DKC::Petroleum & Petrochemical Products Services

1-Scope

The standards & instructions normally applied by DKC when providing services related to the inspection of petroleum/Petrochemical commodities and

the scope of work described herein is not intended to replace or take precedence over any scope of work agreed as between DKC and its principals and

it should be understood that many nominations for service are limited in their nature.

2-Petroleum & Petrochemical Products Related Marine/Cargo Damage & Condition Inspections

Petroleum and petrochemical commodities are defined as being commodities resulting from extraction and or distillations of crude oil, minerals and

natural gas as described in section 4.2.

Considering the below:

1- Variety of products.

2- Variety of transport (i.e. tanker vessels, road tankers, rail tankers or containers).

3- Variety of packing (i.e. drums, plastic containers or steel containers).

4- Very strict safety regulations applied due being flammable and explosive.

5- Chemically reactant, sensitive and easily contaminable.

6- Being very expensive and costly.

A variety of problems, irregularities and damages may occur and may be sustained by transporter or the commodity itself.

In case of problems, irregularities, marine damages or condition inspections related to such commodities, DKC must have a clear mandate given by the

principal.

A nomination must be received from the principal exactly verifying the required services.

DKC shall use all its knowledge and expertise to examine or observe commodities, products, services, procedures or operations in order to provide

information on the nature and cause of the problem, irregularity, damage or condition to the principal and/or the principal's designees.

In addition, determination on the extent shall be provided by required professional means.The methods, procedures and standards to be applied on

inspection shall be those agreed upon between the principal and DKC,provided such instructions are considered appropriate on technical and financial

grounds by DKC at the time and place of performance.

3-Methods, Procedures and Standards

DKC shall use Methods or standards most frequently referred to in the petroleum / petrochemical field are those published by standards organizations

or trade associations such as ASTM, API, or DKC Internal Instruction.

DKC will perform inspections in accordance with the procedures, methods, rules and Regulations of such organizations or associations where such rules

and regulations apply on each occasion that they are nominated by the principal.

4-Inspection Nomination

DKC is not an agent for its principal, but acts under a mandate from its principal, which is referred to as a Nomination. Wherever possible a nomination

should be received from the principal in writing setting forth the details of the nomination or contract. Engagements undertaken on the basis of oral

communication from the principal or third party should be documented by DKC as soon as practicable.The principal should be aware of any terms and

conditions of service, which may apply. DKC should satisfy itself that the principal is aware of applicable terms and conditions.

A nomination for inspection must be sent by the principal in sufficient time and in sufficient detail prior to the inspection to allow the DKC to comply

with this guideline.Any subsequent nominations in relation to that contract nomination are a subject for agreement between the principal and DKC as

to timing.

In those locations where in accordance with industry custom and practice nominations are communicated to DKC by some person other than the

principal, and circumstances do not permit direct communication with the principal prior to executing all or part of the engagement , DKC should use

its discretion as to the scope of the inspection required and , to protect its interests:

- May inform the instructing party in writing that DKC accepts no liability for the scope of work undertaken.

- Will expect full and prompt payment for all and any services provided.

- May hold the instructing party liable for any error or omission in instruction, late instruction or failure to pay by the principal.

- May hold the instructing party as liable should he not communicate with the person on whose behalf he is acting, at the time of instruction and

before the inspection commences, that terms and conditions of service will apply.

5-The Inspection Service

The standard services of DKC are as follows:

- Tank Cleanliness Inspection.

- Quantitative Inspection.

- Sampling.

- Qualitative Inspection.

- Loading / Discharging Monitoring.

- Containerized Cargo Inspection.

Other services may be specially agreed between DKC and principal. DKC will not undertake control over any operation over any operation and will only

report that each stage of an operation is complete, unless otherwise specifically agreed with the principal.

DKC shall use its best efforts to establish and maintain lines or channels of communication with the principal(s) , vessels agents and terminal personnel

in order to provide timely inspection services.

A- Tank Cleanliness Inspection

The purpose of a cleanliness inspection is for DKC to assess using visual or as a Conclusion of visual and key test on wall wash samples whether a tank or

other container is in a substantially clean condition. The cleanliness inspection does not relieve the parties to the contract of sale nor those to the contract

of carriage from their obligations; notably those pertaining to the presentation of a receptacle fit for carrying or containing the goods.

DKC shall record, so far as reasonably possible, the condition of tanks, the presence of residues and the existence of any foreign odors. It must be noted

that:

- DKC will not risk the safety health and well being of its inspectors. For inspection of tanks to take place proper arrangements must be made for the

safety of inspectors. These include but are not limited to enclosed space precautions, gas free certification and hazardous substances precautions.

- When working on tanks subject to closed or restricted operation DKC may be limited to performing inspection by soundings. The results of such

inspections will be less reliable than visual inspection and DKC should report when inspection is limited to soundings.

DKC responsibility for visual inspection is strictly limited to a determination that the designated tank, as seen by the naked eye from reasonably

accessible and safe vantage points, appears to be substantially clean. Such inspections are not intended to and do not include advice on or

determinations such as ,(without limitation) compatibility of previous cargoes or tank coatings, suitability of cleaning methods , storage of adjacent

cargoes , presence or absence of trace residues, or general fitness or suitability to contain or carry a specific cargo. Advice or recommendations on such

matters will only be given when specifically agreed in advance.

DKC may record the carrier’s declaration on the cleaning method applied. This will be for information purposes only and without responsibility. Advice

or recommendation on appropriate cleaning methods are not duties of DKC.

B- Quantitative Inspection

DKC performs quantity determinations on the basis of existing standards and instruction manuals using ASTM tables. DKC will make sure that the

apparatus used by its inspectors / or by Terminal / or by Vessel staff are calibrated.

C- Sampling

The object of sampling is to obtain a small manageable quantity from all or part of a larger parcel which is representative of the whole parcel or a

designated part. For definition of the various types of samples and sampling techniques, DKC should refer to relevant international Standards / Manual

Instructions.

The process is technically challenging and the drawing of manual samples may be subject to limitations such as time or access restrictions, which are

beyond the control of DKC and may affect the quality of the sample. The principal should provide clear instructions concerning the sample required

and the conditions under which samples will be drawn. Where automatic samplers are employed and DKC inspector is not allowed to check the

working condition nor the relevant documents, the responsibility for any deviation in the final sample collected rests with the automatic sampler

user.Distribution and retention of samples should be specified in the instructions from the principal. In the absence of special instructions, liquid

samples drawn by DKC will normally be retained for a period of 90 days unless otherwise instructed. Gas samples will not be retained.

Samples shall be individually labeled so as to give relevant particulars of the sample, including; who drew the sample, where and when the sample was

drawn, the identity of the sample, etc. Designated samples given to third parties shall be sealed so as to deter and to indicate any unauthorized access to

the sample.

D- Qualitative Inspection

1- Tests are performed at producer’s or third party laboratory and will pass on to the principal the results received without any responsibility for the

accuracy of the results. In these circumstances the test observation is performed on the basis that:

- All apparatus, instrumentation and measuring devices are assumed to be in calibration and in good working order.

- Reagents and standards are accepted as utilized.

- The laboratory technicians are assumed to be qualified.

- The responsibility of DKC is limited to its representative attending the testing and ascertaining that in his opinion the tests were carried out on the

correct sample.

2- Where necessary due to the delicacy of the goods to be loaded and the extent of contamination expected from last cargo / or cleaning materials, DKC

inspector may employ some key tests to reach a more reasonable and comprehensive conclusion on whether or not the tanks are clean / suitable to

receive the new cargo.

3- Loading / Discharging Monitoring

When DKC is requested to monitor a loading/discharge, transport, handling or other such operation, DKC shall observe the proceedings in a reasonable

manner, reporting to the principal as may be reasonably feasible.

4- Containerized Cargo Inspection

Cargoes like Bitumen, Rubber process oil, Base oil, etc which are packed in drums and consequently stuffed in containers, are checked for Container’s.

6-Petroleum & Petrochemical Products Related Marine/Cargo Damage & Condition Inspections

Petroleum and petrochemical commodities are defined as being commodities resulting from extraction and or distillations of crude oil, minerals and

natural gas as described in section 4.2.

Considering the below:

1- Variety of products.

2- Variety of transport (i.e. tanker vessels, road tankers, rail tankers or containers).

3- Variety of packing (i.e. drums, plastic containers or steel containers).

4- Very strict safety regulations applied due being flammable and explosive.

5- Chemically reactant, sensitive and easily contaminable.

6- Being very expensive and costly.

A variety of problems, irregularities and damages may occur and may be sustained by transporter or the commodity itself.In case of problems,

irregularities, marine damages or condition inspections related to such commodities, DKC must have a clear mandate given by the principal.A

nomination must be received from the principal exactly verifying the required services.DKC shall use all its knowledge and expertise to examine or

observe commodities, products, services, procedures or operations in order to provide information on the nature and cause of the problem, irregularity,

damage or condition to the principal and/or the principal's designees.In addition, determination on the extent shall be provided by required professional

means.The methods, procedures and standards to be applied on inspection shall be those agreed upon between the principal and DKC,provided such

instructions are considered appropriate on technical and financial grounds by DKC at the time and place of performance.