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Update on International Standards Activities

Update on International Standards Activities. Presentation to International Regulators’ Forum by Neil Reeve Shell International Exploration and Production representing the International Association of Oil and Gas Producers Standards Committee 12 October 2000. ISO/TC67 VISION.

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Update on International Standards Activities

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  1. Update on International Standards Activities Presentation to International Regulators’ Forum by Neil Reeve Shell International Exploration and Production representing the International Association of Oil and Gas Producers Standards Committee 12 October 2000

  2. ISO/TC67 VISION Global Standards Used Locally Worldwide

  3. CONTENTS • Introduction • Why industry move to ISO? • ISO/TC67 and its work programme • ISO/TC67 is delivering • Interest from IRF? • Conclusions/Discussion

  4. OGP • The International Association of Oil and Gas Producers (upstream) http://www.ogp.org.uk/ • “E&P Forum” founded 1974, based in London, UK • Membership • ~50: oil and gas companies, and national associations, from 18 countries • members operate in more than 60 countries • Main Aims • to represent the interests of the oil companies directly to international agencies seeking to regulate exploration and production activities • to work for balanced regulation and to promote consistent standards • to solve technical problems, for safety and environmental authorities • Standing Committees • Standards Committee

  5. COMPANY BENEFITS FROM STANDARDS • Cost Reduction - Increase Business Efficiency • Simplify design and procurement; Variety Control • Interchangeability of equipment • Promote stable and global market • Enhance Technical Integrity • Safety, Health and protection of the Environment • Maximise availability, minimise lost revenue • Establish a Common Technology Base • Technology transfer / Sharing best practice • Support Legislation where linked • Safety and Environmental Regulations (e.g. Process Safety Management, US) • Procurement Legislation (e.g. European Directives) • Essential Requirements (e.g. ‘New Approach’ European Directives)

  6. COMPANY POLICY TO WIN THE BENEFITS • Maximize use of common industry standards (International if possible) • Minimize additional company requirements • Ensure variations justified (technical and commercial) • Ensure continuous improvement (feedback from users to standardisers) • Influence external standards bodies • Participate actively in the technical committees and working groups of key external standards The benefits are maximised when all companies use the same common industry standards

  7. STANDARDISATION BODIES - RELATIONSHIPS Recognised ISO / IEC International Vienna Agreement CEN / CENELEC Regional L i a i s o n National Japan etc. ANSI BSI Other European OGP API ASME EEMUA UKOOA Industry Companies CONTRACTORS SUPPLIERS OPERATORS

  8. INTERNATIONAL STANDARDS ISO/TC67 ISO/TC67: Materials, Equipment and Offshore Structures for Petroleum and Natural Gas Industries • Re-activated in 1988 • Secretariat: United States: ANSI (API) • Chairman: United States: (C. Stark, BP) • 72 API standards offered in 1988, to become ISO standards • 20 P-Members, 22 O-Members • 7 SCs, 47 WGs • Liaisons with 17 other ISO TCs, CEN/TC12, OGP • 130 standards on 2000 work programme

  9. EXTERNAL STANDARDS - HISTORY • 1923 API established • 1947 ISO established • 1961 CEN established • 1970’s/1980’s North Sea developments - no emphasis on international standards • 1987 European “Utilities” Draft Directive • 1988 ISO/TC 67 reactivated - API offer 72 standards • 1991 Vienna Agreement ISO-CEN • 1993 CEN/TC 12 reactivated - 71 work items. CRINE and NORSOK. API Global Policy • 1993/1994 ISO/TC67 published first 17 “fast-track” standards • 1999/2000 Focus on ISO/TC 67. 130 work items (standards)

  10. ISO/TC67 STATEMENTS Mission: To create value-added standards for the oil and natural gas industry Vision: Global standards used locally worldwide Goals: • Prepare standards required by this industry • Prepare standards that could be adopted worldwide by bodies such as API and CEN • Publish standards that enable companies to minimize their specifications • Deliver standards to the target dates on the agreed work programme

  11. MEMBERS OF ISO/TC 67 • 20 Participating (P) Members:Austria, China, Denmark, France, Germany, Indonesia, Iran, Italy, Japan, Mexico, Netherlands, Norway, Romania, Russian Federation, Saudi Arabia, Sweden, Trinidad and Tobago, United Kingdom, USA, Venezuela • 22 Observer (O) Members: Argentina, Australia, Belgium, Brazil, Bulgaria, Canada, Columbia, Cuba, Czech Republic, Ecuador, Egypt, Finland, Hong Kong (C), Hungary, Malaysia, Poland, Republic of Moldova (C), Switzerland, Thailand, Ukraine, Vietnam, Yugoslavia

  12. ISO/TC 67 Materials, Equipment and Offshore Structures for Petroleum and Natural Gas Industries ISO/TC67 MC/EC Management and Executive Committee WG 2 SC 1 SC 2 SC 3 SC 4 SC 5 SC 6 SC 7 Certification principles Drilling & completion fluids, & well cements Pipeline transportation systems Drilling & production equipment Casing, tubing & drill pipe Processing equipment & systems WG 4 Offshore structures Linepipe Data collection WG 5 Aluminium drill pipe WG 7 Corrosion resistant materials 20 Participating (P) member countries 22 Observer (O) member countries WG 8 Materials, corrosion control, welding & joining & NDE WG 9 Life cycle costing

  13. 1989 - Paris 1990 - Oslo 1991 - San Diego 1992 - London 1993 - Assen 1994 - Chiba 1995 - Berlin 1996 - Milan 1997 - Jakarta 1998 - Xi’an 1999 - Oslo 2000 - Paris --------------------- 2001 - Samara, Russian Federation 2002 - Denmark 2003 - Italy ISO / TC 67 PLENARY MEETINGS

  14. Oil/Gas Companies Vendors/ Suppliers WORLDWIDE PARTICIPATION IN ISO/TC67 Others 168 380 402 “Others” includes Certifying Bodies, Legislators, National Standards Bodies, Academics etc. Estimated total of 950 people participating in ISO/TC67 from 20 Participating Member Countries and 22 Observer Members

  15. OGP Links to ISO and CEN Representative Company OGP Country ISOCENTC67TC12 Masimo Prazzoli ENI/Agip M Italy HH Alf Reidar Johansen Norske Hydro C Norway ** Alain Loppinet Total/Fina/Elf M France MC Neil Reeve Shell M Netherlands MM Rolf Remer BEB M Germany MH Sjoerd Schuyleman IP M UK MM Mike Spanhel API M USA M* Cheryl Stark BP M USA C* Jim Heimer Exxon M USA H Wilson Barbosa de Olivera Petrobras M Brazil M • C = Chairman H = Head of Delegation M = Member / Member of Delegation • * = Liaison from ISO/TC 67

  16. PATTERN OF CHANGE - WORK IN BSI 1998 1983 Int’l Stds 11% Over these years Standards work in BSI committees has changed to be mostly International (ISO, IEC, CEN and CENELEC) 95% Int’l Stds UK Stds UK Stds (Typical for all European Standards Bodies)

  17. ISO/TC67 ACCOMPLISHMENTS(DOCUMENTS PUBLISHED BY YEAR) 40 36 35 30 25 22 NUMBER 20 20 14 15 12 10 4 5 3 2 2 1 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 YEAR

  18. ISO STANDARDS ISSUED BY ISO/TC 67 IN 1999 ISO 13879 Petroleum and natural gas industries - Content and drafting of a functional specification ISO 13880 Petroleum and natural gas industries - Content and drafting of a technical specification ISO 13881 Petroleum and natural gas industries - Classification of products, processes and services (TR) ISO 14224 Petroleum and natural gas industries - Collection of reliability and maintenance data for equipment ISO 3183-3 Petroleum and natural gas industries - Steel pipe for pipe lines - Technical delivery conditions - Part 3: Pipes of requirement class C ISO 14313 Petroleum and natural gas industries - Pipeline transportation systems - Pipeline valves ISO 10432 Petroleum and natural gas industries - Subsurface safety valve equipment ISO 13628-1 Petroleum and natural gas industries - Design and operation of subsea production systems - Part 1: General requirements and recommendations ISO 13628-4 Petroleum and natural gas industries - Design and operation of subsea production systems - Part 4: Subsea wellhead and tree equipment ISO 13702 Petroleum and natural gas industries - Control and mitigation of fires and explosions on offshore installations - Requirements and guidelines ISO 10441 Petroleum and natural gas industries - Flexible couplings for mechanical power transmission - Special purpose applications ISO 14691 Petroleum and natural gas industries - Flexible couplings for mechanical power transmission - General purpose applications

  19. ISO STANDARDS ISSUED BY ISO/TC 67 IN 2000 - Slide 1 of 2 ISO TR 13881 Petroleum and natural gas industries - Classification of products and services (Published Apr 2000) ISO 15663-1 Petroleum and natural gas industries - Life cycle costing - Part 1: Methodology (Published Aug 2000) ISO 13623 Petroleum and natural gas industries - Pipeline transportation systems (Published Apr 2000) ISO 13847 Petroleum and natural gas industries - Pipeline transportation systems - Field and shop welding of pipelines (To be published Oct 2000) ISO 10426-1 Petroleum and natural gas industries - Cements and materials for well cementing - Part 1: Specification (Published Mar 2000) ISO 13534 Petroleum and natural gas industries - Drilling and production equipment - Standard for inspection, maintenance, repair and remanufacture of hoisting equipment - Requirements and guidelines (To be published Dec 2000) ISO 13628-2 Petroleum and natural gas industries - Design and operation of subsea production systems - Part 2: Flexible pipe systems for subsea and marine applications (To be published Dec 2000) ISO 13628-3 Petroleum and natural gas industries - Design and operation of subsea production systems - Part 3: Through flow line (TFL) pumpdown systems (To be published Dec 2000) ISO 13628-6 Petroleum and natural gas industries - Design and operation of subsea production systems - Part 6: Subsea production control systems (Published Apr 2000) ISO 13628-9 Petroleum and natural gas industries - Design and operation of subsea production systems - Part 9: Remotely operated tools (ROT) intervention systems (Published Jul 2000)

  20. ISO STANDARDS ISSUED BY ISO/TC 67 IN 2000 - Slide 2 of 2 ISO 10405 Petroleum and natural gas industries - Care and use of casing and tubing (Published Feb 2000) ISO 13680 Petroleum and natural gas industries - Corrosion resistant alloy seamless tubes for use as casing, tubing and coupling stock (Published Jun 2000) ISO 13678 Petroleum and natural gas industries - Evaluation and testing of thread compound systems for use with casing, tubing and line pipe (To be published Dec 2000) ISO 15544 Petroleum and natural gas industries - Emergency response on offshore installations - Requirements and guidelines (To be published Oct 2000) ISO 17776 Petroleum and natural gas industries - Offshore platform installations - Tools and techniques for identification and assessment of hazardous situations (To be published Oct 2000) ISO 13703 Petroleum and natural gas industries - Piping systems - Design and installation on offshore production platforms (To be published Dec 2000) ISO 13706 Petroleum and natural gas industries - Air-cooled heat exchangers (Published Apr 2000) ISO 15547 Petroleum and natural gas industries - Plate heat exchangers (Published Apr 2000) ISO 15138 Petroleum and natural gas industries - Offshore platform installations - Heating, ventilation and air-conditioning (To be published Dec 2000) ISO 13707 Petroleum and natural gas industries - Reciprocating type compressors (To be published Dec 2000) ISO 10440-1 Petroleum and natural gas industries - Positive displacement rotary type compressors - Process compressors (To be published Nov 2000)

  21. MMS PROPOSAL TO OGP ON 26/4/2000 IN LONDON - Slide 1 of 2

  22. MMS PROPOSAL TO OGP ON 26/4/2000 IN LONDON - Slide 2 of 2

  23. Comments on MMS slide “Current Regulatory Systems” • Different government regulations can lead to difficulties • Support MMS inclusion of ISO 10432 (Subsurface safety valves) into regulations • Under “others” assume that IMO etc are the examples • Support model of concentrating on “International Standards” in preference to national or regional, where these meet the local technical need Goal is to reduce words in text of Government Regulations and reference International (industry) Standards where possible. (Recognize NPD have reduced document size from 1500 pages to 200 pages)

  24. Comments on MMS slide “Proposal” - Slide 1 of 4 (Main arrow pointing down/left) • Full support to concept of determining common standards (equipment specifications and recommended practices) currently in regulations and developing these in ISO/TC 67 with input from IRF and using resulting ISO as reference in individual government regulations, where required • Industry would like to see the box “Unique to Regulator” minimized Benefits: Shorter regulations, clearer regulations, more common regulations

  25. Comments on MMS slide “Proposal” - Slide 2 of 4 (Main arrow pointing up/right) • Concept of determining common Regulations/Guidelines (Plans, Permits, Procedures) currently in regulations and developing these in ISO/TC67 with input from IRF is also supported, but seen as more difficult • Examples of topics: - Permit to work procedures - should be possible. - Procedures for licensing acreage - difficult - Permit to Develop and Operate - difficult • Is ISO/TC67 correct place? Benefits: Harmonization would be useful

  26. Comments on MMS slide “Proposal” - Slide 3 of 4 Risk • ISO Standards are voluntary (until adopted by contract or Government Regulation) • Bringing ISO/TC67 closer into regulations could “turn-off” industry input into “consensus” process • Hence need to ensure that majority of references are still some form of “guidance” unless they need to be mandated. Similar to European Standards (CEN) supporting “Essential Requirements” of “European New Approach Directives” • To date none of the ISO/TC67 standards will be adopted into European legislation via CEN for this purpose. This is a good position from which to motivate participation in ISO

  27. Comments on MMS slide “Proposal” - Slide 4 of 4 Conclusion • Full support for proposal with regard to common Standards for Equipment Specifications and Recommended Practices • Measured support for proposal with regards to Common Standards for Regulations/Guidelines (Plans, Permits, Procedures)

  28. INTERNET WEB SITES • ISO CS http://www.iso.ch/ • ISO TC67 http://www.api.org/iso/tc67/ • API http://www.api.org/ • ANSI http://www.ansi.org/ • CEN http://www.cenorm.be/ • OGP http://www.ogp.org.uk/

  29. INTERNATIONAL STANDARDS HIGHLIGHTS 1999/2000 ISO/TC 67: - 12 ISO standards issued in 1999 - 20 ISO standards to be issued in 2000 API E&P: - 3 API-ISO standards to be issued in 2000 - ISO 10432 (SSSVs) to be adopted by MMS in 2000 API CRE: - “In synch in 2 years” CEN/TC 12: - Seamless adoption of ISO standards in Europe (12 issued by end 2000) OGP and Europia: - OGP International Standards bulletin issued - OGP ISO/IEC catalogue issued (International Standards used by oil companies) - OGP funding in place for technical editing of ISO/TC 67 standards - OGP discussing issues with IRF - Europia continue active and positive support to international standardization process IFAN and ICSCA: - OGP members joined

  30. CONCLUSIONS • The industry is moving towards ISO • ISO/TC67 is delivering • Removing barriers to international trade • OGP welcomes IRF’s interest in this subject

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