aramco will:

Take immediate action to secure the source of the spill when the spill is from a Saudi Aramco facility/owned vessel or from a charter vessel and vessel in the Saudi Aramco Terminal operating area.

2.5.1 Notify the appropriate parties as identified in General Instruction 2.104, "Leak and Spill

Reporting –Arabian Gulf." and G.I. 2.402, "Leak and Spill Reporting –Red Sea”. 2.5.2 Evaluate the spill and commit sufficient manpower and materials to carry out appropriate

protective and clean-up measures as determined by the Regional Oil Spill Coordinator (ROSC) to divert, contain, remove and/or disperse oil spilled from Saudi Aramco's own operations, from any vessel anchored or moored at Saudi Aramco's Terminal areas and from an un-known or non-Saudi Aramco source when the spill threatens Saudi Aramco or vital public facilities.

2.5.3 Investigate thoroughly the cause of the spill to:

2.5.3.1 Determine the party responsible for the spill. 2.5.3.2 Allow preventive measures where feasible to be taken in the future, and

2.5.4 Assist, when requested, and properly cleared by the Saudi Arab Government, in the clean-up

operations from non-Saudi Aramco sources which threaten Saudi Arabian coastal areas. 2.5.5 Conduct, where appropriate, restoration of facilities and natural, private, or industrial

properties impacted by a spill from a Saudi Aramco facility.



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2.6 As per Company policy hold any non-Saudi Aramco facility or vessel that is responsible for an oil spill, liable for the costs incurred by Saudi Aramco for the oil spill clean-up operation. Appropriate cost records will be kept for subsequent use in claims activit ies and for advising management.

2.7 Saudi Aramco will comply with existing industry practices and Saudi Arab Government regulations

and International Conventions and Protocols where they apply for the prevention and control of oil releases to the Arabian Gulf and Red Sea, and abide by authorized Saudi Arab Government direction during cleanups.

2.8 It is Saudi Aramco's policy to keep Government officials informed as necessary in the event of an oil

spill. This information transfer will take place only through appropriate channels as given in this General Instruction and under section III of the Regional Oil Spill Contingency Plans.

3.0 ORGANIZATION:

2.1 Oil Spill Committee (OSC) Members:

Vice President - Supply, Planning & Terminal (CHAIRMAN) Vice President - Northern Area Oil Operations (VICE CHAIRMAN) Executive Director -WR Refining, Supply & Distribution Vice President - ER Refining, Supply & Distribution Executive Director - Saudi Aramco Affairs Vice President - Industrial Services President - Vela International Marine Ltd. General Manager - Pipelines Controller Treasurer Associate General Counsel Manager- Environmental Protection Department Global Oil Spill Coordinator (SECRETARY)

3.1.1 Alternates and additional members can be appointed in order to carry out the functions given

in Paragraphs 3.2 and 3.3.

3.2 The Chairman, of OSC shall:

3.2.1 Ensure that the overall strategy of the oil spill response meets Saudi Aramco's policy objectives as outlined in Paragraph 2.0, and that appropriate financial accountability is maintained for corporate management information.

3.2.2 Select the Oil Spill Coordinator, if a question arises concerning who shall assume the

functions of the ROSC(s). 3.2.3 Announce the estimated volume of oil spill.



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3.2.4 Review, endorse and make recommendations to Management Committee on all oil spill issues, policies and relevant matters.

3.3 The functions and responsibilities of the Oil Spill Committee are to:

3.3.1 Function: Reviews and approves as appropriate, policies, strategies, plans and actions with

regard to oil spill prevention, containment and clean-up in Saudi Aramco's worldwide areas of operations and advises Management. The Committee also ensures that proper coordination takes place between Saudi Aramco and its subsidiary companies with regard to oil spill pollution prevention and response matters.

3.3.2 Under Normal Operations Condition OSC’s Responsibilities are to:

3.3.2.1 Ensure that adequate and effective oil spill prevention and response plans are in place to avoid or minimize, the environment loss or damage the Company's exposure, in the case of an oil spill.

3.3.2.2 Develop a public information strategy for implementation in the event of an oil spill to

help safeguard the Company's local and international image, with the public, with governments, and with its business partners.

3.3.2.3 Periodically determine, review and assess Saudi Aramco and its affiliates oil spill

response plans and procedures to ensure that they are adequate and up-to-date. 3.3.2.4 Review investigations of oil spills with a view to improving the oil spill response plans

and procedures. 3.3.2.5 Ensure that close relations with the oil spill response cooperative world-wide,

obligations under existing agreements are fulfilled, and that information regarding the resources available to Saudi Aramco and affiliates are maintained and disseminated to concerned personnel.

3.3.2.6 Approve, review and critique oil spill response drills when they are undertaken and

make recommendations for improvement.

3.3.3 In the event of a significant amount of oil spill for which the Company or its affiliates are responsible, the OSC shall be convened to perform all or some of the following tasks, as appropriate:

3.3.3.1 Oversee the operations of Saudi Aramco's global oil spill clean-up organization to

ensure promptness of response, appropriate allocation and mobilization of all available resources, and efficient clean-up at the oil spill site.

3.3.3.2 Advise Management on the progress of oil spill clean-up operations.



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3.3.3.3 Review and approve strategies necessary to resolve claims and to assist in preparation

of legal proceeding. 3.3.3.4 Initiate salvage and oil control support for afflicted vessels as required. 3.3.3.5 Coordinate the release of information concerning oil spills to the media in compliance

with GI-6.003 Paras. 3.2.2 and 3.2.3.

3.4.1 Secretary to the Oil Spill Committee: SOC Secretary is the Global Oil Spill Coordinator (GOSC) from Environmental Protection Department (EPD) and he shall:

3.4.1.1 Maintain a current knowledge of Saudi Arab Government requirements in Oil Spill prevention and clean up techniques.

3.4.1.2 Receive "Leak and/or Spill Reports Nos. SA 5046 and SA 5046-2" and maintain

records of Saudi Aramco spill incidents. These records shall be used to compare Saudi Aramco's spill history with current industry standards and to develop procedures where possible for the improvement of spill prevention.

3.4.1.3 Disseminate useful information to OSC members and the ROSC and provide advice

and guidance to Saudi Aramco management. 3.4.1.4 Act as the Company representative with industry and governmental organizations

active on oil spill problems and be liaison when a spill occurs. 3.4.1.5 Advise the OSC members on the preferred methods of oil spill cleanup and on the most

suitable restoration procedures to mitigate ecological damage. 3.4.1.6 Maintain a logbook of experienced people both within and out of Saudi Aramco who

can be called in during an oil spill. 3.4.1.7 Act as the contact point with cooperative institutes such as Oil Spill Response Limited

(OSRL) and Gulf Area Oil Companies Mutual Aid Organization (GAOCMAO) to coordinate either a request from cooperatives to Saudi Aramco for assistance or to process a Saudi Aramco request for assistance from cooperatives.

3.4.1.8 Ensure that Saudi Aramco conducts drills every six months in the absence of actual

spill requiring significant mobilization. Assist the ROSC and the Superintendent, Marine Offshore Operations/Pollution Control Unit, in designing, conducting and evaluating oil spill cleanup drills. At least once in every two years, the drill shall be integrated with an offshore disaster drill to evaluate the coordination and response.



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3.5 Oil Spill Response Team (OSRT):

3.5.1 An Oil Spill Response Team shall be established to respond to major spills (greater than 5000 bbls). OSRT members are as follows:

• Regional Oil Spill Coordinator (ROSC) or Oil Spill Response Commander (OSRC) • Global Oil Spill Coordinator (GOSC) • Environmental Protection Representative • Legal Representative • Public Relations Representative • Government Affairs Representative • Government Liaison Engineer • Financial Representative • Controller’s Representative • Risk Management Representative • Cleanup Operations Director or Head • Aviation Coordinator • Marine Offshore Operations Coordinator or Section Head • Containment and Recovery Supervisor • Safety Representative • Regional Oil Spill Specialist • Shoreline Clean-up Director or Section Head • Waste Disposal Coordinator or Section Head • Planning Director or Head • Salvage Operations Director or Head • Deck and Engine Room Machinery Specialist • Clean-up Support Director or Head • Documentation Supervisor • Spill Investigation and Historian Supervisor • Communications Supervisor • Security Supervisor • Logistics Coordinator or Section Head • Manpower and Contracting Supervisor • Accounting Supervisor • Maintenance Supervisor • Materials Procurement Supervisor • Community Services Support Representative • Transportation Supervisor • Heavy Equipment Supervisor • Office/Computer Administration • Administration Supervisor



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- The individuals selected as members, their telephone numbers and detailed job descriptions for

each member of the OSRT can be found in the Regional Oil Spill Contingency Plans. For minor and medium spills (less than 50 bbls or between 50 and 5000 bbls.) the ROSC(s) shall decide which members of the OSRT are needed for the particular spill response. Concerned organizations shall correspond any changes related to their designated member to the ROSC. Contact:

- Tel.: 678-6067 Fax: 673-4123 For Arabian Gulf - Tel.: 024273999 Fax: 024273995 for Red Sea.

3.5.2 The OSRT shall, at the time of an oil spill:

3.5.2.1 Be responsible for the efficient investigation, control, clean-up, restoration, waste disposal and cost documentation of each applicable oil spill.

3.2.5.2 Keep the OSC Members informed of the progress of clean-up operations.

4.0 CLASSIFICATION OF OIL SPILLS

The size classification given below are meant as general guidelines only. Any spill can be reclassified upwards or downwards as evaluated/judged by the ROSC(s) and the Secretary, OSC.

4.1 Minor Oil Spills:

Any oil releases, generally less than 50 bbls. in size, judged to have minimal adverse environmental effect and to cause no hazard to personnel or equipment. In most cases, spills in this category will be recovered, chemically dispersed or allowed to disperse naturally depending on the location, time and weather conditions. The action taken will be at the discretion of the ROSC.

4.2 Medium Oil Spills:

These are oil releases of between 50 and 5000 bbls. in size. Spills of this size carry the potential of substantial environmental impact and will generally require clean-up. However, spills within this category that occur far from the shore should have the spill track forecasted and the actual track monitored to determine its path. Under certain circumstances conducting no clean-up operation may be the appropriate course of action. The action taken will be at the discretion of the ROSC.

4.3 Major Oil Spills:

4.3.1 Major oil spills are the releases greater than 5000 barrels. These oil releases carry the potential of severe environmental impact to adjacent beaches, marine life and/or harbor facilities.



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4.4 Oil Spills -Non-Saudi Aramco Origin:

If an oil release from a non-Saudi Aramco source occurs which threatens any of Saudi Aramco's operating areas, Saudi Aramco proponent organization shall:

4.4.1 Notify the Saudi Arab Government.

4.4.2 Attempt to identify the outside source, if unknown in order to present properly documented

claims for the clean-up costs.

4.4.3 Take the necessary steps to protect Saudi Aramco installations and beaches as deter-mined to be necessary by the ROSC(s). Additional cleanup measures outside of Saudi Aramco's operating or community areas shall be taken as required, at the request of the proper Saudi Arab Government agency or under their direction.

5.0 ALERT SYSTEM:

5.1 All Oil Spills:

5.1.1 The requirements for reporting oil spills are given in General Instruction 2.104, "Leak and

Spill Reporting – Arabian Gulf." and G.I. 2.402, "Leak and Spill Reporting – Red Sea”. It is the responsibility of all Saudi Aramco personnel to observe and report the occurrence of oil spills to management. Of particular importance are the personnel in oil operations or support groups whose daily activities allow them to work with or observe oil transfer, processing or storage activities. Immediate notification from these personnel is important in mitigating the hazard and in initiating a rapid clean-up operation to be initiated.

5.1.2 All spills when observed should be immediately reported to the appropriate Division Head of

the operating department involved, oil spill in the Gulf should be reported to the Port Control Center (PCC) /RT Terminal Operations Department at 673-1152, 673-0663 or 673-1092, for Jeddah, Duba and Jizan Areas to Tel. 02-427-5561, 02-427-5566 and for Rabigh 425-42505.

5.1.3 For any spill threatening curtailment of oil production or shipping the Oil and Gas, the

OSPAS Oil and Gas Planner/Dispatcher should be notified immediately at 874-6821 or 874-6822 or 875-2137

5.2 Minor Oil Spills:

5.2.1 The Port Control Center (PCC)/RT Terminal Operations Department of the operating area

involved shall notify the ROSC(s) who will decide what response is required. If the ROSC(s) cannot be contacted, the Senior Harbor Pilot shall initiate appropriate cleanup activities as soon as he deems necessary. Many small spills will not require cleanup action.



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5.2.2 The Operating Department Division Head or Shift Superintendent shall take the necessary

steps to secure the spill. 5.2.3 The Division Head or Terminal Shift Superintendent shall notify the Terminal Operations

Manager first and then the Government Liaison Engineer.

5.3 Medium and Major Oil Spills:

5.3.1 The PCC/RT Terminal Operations Department of the operating area involved shall notify the ROSC who will decide what response is required. If the ROSC cannot be contacted, the Senior Harbor Pilot shall initiate appropriate clean-up activities as soon as he deems necessary.

5.3.2 The Marine Shift Coordinator shall notify the Marine Pollution Control Unit Head or his

alternate. 5.3.3 The ROSC shall:

5.3.3.1 Assume operational responsibility for all activities related to the safe and efficient control, clean-up, restoration and documentation of the oil spill.

5.3.3.2 Notify the OSRT members that he feels are necessary per the spill situation

(generally, for major oil spills). 5.3.3.3 Notify the Executive Management of the Operating Area in which the oil spill

occurred through the proper channels.

5.3.3.4 Inform the Chairman, and OSC Members through the proper channels on

operational aspects of the clean up at regular intervals.

5.3.4 The operating department Division Head or Shift Superintendent shall take the necessary steps to secure the spill.

5.3.5 The Terminal Shift Superintendent shall notify the Terminal Operations Manager first and then the Government Liaison Engineer.

5.3.6 For major spills of 5000 barrels of oil or more, Saudi Aramco may require rapid assistance from outside sources to effectively combat the spill. Consequently, in addition to the requirements listed above, the full Oil Spill Response Team shall be activated and the member shall: 5.3.6.1 Undertake their responsibilities as mentioned in the Regional Oil Spill

Contingency Plans.



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5.3.6.2 Be briefed by the Chairman, GOSC and the ROSC(s) as to the magnitude and

probable extent of the oil release.

5.3.7 At this time the following issues will be considered by the OSC Members:

5.3.7.1 Which outside cooperatives such as OSRL/GAOCMAO shall be contacted.

5.3.7.2 Whether to call in consultants as oil well control specialists, oil spill control

specia list, marine biologists, environmentalists, etc.

5.3.7.3 Whether the air shipment of spill control equipment and/or materials not available

in the Company is advisable. 5.3.7.4 Determine appropriate approach, when spill originates from a tanker which is

proceeding to or from a Saudi Aramco port; outside Saudi Arabia's territorial waters.

5.3.7.5 Financial authority of various individuals and how to maintain accountability.

5.4 Response Activities: The Regional Oil Spill Contingency Plans provide detailed procedural guidance

on how to proceed with oil spill response activities.

6.0 OIL SPILL CLEAN-UP EQUIPMENT DRILLS

Oil spill drills shall include instructions for the use and proper deployment of oil containment and recovery and/or oil dispersing equipment. These drills shall be held at least once every six months unless the equipment has been used during the intervening period. The format and scope of such drill shall be Formulated by the ROSC(s), and approved, as necessary, by the OSC Members. At least once in every two years, the drill shall be integrated with an offshore disaster drill to evaluate the coordination and response.



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RECOMMENDED BY _____________________________________ Date: _________ Manager, Terminal Operations Department CONCUR:

Vice President-Supply, Planning & Terminal Vice President -Northern Area Oil Operations Vice President –Abqaiq Plants & Pipelines Executive Director-ER Refining, Supply & Distribution Executive Director-Southern Area Oil Operations Executive Director-Saudi Aramco Affairs Executive Director -Industrial Services

Executive Director -Petroleum Engineering & Dev. President & CEO -Vela International Marine Ltd.

APPROVED: Exec., V.P., Exploration & Producing Sr. V.P., Refining & Distribution Sr. V.P., Oil Operations

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