1. 1 API 16 AR Specification for Drill- through Equipment Remanufacturing Summer Standards Meeting Communication Jan van Wijk / Chris Johnson API-16AR chairman Janvanwijk@Shell.comJanvanwijk@Shell.com / Chris.Johnson@nov.comChris.Johnson@nov.com 25 June, 2013

2. 1220 L Street, NW Washington, DC 20005-4070 www.api.org2 Status 1.Draft document 50% state. 2.Task groups formed to work compile standard content on Welding, flow diagrams and certification. 3.Meetings planned for welding subgroup and next face to face end August. 4.Establishment of Material Data Book and Project History File as part of the API-16AR standard is essential for traceability. Completion time governed by welding subgroup progress on the subject. 5.Complete draft document to be worked on in the August face to face meeting. 6.Acceptance for Quality Specification Levels for remanufacturing process. 7.Strong drive to deliver the standard for Ballot end 2013.

3. 1220 L Street, NW Washington, DC 20005-4070 www.api.org3 Time Plan201220132014 Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 Flow process charts and Remanufacturing Service Levels Basic plan development. Working API-16AR document. Ballot-1 Comments implementation API approval process

4. Quality Specification Levels for Primary Equipment QSL levels address equipment quality / specification only. Implementation of requirements listed in API-6A planned for next meeting in August. 1220 L Street, NW Washington, DC 20005-4070 www.api.org4 RSL-1RSL-2RSL-3RSL-4 Engineering Design Verication/ Validation Yes Material Specification Requirements Yes Yes Higher chemistry restrictions & properties Yes Same as RSL-3 Testing Hydro Testing of Assemblies with 3 minute hold periods. Hot work performed would shell test 1-1/2 times maximum working pressure. RSL-1 testing requirements MTR's traceable to impact testing on body. NDE Testing on body, bonnet, door, ram shaft, annular top All RSL-1 & 2 requirements Impact test on body, bonnet or door, ram shaft, upper housing & lower housing with MTRs. NDE Testing all major components & wetted surfaces. UT or X-ray of all full penetration welds Hydrostatic test hold times 15 minutes. Yes Same as RSL-3 Documentation on Components Maintained by Manufacturer 1. Body, bonnet, door, ram shaft, annular lower & upper housing MTRs or PMI 2. WPS records and Welder Qualification Records 3. NDE qualification records 4. Hardness records 1. All RSL 1 Records 2. All NDE Records 3. Post Weld Heat Treatment Records 1. All RSL-2 Requirements 2. All Major Components Reference specific serial numbers 3. Volumetric NDE Records 4. Post Weld Heat Treat (Times & Temperature) 5. Hardness Reports 6. WPS Records 7. Dimensional Records 1.Post Weld Heat treatment conducted with thermal coupler on part & actual chart temperature chart recorded. 2. Total hours of history heat treament for major components. 3. All RSL-1, 2, 3 requirement. Documentation on Assemblies by Manufacturing Test ReportsActual test pressure charts & reports with hold times. 1. All RSL-2 Plus 2. C.O.C. 3. Assembly Traceability Records including Elastomer Records. 4. Pressure Test Records All RSL-1, 2, 3 Records Furnished to Purchaser C.O.C.C.O.C. with Heat Treatment & Hydrostatic Test Data Databook with C.O.C. and all information above with exception to proprietary dimensions. Same as RSL-3 All records except proprietary dimensions

5. 1220 L Street, NW Washington, DC 20005-4070 www.api.org5 Q&A… For information, please contact API directly or contact: Jan van Wijk API-16AR chairman Janvanwiijk@shell.com Chris Johnson API-16AR co-chairman Chris.johnson@nov.com