1. Subsea Standardization

2. Brief History SPE ATW on Subsea Standardization held Dec 2008 SPE ATW on Subsea Standardization held Dec 2008 –Form workgroup for further review –The purpose of the workgroup would be to: Identify potential areas of industry standardization Identify potential areas of industry standardization Obtain cross section of industry input on standardization issues Obtain cross section of industry input on standardization issues Present API SC17 with recommendation for moving forward at Summer Meeting in June 2009. Present API SC17 with recommendation for moving forward at Summer Meeting in June 2009.

3. Prep for API 2009 Summer Conf Materials Materials Welding Welding Quality Management Quality Management Performed rationalization of potential areas of standardization

4. Assessment Process Three focus teams (Quality, Materials, & Welding) with Operator and Supplier representation Three focus teams (Quality, Materials, & Welding) with Operator and Supplier representation Brainstorm potential standardization opportunities Brainstorm potential standardization opportunities Score in terms of manageability & value Score in terms of manageability & value Score in terms of value Score in terms of value

5. Summary Industry standards have surpassed standard API 6A requirements Industry standards have surpassed standard API 6A requirements Specific requirements have been identified to pursue possible codification Specific requirements have been identified to pursue possible codification Specific Areas of Opportunity are: Specific Areas of Opportunity are: –Quality Management Standardize manufacturing record book contents and requirements Standardize manufacturing record book contents and requirements Standardize positive metal identification (PMI) requirements Standardize positive metal identification (PMI) requirements Standardize traceability requirements for critical elements Standardize traceability requirements for critical elements Standardize nonconformance reporting and processes necessary to proceed with the work Standardize nonconformance reporting and processes necessary to proceed with the work Align API 17 series specifications and RPs with QMS concepts and terms of API Q1, ISO/TS 29001 and ISO 9001 Align API 17 series specifications and RPs with QMS concepts and terms of API Q1, ISO/TS 29001 and ISO 9001 Apply API “data sheet” concept to all API 17 series specs and RPs to communicate requirements Apply API “data sheet” concept to all API 17 series specs and RPs to communicate requirements

6. Summary (Cont’d) Materials Assign varying requirements according to the difficulty in making a given forging, the difficulty in obtaining the required properties in a given forging (taking into account engineering requirements, hardenability of the alloy, and section size of the forging), and the consequences of a forging failure Assign varying requirements according to the difficulty in making a given forging, the difficulty in obtaining the required properties in a given forging (taking into account engineering requirements, hardenability of the alloy, and section size of the forging), and the consequences of a forging failure Imposing API RP 6HT as a mandatory requirement for large forgings Imposing API RP 6HT as a mandatory requirement for large forgings Allowing the current API 6A options for QTC’s (separately forged test bar, prolongation, or sacrificial forging). If separately forged test bars are used, the manufacturer must provide technical justification for end user approval Allowing the current API 6A options for QTC’s (separately forged test bar, prolongation, or sacrificial forging). If separately forged test bars are used, the manufacturer must provide technical justification for end user approval Mandatory normalizing for large low alloy steel forgings Mandatory normalizing for large low alloy steel forgings Preheat treat machining requirements (as necessary) Preheat treat machining requirements (as necessary)

7. Summary (Cont’d) Welding Group similar materials & grades (US vs Europe) to eliminate requirement for individual weld qualifications Group similar materials & grades (US vs Europe) to eliminate requirement for individual weld qualifications Adopt “Weld Criticality” ratings. Match welding / NDE requirements to criticality Adopt “Weld Criticality” ratings. Match welding / NDE requirements to criticality Join forces with other welding standardization committees already working the problem (i.e. API RP 582 and others) Join forces with other welding standardization committees already working the problem (i.e. API RP 582 and others)

8. Actions from API 2009 Summer Conference It was recommended that the SPE group continue their efforts to address the suggested optimization in Materials, Quality and Welding and generate a draft specification document.

9. Standardization Work Plan

10. Recorded These References Document Document Document Type Document Type Document No. Document No. Name & Rev Name & Rev Quality and Quality Management Quality and Quality Management Material Selection and Qualification Material Selection and Qualification Welding and Welding Requirements Welding and Welding Requirements

11. API SC 6 – Valves & Wellhead Equipment

12. SC 14 - OFFSHORE SAFETY AND ANTI-POLUTION

13. SC 16 - DRILLING WELL CONTROL SYSTEMS

14. SC 17 - SUBSEA PRODUCTION SYSTEMS

15. Document Review Results Topic # of references Quality & Quality Management 100 Material Selection & Qualification 204 Welding & Welding Qualification 130

16. Next Steps Identify gaps Identify gaps –Existing references vs identified areas of opportunity Create outline of resulting specification Create outline of resulting specification Circulate outline for review Circulate outline for review Generate specification Generate specification