Don Wells Hess Corporation API 17N Subsea Production System Reliability, Integrity, and Technical Risk Management Don Wells Hess Corporation

History / Status Document released in 2009 Specification contains: Life Cycle Process (LCP) Define, Plan, Implement, Feedback (DPIF) Loop 12 Key Practices (KP) Technology Qualification Process Technology Readiness Level This is what was delivered in the first revision of 17N

Initial Plan / Path Forward Process Split into 5 subgroups (now 6) Industry Leaders Common Template Introduce IM into the scope of 17N: Define IM Expand the Life Cycle Processes Reassessment through remediation Define TRL progression This is what we originally reported that we would do.

Specification Development Expand the Life Cycle Process Feasibility Concept Selection FEED Detailed Design Manufacturing & Assembly SIT, Installation, & Commissioning Operation Decommissioning This represents Revision 1 The second thing the committee did was agree we needed to add…….Hit button

Detail Change to a Dual-DPIF loop Add Remediation cycle Facilitates Integrity Management This is what we have shown you as our progress in previous presentations, adding a second loop to cover Operations or Brownfield

Specification Development (Greenfield Projects) The red box represents the latest revision and its tie-in to what you have seen before. In addition to adding Integrity Management and additional depth to each of the key practices to the overall document, we added the “Evaluate” step to highlight You will also see the Note “Greenfield Projects” as an indication is that this process only takes it too the point of Installation and does not include Operations or changes during Operations or existing Assets.

Specification Development (Brownfield Projects) And it was equally important to the Operations or Brownfield phase of the Development. ..and acceptance criterion

Lifecycle Application of DPIEF Cycle . DPIEF Assurance Cycle applied at each lifecycle stage Feasibility through to decommissioning Double DPIEF loop in operations Normal operations Corrective action This is how the full Life Cycle now looks with the addition of the last two stages covering from feasibility through Decommissioning When combined with the other stages, we call the two loops in the Operations stage Normal Operations and Corrective Actions

Progress Winter Meeting Workgroups Submitted Input Using Common Template Edited into a Single Document Astrimar Circulated for Comment within 17N Committee 3 rounds, 1,000+ Last Comments Due Dec 10th Clarification Discussions at Jan 13th meeting

Key Process Changes Kept Same 12 KPs from the First Revision Updated Names and Content to Accommodate the inclusion of Integrity Management We also had to revise much of the details included in the Key Processes As we increased the Scope of the document, we had to revise a number of the names to be less specific. For Example: “Organizing and Planning for Availability” became “Planning and Organisation” The main change in terms of the description and content of the KPs is the inclusion of Integrity and also additional recommendations for: The Preparation associated with implementing the Key Practices Senior Management and Corporate level guidelines Product, Project, or Operations Management

Annex Changes Standardized and Significantly Updated Annex A – Split into Two Separate Annexes Annex A -Technical Risk & Uncertainty Categorization Annex C - Risk Based Scope of Work for Reliability Technical & Integrity Management Annex B - Better Explanations and Guidance for Management Annex D – New This will change to accommodate reincorporation of 17Q stuff Integrity Management Data Collection The annexes which are a significant part of the document are also being significantly revised Annex A – Read Annex B was revised to provide Better……….. Objectives & Preparation for Each Key Process Recommendations for Senior Management Recommendations for Project and Operations Management Detailed Process Description The Original Annex C Absorbed into KP 9 Annex D New - Integrity Management Data Collection The Original Annex D is being absorbed into API 17Q which I will speak about shortly

Issues to be Addressed at High Level The following Subjects have been introduced and referenced without Full Fidelity: Decommissioning Obsolescence Field Life Extension Human Factors Configuration Management / MOC Integration with Other Standards / Regulatory Documents There are a number of subjects in the latest edition that are being addressed at a high level The list you see on the screen are subjects that referenced without full fidelity. When we say Not full Fidelity, we are not saying we have not done a good job or will deliver a quality document, we are saying that this is a subject that is maturing and that the Oilfield is incorporating on a continuous basis. It is recognized however that there are learnings being made on a continuous basis that we know will need to be worked and incorporated into future editions of the document. These include

17Q History Last meeting, we were asked to consider combining 17Q into 17N Work indicated that this was not best approach Rationale Different Subjects Qualification Not Unique to 17N Expect Revision at a Different Rate Qualification /Verification details from 17N will be Incorporated into 17Q Accepted by Committee 17

Technology Qualifications As work on the document progressed, it became obvious that: A great deal more effort was required to address all Qualification issues The field of Qualification was faster moving and less mature than Reliability and Integrity Management Qualification needed to align with DNV A-203, API 17A, API 17Q Based on the above, the 17N Qualification workgroup has recommended that the Qualification, Verification and Test Statistics content will be transferred to API 17Q But A funny thing happened on the way to the Forum: Committee 17 asked us if we could incorporate API 17Q – Qualification into our document 17Q was…… set of instructions and forms designed to facilitate the qualification of similar components from different suppliers fairly As the committees progressed this request it became obvious to us that: A great deal of effort was required to address all of the issues associated with Qualification Qualification and IM moved at a different pace Qualification needed to be aligned with other Industry documents CLICK SO it is our recommendation that the Qualification, Verification and Test Statistics should be incorporated into a revised 17Q The plan is that 17N will introduce the subject and its context, but the real bulk of the detail will be incorporated into API 17Q The 17Q and 17N committees are actively planning and working this recommendation for formal presentation before the API summer meetings.

17Q Plans/Progress Path Forward 17Q Committee reestablished to Work Plan Made up of members of both 17Q and 17N Currently Working Plan It was recognized and last Working Meeting that 17N and 17Q can progress at separate paces as long as 17N appropriately defines, references, etc. 17N Workgroup 4 has done a great deal of work, but had visions of more details, etc. The working committee has agreed to first assess where we are, what our future is and a plan to get there. This will then be communicated to API and Committee 17 with an SRRR which defines the plan and resource requirements.

17N Progress Original Plans included a “Pre-Ballot” Workshop Change of Plans Not a New Document Large Active Committee Potential to Circulate to Washington Workshop attendees OK? OTC Paper submitted and Presented As part of API 17 Session

17N Plans Astrimar to Complete incorporation of Comments and 17Q Reference May require help from Working Committees Deliver Summary Report on Completion Issue Document to API Format, Ballot, etc. Question How do we “Deliver” to Industry API University Industry Training

Schedule Being Worked Additional Comments

Options A – Complete 17N ASAP Minimum with updates of all but Qualification B – Complete 17N fully incorporating Qualification / Validation Complete incorporation of Qualification where current 17Q becomes annex of 17N C – Complete 17N and 17Q 17N (see A above) which refers to the new 17Q which will also be developed

Pros / Cons A – Complete 17N ASAP Document Completed with available resources Qualification will happen when it happens B – Complete 17N fully incorporating Qualification / Validation Complete document delivered Additional funds / time / resources needed C – Complete 17N and 17Q Complete documents delivered Benefits described before Updatable at separate paces Different Subjects Etc. More Additional funds / time / resources needed

Explain A-203 We believe…………. This will be confirmed as part of work….

Question on Definitions Questions re definitions of Verification / Validation/ etc. have been raised API 17A will take responsibilities for definitions API 17N will provide technical input / expertise

Thanks You’s To Everyone Involved Large Amount of Effort by everyone Workgroup Leaders Participants Workshop Attendees Astrimar BSEE Large Amount of Effort by everyone Large amount of detail developed, considered and Worked Even with the Growth in Scope, effort continued and quality maintained A great deal of quality work was completed!