PETROLEUM INDUSTRY WORKSHOP AUCKLAND, NEW ZEALAND MARCH 20-24, 2017 American Samoa Fuel Supply and Pricing Practice
LOCATION, LOCATION, LOCATION Worldscale Singapore/Vuda/Suva/Pago Transportation cost Only US territory in the region Risk associated with stringent US laws and regulations Strategically located attract Transshipment making AmSam a major hub
TERRITORY OF AMERICAN SAMOA Service provided only to few outer islands Less logistical challenges
PAGO PAGO HARBOR
CRUISE SHIPS IN PAGO HARBOR AmSam is blessed with one of the deepest Harbor in the Region. Port and Fuel Dock can accommodate up to 45 Draft.
INTER-ISLAND DOCK DOWNTOWN FAGATOGO
AMERICAN SAMOA GOVERNMENT FUEL DOCK 1 mile of dedicated underground pipeline for each product from the Fuel Dock to the Tank Farm Faster Tanker off-load Can accommodate up to 45 feet Draft
REFUELING AT THE FUEL DOCK
AMERICAN SAMOA GOVERNMENT UTULEI TANK FARM
AMERICAN SAMOA GOVERNMENT FACILITIES & TERMINAL Utulei Tank Farm Segregated Tanks Ultra Low Sulfur Diesel (15ppm) for Power Generation and Land Transportation 54,000bbl, 804 million liters) Land Diesel (500ppm) (24,000bbl, 4million liters) Marine Diesel (500ppm) 129,000bbl, 20 million liters) Mogas (ULP) (24,000bbl, 4 million liters) Jet A1 (48000bbl, 7.5 million liters) Two Suppliers Pacific Energy South West Pacific Sunrise Oil Company Products are comingle
JET FUEL SATELLITE TANK FARM PAGO PAGO INTERNATIONAL AIRPORT
JET FUEL SATELLITE TANK FARM PAGO PAGO INTERNATIONAL AIRPORT
AMERICAN SAMOA GOVERNMENT AIRPORT FUEL FACILITIES 8 miles from the Utulei Tank farm. Fuel delivered by tanker-trunks.
TERMINAL OFFICE BUILDING
OFFICE OF PETROLEUM MANAGEMENT
TERMINAL OPERATOR (PE SWP) OFFICES
THE ART OF SLEEPING IN A VERTICAL POSITION
FUEL SUPPLY SYSTEM MANAGEMENT Terminal Operator Pacific Energy is the Terminal Operator under a Permit & Agreement (contract) with the American Samoa Government Terminal Operator sign an Operating Agreement with each Supplier Office of Petroleum Management American Samoa Petroleum COOP SPC (Independent Source of Information and Verification)
MISSION AT A GLANCE 1 The Office of Petroleum Management (OPM) is divided into an Operation Section and a Capital Improvement Section. The Operations Section mission is to assure that the Territory of American Samoa has an uninterrupted supply of uniformly high quality petroleum products at the most reasonable price. Manage by a full time Petroleum Officer. The Capital Development Section mission is to assure that the American Samoa Petroleum Facilities are maintained to meet the current and future need of the Territory and to comply with all applicable Federal and American Samoa Government regulations. Managed by a full time Petroleum Project Manager.
MISSION AT A GLANCE 2 The Operations Section mission is to assure that the Territory of American Samoa has an uninterrupted supply of uniformly high quality petroleum products at the most reasonable price. Manage by a full time Petroleum Officer. uninterrupted supply never run out 10 day supply rule Divert a tanker uniformly high quality petroleum products meet mandated fuel specifications control by USEPA most reasonable price as per negotiation
BUDGET Revenue Collected from Tax, Fees, and Rents included in the cost of fuel mandated by local statute Grants Loan Funds deposited to escrow account to be used only for petroleum related function OPM OPM has the oversight responsibility over funds reconciliation collection escrow account and payment of bills ASPC Review and Approve Capital Improvement Projects Approved Projects must have secured before contract is awarded
FUEL INDUSTRY REGULATION OVERSIGHT American Samoa Government ASEPA (EAS) Fono Approve Budget US Federal Government USEPA US Coast Guard State Historical Preservation Office
MANDATES Oil Spill Responsibility OPA 90: The owner and operator of the terminal operator are equally liable for Oil Spill. From the cradle to the grave. The one with the deep pocket usually ends up paying the bills. Terminal Operator to meet a Tier 1 Capability Be able to respond to a 50bbl spill within 30 minutes Equipment Trained responders Supported by an OSRO (Oil Spill Response Organization) Clean Island Council - Hawaii
FUEL PRICING Conceptual Crude oil from OPEC oil fields to refinery in Singapore. Refined products from Singapore to Pacific Island Countries. American Samoa Government Price Template, the MAP; Maximum allowable Price. Supplier to cover their expenses and risk and get a reasonable return for their investment AmSam to maintain a reasonable and compatible cost OPM, a full time System in place to oversee the MAP Level of Satisfaction Transparency and can be verified Each line item must be understood The history, the nature of the industry, what it was, what is it now, if there is going to be any change, why and when, extremely important as basis for negotiation and policy making There is no plan to change this system
THE PETROLEUM OFFICER S BIBLE
TOFA SOIFUA! UNTIL WE MEET AGAIN
MAY THERE ALWAYS BE FUEL AT REASONABLE PRICE.