Report on international standards work NEFTEGAZSTANDARD 2013 Nizhny Novgorod October 2013 Alf Reidar Johansen OGP Standards Manager

Content OGP Interim Solution Backup slides New ISO/OGP industry proposal Status OGP/API TF on long term solution Other OGP work 2

Introduction US/EU trade regulations has disrupted ISO/TC67 work in the normal ISO environment. OGP Interim Solution was developed to provide a secure environment under the auspices of OGP for those who want to continue the technical work of ISO/TC67. OGP Interim Solution was agreed with ISO Central Secretariat, ISO/TC67 and OGP Management. OGP Interim Solution operated from June 2012 to June

OGP Interim Solution compared to ISO route (simplified) 4 Trade regulation «barrier». Draft standards text and comments will be available in the public domain. Review and approval by OGP PM & Sponsor

Uptake OGP Interim Solution Experts/members 5

Uptake OGP Interim Solution Work Groups 6

Uptake OGP Interim Solution Projects 7

Interim Solution in summary Kicked off 8 June 2012 for 6 months Extended 6 months till 8 June experts registered 68 standard project teams active 19 draft standards completed 14 New Work Items approved 5 drafts stuck on Intellectual Property (IP) issue 8

Next phase OGP Continues to offer a safe platform for drafting international standards to be balloted and published by ISO. OGP and ISO management had a very good meeting in August. The Industry Solution described herein was proposed by ISO Central Secretariat, building on ISO Directives and OGP’s role as a liaison member to ISO/TC67. 9

New OGP solution vs ISO route (draft & simplified) 10 Trade regulation «barrier». Draft standards and comments will be made available in the public domain. Review for controlled technology (TBA) Project initiation 1) Note 1: Project initiation may take place by OGP only. Note 2: Non-OGP members will be invited Note 3: May go to FDIS or publication. Note 4: API material (TBD) may not be used 3) 2) 4)

OGP proposed ISO/TC67 resolution 1.ISO/TC67 welcomes the offer from OGP as a liaison (A) member to continue its assistance in developing draft ISO standards in a protected environment and recommends its members to use this solution, where the SCs/WGs find it relevant. 2.ISO/TC67 requests its secretariat to co- operate with OGP in such an arrangement. ISO/TC67 agreed to these resolution in their plenary meeting in Oslo, September

OGP Administration TF The new solution will be administered by OGP’s Administration TF under the Standards Committee, with membership currently including: Andries Otter, Shell (chairman) Denis Deutsch, Total Per Eirik Fosen, Statoil Alf Reidar Johansen, OGP Jarno Dakhorst, OGP More members welcome! 12

Joint OGP/API TF long term solution Establishement Joint Task Force (TF) established by OGP and API management August 2012 Purpose: Determine a process for the continued development of globally accepted international standards for the oil and gas industry, given the current US and EU trade sanctions. TF membership (15 members): Six members from API, six from OGP members Added two lawyers, one facilitator Staff one each from OGP and API Steering Committee (6 members) 13

Joint OGP/API TF long term solution Terms of References Need for a single set of industry standards to avoid duplication, with the potential for more than one brand, Need for the standards to be globally acceptable and widely used, Need for the standards to be accepted by the regulatory community, A standards setting process as the foundation for the single set of industry standards that builds on the existing API/OGP infrastructure and allows for increased international participation, and Need to ensure a legally compliant process. 14

Current status From 8 options to one pragmatic (draft) solution that provides a process to legally publish standards using either an API or OGP/ISO process path TF will develop governance (front-end process) to ensure coordination between stakeholders to avoid duplication and have the largest possible audience among the global expert community TF awaits the OFAC response to provide the final framework of the proposed solution 15

Other OGP work OGP-IPIECA Good Practice Guidelines for Development of Shale Oil and Gas for European operations in final stages of approval for publication. Wells Expert Committee active on: BOP reliability - being investigated Well Control Incidents Database - alerts Human Factors - Training, Competency & Behaviour guidelines Standards prioritized - OGP Report 485 to be re- issued these days 16

OGP Contacts OGP Reception Tel: Alf Reidar Johansen (Standards manager) Mobile: Jarno Dakhorst (Manager for New Solution) Mobile:

Backup slides 18

OGP New Work Item Proposals (new) Well integrity lifecycle governance – Approved (rev) Glass reinforced plastic (GRP) piping, Parts 1-4 – Approved (new) Guidelines for systems and installations for supply of LNG as fuel to ships – Approved (new) Guidance for conception, design and testing of LNG storage tanks – Approved (new) External coating of riser pipes by poly-chloroprene elastomer specification – Approved (new) Internal coating and lining of carbon steel process vessels – Approved (rev) Guidelines on tools and techniques for hazard identification and risk assessment – Approved (rev) Collection and exchange of reliability and maintenance data for equipment – Approved (rev) Hoisting equipment – Approved (new) Cost Coding System for oil and gas production and processing facilities – Approved (new) Methods for control of corrosion under thermal insulation and fire proofing materials – Approved 19

Published drafts 2012 OGP : PNGI – Specific requirements for offshore structures – Part 8: Marine soil investigations OGP : PNGI – Reliability modelling and calculation of safety systems OGP : PNGI – Drilling and production equipment – Shallow gas diverter equipment OGP : PNGI – Well integrity - Part 2: Well integrity for the operational phase OGP : Characteristics of LNG, influencing the design, and material selection OGP : Design and testing of LNG marine transfer arms for conventional onshore terminals OGP : PNGI – Downhole equipment - Completion accessories 20

Published drafts 2013 OGP : PPNGI – Competency management guidance for well operations personnel OGP : PPNGI – Reliability modelling and calculation of safety systems OGP : PPNGI – Internal coating and lining of steel storage tanks OGP : PNGI – Pipeline transportation systems – Welding of pipelines OGP : PNGI – Control and mitigation of fires and explosions on offshore production installations – Requirements and guidelines OGP : Guidance on performing risk assessment in the design of onshore LNG installations including the ship/shore interface More next slide

Published drafts 2013 OGP : PNGI - Metallic materials resistant to sulfide stress cracking in corrosive petroleum refining environments OGP : PNGI - External coatings for buried or submerged pipelines used in pipeline transportation systems - Part 2: Single layer fusion-bonded epoxy coatings OGP : PNGI - Specific requirements for offshore structures - Part 1: Metocean design and operating considerations OGP : Guidelines for systems and installations for supply of LNG as fuel to ships OGP : PNGI - Drilling and production equipment - Part 1: Electrical submersible pump systems for artificial lift OGP : PNGI - General requirements for offshore structures 22

Requested clearance to publish under 1 August 2012 agreement OGP Offshore production installations - Basic surface process safety systems (Rev. of ISO 10418:2003, incl. Corr. 1:2008). OGP Drilling and production equipment - Hoisting equipment (Rev. of ISO 13535:2000). API Spec 8C that was published in April OGP Design and operation of subsea production systems - General requirements and recommendations (Rev. of ISO :2005 incl. Amd 1:2010) API RP 17A:2006 adoption of ISO :2005 Identical. OGP Pressure-relieving and depressuring systems (Rev. of ISO 23251:2006 incl. Corr. 1:2007 and incl. Amd 1:2008). API Std 521: Add adoption of ISO 23251:2006. OGP Venting of atmospheric and low-pressure storage tanks (Rev. of 28300:2008 incl. Corr. 1). API Std 2000:2009 adoption of ISO 28300:2008 Identical. 23 These are stuck!