1. API Q1 and ISO/TS 29001 A Case Study in Successful Collaboration
Stacey Hagen, Drilling Materials Sr. QA Advisor – OCTG Lead
Chair, API Subcommittee on Quality

2. Overview ExxonMobil Background ExxonMobil’s standards strategy
API Q1/ISO Case Study
Conclusions

3. Company Background
Formed in 2000 as the result of the merger of Exxon and Mobil corporations
Now the world’s largest publicly owned oil company
2006 net income of $39 billion US:
Total liquid and gas production available for sale was 4.2 million oil-equivalent barrels per day
Refinery throughput of 5.6 million barrels per day
On March 30, 2007 announced participation in China’s first fully integrated refining, petrochemical and fuels marketing joint venture with foreign participation
Agreement between Sinopec, Fuijan Province, ExxonMobil and Saudi Aramco

4. Standards Strategy
ExxonMobil has long been active in national and international standardization
Member of the American Petroleum Institute (API), the leading oil industry standards developing organization since 1919
Chairman and CEO Rex Tillerson currently serves as Chairman of the API Board
Involvement in ISO activities since 1947, providing the chair of TC28, “Petroleum Products and Lubricants” since its inception and holding a variety of other positions in TC28 as well as TC67, “Oilfield Equipment, Materials, and Offshore Structures” and TC193, “Natural Gas”

5. Standards Strategy Participation is based on business / industry need
Resource cost assessed against standards added value
Standards value – combination of business benefits, priority, and spend
Provide leadership where ExxonMobil has resources and expertise
Standardization – vehicle to improved performance
Improved safety
Improved reliability
Reduce costs and enhanced supplier base

6. Standards Strategy ExxonMobil participation in Upstream oil & gas
50 technical professionals actively participate on API/ISO committees
Annual prioritization of standards activities and proposals
Steering team reviews accomplishments and forward plans

7. Steering Team Floating Structures Subsea & Flexibles Drilling Quality
Materials
Drilling
Cementing
Completion Equipment
Drlg Equipment & Riser
Fire & Blast & Platform Reassessment
Metering
Field Bus Design (Process Instruments)
Quality
Pipelines
Fixed Structures
Coiled Tubing
Subsea - Wellheads
Well Control
Derricks, Wind Loads
Drilling & Servicing Equipment
Steering Team
Civil / LNG
Germany ISO Coordination
Drilling Fluids
OCTG & Line Pipe

8. API Q1/ISO TS Case Study
API has been developing standards since 1923 and is recognized as “de facto” international standards1
Industry undergoes tremendous transformation and growth:
1970’s North Sea Discoveries, 1980’s frontier areas including China, Africa, Middle East
TC 67 reactivated in 1989, API assumes secretariat on behalf of ANSI in 1995
1 “Standards & Competitiveness: Coordination for Results removing Standards-Related Trade Barriers Through Effective Collaboration”, US DOC report, May 2004.

9. API Q1/ISO TS Case Study
API Q1, “Specifications for Quality Systems” first published in 1985, two years prior to initial publication of ISO 9000 series
API Q1 and API product specifications form the basis of API’s Monogram Program
API Monogram Program is the leading industry conformity assessment program, with 2120 licensed facilities worldwide
China has largest number of licenses issued to date, 560

10. API Q1/ISO TS Case Study
Why does oil and gas industry need more than ISO 9001:2000?
Failure of goods and services can have severe consequences
Need for consistency in manufacturing
API Q1 contains 9001 text in its entirety and 45 additional requirements
Control Features
Independent Design Review
Final Acceptance Inspection

11. API Q1/ISO TS Case Study
Oil industry determined need for a sector-specific solution similar to automotive
Standard to be developed in liaison with the TC 176 to ensure harmonization
Q1 was recognized as model for an international sector-specific document so that final API and ISO standards would be identical

12. API Q1/ISO TS Case Study
How best to align API Q1 and ISO as a sector specific quality standard?
API’s Subcommittee on Quality proposed a NWI to align a revision of API Q1 and the development of sector specific quality requirements in March, 2002
Draft Technical Specification January 2003
Publication June 2003

13. API Q1/ISO TS 29001 Case Study One standard accepted globally
One assessment / certification body accepted globally
Ensures consistency in audits
Eliminates variances in interpretations
Prerequisite for doing business

14. API Q1/ISO TS 29001 Case Study Conclusions:
API and ISO can work together successfully if the vision and commitment is agreed at the project’s onset
ExxonMobil and the international Oil and Gas industry will continue to push frontier boundaries in the search for oil and gas, requiring more stringent quality assurance requirements
API Q1/ISO TS will continue to help the oil and gas industry ensure consistency in manufacturing and reliability of products.

15. API – www.api.org, standards@api.org
Xie Xie (Thank you)
Contact Information:
Stacey Hagen
Drilling Materials Sr. QA Advisor – OCTG Lead
ExxonMobil Global Service Company
16945 Northchase Dr
Houston, TX 77060
API –
ISO –

16. Back-Up Slide Definitions:
API Spec Q1 Specification for Quality Programs for the Petroleum, Petrochemical and Natural Gas Industry
ISO TS29001 Petroleum, Petrochemical and Natural Gas Industries – Sector Specific Quality Management Systems – Requirements for Product and Service Supply Organizations
NWI New Work Item
TC Technical Committee

17. Back-Up Slide
Example clause – ensures that documented methods are available for audit

18. Back-Up Slide
Example clause – ensures independent review of designs

19. Back-Up Slide
Example clause – ensures final acceptance inspection of product