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SC20 MEETING MINUTES June 24, 2015

2015 E&P Standards Conference on Oil Field Equipment and Materials Hyatt Regency San Francisco

San Francisco, California

API Subcommittee on Supply Chain Management (SC20) Jerry Longmire (GE Oil & Gas), Chair Rick Faircloth (Cameron), Vice-Chair

Time: 1:30 PM – 5:00 PM

• Introduction of Attendees Jerry Longmire, SC20 chair, opened the meeting. Those in attendance introduced themselves. A voting quorum was established. An attendance record was circulated.

• Approval of Agenda Agenda for the meeting was presented and approved.

• Review and Approval of Previous Meeting Minutes Minutes from the last meeting held in New Orleans, Louisiana at the 2015 E&P Winter Standards Meeting were approved.

• Status of SC20 Specifications and Standards

• Specification 20A – Carbon Steel, Alloy Steel, Stainless Steel, and Nickel Base Alloy Castings for Use in the Petroleum and Natural Gas Industry Rick Faircloth (Cameron), chair of the 20A Task Group, reported. Status: The First Edition of Spec. 20A was published March, 2012; Addendum 1 published October 2013, Addendum 2 published April 2015. Action since last SC meeting: Addendum 2 comments resolved and document published. Action for next SC meeting: N/A. Licensing status: 1 licensee, 1 applicant.

• Specification 20B – Open Die Shaped Forgings for Use in the Petroleum and Natural Gas Industry Joel Russo (FMC), chair of the 20B Task Group, reported. Status: First edition published April 2013. Action since last SC meeting: N/A. Action for next SC meeting: N/A. Licensing status: 13 licensees, 16 applicants.

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• Specification 20C – Closed Die Forgings for use in the Petroleum and Natural Gas Industry Joel Russo reported on the status for Gary Kingry (Ellwood Texas Forge Co.), chair of the 20C Task Group. Status: First edition published October 2009; due for 5-year review, under revision. Action since last SC meeting: 2nd Edition balloted and resolution process is the next step. Action for next SC meeting: Complete ballot resolution process for 2nd Edition and move document to publication. Licensing status: 9 licensees, 1 applicant.

• Standard 20D - Non-Destructive Examination (NDE) Services for Equipment Manufactured in accordance with API Product Specification used in the Petroleum and Natural Gas Industry

Bart Bartholomew, (FMC), appointed to take over the work of this Task Group. Status: First edition published September 2013. Action since last SC meeting: N/A. Action for next SC meeting: Reconvene the Task Group to review issues identified in the color coding process which is expected to require Addendum 1. Registration status: API Staff has advised that an organization can appy for registration to API Spec Q1 with a scope of API Standard 20D.

• Specification 20E - Alloy and Carbon Steel Bolting for use in the Petroleum and Natural Gas Industry

Tom Goin (TSP), chair of the 20E Task Group, reported. Status: The First Edition was published October 1, 2012. Action since last SC meeting: N/A. Action for next SC meeting: N/A Licensing status: 10 licensees, 5 applicants.

• Specification 20F - Stainless Steel and CRA Bolting for use in the Petroleum and Natural Gas Industry Tom Goin (TSP), chair of the 20F Task Group, reported. Status: The First Edition was published June 2015. Action since last SC meeting: The first ballot of this document has passed and was published last week. Action for next SC meeting: TG to develop LIF information for licensing. Licensing status: N/A.

• Standard 20G - Qualification of Welding Suppliers for Equipment Used in the Petroleum and Natural Gas Industry Bill Aston, (Aston Technical Services), appointed to take over the work of this Task Group. Status: Task Group is being formed with anticipation of completion by late 2016. Action for next SC meeting: Convene the TG and begin work on the first draft.

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Registration status: N/A.

• Standard 20H - Heat Treatment Services for Equipment Manufactured in accordance with API Product Specifications used in the Petroleum and Natural Gas Industry Joel Russo (FMC), chair of the 20H Task Group, reported. Action since last SC meeting: 1st Edition ballot passed and is now in the ballot resolution process. We expect to have this work completed by late 2015. Action for next SC meeting: Complete ballot resolution and move document forward for publication. Registration status: N/A

• Standard 20J - Distributors of Metallic Materials for use in the Petroleum and Natural Gas Industries Rick Faircloth (Cameron) reported on the work of the 20J Task Group on behalf of Des Burnley (Baker Hughes), Task Group Chair. Status: Scope has been defined, and processes defined that distributors can be qualified to perform. Action since last SC meeting: TG has had routine meetings and has been actively working on the first draft. Action for next SC meeting: Continue work on the first draft with report out at the January 2016 meeting. Registration status: N/A

• Standard 20L (was 20K, changed to avoid confusion with 20K materials work) - Qualification of Suppliers of Non-Metallic Seals for Equipment used in the Petroleum and Natural Gas Industry Neal Ferguson, (Element), appointed to chair this Task Group. Status: Task Group is being formed, with anticipation of completion by late 2016. Action for next SC meeting: Convene the Task Group and begin work on the first draft. Registration status: N/A.

• Standard 20M - Qualification of Suppliers providing Machining Services for Equipment used in the Petroleum and Natural Gas Industry Bud Weightman, (QSI), has volunteered to chair this Task Group once the SRRR has been approved by the CSOEM. Status: SRRR form submitted to CSOEM for review and approval. Action for next SC meeting: Begin soliciting for volunteers and convene the Task Group to work on the 1st Edition draft as soon as the SRRR form is approved.

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• Standard 20N - Qualification of Suppliers for Heat Treating Services – Continuous Furnaces used in the Petroleum and Natural Gas Industries Al Gavenas, (Energy Alloys), has volunteered to chair this Task Group once the SRRR has been approved by the CSOEM. Status: SRRR form submitted to CSOEM for review and approval. Action for next SC meeting: Begin soliciting for volunteers and convene the Task Group to work on the 1st Edition draft as soon as the SRRR form is approved.

• Standard 20P - Qualification of Suppliers providing Plating and Coating Services for Equipment used in the Petroleum and Natural Gas Industry Terry Hood, (S&S Plating), has volunteered to chair this Task Group once the SRRR has been approved by the CSOEM. Status: SRRR form submitted to CSOEM for review and approval. Action for next SC meeting: Begin soliciting for volunteers and convene the Task Group to work on the 1st Edition draft as soon as the SRRR form is approved.

• New Business

• Status on the API Monogram Program – Austin Freeman (BP) and Shawn Adams (API) updated the group API Monogram Program issues and activities.

• Registration for SC20 Standards – For clarification, API Standards developed under SC20 will not be included in the API Monogram Program. API Specifications developed under SC20 will be included in the API Monogram program.

• JIP – Steel forgings for subsea applications (DNVGL-RP-0034) – Morten Ro Helsem, DnV presented the group with an update on this document and its potential use and impact.

• Next Meeting The next meeting of SC20 will be at the 2016 E&P Winter Standards Meeting in Austin, Texas, January 18 – 22, 2016.

API Monogram Program Update • 1. The API Monogram Program will have a definition of manufacturer

going forward. – SC18 TG 3 output is in process. MPB recommends commenting on this

document. – If API product standard is silent on manufacturing requirements, SC18 TG3

document will be used by Monogram Program once published. – If API product standard contains manufacturing requirements, they will be used

by Monogram Program in lieu of SC18 TG3 document. NOTE: An API SC could write manufacturing requirements document for entire SC and release as addendum for all documents under their purview.

• 2. The proper use of product questions during an audit is as part of the audit, not a separate activity. – SCs should review adequacy of product questions as part of standard’s

development or revision.

1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

API Monogram Program Update • 3. API Auditor competency improvements

– SC’s should support development of auditor test questions for standards. • 4. NCR reporting

– API revamping site to better explain use and confidentiality – Use it to report

• Non-conforming products • Non-conforming quality management systems (customer audits)

– Don’t use it for • Safety incident reporting

– API Monogram-QR investigates all reports thoroughly and will take action based on their investigation

– API uses the data to help plan the next audit – API can use the data to schedule an un-planned audit

• 5. API Monogram program website – Adding Monogram specific educational information to the website

1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

API Monogram Program Monogram Program Staff – SC Liaison Report 2015 Summer E&P Standards Conference Aaron Duke, Senior Associate, Monogram-APIQR

Monogram Program Board & Monogram 2020 MONOGRAM 2020 Initiatives to improve Monogram Program quality and improve value of the program to industry stakeholders (Users and Manufacturers) AUDIT PROGRAM INITIATIVES Improve the Monogram Program audit quality, effectiveness and rigor COMMUNICATION INITIATIVES Better education and outreach to stakeholder groups MP-SC liaisons – You are better informed, We are better informed

The use of the API Monogram on product constitutes a representation and warrantee by the licensed manufacturer that, on the date of manufacture, the product conforms to all applicable, current editions of specifications, standards and requirements of API. • Monogram is a protected trademark • Monogram can only be used on new equipment • License is facility and product specific • Licensees must have a API Spec Q1 management system in place • Licensees must meet legally enforceable program requirements • API regularly audits to all the program requirements

The Meaning of the API Monogram

Where can you help?

COLOR CODING PRODUCTS ELIGIBLE FOR LICENSING (aka LIFs) AUDIT QUESTIONS AUDIT TOOLS & AUDITOR TRAINING MATERIALS

Where can you help? Development/Revision of the Specs COLOR CODING • Required by S1 for any standard that will be used in the Monogram Program • Performed as part of the publication process • Identifies auditable requirements – criteria for products • Used to identify purchaser specified requirements for purchasing guidelines PRODUCTS ELIGIBLE FOR LICENSING (aka LIFs) • Based on specification and auditable requirements • Adequate design, material, inspection, testing and technical requirements

Where can you help? Audit Program & Auditors AUDIT QUESTIONS • Requirements checklists for audits • Based on products identified from the color coding and SC review • Give auditors a checklist of requirements to cover based on the specific products AUDITOR TOOLS & TRAINING MATERIALS • Recent success with 5CRA • SC5 established a TG on “audit effectiveness” and developed some outputs • Options can include process checklists, presentations on the specs and products,

identification of critical processes, gap analysis, etc…

NCR Website Report nonconforming product, process and QMS concerns to API Monogram-QR at: • Nonconformance reporting website: http://ncr.api.org/ncr.aspx, OR • Yaw Addae-Mintah at addaemintahy@api.org and Aaron Duke at

dukea@api.org • Information kept confidential • All complaints investigated and actions taken • Website to be updated with process and other information

API Monogram-APIQR Programs & ISO 9001: 2015 • New version of ISO 9001 due end of this year • APIQR will continue to offer accredited QMS certification in

conjunction with Licensing and API Spec Q1 certification • APIQR transition in 6-months

– Internal processes, procedures, staff & auditor competence • All ISO 9001 certificates transitioned by end of 2018 • API SC18 forming TG to evaluate changes

API GIS AXIS 2016 – CALL FOR PAPERS

• API GIS Exhibition on International Standards • Kuala Lumpur, Malaysia - January 13-15, 2016 • Educate the international stakeholders on API standards • Upstream Topics

– Quality Management (Q1, Q2, Life Cycle Management) – Monogrammed equipment specifications (wellhead and BOP) – Unconventional exploration and production standards – Deepwater operations – Safety

• CALL FOR PAPERS and SMEs to participate • CONTACT Aaron Duke at dukea@api.org / 1-202-682-8524

http://www.api.org/AXIS2016

• Do you need new or revised documents color coded? • Are you concerned about the products in the Monogram Program? • Does your SC want to see the audit questions and review them? • Any concerns about audits and gaps in the program? • Do you have ideas to assist in auditor training and audits? • Interested in more information on API AXIS 2016?

Aaron Duke dukea@api.org 1-202-682-8524

THANK YOU

DNV GL © 2014 23-24 June 2015 SAFER, SMARTER, GREENER DNV GL © 2014

23-24 June 2015 Morten Ro Helsem

OIL & GAS

Steel forgings for subsea application

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API summer meeting

With courtesy of BRÜCK GmbH

DNV GL © 2014 23-24 June 2015

Introduction - Forging JIP

Gap analysis, Operator specs

•Five operator specifications reviewed

•Differences and commonalities identified

Interviews participants

•All participants interviewed about their expectations.

RP drafts

•Four drafts •Four workshops •More than 1000 comments discussed and resolved

RP released

•Official hearing process

•DNV GL design review

•RP released February 2015

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The RP provides for: - Harmonized requirements - Reduced lead time - Consistent quality - Interchangeability - Enhanced stock keeping

Background/challenge: End users’ individual technical requirements to forgings lead to long delivery times

DNV GL © 2014 23-24 June 2015

Participants – JIP phase 1

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DNV GL © 2014 23-24 June 2015

DNVGL-RP-0034 – Steel forging for subsea application

•Applicable for carbon and low alloy steel forgings •Three forging classes that reflect increasing criticality •All classes intended for PSL 3 (3G) equipment

General

•Certified QMS conforming to ISO 9001 •Detailed requirements for content of MPS •Generic requirements for ITP •Requirements for marking, traceability, certification and documentation

Quality assurance and quality control

•Requirements for melting, refining, casting, forging and heat treatment •Requirements for testing, inspection and repair of production forgings •Mechanical properties required at the critical section

Technical provisions

•Applicable for the two highest classes; increased extent of testing •Essential variables and validity of MPQ defined

Manufacturing procedure qualification

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DNV GL © 2014 23-24 June 2015

JIP Phase 2 – Scope of work

Objective – Develop quality assurance program/requirements that enables pre-stocked forgings

– Share experience and enable improvement of DNVGL-RP-0034

Scope of work – Develop quality assurance program/requirements that build on existing quality

management systems (QMS) standards such as ISO 9001, ISO/TR 29001 and API Q1.

– Develop standardized inspection and test plans (ITP)

– Conduct case studies to ensure unambiguous interpretation of requirements in the RP

– Exchange of user experiences

– Updating of the RP based on user experiences

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DNV GL © 2014 23-24 June 2015

Relation to API documents

The RP intend to comply with existing industry codes for subsea equipment.

– (API 6A), API 16A, API 17A, API 17B, API 17D, API 17G, API 17P

The RP intend to comply with the requirements in API 20B and API 20C

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