Neftegazstandart-2009 Kazan 9 September 2009 Trends/drivers in international standards for equipment for the oil and gas sector Neil Reeve Chair ISO/TC67, and OGP Standards Committee Kazan - Sept 2009

Introduction and purpose This presentation sets out to explain the following: Description of ISO/TC67 OGP standards position Oil companies use external standards Changes: in market, ISO/TC67, and other Standards Developing Organizations Way forward Kazan - Sept 2009

organisation and secretariat (flag) ISO TC67 organisation and secretariat (flag) Handover to NEN in Oct 09 Re-established in 1989 with ANSI/API holding secretariat Member countries: 32 participating, 28 observing Involves more than 1,500 engineers around the globe Annual plenary meeting, next in Canada, 1-2 October 2009 Management Committee meets three times per year Published standards: 139 Current work programme: 71 standards (new + revisions) WG8 Materials, welding, etc. Kazan - Sept 2009

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ISO/TC 67 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. Kazan - Sept 2009

Follow these industry standards ISO TC67 has published 135+ standards. API has adopted 65+ of these as joint API / ISO standards. CEN has adopted 115+ of these as joint European EN ISO standards. China, Gulf Region, India, Kazakhstan etc. have also adopted many of these ISO standards. Follow these industry standards Kazan - Sept 2009

ISO/TC 67 accomplishments: Cumulative number of documents published Note: excluding “fasttrack”ISOs Kazan - Sept 2009

OGP position on standards OGP strongly supports the internationalisation of key standards. OGP’s position on standards includes: Promote development and use of ISO and IEC International Standards. Ensure standards are simple and fit for purpose. Use International Standards without modification wherever possible. Available resources should be used efficiently, avoiding duplication of effort. Company specifications should be minimised. Promote “users” on stardards work groups. The adoption of this approach is expected to minimise barriers to trade, enable more efficient worldwide operations, and improve the technical integrity of equipment, materials, and offshore structures used by the petroleum, petrochemical and natural gas industries. For full position, see International Association of Oil & Gas Producers, (OGP) report No. 381, April 2007. The adoption of this approach is expected to minimise barriers to trade, enable more efficient worldwide operations, and improve the technical integrity of equipment, materials, and offshore structures used by the Petroleum, Petrochemical and Natural Gas Industries. For full position, see OGP report No. 381, April 2007, 3rd edition. Kazan - Sept 2009

Example: Shell 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 DEP – Design and Engineering Practice Company Variation – EGGS in USA; ESTGs in Canada; ERDs in Oman etc Kazan - Sept 2009

Example: Shell focus on key external standards Kazan - Sept 2009

Changes in Market Essentials remain the same, but… World financial climate Increasing globalisation of markets (import/export) Downsizing/sharpening projects Increasing need for good, up to date, globally relevant technical standards Towards: “1 standard, 1 test, accepted everywhere” Kazan - Sept 2009

Total Cost of Ownership Kazan - Sept 2009

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Change in ISO/TC67 Secretariat ANSI/API (USA) have decided to relinquish the Secretariat of ISO/TC67 after 20 years service ISO have allocated this Secretariat to NEN (the Netherlands) – July 2009 Effective after ISO/TC67 plenary meeting in October 2009 Expected: Neil Reeve – Chair (Shell) Harold Pauwels – Secretary (NEN) Kazan - Sept 2009

Changes in ISO/TC67 New Secretariat New Work Group 8 on Materials (Brazil) New Work Group 10 on LNG (Japan) Steadily increasing membership (new: Bahrain, Belgium, Iran, Kazakhstan and Sweden) Steadily increasing participation (Brazil, China, Russian Federation) More than half the portfolio has been revised at least once or is in revision Kazan - Sept 2009

Members of ISO/TC 67 32 Participating (P) Members: Argentina, Bahrain, Belgium, Brazil, Canada, China, Denmark, Finland, France, Germany, Indonesia, Iran, Italy, Japan, Kazakhstan, Korea, Libya, Mexico, Netherlands, Nigeria, Norway, Portugal, Qatar, Romania, Russian Federation, South Africa, Spain, Sweden, Ukraine, United Kingdom, USA, Venezuela 28 Observer (O) Members: Australia, Austria, Azerbaijan, Bulgaria, Colombia, Croatia, Cuba, Czech Republic, Ecuador, Egypt, Hong Kong, Hungary, India, Ireland, Malaysia, Moldova, Mongolia, Oman, Poland, Saudi Arabia, Serbia, Singapore, Slovakia, Switzerland, Thailand, Trinidad and Tobago, Turkey, Viet Nam Kazan - Sept 2009

Changes in other Standards Developing Organizations Strong position of ISO, IEC Continuous performance of ISO/TC28 and 193, and range of other ISO and IEC TCs Continually growing CEN/CENELEC, but many based on ISO/IEC standards New Russian Federation TK23 EASC Growing Gulf Standards Organization Continuing performance of US Standards Developing Organizations Kazan - Sept 2009

Growth of CEN European Standards Cumulative number of published CEN standards Kazan - Sept 2009

MORE THAN 200 MILLION CARS IN EUROPE RUN ON EUROPEAN STANDARDS! Kazan - Sept 2009

Standardization Bodies - Relationships Recognised ISO / IEC International Vienna Agreement CEN / CENELEC Regional L i a s o n National ANSI Russia, China Brazil, etc. BSI Other European Industry API ASME OGP EEMUA EI Companies OPERATORS CONTRACTORS SUPPLIERS Kazan - Sept 2009

Conclusion and way forward ISO/TC67 has a solid portfolio of standards for equipment for our industry. Other international standards committees, also. They are developed by experts from oil companies, manufacturers, certification bodies and regulators from all over the world. Increasingly, they are used by companies and accepted by regulators around the world. “For cooperation, not competition”. The increasing Russian Federation presence is welcomed. Kazan - Sept 2009

Global Standards Used Locally Worldwide ISO/TC 67 Vision Global Standards Used Locally Worldwide Kazan - Sept 2009

Thank you for invitation to Neftegazstandart-2009, to share this with you neil.reeve@shell.com www.iso.org www.ogp.org.uk Kazan - Sept 2009