2012 Standards Conference SC18 Committee on Quality Standards API Monogram Program Status Report 2012 Standards Conference SC18 Committee on Quality Standards Ft. Worth, TX Jan 26, 2012 W. Don Whittaker Manager Monogram Program/APIQR whittakerd@api.org Aaron Duke Audit Program Manager Certification Programs dukea@api.org Katie Burkle Associate Monogram Program/APIQR burklek@api.org

API Monogram/APIQR Program Status Report Monogram Program Statistics Audit Program Monogram Standards Update Fraud & Product Complaints API Conference & Expo – Singapore 2012

API Monogram/APIQR Certified Companies

3681 Active Certified Companies. 3438 Licensed Companies. 1031 Companies Certified with APIQR. 788 Companies with Both.

API Monogram Licensed Companies Top Countries: China – 1402 USA – 570 India – 209 S. Korea – 125 Canada - 99 3438 Licensees. 75 Countries. 9% Annual Growth.

API Monogram Licenses 5686 Licenses. 75 Countries. 11% Annual Growth. Top Countries: China – 2202 USA – 856 India – 04 Italy – 192 S. Korea - 176 5686 Licenses. 75 Countries. 11% Annual Growth.

Companies Licensed to 65 Specifications.

APIQR ISO 9001 Registered Companies Top Countries: China – 261 USA – 240 Canada – 60 India – 43 S. Korea – 33 983 Companies. 61 Countries. 18% Annual Growth.

API Monogram Applications 797 Applications from 559 Companies. Top Countries: China – 300 USA – 111 India – 41 Italy – 31 S. Korea – 31 797 Applications from 559 Companies.

APIQR ISO 9001 Applications Top Countries: USA – 69 China – 62 Canada – 15 Russia – 8 India – 7 236 Applications.

APIQR API-Q1 Applications Top Countries: USA – 72 China – 65 Canada – 15 Russia – 9 India – 8 254 Applications.

Audit Nonconformities by Clause

2012 Standards Conference SC18 Committee on Quality Standards Audit Program Status Report 2012 Standards Conference SC18 Committee on Quality Standards Ft. Worth, TX Jan 26, 2012 Aaron Duke Audit Program Manager Certification Programs dukea@api.org

Total Certification Program Audits 2620 Audit Performed Audits by Program: Monogram Only – 1203 Dual – 1035 Registration – 300 Other – 82 Audits by Country: China – 949 (36%) USA – 518 (20%) India – 151 (6%) Canada – 118 (4%) South Korea – 84 (3%)

2011 Audits 16% increase between 2010 and 2011

API Monogram Audits by Type

APIQR Registration Audits by Type

Dual (API Monogram/APIQR) Audits by Type

Re-Audits 200 Re-Audits to date in 2011

2012 Expectations

Local Auditors in 32 Countries.

Active API Monogram/APIQR Auditors 144 Active Auditors. 22 Auditors in Training.

Audit Program Auditors Audits 22 auditors in process – USA / China / Japan / Eastern Europe 39 Auditor Observations in 2011 10A specific training – Singapore, November 2011 October-November 2012 – Asian Auditor Summit – China API Spec Q2 – training & resource planning Audits Fully trained additional staff member in the audit team More audit questions for more specs Develop better technical training tools for auditors – 5CRA training myCerts audit module implemented Q3-Q4 2012

Monogram Program Specs – New / Revised API Spec 5CT – Casing and Tubing, 9th Edition, published Jul 2011 / effective Jan 2012 API Spec 5L – Addendum 3 – Line Pipe, 44th Edition, published Jul 2011 / effective Jan 2012 API Spec 6D – Addendum 2 – Pipeline Valves, 23rd Edition, published August 2011 API Spec 6D – Errata 6 – Pipeline Valves, 23rd Edition, published August 2011 API Spec 6A – Addendum1 – Wellhead Equipment, 20th Edition, published November 2011 API Spec 6A – Errata 2 – Wellhead Equipment, 20th Edition, published November 2011 API Spec 6H – End Closures, Connectors and Swivels, 2nd Edition, Reaffirmed API Spec 9A – Wire Rope, 26th Edition, Effective November 2011 API Spec 11AX – Addendum 1 – Subsurface Sucker Rod Pumps & Fitting, 12th Edition, published August 2011 API Spec 17D - Errata – Design and Operation of Subsea Production Systems-Subsea Wellhead and Tree Equipment, 2nd Edition, published September 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)

Monogram Program Specs - Status API Spec Q1 – Quality Programs for the Petroleum, Petrochemical and Natural Gas Industry, 9th Edition, Effective TBD API Spec 2C – Offshore Pedestal-mounted Cranes, 7th Edition, Effective TBD API Spec 8C – Drilling and Production Hoisting Equipment, 5th Edition, Effective TBD API Spec 11AX – Subsurface Sucker Rod Pumps & Fitting, 13th Edition, Effective TBD API Spec 11E – Pumping Units, 19th Edition, Effective TBD API Spec 17E – Subsea Umbilicals, 5th Edition, Effective TBD API Spec 20A – Carbon Steel, Alloy Steel, Stainless Steel and Nickel Base Alloy Castings for use in the Petroleum and Natural Gas Industry, 1st Edition, Effective TBD API Spec 6AV1 – Verification Test of Wellhead SSVs and USVs for Offshore Service, 2nd Edition, Effective TBD

Program Updates 11V1 – 19G1-G2 Transition 5CT, 9th Edition Received 10 applications for 19G1 & 19G2 (5 of each – 6 facilities) 15 existing 11V1 licensees – 6 existing 11V1 licensees submitted app by January 1 deadline 19G1 / 19G2 initial / transition audit scheduled 1 audit completed / 3 scheduled to be complete by mid-April / 2 assigned & being scheduled Transition period ends July 1, 2012 – 11V1 licenses withdrawn on July 1, 2012 5CT, 9th Edition New grades for 9th Edition - Added seamless and ERW to product listing 17D, 2nd Edition Products updated to include PSL 3G New Products – Licensees need to submit new LIF for review and possible audit Audit Product Questions / Color Coding 5CT, 9th / 6A, 20th / 13A / 11B / 7K / 17D / 9A / 7F

Fraud and Complaints Overview

Fraud & Misuse Cases

Fraud & Misuse Cases – Global Distribution Top Countries : China-31 USA-18 India-9 UK-3 Spain-2 Canada-4 Colombia-1 Indonesia-1 Kazhakstan-1 South Africa-1 Egypt-1 Singapore-1 Thailand-1 Top Countries: China – 31 USA – 18 India – 9 Canada – 4 UK – 3

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

2011 Product Complaints 4 – Complaints still open regarding facilities supplying defective products. Periodic audits set-up & assigned – to be completed by end of Q1 2012 API Spec 11V1 Mandrels bursting in the field API Spec 8A Bails bending in the field API Spec 5L Pipe delivered with welding defects and falsified X-ray testing reports API Spec 6A Ring Joint Gaskets - poor workmanship, nonconforming dimensions 2 – Facilities cancelled – substantial complaints coupled with poor audit results. 1 – Facility could not provide API Spec 8C documentation/records to end user Investigative actions to be included in upcoming renewal audit 1 – Facility’s API Spec 4F nameplate does not meet 4F marking requirements AAR’s raised against company – will not be renewed until resolved API Spec 5L Pipe delivered with falsified X-Ray testing reports, user conducted tests revealed welding defects in over 50% of pipe total length (incomplete penetration, incomplete fusion, spherical pores, slag inclusions, etc) Oversized and Undersized API Spec 6A Ring Joint Gaskets with poor finish/incomplete forgings, dimensional and physical damages Facility’s API Spec 4F Nameplate observed in field does not meet 4F requirement (incorrect measuring units used, does not contain all required information, incorrect 4F edition marked on nameplate) AAR’s raised against company, will not be renewed until resolved

TO REGISTER OR FOR MORE INFORMATION CONTACT Upstream Program Sessions API Spec 6A – 2 day technical training session API Spec Q1 – 2 day training session API Spec Q2 – Operator & service supply company perspectives Well integrity & well control topics HSE / SEMS implementation offshore – API RP75 Crane safety, training and maintenance Another exciting thing currently going on at API is the planning of our first API conference and exposition in Singapore for March 2012. The goal of the Singapore event is to bring oil and gas industry stakeholders together to raise awareness of the API Standards and API in SE Asia and in Asia generally. We will be having technical sessions on the downstream inspection standards and techniques; our API measurement standards and on the upstream standards and the Monogram Program. We are looking for experts – hopefully locally – to present on topics relating to upstream operations, manufacturing of oil and gas equipment to the API standards and any other current topics that would be of interest to operators, manufacturers and service providers in the exploration and production areas. TO REGISTER OR FOR MORE INFORMATION CONTACT Matthew Cunningham – cunninghamm@api.org – 1-202-682-8158 www.apiexpo.org

2012 Standards Conference SC18 Committee on Quality Standards Thank You 2012 Standards Conference SC18 Committee on Quality Standards Ft. Worth, TX Jan 26, 2012 W. Don Whittaker Manager Monogram Program/APIQR whittakerd@api.org Aaron Duke Audit Program Manager Certification Programs dukea@api.org Katie Burkle Associate Monogram Program/APIQR burklek@api.org