API Upstream Standard Development Update - Supply Chain Management. Rick Faircloth

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1 API Upstream Standard Development Update - Supply Chain Management Rick Faircloth

2 o Overview of API 20 Series Supply Chain Management

3 Overview of API 20 Series Supply Chain API formed in 1919 as a national trade association Standards Program organized in 1923, first standard published in 1924 on drilling threads API now publishes 600+ standards covering all industry segments API Standards are: Core of Institute s technical authority Represent proven engineering practices and are used in worldwide operations Incorporated by State, Federal and International Regulators API is accredited by the American National Standards Institute

4 API Standards Organization Executive CSOEM Committee on Committee Standardization on Standardization Of Oilfield Equipment (ECS) and Materials Offshore Structures (SC2) Tubular Goods (SC5) Valves & Wellhead (SC6) Drilling Structures (SC8) Well Cements (SC10) Field Operating Eqpt. (SC11) Completion & Frac Fluids (SC13) Fiberglass & Plastic Tubulars (SC15) Drilling Well Control Eqpt. (SC16) Subsea Production Eqpt. (SC17) Quality (SC18) Completion Eqpt. (SC19) Supply Chain Mgmt. (SC20)

5 API Standards Organization CRE Committee on Refinery Equipment Subcommittee On Piping & Valves API Spec 594 API Spec 600 API Spec 602 API Spec 603 API spec 608 API Spec 609

6 Drivers for Oil & Gas Industry Supply Chain Standards Ongoing industry issues with materials and processes deemed critical to the safety and reliability of products used in the Oil and Gas industry. Increasing global supply chain with limited history with oil and gas standards and best practices. Increasing requirements for local content and sustainable development initiatives including regulatory compliance.

7 Goals of Supply Chain Standards Institutionalize best practices for supplier review and qualification. Harmonize component and process qualification requirements. Establish scalable requirements to address various levels of criticality and risk. Allow suppliers, product manufacturers and end users access to the industry s licensing and accreditation program the API Monogram Program. API 20 Series requirements or being considered as a mandatory by applicable API product specifications. Below are the specifications that are being considered. API 6A 21st edition revision in process API 6DSS -3rd edition revision in process API 6D - 25th edition

8 Using API Supply Chain Standards Voluntary licensing and use by the supplier. Example: Casting, Forging and bolting supplier applies to API for a license for Specification API 20A,or 20B or 20C or 20E or 20F can be approved following audits of their quality management system API Q1 and of their facility s compliance with the 20A or 20B or 20C or 20E or 20F requirements. Use by the purchaser: Manufacturers may require licensing and/or just compliance with API Specification 20A, 20B, 20C, 20E or 20F, etc. as a contractual requirement on material supplied. Use by the end-user: May require that manufacturers equipment be produced from API Specification 20A, 20B, 20C, 20E or 20F, etc. compliant components.

9 Specification 20A: Castings for use in the Petroleum and Natural Gas Industry. 1st Edition Published March Table 1 Material Groups Material Group Group A Group B Group C Group D Group E Description Carbon steels Low alloy steels Stainless steels other than duplex Duplex Stainless Steels Nickel base alloys (CRA) Table 2 Qualification Casting Weld Repair Limitations CSL % Surface Area % Wall Thickness CSL-1 50% 50% CSL-2 25 % 25 % CSL-3 20 % 20 % CSL-4 0 % 0 %

10 Table 7 As-cast Weight/Thickness Range Classes As-cast Thickness (inch) and Weight (pound) CSL Level <2 >2 <6 6 <8 >8 <10 >10 <500 <500 >500<2500 >500<2500 >2500<10,000 >2500<10,000 >10,000 >10,000 CSL-1 1 Qualification CSL-2 1 Qualification 1 Qualification CSL-3 1 Qualification 1 Qualification 1 Qualification 1 Qualification CSL-4 Weight and thickness are not applicable for CSL 4. Each casting shall be individually qualified

11 Specification 20B: Open Die Forgings for use in the Petroleum and Natural Gas Industry. 1st Edition Published April Table 1 As-forged Weight Range Classes (weight in pounds) < < 10,000 10,000 FSL-1 One qualification required FSL-2 One qualification required One qualification required FSL-3 One qualification required One qualification required One qualification required FSL-4 Weight not applicable for FSL-4. Each forging shall be individually qualified.

12 Specification 20B: Open Die Forgings for use in the Petroleum and Natural Gas Industry Table 2 Material Groups Description Sub-Group Typical Examples/Grades Carbon, micro-alloyed steels Low alloy steels Austenitic, martensitic, and martensitic precipitationhardening stainless steels Duplex and super duplex stainless steels Nickel based alloys 1A 1B 2A 2B 2C 2D 2E 3A 3B 3C 4A 4B 5A 5B Carbon steels (UNS G1xxxx) Micro-alloyed (with small addition of V, Nb, Ti, Mo, Zr, or B) steels (ASTM A909, A921) Cr-Mo-low alloy steels (UNS G41xxx) Ni-Cr-Mo medium carbon alloys (UNS G43xxx) Cr-Ni-Mo low alloy steels (UNS G86xxx) 2 1 /4Cr-1 o steel (ASTM A182/A336 Grade F22/UNS K21590), / 9Cr-1Mo steel (ASTM A182 Grade F9/UNS K90941) ASTM A707 Grades (modified) Austenitic UNS S31603, S30400 Martensitic 410 SS (UNS S41000), F6NM (UNS S41500, S42400) Precipitation Hardening 17-4PH (UNS S17400), 15-5PH (UNS S15500) Duplex UNS S31803, UNS S32205 Super Duplex UNS S31260, S32750, S32760, S39277 Solution Annealed UNS N06625, N08825 Precipitation Hardening UNS N07718, N07725, N09925, N09935, N09945

13 Specification 20C: Closed Die Forgings for use in the Petroleum and Natural Gas Industry. 1st Edition Published October nd edition to be published in Table 1 Material Groups Material Group Description Typical Examples Group 1 Carbon and low alloy carbon steels ASTM A564, Grade F AISI 4130 UNS G41300 AISI 8630, F22 (ASTM A182, Grade F22) Group 2 Austenitic and martensitic stainless steels 410, ASTM A182, Grade F6NM, 316 Group 3 Corrosion resistant alloys 718, 625 Group 4 Duplex stainless steel ASTM A182, Grades F51, F53, F55

14 Specification 20C: Closed Die Forgings for use in the Petroleum and Natural Gas Industry. Table 2 As-forged Weight Range Classes (weight in pounds) < and and < FSL-1 One qualification forging required FSL-2 One qualification forging required One qualification forging required FSL-3 One qualification forging required One qualification forging required One qualification forging required One qualification forging required FSL-4 Weight not applicable for FSL-4. Each forging shall be individually qualified.

15 Standard 20D: Nondestructive Examination Services for Equipment Used in the Petroleum and Natural Gas Industry. 1st Edition Published September Purpose This standard specifies requirements for the design, development, and qualification of nondestructive examination (NDE) methods used in the manufacturer of equipment for the petroleum and natural gas industries. 1.2 Applicability This is applicable to suppliers providing NDE services for equipment used in the oil and natural gas industries. The requirements of this standard apply to magnetic particle, liquid penetrant, radiography, and ultrasonic methods of NDE.

16 Specification 20E: Specification for Low Alloy Steel Bolting for Pressure Containing Gas Equipment. 1st Edition Published August 2012 The following bolting material grades are covered by this standard: ASTM A193 Grades B7 and B7M; ASTM A194 Grades 2H, 4, 7, 2HM and 7M; ASTM A320 Grades L7, L7M, and L43; ASTM A540 Grades B22 and B23. All required tests, including those certified by the raw material supplier, shall be performed by a laboratory qualified in accordance with an internationally recognized international standard for the qualification of test laboratories, such as ISO

17 Specification 20E: Specification for Low Alloy Steel Bolting for Pressure Containing Gas Equipment Table 1 Bolting Test Requirements BSL Material Heat Treat Chemistry Mechanical Metallurgical Hardness NDE Surface NDE Volumetric BSL BSL BSL

18 Specification 20F:Corrosion Resistant Bolting for Use in the Petroleum and Natural Gas Industries. 1st Edition Published June 2015 Materials and Dimensions The following bolting material categories are covered by this specification: -Precipitation Hardened Nickel Based Alloys in accordance with API 6A718 -Precipitation Hardened Austenitic Iron Based A453 Grade 660 Class D All requirements of API 6A718 or ASTM A453 Grade 660 Class D shall be met except as modified by this specification. In the case of conflict between the requirements of referenced specifications and this specification, the requirements of this specification shall apply.

19 Specification 20F:Corrosion Resistant Bolting for Use in the Petroleum and Natural Gas Industries Table 1 Bolting Test Requirements BSL Material Heat Treatment Chemistry Mechanical Metallurgical Hardness NDE Surface NDE Volumetric BSL- 2 BSL

20 Standard 20G: Qualification of Welding Suppliers for Equipment Used in the Petroleum and Natural Gas Industry.1 st Under development- Started in August Standard 20H: Heat treat services use in the Petroleum and Natural Gas Industry. - 1 st Edition publication 4Q Standard 20J: Quality requirements for Distributors of Raw materials for use in the Petroleum and Natural Gas Industry. 1 st Edition Under development- Estimated publication 3Q Standard 20L: Qualification Standard for Suppliers of Non-Metallic Seals for Equipment used in the Petroleum and Natural Gas Industry. 1st Edition Under development- Started in August 2015.

21 Standard 20M: Qualification of Suppliers Providing Machining Services for Equipment used in the Petroleum and Natural Gas Industry. 1 st Edition Under development- Started in September Standard 20N: Qualification of Suppliers providing Heat Treatment Services - Continuous Furnaces for Equipment used in the Petroleum and Natural Gas Industry.1 st Edition Under development- Not Yet Started Standard 20P: Qualification of Suppliers providing Plating and Coating Services for Equipment used in the Petroleum and Natural Gas Industry. 1 st edition Under development-started in January 2016.

22 Currently there are several Licensee s and application Spec. No. Active Application Country s License for License 20A-Castings 1 3 China, Italy 20B-Open Die Forgings China, India 20C-Closed Die Forgings 9 4 China, India 20E-Carbon Steel Fasteners China, Mexico, Malaysia, Singapore, UK,USA, 20F-CRA steel Fasteners 0 0 This specification has been released to accept API licenses applications

23 Thanks You Any. Questions

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