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2011 Standards Conference SC18 Committee on Quality Standards San Francisco June 30, 2011

API Monogram Program Status Report. 2011 Standards Conference SC18 Committee on Quality Standards San Francisco June 30, 2011. Cristina Gillespie Senior Associate Monogram Program/APIQR gillespiec@api.org. Aaron Duke Audit Program Manager Monogram Program/APIQR dukea@api.org.

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2011 Standards Conference SC18 Committee on Quality Standards San Francisco June 30, 2011

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  1. API Monogram Program Status Report 2011 Standards ConferenceSC18 Committee on Quality Standards San Francisco June 30, 2011 Cristina Gillespie Senior Associate Monogram Program/APIQR gillespiec@api.org Aaron Duke Audit Program Manager Monogram Program/APIQR dukea@api.org Laura Levandoski Senior Associate Monogram Program/APIQR levandoskil@api.org W. Don Whittaker Manager Monogram Program/APIQR whittakerd@api.org

  2. API Monogram Program Status Report Monogram Program Statistics Fraud & Product Complaints Monogram Standards Update What’s happening with myCerts Audit Program Center for Offshore Safety API Conference & Expo – Singapore 2012

  3. Monogram Statistics

  4. Monogram Applications • 821 Applications • 689 New Facilities • 125 License Additions • Top Countries: • China – 360 • USA – 94 • India – 53 • South Korea – 28 • Italy • Canada – 21 • Canada - 24 June 2011

  5. Monogram Licensees • 3287 Licensees • 76 Countries • Top Countries: • China – 1,343 • USA – 550 • India – 199 • South Korea – 117 • Canada – 96 • Italy – 86 • United Kingdom – 65 June 2011

  6. Monogram Licenses • 5423 Licenses • 76 Countries • Top Countries: • China – 2,101 • USA – 821 • India – 375 • Italy – 191 • South Korea - 167 • Canada – 149 • UAE – 144 June 2011

  7. We’re in 78 Countries June 2011

  8. Top Ten Specifications • Licensees for 65 Different Specifications June 2011

  9. APIQR Apps and Registrations June 2011

  10. Fraud and Complaints Overview

  11. Number of Fraud Cases

  12. Actions Taken Note: 4 Withdrawn applications were also listed in the NLO

  13. Product Complaints • 2011: 2 product complaints to date • 1 – API Spec 16C Choke and Kill lines with 7K hose used as based material • Suspended pending results of a full system periodic audit. • 1 – API Spec 5D tool joint shoulder configuration per purchase agreement • Action pending the SC5 written interpretation • 2010: 4 product complaints • 3 – Performed periodic audits • No objective evidence supporting complaints found during audits • 1 – API Spec 5CT T/C tubing leaking on the pin connections. • Performed periodic audit • Audit findings included problems related to threading of couplings and misuse of the API Monogram. • Suspended pending results of a full system audit.

  14. API Spec 6A – Wellhead Equipment, 20th Edition, published Oct 2011, Effective Apr 2011 • API Spec 6AV1 – Verification Test of Wellhead Surface Safety Valves and Underwater Safety Valves for Offshore Service, 2nd Edition, Effective TBD • API Spec 6D – Addendum 2 – Pipeline Valves, 23rd Edition, Effective TBD • API Spec 7-1 – Addendum 3 – Rotary Drill Stem Elements, 1st Edition, Effective Oct 2011 • API Spec 5L – Addendum 3 – Line Pipe, 44th Edition, published Jul 2011 / effective Jan 2012 • API Spec 5CT – Casing and Tubing, 9th Edition, published Jul 2011 / effective Jan 2012 • API Spec 8C – Drilling and Production Hoisting Equipment, 5th Edition, Effective TBD • API Spec 9A – Wire Rope, 26th Edition, Effective Nov 2011 • API Spec 10A – Cements and Materials for Well Cementing, 24th Edition, Effective Jun 2011 • API Spec 11AX – Addendum 1 – Subsurface Sucker Rod Pumps & Fitting, 12th Edition, Effective TBD • API Spec 11E – Pumping Units, 19th Edition, Effective TBD • API Spec 17D – Design and Operation of Subsea Production Systems-Subsea Wellhead and Tree Equipment, 2nd Edition, Effective Nov 2011 • API Spec 17F – Subsea Production Control Systems, 2nd Edition, Reaffirmed • API Spec 19G3 – Running Tools, Pulling Tools, and Kick-over Tools and Latches for Side-pocket Mandrels, 1st Edition, No Effective Date Noted (Future Monogrammable Spec) New / Revised Specifications

  15. 11V1 – 19G1 / 19G2 Transition • Taking applications for 19G1 & 19G2 • Existing 11V1 licensees must submit by January 1, 2012 • 19G1 / 19G2 initial / transition audit scheduled • Transition period ends July 1, 2012 • 11V1 licenses withdrawn on July 1, 2012

  16. Colour CodeProduct Questions • All 19 – 19G1/G2/G3 – series specs completed • 5CRA with SC5 WG • API Spec 7K, 5th Edition • Proposed Monogram Specs • ISO 17824 / Spec 19S1 - ISO 28781 / API Spec 19BV • API Spec 6A, 20th – end of July 2011 • Working on establishing “full” time contracts with available subject matter experts

  17. myCerts Updatehttp://mycerts.api.org Laura Levandoski Senior Associate Monogram Program/APIQR levandoskil@api.org

  18. myCerts • 1400 client audits are using the site since December 2010 • The review time is an average of 52 days • Clients are able to view their status and audit history • An administrator account can be set up for clients with multiple facility sites • API provides IT helpdesk support 5 days a week 24 hours a day - myCertsSupport@api.org

  19. What’s Next • Audit Pilot July 2011 • Audit scheduling • Auditor communication • Guest-Host relationships • Send feedback to API

  20. Audit Program Update • 2011 Audits To Date • Expectations for 2012 Audits • Auditor & Audit Program Updates Aaron Duke Audit Program Manager Monogram Program/APIQR dukea@api.org

  21. 2011 Audits Audits Performed – January to June 2011 • 1091 Audit Performed • Audits by Program: • Monogram Only – 493 • Dual – 441 • Registration – 130 • Other – 27 • Audits by Country: • China – 377 (35% of total) • USA – 191 (17%) • India – 58 (5%) • Canada – 54 (5%) • South Korea – 32 (3%) June 2011

  22. 2011 Monogram Audits

  23. 2011 Dual Audits June 2011

  24. 2011 – 2009 AuditsHistorical Comparisons June 2011

  25. 2011-2012 Audit Expectations June 2011

  26. Auditor Needs Assessment

  27. Auditors • 114 QMS – Monogram Auditors / 28 Countries • 6 fully qualified in first half of 2011 • 120 total certification auditors • 18 auditors in process • USA / China / Japan • Continue to source more local resources • Fall 2011 – plan for fall 2012 auditor summit • Auditor competencies – 5CRA / 10A • Audits • Added staff member to process audits – audit assignments • Continue to work to get ahead of assignments • myCerts improvements to get audits done on time • Improving audit product questions Auditors and Audits

  28. Mission: Promote the highest level of safety for offshore drilling, completions, and operations through leadership and effective management systems addressing communication, teamwork, and independent third-party auditing and certification

  29. 15 Elements / Principles • Governance • Guiding Principles • Mandatory Adoption of RP 75 • Outreach Program • Regulatory Interface • Audit Protocols • 3rd Party Audit & Certification • API Accreditation • Incidents & Lessons Learned • Leading & Lagging Indicators • Continual Improvement • Critical Job Functions • Safety Case • Technical Assistance • Toolkit

  30. 1 - Governance API Executive Committee API GIS Committee API Upstream Committee • Center for Offshore Safety • Governing Board • Up to 17 members • Chairman (API-member company rep) • Producing/Operating companies (6 max) • Drilling Contractor companies (3 max) • Service & Supply companies (3 max) • Industry Association representatives (3 max) • COS Executive Director • External • Advisory Group • Government entities • Academia reps • Others as appropriate • Center for • Offshore Safety • Executive Director • Technical Support and Administrative Staff • 3rd party auditor certification program • API Global Industry Services operations Independent 3rd Party Auditors

  31. COS ORGANIZATION CHART (August 1, 2011) 3rd Party Auditors Other API GIS Resources - Law - Accounting - Etc. COS Staff Industry Loaned Professionals API Staff 3rd Party Consultants

  32. March 6, 7, 8, 2011 – Technical Sessions + Exposition • Raise global awareness about API and API Standards • Looking for experts to present – local operations • Upstream – Monogram Technical sessions • Benefits of API Monogram Program – Panel • International material standards – use & compatibility • Well construction & well control topics • Offshore structure design – hurricane / weather considerations • HSE / SEMS implementation offshore – RP75 • HPHT topics OR anything else current in Upstream world

  33. FOR MORE INFORMATION CONTACT Aaron Duke – dukea@api.org – 1-202-682-8524 Matthew Cunningham – cunninghamm@api.org – 1-202-682-8158

  34. Thank You 2011 Standards ConferenceSC18 Committee on Quality Standards San Francisco June 30, 2011 Cristina Gillespie Senior Associate Monogram Program/APIQR gillespiec@api.org Aaron Duke Audit Program Manager Monogram Program/APIQR dukea@api.org Laura Levandoski Senior Associate Monogram Program/APIQR levandoskil@api.org W. Don Whittaker Manager Monogram Program/APIQR whittakerd@api.org

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