Transcription
STANDARDIZATION OF INDUSTRYEXPECTATIONS FOR OIL AND GASStacey W. HagenExxonMobil Development CompanyDrilling Services & Systems Team LeadAPI Sub-Committee 18 Chairman - QualityBo CreekOrion Drilling CompanyQuality Assurance / Quality Control ManagerAPI SPEC Q2 FOR AUDITING
AGENDAObjective– Provide History and Industry Expectations on API Q2Outline– Brief History of API– Business Drivers for New Industry Standard – API Q2– API Q2 Overview– BenefitsAPI SPEC Q2 FOR AUDITING
BRIEF HISTORYAPI SPEC Q1API SPEC Q2 FOR AUDITING
History of API and Spec Q1 July 28, 1914 – November 11, 1918 National Petroleum War Services Committee Pooling Program 1919 – American Petroleum Institute Program was transitioned into a third party auditprogram in the mid 1980’s under the Specificationof Quality Programs, API Spec Q1 that is now in its9th Edition Just as there were drivers for the MonogramProgram, one now exists for the certification ofservicesAPI SPEC Q2 FOR AUDITING
BUSINESS DRIVERSFOR API SPEC Q2API SPEC Q2 FOR AUDITING
BUSINESS DRIVERSAbsence of a Corporate Management SystemInconsistency in Risk MitigationLack of ImplementationLack of OversightAPI SPEC Q2 FOR AUDITING
BUSINESS DRIVERSIncreasing complexity of wells Need for improved service technology andequipment / tool reliabilityIncreasing spread rates on rigs Need for systems to ensure uninterruptedoperationsAPI SPEC Q2 FOR AUDITING
BUSINESS DRIVERSService centers have more than onecustomer Additional requirements typicallyspecified by one or two customers A customer may only be 10% of totalbusiness Implementation / compliance ofrequirements only 10% of the time isnext to impossibleAPI SPEC Q2 FOR AUDITING
BUSINESSDRIVERSPerceptionTheincident killed11 workers- andspewed more than 200 million gallonsof crude in what is touted as thecountry’s worst oil spill ever.Subsequently, a moratorium wasimposed on offshore drilling.API SPEC Q2 FOR AUDITING
ROOT CAUSES OF NPTLACK OF:Service executionplanningLack of using ack of or notFollowingproceduresQuality Checks,Inspection and TestPreventive Maintenance, Inspection, TestPrograms (PMITP)API SPEC Q2 FOR AUDITING
INDUSTRYRESPONSEAPI SPEC Q2 FOR AUDITING
INDUSTRY RESPONSE Realization that ISO 9001 , ISO TS29001 and APISpec Q1 apply to manufacturing API Task Group (TG) 5 developed under APISC18 Specification for QMS Requirements for ServiceSupply Organizations Identify the expectations for execution ofupstream services including well construction,intervention, production and abandonment Published December 15, 2011API SPEC Q2 FOR AUDITING
API SUBCOMMITTEE 18CSOEMSC18TG1TG2TG3AuditorEffectivenessAPISpec Q1MonogramProgramTG4Min. Mfg.RequirementsTG5TG6TG7APISpec Q2WeldingLife CycleManagementAPI SPEC Q2 FOR AUDITING
API TG5 MEMBERSAPI SPEC Q2 FOR AUDITING
API SPEC Q2HOW IS IT DIFFERENT?API SPEC Q2 FOR AUDITING
PROCESS-BASED QMS (ISO 9001, 29001 & API Q1)API SPEC Q2 FOR AUDITING
PROCESS- AND RISK-BASED QMS (API ALIMPROVEMENTINPUTOUTPUTAPI SPEC Q2 FOR AUDITING
OVERLAP - API SPEC Q1 VS. API SPEC Q2General RequirementsControl of Monitoring andMeasurement EquipmentQuality ManualControl of Documents &RecordsMeasurement, Analysisand ImprovementTrainingQuality PolicyQuality ObjectivesCorrective and PreventiveActionPlanningManagement ReviewAPI SPEC Q2 FOR AUDITING
SERVICE-SPECIFIC Additions - API SPEC Q2No Claims to ExclusionsPreventive Maintenance, Inspection andTestCompetency of PersonnelService Performance ValidationRisk ManagementManagement of ChangeDetection EquipmentService DesignCorrective and Preventive Actionresulting in a change of controlsContingency PlanningCustomer NotificationControl over Critical SuppliersTraceability of Critical Services and SRPService Quality PlanAPI SPEC Q2 FOR AUDITING
Elements Requiring Procedures Personnel Competency / TrainingDocument ControlControl of RecordsRisk AssessmentService DesignContingency PlanningPurchasingVerification of Purchased Services &ServiceRelated ProductExecution of ServiceIdentification & TraceabilityService Related Product Status Customer PropertyPreservation of Service Related ProductPMITTMMDEService Performance ValidationNonconformitiesManagement of ChangeMonitoring, Measuring & ImprovementInternal AuditAnalysis of DataImprovementCorrective ActionPreventative ActionAPI SPEC Q2 FOR AUDITING
1.2 EXCLUSIONS“When an organization performs activities addressed by this document,including the provision of service-related product, all requirements shallbe performed and no claims to exclusion of those requirements shall bepermitted.”Service-related products (SRP): Materials, equipment, and softwareused in the execution of a service.API SPEC Q2 FOR AUDITING
4.3.2 PERSONNEL COMPETENCECompetency Education Training Skills (OJT) ExperienceNEW Risk Based Problem SolvingCOMPETENTAPI SPEC Q2 FOR AUDITING
4.3.2 PERSONNEL COMPETENCETHE FOUR LEVELS OF LEARNINGNoviceCompetentExperiencedNotexpectedto be ableto performExpected toperform tobasicstandardsBeyondunderstandingof what mustbe doneExpertCreatesknowledgeand teachesothersAPI SPEC Q2 FOR AUDITING
5.3 RISKS ManagementImmediately1 years5 years10 yearsAPI SPEC Q2 FOR AUDITING
5.3 RISK MANAGEMENTMaintain Procedures to controls Riskthroughout Service Execution Identify service related risk Implement controls Notify customer of remaining riskAPI SPEC Q2 FOR AUDITING
5.4 Design & DevelopmentEvery Service includes Design and DevelopmentAPI Q1ProductsAPI iewChangesChangesFailing to understand what is and is not critical will impact the service designwhich will result in increased risks, lack of controls and potential for loss.API SPEC Q2 FOR AUDITING
5.5 CONTINGENCY PLANContingency planning shall beintegrated into services andsupporting processes betweenthe organization, its suppliersand the customer”.API SPEC Q2 FOR AUDITING
5.5 CONTINGENCY Outputs Actions requiredfor significant risk Assignment ofresponsibility &authority Internal andexternalcommunicationsAPI SPEC Q2 FOR AUDITING
5.6 PURCHASING & CONTROL OF SUPPLIERS Determine criticality of theservices and SRP Evaluation & Onsite auditsfor critical suppliers.Critical – That deemed by the organization or customer as indispensable or essential,needed for a stated purpose or task, and requiring specific actionAPI SPEC Q2 FOR AUDITING
5.7.2 SERVICE QUALITY PLANCustomer Specific for theService being performedTakes into accountEnvironmental &Operational encyPlanningContractRequirementsDesign andDevelopmentIdentification ofEquipmentAPI SPEC Q2 FOR AUDITING
5.7.3 IDENTIFICATION AND TRACEABILITY Identification controls must beput into place to clearly identifyall stages of delivery,installation, repair(maintenance), and redress Service-related product shall beidentified. Critical service-related productshall be identified andtraceable.API SPEC Q2 FOR AUDITING
5.7.8 PMITPIs applicable to Service Related Product (SRP)Equipment Maintenance is handled under Work Environment.Corrective Expensive Results in NPTPreventive Minimizes CorrectiveMaintenance Focus of API Spec Q2Predictive SRP Integrity andReliabilityAPI SPEC Q2 FOR AUDITING
5.7.8 PMITP Reports that document history use, repairs,modifications, remanufacturing, inspection and testactivities that all direct verification for reuse ofproduct;Corrective List of critical spare parts requirementsby thePreventivecustomerand/or technical requirements including Expensivethose by the OEM Minimizes Corrective Results in NPTMaintenance Controls that ensure equipmentintegrity to originalperformance requirements anddesignacceptance Focusof APISpec Q2criteria are maintainedPredictive SRO Integrity andReliability Original performance requirements that cannot bemet shall undergo the MOC processAPI SPEC Q2 FOR AUDITING
5.7.8 PMITP OEM Application, use, environments PMIT OEM Recommendations Ownerof the equipmentAPI SPEC Q2 FOR AUDITING
5.9 SERVICE PERFORMANCE VALIDATIONValidation must be: Differs from Validation formanufactured product Validations occur during andafter execution of service(s) Carried out in accordance withDesign (5.4), SQP (5.7.2) andacceptance criteriaAPI SPEC Q2 FOR AUDITING
5.10.4 CUSTOMER NOTIFICATION Customers shall be notified:– When service execution,does not conform torequirements– When SRP does notconform which has beendelivered or used in theexecution of a serviceAPI SPEC Q2 FOR AUDITING
5.11 Management of ChangeChange inPersonnel &SuppliersManagementof esSRP & DesignChangesNoRiskAssessmentHigherRisk?NoEnd of nd of ProcessAPI SPEC Q2 FOR AUDITING
Impact on Drilling OperationsContractor InfluenceDrilling OperationsRiskAssessmentAPI Spec Q2ResourcesQA/QCDesign ofServiceContingencyPlanningCompetency-90 (AFE)Maintenance& Critical SparesOperations SupportServiceCriticalSuppliers Quality Plans0Spud AssemblyInsp / Test Tool Insp@ delivery Well Integrity ServicePerformance Reduction of NPTValidation MOC BHA Inspections10Time ( rig days)20PMPrograms4080160 API SPEC Q2 FOR AUDITING
SUMMARY & BENEFITSAPI SPEC Q2 FOR AUDITING
INDUSTRY IMPACTOperatorsServiceProvidersRegulatorsand otherInterestedPartiesSuppliersAPI SPEC Q2 FOR AUDITING
WHAT API SPEC Q2 IS NOTIt is not a manual withnew buzz words thatyou present to yourcustomers.It is not a crossreference between yourmanagement systemand your customer’s.It is not a template thatyou fill in and claimcompliance.API SPEC Q2 FOR AUDITING
WHAT API SPEC Q2 ISIt is about service quality and risk mitigation supported byvalidation and actual service provider performance.API SPEC Q2 FOR AUDITING
Benefits of Standardization Improves service related product reliability Minimizes risk through identification, planning & controls Identifies critical tasks that impact quality, safety and theenvironment Minimizes service related risk and improves efficiencies Improves communication between service providers and theirsuppliers and operators.API SPEC Q2 FOR AUDITING
INDUSTRYCOLLABORATIONAPI SPEC Q2 FOR AUDITING
Industry CollaborationBeta Test Site Assessments: Gaps, hurdles and milestones for auditing to Q2Identify competencies / training for API Staff / AuditorsIdentify needed resourcesTypes of certifications needed to meet industry needs Baker - CompletedSchlumberger – CompletedWeatherford – CompletedHalliburton – CompletedOrion Drilling – CompletedAPI SPEC Q2 FOR AUDITING
Industry CollaborationAPI Spec Q2 Mock Audit: Halliburton – Bakersfield, CA July 29th – August 2nd 2013PSL Covered Drilling Fluids & SolidsCementingCompletion ToolsProduction EnhancementDirectional Drilling / MWD / LWDWireline and PerforatingAPI SPEC Q2 FOR AUDITING
Industry CollaborationAPI Spec Q2 Reviews: Orion Drilling Maersk Drilling Akita Drilling Parker Drilling Transocean MI SwacoAPI SPEC Q2 FOR AUDITING
EVOLUTION OF API SPEC Q2DEVELOPEDPUBLISHEDBETA TESTINGCOMPLIANCECERTIFICATIONAPI Spec Q2 wasdeveloped in 2010through 2011.API Spec Q2 waspublished inDecember 2011.A combination ofoperators and serviceproviders participatedin the beta test.Service providersstart getting theirQMSs in compliancewith API Spec Q2.Service providersbecome certified inAPI Spec Q2.EXPECTATIONService providers shallbe in compliance inorder to bid on jobsrequiring API Spec Q2.API SPEC Q2 FOR AUDITING
QUESTIONS ?API SPEC Q2 FOR AUDITING
API SPEC Q2 FOR AUDITING . INDUSTRY RESPONSE Realization that ISO 9001 , ISO TS29001 and API Spec Q1 apply to manufacturing API Task Group (TG) 5 developed under API SC18 Specification for QMS Requirements for Service Supply Organizations Identify the expectations for execution of upstream services including well construction,
