API - OGP Task Force Update API 2013 Winter Standards Meeting January, 2013 Presented by: Dan Mueller Vice-Chairman API CSOEM

API - OGP Joint Task Force Purpose: –To formalize a process for the continued development of globally accepted international standards for the oil and gas industry, given the current US and EU trade sanctions. Scope of Effort: –Formalize the initiation, drafting, balloting, publication, distribution, and revision of standards pertaining to equipment, materials and management systems, for the oil and gas industry. Deliverables: –Recommended process for standards as described, including roles of API/OGP/Others and resourcing requirements. Recommended timeline and transition process to implement.

API - OGP Joint Task Force Guiding Principles established by the API Executive Committee:  Need for a single set of industry standards to avoid duplication, with the potential for more than one brand,  Need for the standards to be globally acceptable and widely used,  Need for the standards to be accepted by the regulatory community,  A standards setting process as the foundation for the single set of industry standards that builds on the existing API/OGP infrastructure and allows for increased international participation, and  Need to ensure a legally compliant process.

API - OGP Joint Task Force Management Considerations:  Efficiency of Process  Buy-in and Participation by Experts Globally  Ongoing Maintenance and Updating  Resources (Funding/Staffing/etc)

API - OGP Joint Task Force CSOEM Considerations: –Consider both short term and long term solution to the API - ISO issue –Maintain the strength and integrity of the Monogram Program –Identify and include all stakeholders in the resolution process –Address the OGP Interim Solution and documents developed under US Secretariat within ISO

API - OGP Joint Task Force Activities: –Face to Face Meetings Monthly (London/Houston/Dallas) –Conference calls every two weeks –Updates supplied to API Upstream/Executive Committee and OGP Management Committee Development Status: –Eight initial solution strategies were indentified and vetted –3 + 1 remaining solutions (3 are ISO/API/OGP Linked – 1 is API only)

API - OGP Joint Task Force Go Forward Plan: –Task Force to deliver its recommendation in March, 2013 –Final resolution will depend on OFAC response to API supplemental request for guidance and EC response to OGP query