STANDARDIZATION OF INDUSTRY
EXPECTATIONS FOR OIL AND GAS
Bryan Wollam
Weatherford International
Director – Operational Excellence
API SPEC Q2 FOR AUDITING
VALUE MOMENT
API SPEC Q2 FOR AUDITING
AGENDA
Objective
– Provide History and Industry Expectations on API Q2
Outline
– Brief History of API
– Business Drivers for New Industry Standard – API Q2
– API Q2 Overview
– Benefits
API SPEC Q2 FOR AUDITING
BRIEF HISTORY
API SPEC Q1
API SPEC Q2 FOR AUDITING
History of API and Spec Q1
• API’s Monogram and Standardization Programs
were established in 1924
• Business Drivers
• Safe, Interchangeable, Consistent Equipment
• 3rd party audit program in the 80’s under the
Specification of Quality Programs, API Spec
Q1
These same drivers now exist for the Certification of
Services – API Spec Q2
API SPEC Q2 FOR AUDITING
BUSINESS DRIVERS
FOR API SPEC Q2
API SPEC Q2 FOR AUDITING
BUSINESS DRIVERS
Absence of a Corporate Management System Inconsistency in Risk Mi8ga8on Lack of Implementa8on Lack of Oversight API SPEC Q2 FOR AUDITING
BUSINESS DRIVERS
Increasing complexity of wells • Need for improved service technology and equipment / tool reliability Increasing spread rates on rigs • Need for systems to ensure uninterrupted opera<ons API SPEC Q2 FOR AUDITING
The incident killed 11 workers and
spewed more than 200 million gallons
of crude in what is touted as the
country’s worst oil spill ever.
Subsequently, a moratorium was
imposed on offshore drilling.
API SPEC Q2 FOR AUDITING
ROOT CAUSES OF NPT
LACK OF:
Service execution
planning
Lack of using history
logs
Personnel
Competency
Contingency
planning
Lack of or not
Following
procedures
Quality Checks,
Inspection and Test
Preventive Maintenance, Inspection, Test
Programs (PMITP)
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GOVERNMENT RELATED DRIVERS
Protection of:
People & Public
Health
Environment
Wildlife
Marine life
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INDUSTRY
RESPONSE
API SPEC Q2 FOR AUDITING
API SUBCOMMITTEE 18
CSOEM
SC18
TG1
TG2
TG3
Auditor
Effectiveness
API
Spec Q1
Monogram
Program
TG4
Min. Mfg.
Requirements
TG5
TG6
TG7
API
Spec Q2
Welding
Life Cycle
Management
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API TG5 MEMBERS
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STANDARDIZATION OF INDUSTRY EXPECTATIONS
Based on risk (ISO 3100), quality (ISO 9001,
API Q1); health and safety (OHSAS 18001);
environmental ISO (14001)
Specifies requirements of a quality management
system specific to Services
Intended to apply to the execution of services
during exploration, development and production
in the oil and gas industry
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EVOLUTION OF API SPEC Q2
DEVELOPED
PUBLISHED
BETA TESTING
COMPLIANCE
CERTIFICATION
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API SPEC Q2
HOW IS IT DIFFERENT?
API SPEC Q2 FOR AUDITING
PROCESS-BASED QMS (ISO 9001, 29001 & API Q1)
API SPEC Q2 FOR AUDITING
PROCESS- AND RISK-BASED QMS (API Q2)
CUSTOMER
REQUIREMENTS
CUSTOMER
SATISFACTION
CONTINUAL
IMPROVEMENT
INPUT
OUTPUT
API SPEC Q2 FOR AUDITING
OVERLAP - API SPEC Q1 VS. API SPEC Q2
General Requirements
Quality Manual
Control of Documents &
Records
Quality Policy
Quality Objectives
Control of Monitoring and
Measurement Equipment
Measurement, Analysis
and Improvement
Training
Corrective and Preventive
Action
Planning
Management Review
API SPEC Q2 FOR AUDITING
SERVICE-SPECIFIC Additions - API SPEC Q2
No Claims to Exclusions
Competency of Personnel
Risk Management
Detection Equipment
Preventive Maintenance, Inspection and
Test
Service Performance Validation
Management of Change
Service Design
Corrective and Preventive Action
resulting in a change of controls
Contingency Planning
Customer Notification
Control over Critical Suppliers
Traceability of Critical Services and SRP
Service Quality Plan
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1.2 EXCLUSIONS
“When an organization performs activities addressed by this document,
including the provision of service-related product, all requirements shall
be performed and no claims to exclusion of those requirements shall be
permitted.”
Service-related products (SRP): Materials, equipment, and software
used in the execution of a service.
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1.2 EXCLUSIONS (…CONTINUED)
Customer
Corporate
Service
Centers
Fields
SRP
Manufacturing
Service
Centers
Satellites Facili+es Fields
Service
Centers
Satellites Facili+es Fields
Satellites Facili+es API SPEC Q2 FOR AUDITING
4.3.2 PERSONNEL COMPETENCE
Competency =
• Education
• Training
• Skills (OJT)
• Experience
NEW
• Risk Based
• Problem Solving
COMPETENT
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5.3 RISKS Management
Immediately
1 years
5 years
10 years
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5.3 RISK MANAGEMENT
Maintain Procedures to controls Risk
throughout Service Execution
• Identify service related risk
• Implement controls
• Notify customer of remaining risk
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5.4 Design & Development
Every Service includes Design and Development
API Q1
Products
API Q2
Services
Planning
Inputs
Outputs
Planning
Inputs
Outputs
Review
Verification
Validation
Verification Final Review
Changes
Changes
Failing to understand what is and is not critical will impact the service design
which will result in increased risks, lack of controls and potential for loss.
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5.5 CONTINGENCY PLAN
Contingency planning shall be
integrated into services and
supporting processes between
the organization, its suppliers
and the customer”.
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5.6 PURCHASING & CONTROL OF SUPPLIERS
• Determine criticality of the
services and SRP
• Evaluation & Onsite audits
for critical suppliers.
Cri<cal – That deemed by the organiza<on or customer as indispensable or essen<al, needed for a stated purpose or task, and requiring specific ac<on API SPEC Q2 FOR AUDITING
5.7.3 IDENTIFICATION AND TRACEABILITY
• Identification controls must be
put into place to clearly identify
all stages of delivery,
installation, repair
(maintenance), and redress
• Service-related product shall be
identified.
• Critical service-related product
shall be identified and
traceable.
API SPEC Q2 FOR AUDITING
5.7.8 PMITP
Is applicable to Service Related Product (SRP)
Equipment Maintenance is handled under Work Environment.
Corrective
• Expensive
• Results in NPT
Preventive
• Minimizes Corrective
Maintenance
• Focus of API Spec Q2
Predictive
• SRO Integrity and
Reliability
API SPEC Q2 FOR AUDITING
5.7.2 SERVICE QUALITY PLAN
Customer Specific for the
Service being performed
Takes into account
Environmental &
Operational Conditions
Risk Assessment
Personnel
Competence
Contingency
Planning
Contract
Requirements
Design and
Development
Identification of
Equipment
API SPEC Q2 FOR AUDITING
5.7.2 Service Quality Plan
Simple
Complex
The complexity will vary
depending on the complexity of the service.
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5.9 SERVICE PERFORMANCE VALIDATION
Validation must be:
• Differs from Validation for
manufactured product
• Validations occur during and
after execution of service(s)
• Carried out in accordance with
Design (5.4), SQP (5.7.2) and
acceptance criteria
API SPEC Q2 FOR AUDITING
5.10.4 CUSTOMER NOTIFICATION
• Customers shall be notified:
– When service execution,
does not conform to
requirements
– When SRP does not
conform which has been
delivered or used in the
execution of a service
API SPEC Q2 FOR AUDITING
5.11 Management of Change
Change in Personnel & Suppliers Management of Change Process Execu<on Changes Management System Changes SRP & Design Changes No Risk Assessment Higher Risk? No End of Process Yes
Customer No<fica<on Customer Accepts? Yes End of Process API SPEC Q2 FOR AUDITING
SUMMARY & BENEFITS
API SPEC Q2 FOR AUDITING
INDUSTRY IMPACT
Operators
Service
Providers
Regulators
and other
Interested
Parties
Suppliers
API SPEC Q2 FOR AUDITING
WHAT API SPEC Q2 IS NOT
It is not a manual with
new buzz words that
you present to your
customers.
It is not a cross
reference between your
management system
and your customer’s.
It is not a template that
you fill in and claim
compliance.
API SPEC Q2 FOR AUDITING
WHAT API SPEC Q2 IS
It is about service quality and risk mitigation supported by
validation and actual service provider performance.
API SPEC Q2 FOR AUDITING
Benefits of Standardization
• Improves service related product reliability • Minimizes risk through iden<fica<on, planning & controls • Iden<fies cri<cal tasks that impact quality, safety and the environment • Minimizes service related risk and improves efficiencies • Improves communica<on between service providers and their suppliers and operators. API SPEC Q2 FOR AUDITING
QUESTIONS ?
API SPEC Q2 FOR AUDITING