Exploring the Gas and Oil Industry-GonzolesGB9

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    Tim Gonzalez

    Sales

    Monogram Program / A PIQR

    [email protected]

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    Todays Presentation

    API Program Overview

    Overview

    Certification Programs

    API Monogram Licensing & Q1

    API Spec Q1 Product Specifications

    License Agreement

    The API Audit

    Audit Focus and Requirements

    The Auditors

    Audit Expectations

    The Monogram Mark

    Meaning of the Mark

    Use of the Mark

    Composite List

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    API Monogram Program Overview

    Goals and Focus

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    Certify the Individuals

    Individual Certification Programs

    Training Courses

    Certify the Management Systems

    API Spec Q1/ISO TS 29001Registrations

    ISO 9001 Registration

    ISO 14001 Registration

    OHSAS 18001 Registration

    Certify the Products and Services Monogram Licensing

    Engine Oil Certification

    Comprehensive

    Coverage

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    Created by industry

    Standards drafted and maintained byindustry

    Regulated and directed by industry

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    Standardization and Consistency

    Management System Implementation

    Quality System and Industry Standardization

    Auditor Competency

    Internationally Recognized

    Power of the Composite List

    Industry Guidance and Oversight

    APIs Commitment to

    the

    Oil and Gas Industry

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    API Monogram Program,

    Licensing, Q1

    Program Requirements & Benefits

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    April 2011

    We Are Currently in 76

    Countries

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    Monogram Program

    Growth

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    April 2011

    o3209 Licensees

    o76 Countries

    Top Countries:

    China 1,310

    USA 546

    India 195

    South Korea 112 Canada 93

    Italy 86

    United Kingdom 64

    Monogram Licensees

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    April 2011

    o5296 Licenses

    o76 Countries

    Top Countries:

    China 2,062

    USA 816

    India 364

    Italy 187 South Korea - 159

    Canada 143

    UAE 132

    Monogram Licenses

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    April 2011

    o 910 Applications

    o 782 New Facilities

    o 128 License Additions

    Top Countries:

    China 401

    USA 87

    India 63 South Korea 28

    UAE 27

    Italy 26

    Canada - 24

    Monogram

    Applications

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    3 Essential Elements

    Quality System

    conformance to

    API

    Specification

    Q1

    Conformance to

    one or more API

    Product

    Specifications

    And the License

    Agreement /

    Program

    Requirements

    3 Essential Elements

    1 2 3

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    3 Essential Elements

    Quality System

    conformance to

    API

    Specification

    Q1

    Conformance to

    one or more API

    Product

    Specifications

    And the License

    Agreement /

    Program

    Requirements

    3 Essential Elements

    2 31

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    API Spec Q1 is developed and maintained bypetroleum industry professionals for petroleum

    industry professionals

    API Spec Q1 is maintained by an API Quality

    Committee which consists of international oil

    company professionals, equipment manufacturers,

    quality system auditors, service companies and APIequipment and quality professionals

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    Standard specifies requirements for QualityManagement Systems for the petrochemical,

    oil and natural gas industry

    Annex A specifies the requirements for theAPI Monogram Program

    } Not just limited to:? the manufacturing of API specification

    products or API Monogrammed products

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    Total

    Valourec

    Hess Corp

    NOV

    FMC

    Chevron

    Weatherford

    Baker Hughes

    GL Noble Denton

    Transocean

    Cameron

    Halliburton

    Hunting

    US Steel

    Schlumberger

    GE Oil and Gas

    Nippon Steel

    BP

    Wood Group

    TMK

    Tuboscope

    Petrobras

    Shell

    Tenaris

    American Steel Pipe

    Tex Tube

    PDVSA

    Tubacero

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    Uses ISO 9001:2008 as the base document

    with additional / supplemental requirementsfor the petrochemical, oil and natural gasindustry

    41 Elements are the difference

    - That is what makes Q1 STRONG!

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    19

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    Records & Control Features

    Referenced throughout standard

    Specific records required Records provide evidence of conformity

    Quality Policy Section 5.3

    Reviewed and current

    Framework for objectives

    Outsourcing Sections 4.1 & 7.4

    Must be controlled

    Evidence of process and spec conformance

    API Spec Q1

    What Makes it Different

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    Design Process Section 7.3

    Control features implemented

    Evidence that product spec requirementsmet

    Design validation & verification complete

    Competent people

    Design Packages must be established forproducts

    Design outputs include spec & customer

    requirements

    Evidence of review, verification andvalidation

    Outsourced design must be controlled

    API Spec Q1

    What Makes it Different

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    Production Plans Controls Section 7.1 7.5.1

    Plan processes to ensure conforming productproduced

    Controls address product spec requirements

    Processes Requiring Validation Section 7.5.2

    Product Spec requirements API Spec Q1 Heat treat, NDE, welding Includes outsourced processes Section 7.4.1.3

    Customer Satisfaction / Processes Section 8.2.1

    Must monitor & measure customer satisfaction Management reviews & analysis

    Internal Audits Section 8.2.2 Planned, completed, procedures Are product specs part of internal audits?

    Corrective / Preventive Actions Section 8.5.2/8.5.3

    Proactive vs. Reactive with Root Cause identified

    API Spec Q1

    What Makes it Different

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    } Licensee must comply with API Spec Q1, Annex

    A

    } Must meet all requirements of the ProductSpecification

    } Must comply with License Agreement

    } Must apply the API Monogram on products inaccordance with Annex A

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    3 Essential Elements

    Quality System

    conformance to

    API

    Specification

    Q1

    Conformance to

    one or more API

    Product

    Specifications

    And the License

    Agreement /

    Program

    Requirements

    3 Essential Elements

    1 32

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    Accredited by the American National Standards Institute (ANSI).

    API maintains approximately 550 standards and publications.

    In great demand globally; many API standards have beenadopted by ISO and other regulatory bodies.

    So who actually writes API standards?

    API standards are developed through an API organized

    collaborative process that includes users manufacturers and

    technical consultants.

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    Series 2: Offshore Structures

    Series 4: Derricks and Masts

    Series 5: Tubular Goods

    Pipe

    Casing and Tubing

    Threading

    Series 6: Valves and Wellhead

    Equipment

    Series 7: Drilling Equipment, Bits

    Series 8: Hoisting Tools

    Series 9: Wire Rope

    Series 10: Oil Well Cements

    Series 11: Production Equipment

    Series 12: Lease Production Vessels

    Series 13: Drilling Fluid Materials

    Series 14: Offshore Safety and Anti-

    Pollution

    Series 15: Fiberglass and Plastic Pipes

    Series 16: Drilling Well Control Systems

    Series 17: Subsea Production Systems

    Series 20: Supply Chain Management

    Castings forgings NDE

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    Std 594: Check Valves

    Std 599: Metal Plug Valves

    Std 600: Bolted Bonnet Steel Gate Valves

    Std 602: Steel Gate & Check Valves

    Std 603: Corrosion-resistant, Bolted Bonnet , Steel Gate Valves

    Std 608: Metal Ball Valves

    Std 609: Double Flanged Butterfly, Lug and Wafer-Type

    Std 650: Welded Tanks for Oil Storage

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    Licensees for 65 Different Specifications April 2011

    Top Ten

    Specifications

    5CT: Casing and Tubing6D: Pipeline Valves6A: Wellhead and Christmas TreeEquipment5L: Line Pipe7-1: Rotary Drilling Equipment7K : Drilling Equipment16A: Drill Through Equipment5DP: Drill Pipe4F: Drilling Structures

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    www.api.org/publications

    API

    Publications

    Catalog

    IHS Global, Inc.

    15 Inverness Way East

    Englewood

    CO 80112

    www.global.ihs.com

    303.397.7956

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    3 Essential Elements

    Quality System

    conformance to

    API

    Specification

    Q1

    Conformance to

    one or more API

    Product

    Specifications

    And the License

    Agreement /

    Program

    Requirements

    3 Essential Elements

    1 2 3

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    } 42 clauses specifying the license requirements

    } Provides buyer with additional protection / remedyin legal situations with manufacturer

    Clause 3 states:

    Licensee agrees that use of the API Monogram on the

    products shall constitute a representation and warrantyby Licensee to API and to the purchasers of the Licenseesproducts that the products conform to the applicablestandards, specifications and requirements of API

    API License Agreement

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    OK

    YES

    NO

    AUDIT

    PROCESS

    Quality

    Manual

    Review

    Process

    http://www.api.org/certificati

    ons

    QM

    OK

    API

    FEEDACK

    QMS

    OK

    YES

    YES

    YES

    N

    O

    API Spec Q1

    Requirements

    Addressed?

    Application

    License Agreements

    Registration Agreements

    Product Info Sheets

    Quality Manual

    Fees

    API

    FEEDACK

    API

    FEEDACK

    API Monogram Licensing Process

    N

    O

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    The API Audit

    Goals and Focus

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    } QMS Conformance with API Spec Q1

    }

    Manufacturing capability

    } Meet Program & License AgreementRequirements

    } Provide consistent, conforming products

    } Continuous improvements

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    REQUIREMENTS ISO 17021 Certification body requirements ISO 19011 Audit requirements Direction from our technical committees

    CRITERIA API Spec Q1 Product Spec Requirements License Agreement & Program Requirements Advisories

    SCOPE Products under licensing scope Oil and gas industry products / services QMS processes required by API Spec Q1 All processes required to produce conforming

    products

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    QUALIFIED & COMPETENT

    Certified QMS auditors

    Quality management system experience Auditing experience

    Technical oil and gas industry experience

    API specification and industry standardunderstanding

    Professional referrals Completed product specification testing

    Trained & evaluated by Senior experienced APIstaff and auditors

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    API Spec Q1 Requirements Records & Control Features Quality Policy Training and Competence

    Design Requirements Outsourcing Processes Requiring Validation Internal Audits Corrective / Preventive Actions Customer Satisfaction

    Product Spec Requirements Product Questions

    Manufacturing Capability API Audit Report

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    APIs Monogram Mark

    Use and Meaning

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    } Licensees QMS is compliant with API Spec Q1

    } Licensee is a capable manufacturer and has thetechnical capability to meet API Product

    Specification requirements} Licensee has entered into a warrantee with the

    purchaser, meaning that products meet the APIrequirements

    } Licensee can only apply the API Monogram on

    products for which they have the license

    } Licensee has made a commitment to the industryto improve

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    } Spending worldwide over $200+ billion USD

    } 50% of the total for most upstream capitalprojects

    } International Oil Companies want:

    Interchangeability

    Reliability

    Supplier confidence

    Traceability of product

    Timeliness of service

    Accuracy of purchasing

    Defined terms and conditions

    Supplier conformity to contract

    requirements

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    Applied only by licensee at the licensedfacility

    Applied only when API Spec Q1 & API ProductSpec is met

    Must include license number and date ofmanufacture

    Can be applied at any time during the

    manufacturing process, but must be removedif product is found to be nonconforming

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    API Spec 5CT / ISO 11960

    Products shall be marked by stenciling, or acombination of stenciling and stamping, atthe option of the manufacturer, as stipulated.

    The complete monogram consists of thefollowing: 5CT, license number of the plant

    doing the manufacturing, the API Monogram,and the date of manufacture.

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    The API Composite

    List

    } Available on CD and at

    www.api.org/composite

    list

    } Applicable specification} Product types

    Product

    Scope

    Company Name

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    Required nformation

    Company Name

    Street Address

    City, State orProvince and

    Zip/Postal Code

    Country

    Telephone Number

    Fax Number

    License Number

    Optional nformation

    Mailing Addresses

    Sales Telephone Number

    Email Addresses

    Websites

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    Search by:

    Certifications

    Regions

    Products

    Country

    States (USAOnly)

    Companies Will Search for You

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    API Program Overview

    Overview

    Certification Programs

    API Monogram Licensing & Q1

    API Spec Q1

    Product Specifications License Agreement

    The API Audit

    Audit Focus and Requirements

    The Auditors

    Audit Expectations

    The Monogram Mark

    Meaning of the Mark

    Use of the Mark

    Composite List

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    Questions ?

    We Thank You

    Tim Gonzalez

    Sales

    Monogram Program / APIQR

    [email protected]