STANDARDIZATION OF INDUSTRY EXPECTATIONS FOR OIL AND GAS

Transcription

1 STANDARDIZATION OF INDUSTRY EXPECTATIONS FOR OIL AND GAS Stacey W. Hagen ExxonMobil Development Company Drilling Services & Systems Team Lead API Sub-Committee 18 Chairman - Quality Bo Creek Orion Drilling Company Quality Assurance / Quality Control Manager

2 AGENDA Objective Provide History and Industry Expectations on API Q2 Outline Brief History of API Business Drivers for New Industry Standard API Q2 API Q2 Overview Benefits

3 BRIEF HISTORY API SPEC Q1

4 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 audit program in the mid 1980 s under the Specification of Quality Programs, API Spec Q1 that is now in its 9 th Edition Just as there were drivers for the Monogram Program, one now exists for the certification of services

5 BUSINESS DRIVERS FOR API SPEC Q2

6 BUSINESS DRIVERS Absence of a Corporate Management System Inconsistency in Risk Mitigation Lack of Implementation Lack of Oversight

7 BUSINESS DRIVERS Increasing complexity of wells Need for improved service technology and equipment / tool reliability Increasing spread rates on rigs Need for systems to ensure uninterrupted operations

8 BUSINESS DRIVERS Service centers have more than one customer Additional requirements typically specified by one or two customers A customer may only be 10% of total business Implementation / compliance of requirements only 10% of the time is next to impossible

9 BUSINESS DRIVERS - Perception The incident killed 11 workers and spewed more than 200 million gallons of crude in what is touted as the country s worst oil spill ever. Subsequently, a moratorium was imposed on offshore drilling.

10 ROOT CAUSES OF NPT LACK OF: Personnel Competency Service execution planning Lack of or not Following procedures Lack of using history logs Contingency planning Quality Checks, Inspection and Test Preventive Maintenance, Inspection, Test Programs (PMITP)

11 INDUSTRY RESPONSE

12 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, intervention, production and abandonment Published December 15, 2011

13 API SUBCOMMITTEE 18 CSOEM SC18 TG1 TG2 TG3 TG4 TG5 TG6 TG7 Auditor Effectiveness API Spec Q1 Monogram Program Min. Mfg. Requirements API Spec Q2 Welding Life Cycle Management

14 API TG5 MEMBERS

15 API SPEC Q2 HOW IS IT DIFFERENT?

16 PROCESS-BASED QMS (ISO 9001, & API Q1)

17 PROCESS- AND RISK-BASED QMS (API Q2) CUSTOMER REQUIREMENTS CONTINUAL IMPROVEMENT CUSTOMER SATISFACTION INPUT OUTPUT

18 OVERLAP - API SPEC Q1 VS. API SPEC Q2 General Requirements Quality Manual Control of Documents & Records Quality Policy Quality Objectives Control of Monitoring and Measurement Equipment Measurement, Analysis and Improvement Training Corrective and Preventive Action Planning Management Review

19 SERVICE-SPECIFIC Additions - API SPEC Q2 No Claims to Exclusions Competency of Personnel Risk Management Detection Equipment Service Design Contingency Planning Control over Critical Suppliers Preventive Maintenance, Inspection and Test Service Performance Validation Management of Change Corrective and Preventive Action resulting in a change of controls Customer Notification Traceability of Critical Services and SRP Service Quality Plan

20 Elements Requiring Procedures Personnel Competency / Training Document Control Control of Records Risk Assessment Service Design Contingency Planning Purchasing Verification of Purchased Services &Service Related Product Execution of Service Identification & Traceability Service Related Product Status Customer Property Preservation of Service Related Product PMIT TMMDE Service Performance Validation Nonconformities Management of Change Monitoring, Measuring & Improvement Internal Audit Analysis of Data Improvement Corrective Action Preventative Action

21 1.2 EXCLUSIONS When an organization performs activities addressed by this document, including the provision of service-related product, all requirements shall be performed and no claims to exclusion of those requirements shall be permitted. Service-related products (SRP): Materials, equipment, and software used in the execution of a service.

22 4.3.2 PERSONNEL COMPETENCE Competency = Education Training Skills (OJT) Experience COMPETENT NEW Risk Based Problem Solving

23 4.3.2 PERSONNEL COMPETENCE THE FOUR LEVELS OF LEARNING Novice Competent Experienced Expert Not expected to be able to perform Expected to perform to basic standards Beyond understanding of what must be done Creates knowledge and teaches others

24 5.3 RISKS Management Immediately 1 years 5 years 10 years

25 5.3 RISK MANAGEMENT Maintain Procedures to controls Risk throughout Service Execution Identify service related risk Implement controls Notify customer of remaining risk

26 5.4 Design & Development Every Service includes Design and Development API Q1 Products API Q2 Services Planning Inputs Outputs Review Verification Validation Changes Planning Inputs Outputs Verification Final Review Changes Failing to understand what is and is not critical will impact the service design which will result in increased risks, lack of controls and potential for loss.

27 5.5 CONTINGENCY PLAN Contingency planning shall be integrated into services and supporting processes between the organization, its suppliers and the customer.

28 5.5 CONTINGENCY PLAN History Disruption Prevention Spares Contingency Planning Integration Risk Mitigation Measures Reliability Outputs Actions required for significant risk Assignment of responsibility & authority Internal and external communications

29 5.6 PURCHASING & CONTROL OF SUPPLIERS Determine criticality of the services and SRP Evaluation & Onsite audits for critical suppliers. Critical That deemed by the organization or customer as indispensable or essential, needed for a stated purpose or task, and requiring specific action

30 5.7.2 SERVICE QUALITY PLAN Customer Specific for the Service being performed Takes into account Environmental & Operational Conditions Personnel Competence Contingency Planning Risk Assessment Design and Development Contract Requirements Identification of Equipment

31 5.7.3 IDENTIFICATION AND TRACEABILITY Identification controls must be put into place to clearly identify all stages of delivery, installation, repair (maintenance), and redress Service-related product shall be identified. Critical service-related product shall be identified and traceable.

32 5.7.8 PMITP Is applicable to Service Related Product (SRP) Equipment Maintenance is handled under Work Environment. Corrective Expensive Results in NPT Preventive Minimizes Corrective Maintenance Focus of API Spec Q2 Predictive SRP Integrity and Reliability

33 5.7.8 PMITP Reports that document history use, repairs, modifications, remanufacturing, inspection and test activities that all direct verification for reuse of product; Corrective List of critical spare parts requirements Preventive by the customer Expensive and/or technical requirements including those by the OEM Results in NPT Minimizes Corrective Maintenance Controls that ensure equipment integrity to original performance requirements and Focus design of API acceptance Spec Q2 criteria are maintained Original performance requirements that cannot be met shall undergo the MOC process Predictive SRO Integrity and Reliability

34 5.7.8 PMITP OEM Application, use, environments PMIT = OEM Recommendations + Owner of the equipment

35 5.9 SERVICE PERFORMANCE VALIDATION Validation must be: Differs from Validation for manufactured product Validations occur during and after execution of service(s) Carried out in accordance with Design (5.4), SQP (5.7.2) and acceptance criteria

36 CUSTOMER NOTIFICATION Customers shall be notified: When service execution, does not conform to requirements When SRP does not conform which has been delivered or used in the execution of a service

37 5.11 Management of Change Management of Change Change in Personnel & Suppliers Process Execution Changes Risk Assessment Management System Changes Higher Risk? No End of Process SRP & Design Changes Yes Customer Notification No Customer Accepts? Yes End of Process

38 Impact on Drilling Operations Contractor Influence Drilling Operations Risk Assessment Resources API Spec Q2 QA/QC Design of Service Contingency Planning Competency Critical Suppliers Service Quality Plans Assembly Insp / Test MOC Operations Support Tool delivery BHA Inspections Maintenance & Critical Spares Service Performance Validation Well Integrity Reduction of NPT PM Programs (AFE) Spud Time ( rig days)

39 SUMMARY & BENEFITS

40 INDUSTRY IMPACT Operators Service Providers Regulators and other Interested Parties Suppliers

41 WHAT API SPEC Q2 IS NOT It is not a manual with new buzz words that you present to your customers. It is not a cross reference between your management system and your customer s. It is not a template that you fill in and claim compliance.

42 WHAT API SPEC Q2 IS It is about service quality and risk mitigation supported by validation and actual service provider performance.

43 Benefits of Standardization Improves service related product reliability Minimizes risk through identification, planning & controls Identifies critical tasks that impact quality, safety and the environment Minimizes service related risk and improves efficiencies Improves communication between service providers and their suppliers and operators.

44 INDUSTRY COLLABORATION

45 Industry Collaboration Beta Test Site Assessments: Gaps, hurdles and milestones for auditing to Q2 Identify competencies / training for API Staff / Auditors Identify needed resources Types of certifications needed to meet industry needs Baker - Completed Schlumberger Completed Weatherford Completed Halliburton Completed Orion Drilling Completed

46 Industry Collaboration API Spec Q2 Mock Audit: Halliburton Bakersfield, CA July 29 th August 2 nd 2013 PSL Covered Drilling Fluids & Solids Cementing Completion Tools Production Enhancement Directional Drilling / MWD / LWD Wireline and Perforating

47 Industry Collaboration API Spec Q2 Reviews: Orion Drilling Maersk Drilling Akita Drilling Parker Drilling Transocean MI Swaco

48 EVOLUTION OF API SPEC Q2 DEVELOPED PUBLISHED BETA TESTING COMPLIANCE CERTIFICATION EXPECTATION API Spec Q2 was developed in 2010 through API Spec Q2 was published in December A combination of operators and service providers participated in the beta test. Service providers start getting their QMSs in compliance with API Spec Q2. Service providers become certified in API Spec Q2. Service providers shall be in compliance in order to bid on jobs requiring API Spec Q2.

49 QUESTIONS?