The following paragraphs provide a discussion of how each of these potential impacts will be mitigated in the Company''s project.
1. Platform Service Vessel (PSV) design. Deep-water offshore oil and gas exploration and production mandate larger PSVs equipped with high technology positioning and stabilization gear. UP Offshore''s selected PSV design (Vik-Sandik-3012) is the latest technology available. Vik-Sandvik''s proposed PSV design model testing to verify acceptable responses to weight, deck areas, loads, and sea states is complete; and, UP Offshore will provide third party verification of trials to IFC. DP-1 or DP2 stabilization systems (station position maintenance equipment), bilge water oil separation systems, and other fittings and controls will be incorporated into the specifications to facilitate contracting, reduce vessel O&M costs, and to comply with international marine regulations and rules.
2. PSV construction. Shipyards selected for UP Offshore PSV construction will be required to have an acceptable resume in vessel construction, have proper equipment for cutting and assembly of steel plate, and to provide engineering support and quality control procedures to ensure delivery of the designer''s concept.
3. PSV registry and national convention requirements. Brazil and Panama, which are the flag states under which UP Offshore PSV ships will operate, are signatories to the principal International Maritime Organization (IMO) conventions. These requirements are far reaching and effectively address typical environmental and social issues of concern in IFC investments. All PSVs will be equipped and fitted with controls in compliance with these regulations and will be periodically inspected by marine classification societies. Additionally, all ships will be required to comply with applicable, contracted scope of work-triggered regulations and to hold valid certificates.
4. Vessel management. Ravenscroft Shipping, Inc. currently manages the existing Ultrapetrol (UP Offshore parent company) fleet. These vessels currently comply with international maritime rules and regulations and have the required certifications. UP Offshore Panama and UP Offshore Brazil PSVs (managed by Ravenscroft) must comply with IMO operations requirements including: MARPOL , SOLAS , and ISM (mandatory under SOLAS, to be implemented no later than 1 July 2002); and STCW . Ravenscroft Shipping Inc. is evaluated for compliance by third party firms such as Bureau Veritas. UP Offshore contracts with Ravenscroft will capture all relevant IMO and national requirements and contain penalty clauses for significant violations or failures. Ravencroft''s procedures for Emergency Preparedness provide for disaster response in cases of ship casualty, crew casualty or marine pollution as required by the ISM Code. Every vessel will be equipped with a copy of Shipboard Safety Management Procedures, as required
by ISM Code, and will carry a valid International Oil Pollution Prevention (IOPP) Certificate.
5. Crew training. PSV master, first mate, engineer and electrician training requirements will include STCW-95 (International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1995), training at shore facilities in Brazil, Argentina, and USA; bridge resource management; ship simulators; dynamic positioning; engine room simulators; and onboard crew training skills to ensure Brazilian staff work with experienced PSV crew.
6. Supplemental vessel inspections. PSV''s will be inspected regularly by chartering oil companies. The Vessel Inspection Questionnaire issued by Oil Companies International Marine Forum (OCIMF) will guide inspections. The objective of these inspections is to confirm compliance with, among other requirements, MARPOL, SOLAS, ISM, STCW by demonstration of certification and documentation related to crew and safety management, navigation, pollution prevention, and structural condition.
7. Onshore support facilities. UP Offshore intends to charter PSVs with oil companies with offshore operations. Onshore operations will be owned and operated by the chartering firms. In the event that UP Offshore develops or leases onshore operations to support PSVs, these facilities will be designed, constructed and operated to comply with applicable Brazilian and Panamanian national regulatory and IFC and World Bank Group guidelines.