Neftegazstandart-2009Kazan

9 September 2009

Trends/drivers in international standards for equipment for the oil and gas sector

Neil Reeve

Chair ISO/TC67, and OGP Standards Committee

Introduction and purpose

This presentation sets out to explain the following:• Description of ISO/TC67• OGP standards position• Oil companies use external standards• Changes: in market, ISO/TC67, and other Standards

Developing Organizations• Way forward

WG8 Materials, welding,

etc.

ISO TC67organisation and secretariat (flag)

• Re-established in 1989 with ANSI/API holding secretariat

• Member countries: 32 participating, 28 observing

• Involves more than 1,500 engineers around the globe

• Annual plenary meeting, next in Canada, 1-2 October 2009

• Management Committee meets three times per year

• Published standards: 139

• Current work programme: 71 standards (new + revisions)

Handover to NEN in Oct 09

Participating MembersObserving Members

TC67 COUNTRY MEMBERS

Kazan - Sept 2009

Mission: Mission: To create value-added standards for the oil and natural gas industry

Vision:Vision:Global standards used locally worldwide

Goals:Goals:– 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/TC 67 statements

ISO TC67 has published 135+ standards.

API has adopted 65+ of these as joint API / ISO standards.

CEN has adopted 115+ of these as joint European EN ISO standards.

China, Gulf Region, India, Kazakhstan etc. have also adopted many of these ISO standards.

Follow these industry standards

134128

125

0 2

116109

96

76

60

41

19

866

0

20

40

60

80

100

120

140

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

ISO/TC 67 accomplishments: Cumulative number of documents published

Note: excluding “fasttrack”ISOs

OGP position on standardsOGP strongly supports the internationalisation of key standards.

OGP’s position on standards includes:

• Promote development and use of ISO and IEC International Standards.

• Ensure standards are simple and fit for purpose.

• Use International Standards without modification wherever possible.

• Available resources should be used efficiently, avoiding duplication of effort.

• Company specifications should be minimised.

• Promote “users” on stardards work groups.

The adoption of this approach is expected to minimise barriers to trade, enable more efficient worldwide operations, and improve the technical integrity of equipment, materials, and offshore structures used by the Petroleum, Petrochemical and Natural Gas Industries.

For full position, see OGP report No. 381, April 2007, 3r

d

edition.

The adoption of this approach is expected to minimise barriers to trade, enable more efficient worldwide operations, and improve the technical integrity of equipment, materials, and offshore structures used by the petroleum, petrochemical and natural gas industries.

For full position, see International Association of Oil & Gas Producers, (OGP) report No. 381, April 2007.

Local Operating Company responsibility

Shell Group Common Base.Central organization responsibility

Increased resources for critical standards

Businessjustification to deviate

ExternalExternal Standards

DEP

ProjectVariation

CompanyVariation

Management controlKnowledge feedback

Example: Shell Transparent Standards Structure

DEP – Design and Engineering PracticeCompany Variation – EGGS in USA; ESTGs in Canada; ERDs in Oman etc

1,000,000standards published worldwide

100,000standards made available to Shell

20,000titles accessed each year

2,000standards

referenced in DEPs

200standardsmanaged

Example: Shell focus on key external standards

Changes in MarketEssentials remain the same, but…• World financial climate

• Increasing globalisation of markets (import/export)

• Downsizing/sharpening projects Increasing need for good, up to date, globally relevant

technical standards Towards:

“1 standard, 1 test, accepted everywhere”

Total Cost of Ownership

Change in ISO/TC67 Secretariat

• ANSI/API (USA) have decided to relinquish the Secretariat of ISO/TC67 after 20 years service

• ISO have allocated this Secretariat to NEN (the Netherlands) – July 2009

• Effective after ISO/TC67 plenary meeting in October 2009

Expected:

Neil Reeve – Chair (Shell)

Harold Pauwels – Secretary (NEN)

Changes in ISO/TC67

• New Secretariat• New Work Group 8 on Materials (Brazil)• New Work Group 10 on LNG (Japan)• Steadily increasing membership (new: Bahrain,

Belgium, Iran, Kazakhstan and Sweden)• Steadily increasing participation (Brazil, China,

Russian Federation)• More than half the portfolio has been revised at

least once or is in revision

Members of ISO/TC 6732 Participating (P) Members:

Argentina, Bahrain, Belgium, Brazil, Canada, China, Denmark, Finland, France, Germany, Indonesia, Iran, Italy, Japan, Kazakhstan, Korea, Libya, Mexico, Netherlands, Nigeria, Norway, Portugal, Qatar, Romania, Russian Federation, South Africa, Spain, Sweden, Ukraine, United Kingdom, USA, Venezuela

28 Observer (O) Members:Australia, Austria, Azerbaijan, Bulgaria, Colombia, Croatia, Cuba, Czech Republic, Ecuador, Egypt, Hong Kong, Hungary, India, Ireland, Malaysia, Moldova, Mongolia, Oman, Poland, Saudi Arabia, Serbia, Singapore, Slovakia, Switzerland, Thailand, Trinidad and Tobago, Turkey, Viet Nam

Changes in other Standards Developing Organizations

• Strong position of ISO, IEC• Continuous performance of ISO/TC28 and 193, and

range of other ISO and IEC TCs• Continually growing CEN/CENELEC, but many

based on ISO/IEC standards• New Russian Federation TK23• EASC• Growing Gulf Standards Organization• Continuing performance of US Standards Developing

Organizations

Growth of CEN European Standards

Cumulative number of published CEN standards

400

2400

6400

9900

13300

130600

5000

10000

15000

1981 1985 1990 1995 2000 2005 2008

MORE THAN 200 MILLION CARS IN EUROPE

RUN ON EUROPEAN STANDARDS!

Kazan - Sept 2009

CompaniesCompanies

IndustryIndustry

Recognised

Recognised

CONTRACTORS SUPPLIERS

API EEMUA EIASME

NationalNational ANSI BSI

RegionalRegional CEN / CENELEC

InternationalInternational ISO / IEC Vienna Agreement

OPERATORS

OGP

OtherEuropean

Russia, ChinaBrazil, etc.

Liaison

Standardization Bodies - Relationships

Conclusion and way forward• ISO/TC67 has a solid portfolio of standards for

equipment for our industry.• Other international standards committees, also.• They are developed by experts from oil

companies, manufacturers, certification bodies and regulators from all over the world.

• Increasingly, they are used by companies and accepted by regulators around the world.

• “For cooperation, not competition”.• The increasing Russian Federation presence is

welcomed.

ISO/TC 67 Vision

Global Standards Used

Locally Worldwide

Thank you for invitation toNeftegazstandart-2009,to share this with you

neil.reeve@shell.comwww.iso.org

www.ogp.org.uk