2012 Standards ConferenceSC18 Committee on Quality Standards

Westminster, COJune 14, 2012

API Monogram ProgramStatus Report

W. Don WhittakerManagerMonogram Program/APIQRwhittakerd@api.org

Aaron DukeCertification & Audit Program DevelopmentMonogram Program/APIQRdukea@api.org

API Monogram/APIQRProgram Status Report

1. Monogram Program Statistics2. Audit Program3. Monogram Standards Update4. Fraud & Product Complaints5. API Conference & Expo – Beijing - 2013

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD0

1000

2000

3000

4000

3546

1093

API Monogram Licensees APIQR Certified Companies

API Monogram/APIQR Certified Companies

5-12

3812 Active Certified Companies.

3546 Licensed Companies.1093 Companies Certified with APIQR.

827 Companies With Both. 5-12

API Monogram Licensed CompaniesTop Countries

1. China – 14412. USA – 5903. India – 2134. S. Korea – 1335. Canada – 986. Italy – 927. UK – 718. UAE – 669. Indonesia – 6210. Japan – 5211. Germany – 5012. Mexico – 4013. Malaysia – 3914. Singapore – 3615. Brazil – 33 3546 Licensees. 77 Countries.

Asia PacificNorth AmericaEuropeSouth AsiaSE AsiaMiddle EastSouth AmericaAfricaAustralasiaCentral Asia

5-12

API Monogram LicensesTop Countries

1. China – 22492. USA – 8853. India – 4034. Italy – 2005. S. Korea – 1886. UAE –1647. Canada – 1528. Indonesia – 1109. UK – 10610. Germany – 9911. Japan – 9012. Singapore – 8913. Mexico – 6914. France – 6415. Malaysia – 63

5859 Licenses.

Asia PacificNorth AmericaEuropeSouth AsiaMiddle EastSE AsiaSouth AmericaAfricaAustralasiaCentral Asia

5-12

Top Specifications

API-5CT

API-6D

API-6A

API-5L

API-7-1

API-7K

API-16A

API-5DP

API-4F

API-16C

0

200

400

600

800

1000

5-12

Top Licensed Products

5-12

API-6D Ball Valves 638 API-5L PSL 1 Line Pipe 552 API-5CT Threader 528 API-6D Gate Valves 486 API-6D Check Valves 483 API-7-1 Threading 475 API-6A Flanges 468 API-5L PSL 2 Line Pipe 452 API-6A Valves 429 API-6A Tees and Crosses 385

APIQR ISO 9001 Certified CompaniesTop Countries

1. China – 2742. USA – 2663. Canada – 574. India – 455. Indonesia – 346. S. Korea – 327. UAE – 258. Singapore – 249. Mexico – 2210. Russia – 2111. UK – 1712. S. Arabia – 1513. Venezuela – 1314. Egypt – 1215. Italy – 11 1037 Companies. 63 Countries.

North AmericaAsia PacificEuropeSE AsiaMiddle EastSouth AsiaSouth AmericaAfricaCentral AsiaAustralasia

5-12

APIQR API Spec Q1 Certified CompaniesTop Countries

1. China – 2792. USA – 2543. Canada – 514. India – 465. Indonesia – 336. S. Korea – 337. Singapore – 268. UAE – 259. Russia – 1910. Mexico – 1811. UK – 1712. Egypt – 1413. S. Arabia – 1414. Turkey – 1115. Italy – 11

1023 Companies. 64 Countries.

North AmericaAsia PacificEuropeSE AsiaMiddle EastSouth AsiaSouth AmericaAfricaCentral AsiaAustralasia

5-12

API Monogram ApplicationsTop Countries

1. China – 2942. USA – 903. India – 484. Indonesia – 365. Italy – 306. S. Korea – 227. UAE – 198. UK – 199. Canada – 1810. Singapore – 1711. Germany – 1112. S. Arabia – 1113. Turkey – 1014. Mexico – 1015. Russia – 8

737 Applications at 516 Companies.

Asia PacificNorth AmericaEuropeSE AsiaSouth AsiaMiddle EastSouth AmericaAfricaAustralasiaCentral Asia

5-12

APIQR ISO 9001 ApplicationsTop Countries

1. China – 712. USA – 623. Canada – 174. Russia – 95. Malaysia – 76. Australia – 67. Singapore – 68. UK – 69. India – 510. Mexico – 511. Italy – 412. Romania – 313. S. Korea – 314. Spain – 315. UAE – 3

242 Applications.

North AmericaAsia PacificEuropeSE AsiaAustralasiaMiddle EastSouth AsiaAfricaSouth AmericaCentral Asia

5-12

APIQR API Spec Q1 Applications

257 Applications.

North AmericaAsia PacificEuropeSE AsiaAustralasiaMiddle EastSouth AsiaAfricaSouth AmericaCentral Asia

Top Countries

1. China – 732. USA – 623. Canada – 174. Russia – 105. Australia – 96. Singapore – 87. Malaysia – 78. UK – 69. India – 510. Mexico – 511. Italy – 412. UAE – 413. Romania – 314. S. Korea – 315. Spain – 3 5-12

API-6D

API-6A

API-5L

API-5CT

API-7-1

API-4F

API-7K

API-5DP

API-8C

Other

0

50

100

150

200

250

300

350

400

Frequency

Freq

uenc

y (C

ount

)

Audit Nonconformities by Specification

7.5 8.2 7.4 4.2 7.6 7.3 6.2 7.1Othe

r0

200

400

600

800

1000

1200

1400

1600

Frequency

Freq

uenc

y (C

ount

)

Audit Nonconformities by Clause

2012 Standards ConferenceSC18 Committee on Quality Standards

Westminster, COJune 14, 2012

Audit ProgramStatus Report

Aaron DukeCertification & Audit Program DevelopmentMonogram Program/APIQRdukea@api.org

41%

42%

14%2%

MonogramDualRegistrationOther

1045 Audits Performed

Audits by Program: Monogram Only – 433 Dual – 444 Registration – 144 Other – 24

Audits by Country: China – 320 (30%) USA – 228 (22%) India – 54 (5%) Canada – 44 (4%)

2012 To DateTotal Certification Program Audits

5-12

API Monogram Audits by Type

Initial Renewal Re-Audit Other0

50

100

150

200

250

300

93

274

42 24

5-12

Dual (API Monogram/APIQR) Audits by Type

Initial Surveillance Recertifica-tion

Re-Audit0

50

100

150

200

250

300

108

247

67

16

5-12

APIQR Registration Audits by Type

Initial Surveillance Recertifica-tion

Re-Audit0

1020304050607080

53

72

136

5-12

First 6 Months Previous 12 Month Period (June-June)0

250500750

1000125015001750200022502500275030003250

2009201020112012

2009 – 2012 Audits Performed Historical Comparisons

6-12

Registration-Recerts

Dual Surveillance-Recerts

Monogram Renewals

0 100 200 300 400 500 600 700 800 900

Complete

Scheduled for June Completion

To Schedule

2012 Audits Due – Status

5-12

2006 2007 2008 2009 2010 2011 2012 20130

500

1000

1500

2000

2500

3000

3500

3535 3780

1620

15351230 1445

570675

Total Audits

Linear (Total Audits)

Monogram

Dual

Registrations

2012 - 2013 Audits Due

5/23/12

Active API Monogram/APIQR Auditors

2005

2006

2007

2008

2009

2010

2011

2012

0

20

40

60

80

100

120

140

160

143 Active Auditors• 138 QMS-Monogram• 20 Auditors in training• 16 EMS-OHSAS• 11TPCP• 15 Perforator Witness

5/23/12

Auditors Auditor Training Session – Singapore – February 2012 19 Auditor Observations Due in 2012 2012 Auditor Summit – Sanya, China – November 12-15, 2012 2013 Auditor Summit – Phoenix, Arizona – February 18-21, 2013 API Spec Q2 – training & resource planning Continue to develop resources in key areas

Working to foster relationships with sub-contract providers USA, Central Asia, Japan

Audits More audit questions and tools – all priority specs done end 2012 Develop better technical audit & training tools for auditors New myCerts audit module implemented Q4 2012

Audit Program

5/23/12

New / Revised SpecificationsAPI Spec Q1

Quality Programs for the Petroleum, Petrochemical and Natural Gas Industry, 9th Edition

Effective TBD

API Spec 2C Specification for Pedestal Mounted Cranes, 7th Edition Published March 2012-Effective September 2012

API Spec 5CT Casing and Tubing, 9th Edition Published July 2011-Effective Jan 2012

New / Revised SpecificationsAPI Spec 6AV1

Verification Test of Wellhead Surface Safety Valves and Underwater Safety Valves for Offshore Service, 2nd Edition

Effective TBD

API Spec 8C Specification for Drilling and Production Hoisting

Equipment (PSL 1 and PSL 2), 5th Edition Published April 2012-Effective October 2012

API Spec 11AX Subsurface Sucker Rod Pumps & Fittings, 13th Edition Effective Fourth Quarter 2012/First Quarter 2013

New / Revised SpecificationsAPI Spec 11E

Pumping Units, 19th Edition Effective Fourth Quarter 2012/First Quarter 2013

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

Published March 2012

11IW Specification Withdrawn Document will no longer be considered as active and maintained within

the API Standards document list, but will remain as historical document Ballot concluded May 3rd 2012 11IW licenses to be withdrawn on November 3rd, 2012

11V1 – 19G1-G2 Transition 19G1 / 19G2 initial / transition audits still underway 4 facilities transitioned / 6 audited and under review / 6 facilities have not

completed transition request Transition period ends July 1, 2012 – 11V1 licenses to be withdrawn

on July 1, 2012

Program Updates

Program Updates

• myCerts 2 • Q2• Application process /content changes• Quality manuals• Audit reports• Composite list upgrade

Fraud and Complaints Overview

Number of Fraud Cases

2009 2010 2011 2012 Total0

10

20

30

40

50

60

70

80

32

1916

12

79

0 3 4 613

32

2220 18

74

No. of closed cases No. of open cases Total no. of cases

39

22

9

4

4

32

21 1 1 1 1 1

China-39 USA-22India-9UK-4Canada-4Singapore-3 Spain-2 Egypt-2Kazakhstan-1South Africa-1Indonesia-1Colombia-1Thailand-1UAE-1

Fraud Distribution 2009-2012

Actions Taken

74

7

7

132

Resolved

Still Open

Withdrawn Applications

Listed as Non-licensed org. in the composite list

Cancelled/Suspended

2012 Recent Product Complaints API Spec 6D Ball Valves with multiple leaks discovered after gas

commissioning. Product inspection demonstrated that the Valves were not fitted with internal sealant injection fittings.

API Spec 5CT Pipe delivered with clear nonconformities identified in Mill Cert. Pipe tested and several defects found throughout pipe length (butt welds, jointers, cross welds, pipe length) When welding procedures were requested by client, they received no response.

Periodic audits

Major Complaint

Tests performed to assess mechanical integrity yielded that in addition to poor finish, the impact strength of Pipe was far below requirements.

Periodic Audit

API Spec 5L Pipe delivered with major signs of corrosion and rust which raised questions regarding quality of product . During the cleaning of corrosion, pieces of metal broke off from inner pipe surface.

Corroded metal piece

Major Complaint API Spec 8A/8C/4F Facility with multiple complaints. One end user

received 4F Mast which shipped with structural damage. Records were requested regarding structural and mechanical integrity of 4F Mast, API Licensee refused to release documentation.

One end user received 8A Bails that became bent in the field.

Periodic audit

Pad eye damage

2012 Periodic Audit Outcomes

Two Facilities cancelled

Two 4F Facilities approached consultants affiliated with Monogram Program to provide designs and engineering for 4F products. Consultants alerted API that the facilities do not have capability nor equipment to test or assemble. One audit so far performed with early recommendation from auditor of immediate cancellation.

Potential client of 16A licensee performed an Audit as part of a purchase agreement, discovered evidence that licensee did not have minimum capability to Design, Weld, and Heat Treat 16A products. API notified, periodic audit yielded credible evidence to substantiate complaint. License now suspended.

Beijing Exposition and Conference

Sept, 2013

Upstream Downstream

MeasurementTraining – Q1 and Q2