API 17N (and Q) Subsea Production System Reliability, Integrity, and Technical Risk Management First 8 slides are what was presented in San Fransisco….or at least I think so The remaining slides are our progress since and path forward

History See Last Summer Minutes

Status Before Winter ‘15 Meeting the committee worked the 17N / 17Q relationship Agreed a “New Q” was required Plan at that time was that: API 17N would introduce the TQ Process API 17Q would cover the details Prior to the Winter Meeting

Status 17N ballot took place 17Q scoping survey completed Overall ballot passed but with many comments Results evaluated 8 complex issues, 186 others 2 negative votes (repetition and inferred shall) 17Q scoping survey completed Formed the basis for API RP 17Q Explain the reason for the original document structure which had Stand alone project stages and operational stages . Intended that each stage could be separately

17Q Scoping Survey Report API 17Q Preliminary contents (headings 1-4 standard sections not shown) Preliminary Table of Contents for API 17Q Brief notes under each heading Summary of comments from industry inputs as an appendix Handed over to 17Q committee

Plan for Q3/4 2015 To work comments – agree how to address To address negative votes To form 17Q Working Committee To deliver revised 17N and new 17Q ASAP Current Annexes D (statistics) and F (TRL & TQP) will be incorporated into API 17Q but will remain temporarily in 17N until 17Q is issued

17N Progress Agreed basis to correct 17N negative votes David Saul (BP) has joined team to address concerns Shell (in concurrence) Action Plan agreed to address 17N ballot comments and BP/Shell concerns 17Q steering committee formed

17N Action Plan Key areas to be actioned Wording to accommodate companies with existing practices which already cover the scope and intent of API 17 N Provide foreword which explains structure and layout of the document Avoid repetition Simplify language and seek volume reduction opportunities Remove all implicit “shall” statements Example implicit Shall: ….to ensure that. Implicit should: it is recommended that.

17N Action Status Statement on existing company processes – DONE Foreword – TBC following other changes Removal of repetition Astrimar to merge large portions of main body text section 6 into annex C (scope of work) and remove repetition 95% DONE Jerry Baker and David Saul to read/review when complete Simplify Language Annex E ( Inspection) - Baker Marine Technology DONE Annex B (KPs) – OneSubsea/FMC TBD January 2016 Remove Implicit “shall” David Saul to propose changes - WIP Astrimar to review on completion

Additional 17N Actions Additional Improvements to capture Ballot feedback Technical risk categorization Propose definition of “same” for TRC = D (David Saul) WIP Guidance on use of Process TRC (Astrimar) DONE Clarification of qualification terminology Annex F to be aligned with 17Q (Astrimar) TBD with 17Q Review allocation of goals and requirements Edit KP1 in annex B (Astrimar) WIP RIAD (Reliability & Integrity Assurance Document) TBD as part of Annex B and Annex C update WIP Same :

Goals Changes to not require a Re-Affirmative Vote Complete revision by EOY 2016 (HARD Deadline) Latest version to steering committee end Feb 2016 Issue to API by June 2016 (aim for April) Ensure Smooth Transition & alignment between 17N & 17Q

Current Issues Need resources to address Annex B comments FMC /One subsea already agreed to support Unable to resource in 2015 Needs urgent 2016 resourcing to meet delivery deadline Considerable effort has already been contributed since ballot Astrimar, Baker Marine, BP plus others API 17N chairs are recommending an SRRR application for funding

Thanks and Questions