Internal Audit News

The use of a draft voyage planning tool which included waypoint data errors plus an ongoing technical fault with the vessel monitoring and surveillance system for the Great Barrier Reef contributed to a cargo ship’s grounding on a shoal, the Australian Transport Safety Bureau (ATSB) has concluded.The 81-meter general cargo ship Trinity Bay grounded on Harrington Shoal, a charted feature with a depth of 0.9 metres north-west of Harrington Reef, on the morning of January 19, 2021 while conducting a regular weekly passage from Thursday Island to Cairns.

Crowley Maritime Corporation said senior executive Dan Warner has been promoted to chief financial officer, consolidating company’s enterprise-level financial strategy, resources and services under his leadership. Warner has served as senior vice president and treasurer and member of the company’s senior leadership team since 2005. He began his career with Crowley in 2001 as a senior analyst for the corporate planning group, and later served as finance director for both the company’s…

Singapore-based ship management company Thome Group said it has undergone a series of remote audits with DNV GL in various locations due to the widespread lockdown restrictions across the globe.Thome Mumbai office’s annual ISO 9001:2015 audit was performed online using video conferencing software which enabled document sharing and discussions to take place to verify that all requirements had been met. This was the first remote inspection that Thome had carried out and, because of its successful conclusion…

Crowley Maritime Corp. announced today that Ray Fitzgerald, who began his career with Crowley and most recently served as president and chief operating officer of Wallenius Wilhelmsen Solutions, and chairman of American Roll-on Roll-off Carrier (ARC), will rejoin the company March 1 as chief operating officer reporting to Tom Crowley, company chairman and CEO. He will be based at the company’s headquarters in Jacksonville, Fla.Fitzgerald will lead the team of Crowley’s four senior vice presidents and general managers: Rocky Smith…

Allianz Global Corporate & Specialty (AGCS) said that Baptiste Ossena, Global Product Leader of Hull and Marine Liabilities (HML), will assume additional responsibility as the North American Regional Head of HML, effective April 1, 2019.Relocating to New York from Paris, Ossena will work closely with direct report John Kiernan, the current Head of HML in North America, who will take on the key responsibility for large account management and portfolio steering across the business.Ossena has held his current global role since 2017.

French offshore services provider Bourbon Corporation announced Thierry Hochoa has been appointed as Chief Financial Officer effective as of August 6. He reports directly to Gaël Bodénès, Chief Executive Officer of Bourbon Corporation.Hochoa replaces Astrid de Bréon who resigned from her position as Chief Financial Officer from July 11.A graduate of IAE Paris, ESCP Business School and also CPA, Hochoa began his career in 1994 as an external auditor at Arthur Andersen, then Ernst & Young (EY).

America’s largest military shipbuilding company announced that Jeanne Callahan has been named corporate vice president, internal audit, and that David “Chip” Wasson has been named corporate vice president, corporate strategy. Both promotions are effective immediately, and both report to Chris Kastner, executive vice president, business management, and chief financial officer. Callahan has served as director, business management, contracts and government compliance, since HII formed in 2011. In her new position, she will be responsible for maintaining an effective internal audit program that provides independent and objective evaluation of company processes and control systems.

Huntington Ingalls Industries announced changes to its senior leadership team. Michael Smith, executive vice president, strategy and development, is moving to HII’s Technical Solutions division, where he will serve as president of the SN3 business and report to Michael Lempke, president of the Nuclear & Environmental group, effective immediately. Scott Stabler, executive vice president, internal audit, is moving into a new role as HII’s executive vice president and chief transformation officer, reporting to Mike Petters, HII’s president and CEO.

There is more to SubM than just attention to safety. Protect yourself accordingly. In today’s environment, safety management systems for brown water marine operators are standard industry practice, whether they come in the form of the American Waterways Operators (AWO) Responsible Carrier Program (RCP) or the Tanker Safety Management Assessment (TSMA) framework developed by the Oil Companies International Marine Forum (OCIMF) for liquid carriers. However, with the full-fledged implementation of Subchapter M on the horizon…

Damen Shiprepair Oranjewerf (DSO) has become the latest Damen ship repair yard to receive ISO 9001:2008 certification, demonstrating that the yard fulfils the requirements of the defined management system standards to consistently provide a high quality service that meets all customer, statutory and regulatory requirements through a process of continuous improvement. This specifically refers to the repair, maintenance, inspection and drydocking of inland vessels, seagoing vessels and other steel constructions.

Wärtsilä Corporation has, at its own initiative, conducted an internal audit of test processes globally. This was done to secure compliance and to ensure operational excellence within the company. The investigation has brought forward deviations in certain fuel consumption measurement tests conducted for marine engines in Wärtsilä Delivery Centre Trieste in Italy before customer dispatches. The deviations are on average 1% of fuel consumption. Of all Wärtsilä engine deliveries a total of 2% may have been affected. Engines for power plant customers are not impacted, and we have no evidence of deviations in other operations. It is to be noted that the engines in question have fulfilled the regulatory and classification society requirements…

Last summer, the United States Coast Guard (USCG) announced its intent to accept the American Waterway Operators (AWO) Responsible Carrier Program (RCP) as an acceptable Towing Safety Management System (TSMS) under pending Subchapter M regulations. The acceptance did not come without some major changes to the RCP, changes that were needed to ensure the RCP would meet USCG requirements and become a viable option for operators once new Subchapter M regulations take effect. When that happens is anyone’s guess.

U.S. shipbuilder Huntington Ingalls Industries (HII) announced today a number of changes across its leadership team. HII’s Board of Directors has elected Christopher D. Kastner to succeed Barbara A. Niland as the company’s chief financial officer and corporate vice president, business management, effective with Niland’s retirement on March 1, 2016. Furthermore Philip Luna, corporate vice president and president, UniversalPegasus International (UPI), a subsidiary of HII, has been promoted to the HII senior executive team, effective immediately.

When industry players say “the handwriting is on the wall,” they aren’t just talking about the pending Subchapter M regulations, but also about the already existing demand for safety management systems (SMS) in general for the domestic towing industry. While the U.S. Coast Guard and Homeland Security work to finalize Subchapter M requirements, operators are already finding it harder to win bids without some level of a Towing Safety Management System (TSMS) and ensuing proof of compliance. The oil majors, Mexico and many clients already insist on adherence to safety standards, and in some cases they are aggressively conducting their own audits of contractors and reminding them to use JSAs. That has spurred companies like McAllister Towing and Transportation Co., Inc.

The perennial “Year of Subchapter M” has been kicked forward again, this time to February 2016. That means that the clock is now ticking loudly for those towing operations that have yet to climb onboard the safety train. Quality operators see standardized safety practices as a way of leveling the playing field, integral to maintaining the health and profitability of their fleets, and key to winning business from quality customers. Subchapter M will be a phased-in over a period of years. It’s not as much time as you think.

SBM Offshore today reached an out-of-court settlement ex Article 74 of the Dutch Criminal Code with the Dutch Public Prosecutor's Office (Openbaar Ministerie) over the inquiry into alleged improper payments. Furthermore, the United States Department of Justice has informed SBM Offshore that it is not prosecuting the Company and has closed its inquiry into the matter. The settlement with the Openbaar Ministerie and the United States Department of Justice's decision relate to payments to sales agents in Equatorial Guinea, Angola and Brazil in the period from 2007 through 2011. Bruno Chabas, CEO of SBM Offshore commented, "SBM welcomes the conclusion of all discussions with the Dutch and U.S. authorities.

Two executives from offshore drilling contractor Noble Corp have agreed to settle civil claims they participated in a bribery scheme to obtain permits for oil rigs in Nigeria, days before the case was set to go to trial. Jury selection had been scheduled for next Monday in the U.S. Securities and Exchange Commission's case against Mark Jackson, Noble's former chief executive officer, and James Ruehlen, director of the oil and gas services company's Nigerian subsidiary. The two men were sued under the Foreign Corrupt Practices Act (FCPA), which bans U.S. companies from bribing foreign officials. A federal judge in Houston called off all trial deadlines on Tuesday pending a final settlement. The terms, which must be approved by a judge, were not disclosed in court papers.

GAIL (India) Limited deeply mourns the tragic loss of life and property in the unfortunate incident along the natural gas pipeline of the company at Tatipaka in East Godavari district of Andhra Pradesh yesterday. The company is working closely with district authorities to provide immediate relief and rehabilitation to the affected people. Sixteen people died in the incident and 17 others, who were injured, are being treated in four hospitals in the vicinity.In addition to the compensation from Prime Minister and Chief Minister’s Relief Funds, GAIL will pay a compensation of Rs 20 lakhs to the next of kin of each of the deceased, as announced by Hon’ble Union Minister of State for Petroleum and Natural Gas (Independent Charge) Shri Dharmendra Pradhan.

Fastnet Oil and Gas plc the E&P company focussed on exploration acreage in Africa and the Celtic Sea, announced appointment of Will Holland to the Board of Directors as Chief Financial Officer, with immediate effect. Will has over 20 years of experience in the oil and gas business, primarily gained in Africa and Europe. He started his career as a cementing and 'frac' engineer at Halliburton Energy Services before moving into business development roles based in Africa. After 2 years leading internal audit teams at Halliburton, he joined Macquarie Bank in London in 2007 where he originated, structured and managed equity and debt investments in small-cap E&P companies. Will holds a B.Eng (Mech) from Warwick University and an MBA from Heriot-Watt University.

Drydocks World, active in the Middle East international, maritime, oil & gas and energy sectors, announce it has been formally recognized through the American Petroleum Institute (API) Specification Q1 certification for the shipyard’s Quality Management System. The stringent API certification process requires that the company has a Quality Management system, quality manual and proper and adequate performance documentation processes and procedures. This includes performing and documenting an internal audit and management review in accordance with the standard.

Drydocks World, a maritime service provider to the international, maritime, oil and gas and energy sectors, announced formal recognition through American Petroleum Institute (API) Specification Q1 certification for the shipyard’s Quality Management System which is suited to the requirements of the offshore oil and gas sectors. This certification complements the company’s strategy to penetrate the offshore oil and gas sector with high quality, customized and added value services. The company’s Quality Management System is also certified in accordance with ISO9001: 2008 requirements.

How well prepared is your company for a natural disaster? How quickly could you get your operations up and running after the storm or other event hits? How about your vendors and suppliers? Emergency contingency plans (aside from vessel emergencies where oil has entered the water – that merits its own article and won’t be covered here) can start with a streamlined communications process. For emergencies ashore, how are you set up to handle business if the office is no longer accessible? Having people work from home can be an effective plan, but have you considered how communications will work?

Huntington Ingalls Industries announces new executive appointments for Investor Relations and Internal Audit. HII appoint Dwayne Blake corporate vice president, investor relations, and Scott Stabler corporate vice president, internal audit, effective Jan. 1, 2013. Blake, formerly the corporate vice president, internal audit, is replacing Andy Green, who is leaving the corporate staff for a position at HII's Newport News Shipbuilding division (NNS). Blake's responsibilities will…