OTC-28705-MS

ISO Standards to Enable Reliable, Safe and Cost-Effective TechnologyDevelopment, Project Execution and Operational Excellence

R. Østebø, Statoil ASA; J. T. Selvik, International Research Institute of Stavanger; G. Naegeli, Petrobras;T. Ciliberti, Reliability Dynamics LLC

Copyright 2018, Offshore Technology Conference

This paper was prepared for presentation at the Offshore Technology Conference held in Houston, Texas, USA, 30 April–3 May 2018.

This paper was selected for presentation by an OTC program committee following review of information contained in an abstract submitted by the author(s). Contents ofthe paper have not been reviewed by the Offshore Technology Conference and are subject to correction by the author(s). The material does not necessarily reflect anyposition of the Offshore Technology Conference, its officers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the writtenconsent of the Offshore Technology Conference is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations maynot be copied. The abstract must contain conspicuous acknowledgment of OTC copyright.

AbstractThis paper addresses the current oil & gas industry need for awareness and how to accelerate useof international standardization efforts, with focus on multi-disciplinary ISO standards and businessgovernance. Qualified compliant use of ISO standards can unlock necessary business value and isa means to achieve cost-efficiency, HSE objectives, and minimize climate impact. The user domainencompasses regulatory bodies, oil and gas companies, drilling companies, engineering companies,equipment manufacturers, research & consultancies.

The ISO/TC67 Working Group "Reliability engineering and technology" has responsibility for reliabilityand cost related ISO standards within the Petroleum, petrochemical and natural gas industries. The portfolioof the multi-disciplinary ISO standards is internationally acknowledged and has recently been updated bymany new standards that the global user domain can benefit from to achieve cost reducing technologies.Reliability and cost is part of the equation in innovative technology development processes to enforce qualityand minimize risk, and enable new technology meets overall business performance objectives.

This paper will give highlights of the following ISO standards and a roadmap for their application:

• ISO 14224 - Collection and exchange of reliability and maintenance data for equipment• ISO 20815 - Production assurance and reliability management• ISO 19008 - Standard cost coding system to gas production and processing facilities

Company applications are presented to show examples in technology development, project development,and oil & gas field operations. Standards relation to digitalization of oil and gas industry will also beaddressed, e g. how "reliability communication" between oil company and supplier can benefit from useof the latest ISO standard 14224. Contractual framing of reliability and Key Performance Indicators willalso be presented.

This ISO standardization work is based on international expert team efforts by many countries, and incollaboration with IOGP. The work supports the ISO/TC67 Mission: "To create value-added standards forthe oil and gas industry", and the ISO/TC67 Vision: "International standards used locally worldwide."

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IntroductionThe oil & gas industry has during the last years increased the attention to standardization and this isbeing executed by industrial management prioritization and involvement of various technical competenceareas. The industry societal and business objectives (HSE, cost, quality, sustainability, etc.) will requirereliable, safe and cost-effective solutions and operations that will need use and accelerated applicationof international standards developed by this industry. Petroleum, petrochemical and natural gas industriesacross the world constitutes a mix of existing (old) facilities, ongoing (innovative) projects and future (new)installations that rely on content of such standards to achieve sustainable business performance.

This paper aims to strengthen the current oil & gas industry awareness of internationally developedstandards to accelerate the use of invested international standardization efforts, and with focus on multi-disciplinary ISO standards that is part of business governance. Qualified compliant use of such ISOstandards can unlock necessary business value and provide means to meet HSE objectives and cost-efficiency, and minimize climate effect.

The ISO/TC67/Working Group 4 (WG4) "Reliability engineering and technology" has responsibility forreliability and cost-related ISO standards within Petroleum, petrochemical and natural gas industries. Theportfolio of the multi-disciplinary ISO standards is internationally acknowledged and this paper will presentsome key features therein, and reflect the new and recent update of these standards. Quality (reliability) andcost is part of the equation in innovative technology development processes to enforce quality and minimizerisk, and enable new technology to meet overall business performance objectives.

The user domain will encompass regulatory bodies, oil and gas companies, drilling contractors,engineering companies, equipment manufacturers, research & consultancies. The users of the multi-disciplinary ISO/TC67/WG4 standards will include a variety of disciplines: technology developers, conceptand system planners, equipment designers, HSE staff, reliability analysts, maintenance engineers, integritymanagement, cost estimators and other professional subject-matter experts. Company applications arepresented to show examples in technology development, project development, and oil & gas field operations.

Business industry arenaThe petroleum, petrochemical and natural gas industries is a major industry in most countries' economies.The global industry situation requires high management attention to enable sustainable existing and newfacilities. Qualified use of standards developed by the global standardization arena and their participatingmember countries and associated companies is thus an industrial responsibility and provides means to:

• Reduce risk (safety and environment)• Save cost by controlling variety• Minimize company own specifications• Capture standardized learnings

The compliant use of ISO standards can thereby unlock necessary business value and is a means to achievecost-efficiency, HSE objectives, and minimize climate impact. The industry and company responsibilitiesto avoid cost-escalation when oil & gas investment projects may emerge after last year's industry crisiswill also include proper management in standardization and how to accelerate the deployment of standardsdeveloped in particular.

Global standardization arenaThe International Standards system is managed by the World Standards Cooperation and is a high-level collaboration between the IEC (International Electrotechnical Commission), ISO (International

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Organization for Standardization) and ITU (International Telecommunication Union). As stated by WorldStandards Cooperation (u.d.) the three organizations preserve their common interests in strengtheningand advancing the voluntary consensus-based International Standards system. IEC, ISO and ITU believethat International Standards are an important instrument for global trade and economic development.They provide a harmonized, stable and globally recognized framework for the dissemination and use oftechnology.

The international standardization organization (ISO) is an independent, non-governmental organizationwith a membership of 162 national standards bodies (NSB). ISO/TC67 entitled "Materials, equipment andoffshore structures for petroleum, petrochemical and natural gas industries" is the technical committeecovering the entire oil & gas industry with the following scope:

• "Standardization of the materials, equipment and offshore structures used in the drilling,production, transport by pipelines and processing of liquid and gaseous hydrocarbons within thepetroleum, petrochemical and natural gas industries. Excluded are aspects of offshore structuressubject to IMO requirements (ISO/TC8)"

ISO/TC67 has 33 participating member countries (e.g. Brazil, Canada, China, France, Italy, Norway,UK and USA) and in addition 31 observing member countries. ISO/TC67 has per October 2017 publishedISO standards (#195) and new or revised ISO standards (#56) are currently under development. Thestandards development and business objectives are reflected in the following ISO/TC67 Mission and Visionstatements:

• ISO/TC67 Mission: To create value-added standards for the oil and gas industry• ISO/TC67 Vision: International standards used locally worldwide

Figure 1 below illustrates the cumulative number of ISO/TC67 standards published over the last 20 years,as per October 2017. During the last 5 years more than 30 new ISO standards have been issued, and newor revised ISO standards have also been issued since 4th Quarter 2017.

Figure 1—Cumulative number of ISO/TC67 standards published (ISO/TC67 Secretariat report October 2017)

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National adopted back versions of the ISO/TC67 standards can be made amongst all the ISO P-membercountries and other countries. The international ISO standards are normally also co-issued as CEN-standardsfor the European CEN-member countries. Equivalently, CENELEC issues IEC-standards for the EuropeanCEN-member countries. A national adopted back version will typically use a pre-fix (e.g. in Norwaylike NS-EN ISO 14224, as issued by Standards Norway), and sometime a separate number may be used(e.g. in USA like API 689, as issued by ANSI/API). A separate report "Global standards used locallyworldwide" (ISO, 2016) has been made by ISO/TC67 and provides a useful list of ISO/TC67 standards andtheir status with API, CEN and various regional and national standards developing organizations. A newrevision of this report is planned for and will then reflect last year's new standards development deliverables.

Besides, the international ISO/TC67 standards, standards, recommended practices and/or guidelinesdeveloped by other regional, national or industry organizations can also be applied globally in the oil &gas industry, e.g.:

• Regional standards (e.g. EN-standards in Europe)• National standards (e.g. ABNT, ANSI, BS, NS)• Industry standards (e.g. API, NORSOK, DNVGL)• Other industry organizations (e.g. IOGP)

In some cases, such standardization documents may over time be transferred to ISO/TC67 portfolio,thereby subject to integration or supplementing the international ISO/TC67 portfolio, as developedaccording then to ISO/IEC Directives and with experts from ISO/TC67 P-member countries.

IOGP is the International Association of Oil & Gas Producers. IOGP works on behalf of the world's oil &gas exploration and production (E&P) companies to promote safe, responsible, and sustainable operations.Standardization is a top priority for the oil and gas industry to enable and enhance safety, reliability andintegrity of operations globally. The ISO/TC67 standardization is done in close collaboration with IOGP thatis an A-liaison to ISO/TC67. IOGP is also currently developing a "List of Operators’ preferred standards"from the standards created by the various standards organizations. This emphasizes that standardization isa top priority for the oil & gas industry, and that standards are a key deliverable to this.

The ISO standards development within ISO/TC67 are organized in sub-committees (#8) and workinggroups (#7). The ISO/TC67/WG4 "Reliability engineering and technology" is a multi-disciplinary workinggroup and has responsibility for reliability and cost-related ISO standards within Petroleum, petrochemicaland natural gas industries. ISO/TC67/WG4 involves more than ten ISO P-member countries, e.g. Brazil,Canada, France, Italy, Netherlands, Norway, UK and USA.

Governance frameworkRegulatory referencing to ISO/TC67 standards are sometimes also done by the relevant regulator for oil& gas industry. The national adopted back version is then normally used in regulations for a country.For example, NS-EN ISO 14224 and NS-EN ISO 20815 are in Norway referred to by Petroleum SafetyAuthority (PSA) in the Activity regulations.

Company requirements (functional, operational and technical) will relate to business objectives (e.g. HSEand cost) and cross-functional areas in the value chain (systems, equipment, operations & maintenance,etc.) across relevant or all life cycle phases (e.g. project development). Oil & gas companies and equipmentsuppliers may to a larger degree than in previous years reflect and utilize the developed global standardsas part of their corporate governance, and thus minimize company requirements and specification. JIP33,managed by IOGP, is an important industry initiative that accelerates the use of these global standards.

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ISO/TC67/WG4 standards portfolio on reliability and cost standardsThe ISO standards portfolio in the ISO/TC67/WG4 Reliability engineering and technology is listed belowand some key features and application area of some of these ISO standards are outlined in this paper. TheFigure 2 illustrates the framework of these standards as further described in ISO 20815.

• ISO 14224: "Collection and exchange of reliability and maintenance data for equipment." 3rdedition was issued 15 September 2016.

• ISO 20815: "Production assurance and reliability management."• 2nd edition planned for in 2018 (based on ISO/DIS 20815 version issued 26 July 2017).• ISO/TR 12489: "Reliability modelling and calculation of safety systems."• 1st edition was issued 1 November 2013.• ISO 15663-Part 1, 2, and 3: "Life cycle costing."

The 1st editions were issued in 2000-2001, and new revision has initiated in January 2018.• ISO 19008: "Standard Cost Coding System for oil and gas production and processing facilities."

1st edition was issued 15 August 2016.

Figure 2—An illustrative framework of reliability and cost standardization in ISO/TC67

Some key features of ISO 14224, ISO 20815 and ISO 19008 are further described below, whilst for ISO/TR 12489 and ISO 15663 some short summary and status is given below.

• ISO/TR 12489: The ISO/TR 12489 was issued in 2013 based on work done by an internationalproject team in ISO/TC67/WG4 and involved 11 countries (Belgium, Brazil, China, France, Italia,Netherlands, Nigeria, Norway, Spain, UK and USA). It is a technical report that provides guidelineson the reliability assessment of any type of safety systems. For safety instrumented systems, itsupplements IEC 61508-6:2010 (functional safety). The ongoing technical report work in 2010was included into the programme of work by the ISO/TC67 Industry Events Task Force that wasestablished after the Montara and Macondo blowouts, in their programme of work for reviewingthe standards in the field of well construction and well operations. The technical report addressesreliability modelling and calculation of safety systems also applicable for non-safety systems, andhas also useful guidelines on how to include human factors in addition to technical & operationalmatters in production assurance and reliability management. It does also provide a separate list ofsystems with safety functions that may require reliability analysis attention. See more informationof the ISO/TR 12489 in other published papers by Signoret et al. (2014a, 2014b).

• ISO 15663: The ISO 15663 standard series (2000/2001) focusses on Life Cycle Costing (LCC).LCC in conjunction with production assurance, reliability management and cost estimation workprocesses, will enable cost-efficient solutions over life cycle of an asset/project to achieve optimum

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economy, minimal production loss and minimum system down time, etc. ISO/TC67/WG4 hasrecently initiated work to revise ISO 15663.

This paper describes key features and contents of these ISO standards, and with some companyapplications:

• ISO 14224• ISO 20815• ISO 19008

ISO 14224

General - how to improve equipment performance using standardized reliability and maintenancedata.Standardization of reliability and maintenance data facilitates valuable exchange of information amongstoil & gas industry parties, e.g. operators, facilities, manufacturers and contractors. The industry andbusiness value elements include improved HSE, cost-effective design and operations, and product quality. A"reliability esperanto" is also needed for "digitalization driving value creation" and the ISO 14224 represents"The reliability thesaurus" for qualitative and quantitative communications to "learn from failures," and to"avoid failure to learn."

The scope and content of ISO 14224 is applicable for all type of oil & gas facilities and operations:

• Facilitate exchange reliability and maintenance (RM) data between operators, manufacturers andcontractors, etc. on standardized data format

• Provide key definitions• Give basis for communicating equipment experience («reliability esperanto»)• Require use of normative terminology e.g.

◦ Failure modes (per equipment class)◦ Failure mechanisms and failure causes (generic across all equipment classes)

• Provide a list of Key Performance Indicators (KPI)

It is important to have relevant information about equipment performance, including reliability andmaintenance performance. There are various user applications of ISO 14224, e.g. the operator in a day-to-day CMMIS system (e.g. SAP), the equipment designer, the reliability analyst, the maintenance staff, etc.Figure 3 below illustrates typical feedback of analysis from such reliability and maintenance data.

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Figure 3—Typical feedback of analysis from collected reliability and maintenance data (ISO 14224:2016, Figure 1)

A taxonomy is a systematic classification of items into generic groups based on factors possibly commonto several of the items (location, use, equipment subdivision, etc.). A classification of relevant data to becollected/established in accordance with ISO 14224 is represented by a hierarchy as shown in Figure 4.Subdividing the installation or plant into manageable taxonomic levels, based on function or hardwaresimplifies the identification of possible failure modes and failure mechanisms. Such sub-division is neededin a CMMIS, for LCI or in analyses. A total of 108 equipment classes, with special detailed focus on 46equipment classes applied within the entire value chain (upstream, midstream, downstream or petrochemicalbusiness categories) are covered in the latest version of ISO 14224.

Figure 4—Taxonomy classification with taxonomic levels (ISO 14224:2016, Figure 3)

It is important to distinguish between failure modes, failure mechanisms and failure causes, as these termsare often mixed together by stakeholders in the industry and in analysis work. ISO 14224 provide furtherrequirements and guidance to avoid such weaknesses and lack of quality.

The normative failure modes (ISO 14224:2016, Appendix B) in this internationally acknowledged ISOstandard are available for more accelerated usage on this official ISO webpage: http://standards.iso.org/iso/14224.

The normative failure mechanisms are basically related to one of the following major categories:

http://standards.iso.org/iso/14224http://standards.iso.org/iso/14224

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• mechanical failures• material failures• instrumentation failures• electrical failures• external influence• miscellaneous

The normative failure causes are classified in the following categories:

• design-related causes• fabrication/installation-related causes• failures related to operation/maintenance• failures related to management• miscellaneous

This ISO standard also gives a further sub-division of each category for failure mechanisms and failurecauses. Sometimes, an operator or equipment supplier may need to make underlying sub-divisions for asubject matter.

In particular, the information about failure causes are essential for learning about past failure events.Such data is very relevant for optimizing systems, and the benefit of collecting data should be made morevisible for the operating and maintenance people. But, in order to achieve the full data potential, one shouldachieve better data on underlying failure mechanisms and failure causes.

Key Performance Indicators (KPIs) are metrics providing measurable results linked to both quantitativeand qualitative findings (ISO 41011). Such indicators are widely used, and are essential for monitoring ofreliability and maintenance performance, and thus also for management purposes. The fundamental ideaof KPI use is, that the information acquired allows for informed decisions by evaluating the level of past,current or future performance.

The use relates to many purposes, such as comparison of performance against some established criteria,trends or other items. Typically, one is generally interested multiple performance aspects. As a result, amix of several KPIs are being used for management within the reliability and maintenance area. A list of34 relevant KPIs for the reliability and maintenance area are presented in Annex E of ISO 14224:2016,which includes KPIs such as mean time to failure (MTTF), mean overall repairing time (MRT), technicalavailability, operational availability, average repair workshop cycle time.

Company application – Oil and gas operatorStatoil has actively applied the ISO 14224 standard since 1st edition was issued in 1999, also in interactionwith suppliers and other operators. The application arena has covered technology development, projectexecution and operational phases, and in line with work processes described in ISO 20815. Statoil didimplement failure mode code in the previous ISO 14224 version issued in 2006, and is now in process ofimplementing various standardized failure data characteristics in Statoil CMMIS (SAP) in accordance withthe new ISO 14224; see example in Figure 5 below. This increases quality in experience transfer and datautilization for analysis purposes (ref. Figure 3), and provide better source data for JIP reliability databases(e.g. OREDA). Statoil is also using selected KPIs from ISO 14224 in various "Performance managementdashboards."

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Figure 5—Example of Statoil implementation of ISO 14224 in SAP malfunction reporting

Statoil has applied ISO 14224 in conjunction with accident investigation thereby obtaining better insightin the underlying failure characteristics (e.g. failure mechanisms and failure causes) of equipment failures.This has facilitated identification of mitigating measures through evaluation of repetitive pattern in theaccident causation.

Company application – Offshore Drilling Contractor: Practical application of ISO 14224 methodsin computerized maintenance management information systems (CMMIS).

Introduction. The facility CMMIS constitutes the main source of RM data. The quality of the data that canbe retrieved from this source is dependent on the way failure and maintenance data are reported in the firstplace. Reporting of such data in the facility CMMIS can provide a consistent and sound basis for transferringequipment and failure & maintenance event data from CMMIS to reliability databanks (e.g. OREDA JIP).

The ISO 14224 standard gives oil, gas, and petrochemical companies common terms, definitions,and methods they can use to establish a framework for collecting high-quality equipment reliabilityand maintenance data within their CMMIS. Key components of ISO 14224 application are technicalhierarchy; standard reliability and maintenance (RM) data collection ("malfunction reporting"), and RMdata quality management. High-quality, structured equipment reliability data give companies better insightinto equipment reliability and performance and thus enable data-driven decision-making. Better decisionshelp to optimize equipment availability and minimize hazards.

Technical hierarchy. The technical hierarchy is a logical and comprehensive representation of all facilitieswithin an enterprise. Main elements are the asset register and equipment boundary. The asset registerstructure is comprised of administrative or grouping levels, which are useful for facility personnel innavigating to specific equipment items and for analysts in aggregating RM by facility areas. Equipmentstructures are installed in the asset register. ISO 14224, NORSOK Z-DP-002 and the SFI Group System(maritime facilities) provide useful information for establishing a technical hierarchy. See example in Figure6.

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Figure 6—Example of technical hierarchy for a drilling rig

In preparation for structuring, all tag numbers are entered into the CMMIS as unique functional objects,where the label for each functional object incorporates the exact character string of the tag numberit represents. Materialized objects (equipment) are installed in functional objects, with 1:1 cardinality,consistent with ISO 15926-2, Section E3.3, "coincident individuals," where the functional object representsequipment duty and the materialized object represents the installed serial number. See reference in ISO14224, Table 5.

Equipment boundaries are defined within the technical hierarchy using taxonomy levels for equipmentsubdivision (see Figure 4 above). Main equipment items are identified, categorized as taxonomy level 6,and classified with the relevant equipment class. Components and subcomponents of the main equipmentare identified by first checking whether they are within the relevant ISO 14224 equipment boundary (seeexample for pumps in Figure 7 below); and if within the boundary, determining the relevant ISO 14224subunit (see example for pumps in Table 1 below). Equipment boundaries are then assembled hierarchicallyin order of main unit, subunit, components, and subcomponents. Each equipment boundary is placed inthe technical hierarchy such that its hierarchical positioning defines interrelationships with other functionalobjects, e.g. motors are structured subordinate to the equipment they drive.

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Figure 7—Equipment boundary definition for pumps (ISO 14224:2016, Figure A.7)

Table 1—Equipment subdivision for pumps (ISO 14224:2016, Table A.21)

Equipment unit Pumps

Subunit Powertransmission

Pump unit Control andmonitoring

Lubricationsystem

Miscellaneous

Maintainable items Gearbox/variabledriveBearingSealsCoupling to driverCoupling to drivenunitBelt/sheave

SupportCasingImpellerShaftRadial bearingThrust bearingSealsValvesPipingCylinder linerPistonDiaphragm

Actuating deviceControl unitInternal powersupplyMonitoringSensorsaValvesWiringPipingSeals

ReservoirPumpMotorFilterCoolerValvesPipingOilSeals

Purge airCooling/heatingsystemCyclone separatorPulsation damperFlange jointsa

a Specify type of sensor, e.g. pressure, temperature, level, etc.

Equipment and components are classified in the same manner, with relevant taxonomy definitions fromISO 14224, Annex A, e.g. a lube oil pump (component) for a compressor is classified as a pump, nota compressor, with subdivision and the failure modes for a pump need to be applied. Both equipmentand components (taxonomy levels 6 and 8) are assigned use/location data and equipment class-specificcharacteristics as specified in ISO 14224, Annex A. Characteristics are allocated to functional andmaterialized objects, as relevant, e.g. use/location characteristics are assigned only to the functional object asthey describe the application and duty. This practice minimizes characteristic data maintenance requirementswhen exchanging equipment.

Failure reporting. Malfunction reports are used to collect details of equipment failures in a uniform andstandard format from large populations of diverse users. This is achieved by complying with at least the

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minimum data requirements given in ISO 14224:2016, Table 6 (Failure data), Table 8 (Maintenance data),and other parameters in Annexes A and B.

Typical maintenance processing work streams are general maintenance, malfunction reporting, andpreventive maintenance (e.g. testing and inspection with associated reporting). Each work stream shouldhave its own notification and order type due to differences of data required for each work stream. Capturingthese data in discrete datasets also simplifies generation of failure metrics.

The different processing stages for a malfunction report are work initiation and work close-out. Datafields presented to users for completion should be specific to and relevant to the processing stage of thereport, e.g. at work initiation, typically only equipment level failure data are known: failure mode, detectionmethod, operating condition at failure, and failure effect on equipment function. Data fields should havepicklists to ensure standard input and field validations should ensure a minimum dataset at the differentprocessing stages, consistent with ISO 14224 normative requirements. Data validations should be usedto ensure notifications are created at the proper taxonomic levels 6 or 8, and that minimum datasets arecollected in each notification processing stage. An example of notification in the work close-out stage isshown in Figure 8 below.

Figure 8—Malfunction repair report (work close-out)

Malfunction reports should clearly describe the problem ("what happened"), the effects, and how it wasrepaired using a combination of coding and text. Short and long texts are used to supplement coding andgive specifics of what happened for each individual failure.

Data aggregation, merging, and reliability metrics. ISO 14224 defines equipment units (taxonomy level6) as the common reporting level for merging and assessment. While malfunction data can be collected atboth component and equipment unit levels, a failure of a component is also a failure of its parent equipment,the equipment being the sum of its components. Therefore, a malfunction report initiated at component

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levels need to be translated from component to parent equipment unit. A critical failure of a lube oilpump on a compressor is reported at the component level as a subunit "pump", maintainable item "radialbearing." Assuming the compressor has a back-up lube oil pump, this event would translate as an incipientcompressor failure (loss of redundancy), compressor subunit "lubrication system" and maintainable item"pump." This type of translation can be automated by the CMMIS, through use of statistical records createdat the equipment level. Once data are aggregated at the equipment unit level, merging is simply a processof specifying and retrieving an equipment dataset by common attributes.

RM data quality management in CMMIS. RM data quality management is comprised of qualityassurance and quality control steps. RM data quality assurance is used to increase the likelihood thatcompleted malfunction reports are properly completed. Quality assurance begins with the technicalhierarchy, where structurally-encoded equipment boundary definitions ensure common interpretations ofequipment boundaries between all users. Data relevance, structured data input, and field validations are alsoquality assurance steps. They ensure malfunction records are created at the correct taxonomic levels, ensurea minimum dataset will be collected, and that data input is consistent with ISO 14224 methodology. RMdata quality control begins once malfunction reports have been completed. Quality control steps includereviewing records for coherency, ensuring values specified in fields are correct, ensuring each record isindeed an equipment malfunction and excluding those that are not malfunctions from the dataset, lookingfor missing malfunction reports and creating missing records in retrospect, and circling back with fieldpersonnel to educate them on standard methods when gaps are found.

Company applications – Oil and gas operator in Brazil

Portuguese translation. Among the standards developed by the ISO/TC67/WG4, two of them, ISO14224, ed.2 (from 2006) and ISO 20815, ed. 1 (from 2008) have been translated to Portuguese by a workgroup of experts from some oil & gas companies, other industries, universities and consultancies. Thesetranslations became the Brazilian adopted back standards ABNT NBR ISO 14224:2011 and ABNT NBRISO 20815:2017. These two Brazilian adopted back standards are planned to be updated, according to thenew ISO 14224:2016 and the ISO 20815, ed.2 to come.

Examples of Petrobras applications. The ISO 14224 standard was used to collect RM data for 169 piecesof equipment of different taxonomies, in five floating production units for the OREDA JIP Phases X and XI.Among this data set, there are data for 25 centrifugal pumps on sea water injection system and its respectiveelectric motors.

In Petrobras, these data have been used in 2017 by Surface Installations Engineering Department ina production availability analysis and cost analysis during the Conceptual Design phase of a productionfacility, reducing the uncertainties of the options. These data were also used to benchmark failure rates anddown times between same manufacturers and different operators. The use of own data in compliance withISO 14224 was very useful to find out the failure rates for homogeneous and non-homogeneous samplesand then to make sensitivity analysis to support some design cases.

Both standards (ISO 14224 and ISO 20815) are being also kept as reference documents at the EngineeringDesign Guidelines, which are being reviewed in accordance with the Exploration and Production BusinessArea. These guidelines are intended to be applied during the design lifecycle and during the operationalphase.

Use of ISO standards to improve decision qualityQuality information on reliability and maintenance (RM) performance is essential for decision-making inthe oil and gas industry linked to these areas, and such leading to improved decision-making and solutions.For example (Selvik and Isaksen, 2017):

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• What is the current level of reliability performance (benchmarking & trending)• How to meet the level of acceptance requirements & beyond• Selection of equipment and system, and what to improve• How to minimize number of and failure impact of failure events• How to increase operating availability, reduce maintenance costs, etc.• How to obtain good industry reputation

In particular, there is an information need for risk management purposes and for business improvementsthat covers all the life phases of the equipment. For example, the data is needed to track reliability andmaintenance KPIs used by the oil and gas companies.

In general, having relevant and useful information is a main element in achieving quality decision-making. According to Matheson and Matheson (1998), it is one of the six key elements (dimensions) thatcan be used to evaluate decision quality:

• Helpful frame (what is it that I am deciding?)• Creative alternatives (what are my choices?)• Useful information (what do I know?)• Clear values (what consequences do I care about?)• Sound reasoning (am I thinking straight about this?)• Commitment to follow through (will I really take action?)

Bratvold and Begg (2010) describe the above elements a "chain of decision links", where the decision isnot stronger than its weakest link. Meaning that that poor or irrelevant information (i.e. the Reliability andmaintenance data in this context) reduces the decision quality. Being useful the data should be applicablefor its area of use, but also compatible with the data handling tools available, which is important whendealing with big data. Data applicability influences decision quality, and then adds to how such data cancreate business value.

Data quality and applicability links to time, personnel and software resources. It could take years to builda quality database, and strategic decisions should be taken about what equipment data and format is relevantin the future (Selvik and Ford, 2017). This is a type of strategic decision-making, which may be requiredlong ahead of the actual data needs. As claimed in for example Selvik and Ford (2017), achieving qualityreliability and maintenance data is often an issue of resources, and especially addressing the cost of theactivity. The ISO 14224:2016 clarifies that, "collecting RM data is costly and therefore it is necessary thatthis effort is balanced against the intended use and benefits". From a managerial perspective, such activitiesare a main part of the overall risk management, where the data collection activities are investments, but itis an issue that strongly depends on both how and why the data are collected. Besides, it is not always clearwhat time perspective one is considering. Several years of data collection could be required for the data tohave significant population and value in decision-making.

Corneliussen et al. (2007) share the above conclusion, emphasizing the importance of achieving bothaccurate and reliable information, with reference to the Well Integrity Management System (WIMS). Asthere is an increasing dependency to software tools, including applications for data collection, the datashould be in a format which is compatible with, other systems used by the oil and gas companies, such asfor example the SAP data management system, to synchronize data quality.

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The link to other software systems makes it highly important that the information used in the RMdatabases also is reflected in the sources where the data is first recorded, such that the transfer of failuredata does not have to go through several interpretation or manual transmission steps where essentialinformation could be corrupted. The ISO 14224:2016 adds value to this process by providing a structuredand standardized framework on how the data collection should be performed and how the data should beexchanged. Following this framework makes it more transparent what information is collected, and it isfacilitating data with higher quality, and consequently better decisions.

ISO 20815

Production assurance and reliability managementThe oil & gas industry involves large capital expenditures (CAPEX) as well as operational expenditures(OPEX). The profitability is highly dependent upon the reliability, availability and maintainability of thesystems and components that are used. Therefore, for minimizing production loss in the oil and gas facilitiesand time loss in operations, a standardized, integrated reliability approach is required. The decision-supportcan be during technology development, project execution or in operations by use of international standards.

The scope and content of ISO 20815 is applicable for all type of oil & gas facilities and operations:

• Description of production assurance work processes and associated analysis principles andtechniques

• Provide key definitions• Basis for production assurance in all life-cycle phases• Production Assurance Programme (PAP) and contractual reliability framing (targeting)• Overview and outline of analysis techniques

Today business climate requires prioritization of associated production assurance work processes to beundertaken, and unnecessary analysis activities must be avoided. Proper utilization of reliability expertise(e.g. function and dysfunction knowhow of equipment performance) is crucial. The project risk shouldinfluence the amount and details of such activities, even though some production assurance activities will bepart of any project (e.g. safety system reliability requirements and preventive maintenance programme). Thepotential life cycle cost savings reflected for each year at the industry level can be huge, and equivalently becompared to the total cost of major field development project(s). Thus, management attention is necessaryand is needed in appropriate manner by the different stakeholder in the industry.

An overview of cost and revenue factors to considered in conjunction with the economic optimization isshown in Figure 9. These factors can be used to better prioritize and understand the production assuranceactivities with respect to life cycle cost elements (CAPEX, OPEX and lost revenues). The economic decisioncriteria depend on company as well as the business subject matter, e.g. concept selection, field developmentand system configuration.

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Figure 9—Business model: Influence factors of production assurance onproject economy (ISO/DIS 20815:2017, Figure 2, as modified for ISO/FDIS 20815)

The concept of production assurance, introduced in ISO 20815, enables a common understanding withrespect to use of reliability technology in the various life cycle phases. The scope of ISO 20815 highlightsthat the listed work processes and activities shall be initiated only if they can be considered to add value,and by establishing the production assurance programme (PAP) this can be managed.

• Production assurance: Production assurance is defined as "the activities implemented to achieveand maintain a performance that is at its optimum in terms of the overall economy and at the sametime consistent with applicable framework conditions."

• Reliability management: Reliability management is defined as "the activities undertaken to achievereliability related performance objectives and requirements." Reliability management reflectsproduction assurance activities on equipment and system level. In project/product–developmentand design phases this is often called "reliability engineering." It provides essential input also foroperational preparedness and maintenance management for field operations.

The PAP is generally applied for the entire asset or project by the operator, but can also apply for theengineering contractor or a supplier/manufacturer for their scope of work in a project. The latter may thenrather be named "reliability management programme" (RMP) and be adopted in appropriate manner to thescope of supply. ISO 20815 contains advice on how to do contractual reliability framing (targeting), andqualitative (or quantitative) performance objectives and requirements are presented in this internationalstandard.

Production assurance activities relate closely to the risk management and integrity management of theinstallations and the PAP should show such relationships. ISO 20815 is also an essential internationalstandard in relation various integrity topics such as plant integrity, asset integrity, system integrity, pipelineintegrity, well integrity, mechanical integrity, safety integrity, structural integrity and technical integrity.

ISO 20815 defines standardized performance measures for prediction or planning production assurance,as well as for the reporting of historical performance in the operational phase. Figure 10 below illustrates

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relationship between some time-based and volume-based production assurance terms. It is vital not to mixtime-based and volume-based terms, even though both are typically expressed in %, as they need to becalculated in completely different ways.

Figure 10—Illustration of the relationship between some time-based andvolume-based production assurance terms. (ISO/DIS 20815:2017, Figure G.1)

ISO 14224 provides (normative) requirements for failure characteristics (e.g. failure modes, failuremechanisms and failure causes) for equipment in the oil & gas industry, i.e. typically at taxonomic level6-8 (ref. Figure 4). Likewise, however for the overall facility (e.g. installation or plant/unit) at taxonomiclevel 3-4, ISO 20815 provides (informative) guidelines for how to categorize production loss (or time loss).Volumetric production loss categories are made for:

• Upstream production facility• Downstream facility• Petrochemical facility

Simplified time loss categories are similarly made for:

• Upstream drilling rig• Upstream installation and intervention vessel

ISO 20815 gives an outline of more than 20 analysis methods and techniques for various businessapplications.

Company applications – Oil and gas operatorStatoil has during many years practiced the use of PAP in field development projects and in technologyprojects, and such PAP is a part of company governance procedures. This enables production assurancephilosophy and performance objectives to be set and in technology projects similar targets can be definedadopted to the framework conditions.

In conjunction with corporate technology qualification processes, use of ISO 14224 and ISO 20815 playsa key role and supplements detailed technology qualification guidance in DNVGL-RP-A203. This includesissues such as technology readiness level (TRL), failure mode, failure mechanism, etc. for new technology.

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Reliability management is also integrated into contractual framing in technology development and fielddevelopment projects.

Statoil has in successful manner used the standards in conjunction with Åsgard field developmentand associated large modification projects, like Åsgard Subsea Compression. Production availability wasevaluated in the original field development as presented by Østebø & Grødem (1998), also including Lifecycle costing management (ref. ISO 15663). During Åsgard field operation, e.g. subsea reliability datacollection has taken place (in line with ISO 14224) for the 50+ subsea wells as previously presented byØstebø et al. (2001).

Åsgard Subsea Compression (ÅSC) project has in recent years been a unique major subsea milestoneproject, and a project status of ÅSC was presented by Vinterstø et al (OTC, 2016); see Figure 11 below.Production assurance activities with high corporate management attention were undertaken in accordancewith a PAP (in line with ISO 20815), and the production unavailability target for the ÅSC system boundarieswas defined. The ÅSC project had a large TQP portfolio and in the process of establishing TRL 7 (proventechnology) the analysis principles in ISO 14224 and ISO 20815 were used to create the necessary evidencefor this.

Figure 11—Åsgard field layout with Åsgard Subsea Compression

The basis for setting TRL7 for ÅSC was in line with TRL definitions as follows: "The technologyhas operated in accordance with predefined performance and reliability criteria, over a period of timesufficient to reveal time-related effects. Required duration of operation is one of the pre-defined criteria.The technology is now proven for use within specified operating conditions/limits."

The historic ÅSC production unavailability performance (only ÅSC subsea station) as reported in thefirst year of operation from September 2015 until December 2016 was 0.73% and 0.01%, for 2015 and2016, respectively.

The production unavailability from entire ÅSC chain including power supply (power generation atÅsgard A) was larger, but still lower than the predicted (targeted) production unavailability of 4% as definedin the ÅSC PAP.

Electrical power distribution for subsea processing purposes (e.g. pumps and compressors) has alsospecial reliability management attention by Statoil in conjunction with various subsea technology projects,

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e.g. subsea power system JIPs. The ISO 14224 and ISO 20815 standards have shown to be useful fordefining reliability targets, failure mode identification and risk ranking, establishing reliability data and insystem availability analyses.

ISO 19008

Standard cost coding systemISO 19908:2016 is a recently published International Standard that describes the standard cost codingsystem (SCCS) and how to classify costs and quantities related to exploration, development, operation andremoval of oil and gas production and processing facilities. As an ISO/TC67 standard for the petroleum,petrochemical and natural gas industry, upstream, midstream, downstream and petrochemical businesscategories are included.

This International Standard is designed to provide a uniform coding basis for both estimate preparationand collecting/collating related historical data to facilitate benchmarking and analysis. It is also intendedto provide the basis for exchange of cost and quantity data between parties, e.g. between companies orcontractors or across projects. ISO 19008 thus establishes a coding system that enables any in-house orcommercial data system to meet these data exchange requirements.

The purpose of the SCCS is to enable the costs of exploration, development projects and operations tobe organized, collected and reported allowing analysis and comparison across (parts of) projects and assets.The SCCS for coding of costs is applicable for:

• cost estimation• actual cost monitoring and reporting• collection of final quantities and cost data• standardized exchange of cost data among organizations• implementation in cost systems

The SCCS, included in ISO 19008, consists of three individual hierarchical classification structures(facets), each based upon a different aspect of the scope of work. Namely, physical asset [coded by thephysical breakdown structure (PBS)], activity [coded by the standard activity breakdown structure (SAB)]and resource [coded by the code of resource (COR)].

Every cost item will be associated with a scope of work and so can be classified by each of the threeaspects/facets. The codes are combined to create a complete composite code for the costs.

Reported costs and quantities can be both summarized and decomposed from many different perspectives.For data quality purposes, it is important that within any perspective, at each level of summarization, eachcost item is allocated one SCCS code.

The codes included in Annexes A, B, and C may be extended by each individual organization to:

• accommodate any new types that are not covered in the annexes, e.g. a new facility type not coveredin the PBS

• create more detailed types of existing types, e.g. to add a detailed resource code for different pipingspecifications under the bulk piping

See Figures 12 and 13 for illustration of the SCCS.

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Figure 12—COR structure in graphical representation (ISO 19008:2016, Figure C.1)

Figure 13—How is conformity to ISO 19008 assured?

Company applications - Oil and gas operatorStatoil has for several years used the SCCS as a methodology to structure and organize project data fordifferent purposes. Experience data from projects are reported according to SCCS and stored in data base forany further use; see Figure 14. Data from the data base is used to establish input to early phase estimation,

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benchmarking and different analyses. The SCCS ensures that data are structured and organized in a stringentmanner, and that the data is stored, treated and used in a consistent manner.

Figure 14—Illustration of Statoil use of ISO 19008 for cost experience data application

Concluding remarksStandardization is important and ISO standards are key deliverables to achieve business objectives.Company applications are in this paper presented to show applications in technology development, projectdevelopment, and oil & gas field operations. Standards relation to digitalization of oil and gas industry hasalso been addressed, e g. how "reliability communication" between oil company and supplier can benefitfrom the use of ISO 14224. Production assurance and reliability management are achieved by proper use ofISO 20815 across life-cycle phases by the various stakeholders. The use of ISO 19008 allows sub-divisionof cost to enable cost optimization.

This ISO standardization work is based on international expert team efforts by many countries, and isalso done in collaboration with IOGP. The work supports the ISO/TC67 Mission: "To create value-addedstandards for the oil and gas industry", and the ISO/TC67 Vision: "International standards used locallyworldwide."

AcknowledgementsThe standardization work described in this paper was performed through ISO/TC67. The authors thanksISO Central Secretariat and ISO/Technical Committee 67 management for permission to publish thispaper. Likewise, we thank our companies Statoil, Petrobras, IRIS and Reliability Dynamics that madesuch contribution possible also with respect to their company applications included in this paper.Additional information of the international standardization work can be found on ISO/TC67 website: https://www.iso.org/committee/49506.html.

Contribution to this paper from Rune Hellem (Statoil) whom was project leader in ISO/TC67/WG4 fordevelopment of ISO 19008, and Frode Landerud (Statoil) whom is current interim project leader for ISO19008, is also appreciated.

NomenclatureABNT = Associação Brasileira de Normas Técnicas

https://www.iso.org/committee/49506.htmlhttps://www.iso.org/committee/49506.html

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ANSI = American National Standards InstituteBS = British Standards

CAPEX = Capital ExpenditureCEN = European Committee for Standardization

CENELEC = European Committee for Electrotechnical Standardization.CMMIS = Computerized Maintenance Management Information System

COR = Code of ResourceEN = European Standard

HSE = Health Safety and EnvironmentIEC = International Electrotechnical Commission

IOGP = International Association of Oil & Gas ProducersISO = International Organization for StandardizationITU = International Telecommunication UnionJIP = Joint Indusrty Project

KPI = Key Performance IndicatorLCI = Life Cycle Information

NORSOK = Norwegian Shelf's Competitive position (standards produced by the Norwegian oil andgas industry)

NS = Norwegian StandardsNSB = National Standards Bodies

OPEX = Operational ExpenditureOREDA® = Offshore & Onshore Reliability Data

PAP = Production Assurance ProgrammePSA = Petroleum Safety Autorithy (Norway)RM = Reliability and Maintenance

RMP = Reliability Management ProgrammeSAP = Systems, Applications, and Products in data processing

SCCS = Standard Cost Coding SystemTC = Technical Committee

TRL = Technology Readiness LevelWG = Working Group

ÅSC = Åsgard Subsea Compression

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ISO Standards to Enable Reliable, Safe and Cost-Effective Technology Development, Project Execution and Operational ExcellenceIntroductionBusiness industry arenaGlobal standardization arenaGovernance frameworkISO/TC67/WG4 standards portfolio on reliability and cost standardsISO 14224General - how to improve equipment performance using standardized reliability and maintenance data.Company application – Oil and gas operatorCompany application – Offshore Drilling Contractor: Practical application of ISO 14224 methods in computerized maintenance management information systems (CMMIS).Company applications – Oil and gas operator in BrazilUse of ISO standards to improve decision quality

ISO 20815Production assurance and reliability managementCompany applications – Oil and gas operator

ISO 19008Standard cost coding systemCompany applications - Oil and gas operator

Concluding remarks

References