Global standards used locally worldwide: A company view presented by Neil Reeve (Vice President of IFAN) Shell Global Solutions International B.V.

Shell and diversity Shell is Anglo/Dutch in origins (100 year history) Shell operates in 130 countries in 6 continents In our offices in The Hague there are 40 nationalities High degree of local business autonomy in operations

Global Standards Used Locally Worldwide ISO/TC67 VISION Global Standards Used Locally Worldwide OBJECTIVE This presentation has been prepared to assist industry representatives to share information about the changing standards scene worldwide. This presentation should assist you to promote the changes within your Business. SCOPE This presentation covers the work in progress in ISO/TC67 and the steps to manage it, the relationship to other standards bodies and their work, and the role of the E&P Forum as monitor and catalyst. Current events in API, CRINE, NORSOK and in Europe (CEN/CENELEC) are summarised. The benefits to the oil companies are presented in both general and specific terms. BACKGROUND The changes will affect everyone in the oil industry who specifies, procures, manufactures or supplies materials and equipment. Industry has largely relied on API Standards, and this scene is changing. Strong regional pressures, and the industry drive for cost reduction, have brought the international industry together in ISO, the International Organisation for Standardisation, to develop the API standards to be a common basis for global application. The opportunity is being taken to simplify the standards, to include performance, quality and regional variations where there is an industry need, and to include common company requirements in order to minimise company specials. The prize is cost reduction, to which many factors may contribute; not least being improved relationships between purchasers and suppliers. Purchasers need to understand the expertise of manufacturers and suppliers. Designs should be developed based as far as possible on standard products. The ISO Standards being developed should encourage the development of standard products that meet a wide range of industry need. This will help avoid the specification being written differently for each application. The market should be more competitive in conditions that are more open and more stable, and on a global scale. Key phrases are: Do it Once, Do it Right, Do it Globally (Internationally) A Single Set of Words The success of these efforts will require a culture change, both in the way we make standards and in the way we use them. ABOUT THIS PRESENTATION This presentation was first prepared in October 1994, and is updated in January 1996. Significant contributions have been made by key people involved in the work, and it is considered that the information and presentation represents an optimum consensus at this date. Nevertheless users are encouraged to customise and improve the slides as appropriate for their audience. The presentation is available on 3.5” floppy disk as a PowerPoint 3.0 file in PC-Windows format and can be modified, updated etc. for a particular presentation. The ‘Handouts’ (copies for the audience) are set up for two slides to an A4 page. It is planned that a user will extract from the file the slides required, and revise them to suit. Printing of tranparencies (viewgraphs or 35mm) is the user's responsibility although a master set may be available on loan from E&P Forum. While there is no copyright on the content, E&P Forum would appreciate an acknowledgement of its origin. For further information, and for a copy of the presentation file, please contact the Secretary of the E&P Forum Standards Subcommittee in London, UK: Tel. +44 171 437 6291 FAX: +44 171 434 3721 E&P Forum, January 1996

Shell’s Transparent Standards Structure Management control Knowledge feedback Increased resources for critical standards External Standards External DEP Shell Group Common Base. Central organization responsibility Company Variation Business justification to deviate Project Variation Local Operating Company responsibility

Shell standardisation policy 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) Influence external standards bodies. Participate actively in the technical committees and working groups of key external standards Benefits are maximized when all companies use the same common industry standards

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

PATTERN OF CHANGE - WORK IN BSI 1983 2000 Int’l Stds 11% Over these years Standards work in BSI committees has changed to be mostly international or regional (ISO, IEC, CEN and CENELEC) 93% Int’l Stds UK Stds UK Stds Note: Typical for all European Standards Bodies

Note: Step change in usage of ISO/IEC documents ISO/IEC REFERENCES IN SHELL DOCUMENTS 1990 2000 30 500 ISO 100 250 IEC 130 750 Note: Step change in usage of ISO/IEC documents

ISO/TC67 STATEMENTS Mission: Vision: Goals: 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 A Single Set of Words: if CEN, API BS etc. need to adopt a standard on the subject, it should be the ISO Standard so that the same requirements are common ISO-CEN say “Do it once, do it right, do it Internationally” API say “Do it once, do it right, do it globally” Everything is in place and the main organisations are aligned. Now the ISO system must deliver.

ISO TC67 Standards Issued (to 2001)

Current issues for Shell Proliferation of competing horizontal standards for testing and materials (SILOs) Units The “bookstore” problem Continuity of the SDOs Opportunity to integrate the various technical standards for Shell US operations with rest of Shell Group standards

Example: Tensile testing: ISO 6892, EN 10002, ASTM A370 SILOS CEN ISO ASTM None of these will meet industry need unless they work together with each other Example: Tensile testing: ISO 6892, EN 10002, ASTM A370

Current issues for Shell Proliferation of competing horizontal standards for testing and materials (SILOs) Units The “bookstore” problem Continuity of the SDOs Opportunity to integrate the various technical standards for Shell US operations with rest of Shell Group standards

Abbreviations This presentation makes use of many abbreviations in order to illustrate the various issues. These include: ISO CS ISO Central Secretariat http://www.iso.ch IEC CS IEC Central Secretariat http://www.iec.ch ISO/TC67 ISO Technical Committee 67 http://www.tc67.net API American Petroleum Institute http://www.api.org ANSI American National Standards Institute http://www.ansi.org CEN European Standards Organization http://www.cenorm.be OGP International Association of Oil and Gas Producers http://www.ogp.org.uk Europia European Petroleum Industry Association http://www.europia.com IFAN International Federation of Standards Users http://www.ifan-online.org DEP Shell Group Design and Engineering Practice

THANK YOU neil.reeve@shell.com