API Spec Q2

Quality Requirements for E&P Service Providers

Stacey Hagen Global Quality Team Lead

March 06, 2012
Operator Perspective
Objectives
Provide history and operator expectations on API Spec Q2
Outline
Business Drivers
Overview API Subcommittee 18 Task Group 5 API Spec Q2
API Spec Q2 Elements Specific to Drilling Services
Beta Test Audits
Expectations for Compliance


Agenda
Non-Productive Time (NPT)
Failures, unreliability,
breakdowns, inefficiencies,
plans gone wrong, time wasted
and money wasted
Problem events with Drillings
stewardship which interrupt the
critical path activity
Planned operations required
in order to complete the
stewarded work
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 operations
Business Driver
Business Driver
Root Causes for NPT
Competency / Training
Lack of procedures
Not following procedures
Lack of inspection/test
No Contingency Planning
Lack of a Preventative
Maintenance, Inspection ,
Test Programs
Lack of Use History Logs
Business Driver
Inconsistent Global Quality
Business Driver
ExxonMobil Requirements
Not always specified
API Spec Q1 for
manufacturing
Contract requirements
specific to customer
Variation in customer
requirements leads to
inconsistent global Quality

Business Driver
ExxonMobil Critical Quality
Requirements
Created Task Group 5 under SC18
Developed and balloted document
in less than 9 months
Published December 15, 2011
Standardizes the expectations for
execution of upstream services
including well construction,
intervention, production and
abandonment
Two regulatory agencies looking at
document for application in offshore
and line pipe construction activities

Need for Industry Standardization
SC18
TG 1 TG 2 TG 3 TG 4 TG 5 TG 6 TG 7
Auditor
Effectiveness
CSOEM
API
Spec Q1
Monogram
Program
Min. Mfg.
Requirements
API
Spec Q2
Welding Life Cycle
Management
Sub Committee 18 Structure
Operators:

ExxonMobil
BP
Chevron
Hess
Shell
Total
Service Companies

Baker
Cameron
FMC
Halliburton
NOV
Schlumberger
Tenaris
Transocean
Weatherford

Interested Parties:

TIEC
QSI
SC18 Task Group 5
Competency / Training of Personnel
Risk Assessment and Management
Contingency Planning
Purchasing Control for Critical / Non-Critical Services
Service Quality Plan
Preventative Maintenance, Inspection and Test
Service Performance Validation
Management of Change


Drilling Service Specific Additions
Appropriate
Education
Training
Skills
Experience
Competency of Personnel
Testing
Practical
Problem
Solving
Identify risks (potential and real)
Select, communicate and implement
mitigation or preventive control
measures to reduce or avoid exposure
to loss
Notify customer of remaining risks
that may impact the service
Risk Assessment and Management
- Actions required for significant risk
- Assignment of responsibility & authority
- Internal and external communications
Integration
Disruption
Prevention
Mitigation
Measures
Contingency Planning
History
Risk
Reliability
Spares
Service Quality Plan
Details for execution of service
Identifies acceptance
inspection (W, M, H and DR)
Identifies control of
subcontracted activities
References to procedures,
specifications, work
instructions
Identifies acceptance criteria
Communicated to the
customer
Preventive Maintenance, Inspection, Test
Preventive maintenance
Use History Logs
Critical Spare Parts
Controls for Equipment Integrity
R
e
s
o
u
r
c
e
s

-90+ 0 40 10 20 160+ 80
Risk
Assessment
Drilling Operations
Design of
Service
PM
Programs
Contingency
Planning
Maintenance
& Critical Spares
Assembly
Insp / Test
QA/QC
Service
Performance
Validation
BHA Inspections
MOC
Critical
Suppliers
Time ( rig days)
(AFE) Spud
Operations Support
Well Integrity
Reduction of NPT
Contractor Influence
A
P
I

S
p
e
c

Q
2

Tool Insp
@ delivery
Competency
Service
Quality Plans
Development of a Users Guide
Identifies expectations for requirements
Provides guidance to Industry for implementation
Utilized to train API Auditors / Staff
SC18 TG5

SC18 TG5 Chairman: Jim Hood Chevron
Jim.Hood@chevron.com



Forward Plan for API Spec Q2
Industry Forum
Held on February 23, 2012 in Houston, Tx
Used to gain input from industry on the type of
certification program that is needed
Attempt to identify the impact to Drilling Service
Industry
Address API Staff questions
Determine time line to implement requirements
Forward Plan for API Spec Q2
Beta Test Audits
gaps, hurdles and milestones for auditing to Q2
Identify competencies / training for API Staff / Auditors
Identify needed resources
Types of certifications needed to meet industry needs
Forward Plan for API Spec Q2
Baker
Weatherford
Halliburton
ExxonMobil Expectations
Compliance to API Spec Q2 (Inclusion in Contracts)
Service Suppliers to develop gap analysis and
communicate to customers
Service Suppliers to identify a global roll-out plan
based on risk and activity
Hot spots will require immediate attention
Target for certification - Year End 2013
Forward Plan for API Spec Q2
API Spec Q1
Monogram
License
API Spec Q2
API Spec Q1 is being re-written to match Q2 Flow
Rewrite enables single system for dual applications
Questions?