Slide 1 ANSI Annual Conference 2002 Breaking Down Border: Business, Standards and Trade Global standards used locally worldwide: A company view presented by Neil Reeve (Vice President of IFAN) Shell Global Solutions International B.V.

ANSI Annual Conference 2002 Breaking Down Border: Business, Standards and Trade Slide 2 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

ANSI Annual Conference 2002 Breaking Down Border: Business, Standards and Trade Slide 3 ISO/TC67 VISION Global Standards Used Locally Worldwide

ANSI Annual Conference 2002 Breaking Down Border: Business, Standards and Trade Slide 4 Local Operating Company responsibility Shell Group Common Base. Central organization responsibility Increased resources for critical standards Business justification to deviate External External Standards DEP Project Variation Company Variation Management control Knowledge feedback Shell’s Transparent Standards Structure

ANSI Annual Conference 2002 Breaking Down Border: Business, Standards and Trade Slide 5 Benefits are maximized when all companies use the same common industry standards 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 Shell standardisation policy

ANSI Annual Conference 2002 Breaking Down Border: Business, Standards and Trade Slide 6 Companies Industry RecognisedRecognised RecognisedRecognised CONTRACTORSSUPPLIERS APIEEMUAUKOOAASME National ANSIBSI Regional CEN / CENELEC International ISO / IEC Vienna Agreement OPERATORS OGP Other European Japan etc. LiaisonLiaison STANDARDISATION BODIES - RELATIONSHIPS

ANSI Annual Conference 2002 Breaking Down Border: Business, Standards and Trade Slide 7 PATTERN OF CHANGE - WORK IN BSI % 93% Int ’ l Stds Int ’ l Stds UK Stds UK Stds Note: Typical for all European Standards Bodies Over these years Standards work in BSI committees has changed to be mostly international or regional (ISO, IEC, CEN and CENELEC)

ANSI Annual Conference 2002 Breaking Down Border: Business, Standards and Trade Slide 8 ISO/IEC REFERENCES IN SHELL DOCUMENTS ISO IEC Note: Step change in usage of ISO/IEC documents

ANSI Annual Conference 2002 Breaking Down Border: Business, Standards and Trade Slide 9 Mission: To create value-added standards for the oil and natural gas industryVision: Global standards used locally worldwideGoals:  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 ISO/TC67 STATEMENTS

ANSI Annual Conference 2002 Breaking Down Border: Business, Standards and Trade Slide 10 ISO TC67 Standards Issued (to 2001)

ANSI Annual Conference 2002 Breaking Down Border: Business, Standards and Trade Slide 11 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

ANSI Annual Conference 2002 Breaking Down Border: Business, Standards and Trade Slide 12 ISOASTMCEN SILOS None of these will meet industry need unless they work together with each other Example: Tensile testing: ISO 6892, EN 10002, ASTM A370

ANSI Annual Conference 2002 Breaking Down Border: Business, Standards and Trade Slide 13 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

ANSI Annual Conference 2002 Breaking Down Border: Business, Standards and Trade Slide 14 Abbreviations This presentation makes use of many abbreviations in order to illustrate the various issues. These include: ISO CS ISO Central Secretariathttp:// IEC CS IEC Central Secretariathttp:// ISO/TC67ISO Technical Committee 67http:// APIAmerican Petroleum Institutehttp:// ANSI American National Standards Institutehttp:// CEN European Standards Organizationhttp:// OGP International Association of Oil and Gas Producershttp:// EuropiaEuropean Petroleum Industry Associationhttp:// IFANInternational Federation of Standards Usershttp:// DEPShell Group Design and Engineering Practice

ANSI Annual Conference 2002 Breaking Down Border: Business, Standards and Trade Slide 15 THANK YOU