DESC JPO PACOM Energy Conference

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DESC / JPO PACOM Energy Conference

• October 24, 2002

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Commercial Support of Airfield Surge Operations

• Re-design based on Kosovo Experience

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Air BP

• AGENDA
• BP Overview
• Kosovo / Albania Lessons Learned
• Re-designed Deployable Fuel Equipment
• Wine Box additive storage transport
• Suggested Ways Forward
• IDFE Video

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BP is a leading energy supplier

• BP, Amoco, ARCO Castrol merged to create 3rd
  largest super major oil company
• Global refining, marketing, transportation
  network ranks among the top tier worldwide
• BP Plc is largest energy supplier to DoD in
  FY2000 2 in FY2001) and number 22 of all
  defense contractors

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AIR BP is a jet fuel supply leader

• Air BP is an international business, supplying
  every continent including Antarctica
• Responsible for the supply marketing of
  aviation fuels, lubricants, specialty products
  and aviation services world-wide
• Air BP is the 3rd largest supplier of aviation
  fuel and is represented in 90 countries,
  operations in over 1,700 locations
• Voted Number 1 Jet Fuel Supplier in the Ambrust
  1999 and 2001 Survey

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AIR BP mission statement

• To market Aviation fuels
• and related services
• profitably, safely and to
• our customers satisfaction

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AIR BP - Full Service Capability
Non-fuel services
Network
Jeppesen
Marketing
Cards
Systems
Into-plane supply
Equipment
Bulk supply
Into-plane management.
Project Engineering
Environ-mental
Tank farm management
Technical
Assurance
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Kosovo Support Experience

• Supply and Demand
• Operations
• Customs and Control
• Communications
• Facilities
• Security

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Maximum flexibility with surge capability

• US Military had moving target requirements
• Week 1 20k usg/Day
• Week 2 35 - 75k usg/Day
• Week 3 70 - 110k usg/Day
• Week 4 110 - 150k usg/Day
• Ensure maximum supply for 30 - 60 Days

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Logistical Challenges

• Pre-crisis, Supply was by road from Greece
• 830 km
• Limited number of vehicles
• Roads in poor condition
• Security concerns
• Alternative developed - By sea to Durres Port
• Limited Product availability
• Limited vessel availability
• No product storage facilities at Durres

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In 4 months of the crisis, 3x the total 98 volume
delivered!
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More Logistical Challenges

• Insufficient tankage at existing depot
• Limited pumping capacity
• Not enough refueller vehicles
• Ancillary equipment (hoses, filters etc) were
  required
• None of the equipment required was available in
  Albania
• Solution
• Air BP Rapid Deployment Fuelling Equipment (RDFE)

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Equipment movement to Tirana

• By Sea
• Involved trans-shipment by road
• Too slow
• Not reliable
• By Air
• Limited civilian cargo operators
• Expensive transport costs
• Restricted landing slots in Tirana
• Russian Ilyushin IL-76 cargo aircraft

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Fuel movement to Tirana

• Coastal tanker into Durres
• No product storage at Durres Port
• Product transfer from ship to road tankers to
  Tirana airport storage
• Fuel quality was maintained at all times

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Dedicated Staffing Support

• Crisis management team set up in Hemel Hempstead
• 24 hour operation
• Existing Albania resources were not sufficient
• Volunteers identified across Air BP
• UK, Greece, Scandinavia
• Staff rotations set-up
• Transferred staff to Tirana by road, sea and air

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Albania Customs Challenges

• Import licensing regulations not clear
• NATO off-takes seen as domestic sales
• Customs duty (100)
• VAT (20)
• SOFA agreement not accepted by authorities
• Customs Intransigence
• Air BP fined 5 times for not following customs
  rules

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Communications Challenges

• Land lines non-operational in Tirana
• Only means of communication was a single mobile
  phone
• Satellite phones purchased
• Some difficulties in communicating with the DESC
  in Tirana, Europe and Fort Belvoir
• Single point of contact established with DESC
  Fort Belvoir

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Tirana living conditions difficult

• No accommodations on-site
• Key staff lived in a garage in Tirana
• Portable accommodation unit and 2 camper vans
  sent from Greece and Italy
• With increased security threat, staff moved to
  airport
• No air-conditioning, water, power, toilets
• No cooking facilities for hot meals

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Tirana Airfield Kosovo Support
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Personnel Safety / Security

• The safety of our staff is our most important
  concern
• Tirana airport
• No fencing
• No access control/border patrols
• BP security review raised many concerns
• Durres Port
• High risk of sabotage
• Limited security
• Staff exposed in high risk environment
• Very close to closing operation

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Lessons for the future

• Early communication with establishment of key
  contacts
• Transport co-ordination (equipment, personnel)
• Assistance with accommodation and facilities
• Access to military dining facilities / canteens
• Security arrangements
• Improved RDFE ? IDFE (Immediate Deployment
  Fuelling Equipment)

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From Fragile to Agile Logistics - What IDFE
really means

• IDFE
• Equipment
• Positioning
• Deployment
• Base Service Support

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RDFE re-designed into IDFE

• Separate Storage and Pumping Units
• All couplings dry-break
• Kit to quick convert iso-containers to jet
  storage
• IDFE built into standard 10 ft shipment container
• Second 10 ft container for extra hoses, fittings
  and spares
• Operate with both iso-container and bladder
  storage
• Completely self contained, no external power
  required

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IDFE Strategic Development

• Improved design
• Commercial and military use
• Military exercise to improve IDFE design
• Additive Supply / Injection
• Transport capability
• Design compatible with current and future
  military transports e.g C-130
• All inclusive modules
• IDFE is fully equipped and loaded with all
  ancillary equipment such as pumps, hoses, filters
• On-site quality assurance

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Deployable Fuel Quality Control
Flash Point Free Water Particulates

Density Conductivity FSII (not shown)
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Air BP Additive Bag in Box Transport Storage

• Easy Transport
• Stackable
• Collapsible shell
• Light-weight
• Integrated pallet design
• Universal ISO container
• Airlift Capable
• C-130
• H-53

air bp
FSII, CI, SDA
Conceptual design
Fully formulated JP-8/F34 anywhere in the world!
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Air BP Additive Bag in Box Transport Storage

• Additive Storage
• Secure
• Multiple additives
• Collapsible inner bag
• Quality assurance
• Improved Shelf Life
• Improved Health, Safety Environmental
• Minimal exposure
• Spill containment
• Recyclable

air bp
FSII, CI SDA
Fully formulated JP-8/F34
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Positioning Deployment -Where Air BP operates
Third Party Operations
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IDFE Current OperationsLa Paz Bolivia
Commercial Operations Support
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Future Potential

• Global Coverage
• IDFEs could be pre-positioned at several
  locations world-wide
• Spares/Support
• Air BP would provide global spares/engineering
  support
• Technical Service Agreement
• Maintenance of Capability
• Cost fixed margin to deploy operate

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In Summary

• Air BP was proud to serve the DESC / US Military
  at a time of crisis in Albania
• Air BP is committed to working closely with the
  US Military to identify creative and innovative
  opportunities of mutual benefit
• IDFE Video (10 minutes)

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DESC / JPOPACOM Energy Conference

• October 24, 2002