1. Regulators’ use of standards Neftegazstandart conference, 9-11 September 2009, Kazan Alf Reidar Johansen OGP Standards Manager

2. Introduction This presentation reflects the current situation of national regulators' reference and use of standards in their regulatory documents. Particular focus on offshore petroleum industry and standards for materials, equipment, systems and structures. This presentation is based on a draft OGP report* that analyzes the documents prepared by the regulators themselves. *) Assumed to be published fall 2009 and freely available at www.ogp.org.uk.

3. Standards’ place in the package

4. Regulators covered Canada, represented by: Canadian Nova Scotia Offshore Petroleum Board (CNSOPB) Canadian Newfoundland Offshore Petroleum Board (CNOPB) Danish Energy Agency (DEA); Denmark Department of Labour (DoL), New Zealand Ministero dello Sviluppo Economico (MES), Italy National Agency of Petroleum, Natural Gas and Biofuels (ANP), Brazil National Offshore Petroleum Safety Authority (NOPSA), Australia Oil Industry Safety Directorate (OISD), India Petroleum Safety Authority (PSA), Norway State Supervision of Mines (SODM), The Netherlands UK Health and Safety Executive (HSE), UK United States represented by: US Coast Guard (USCG) US Minerals Management Service (US MMS).

5. Areas examined

6. Purpose of OGP Report Provide for better understanding of use of national, regional, international and industry standards in the regulatory documents provide a good basis for OGP interactions with the relevant regulators and in particular the IRF provide relevant background material for the prioritization of international standards work provide a better basis for the evaluation of OGP’s position on development and use of international standards. Ref. OGP Report No. 381, April 2007 provide a benchmark on regulators' use of standards.

7. Numerous types of regulatory documents Acts Law Decree Regulations Executive orders Directives Amendments to Acts and Regulations Guidelines Management practices Standards Rules Guidance Notes Code of Practices Memoranda Interpretations.

8. Regulators references to standards 1.348 references in total

9. Summary of references by Standards Development Organisations NORSOK

10. Summary of references by regulators analyzed 1.348 references to standards in total 1.142 of these references are to different, individual standard titles. From more than 60 different standards development organisations around the globe. Of the 1.142 different standards, as many as 989 or 87% are referenced by one regulator only. Only 13% of the standards to be referenced by two or more regulators. Note: Russia not included and China has no specific references to standards in their regulatory documents.

11. Number of standards referenced by individual regulator

12. Category of standards referenced by individual regulator

13. Standards mostly referenced API Spec 6A* Wellhead and Christmas Tree Equipment IMO Mobile Offshore Drilling Units (MODU) Code API RP 14B* Subsurface Safety Valve Systems API Spec 17J* Unbonded Flexible Pipe IEC 60331-11 Fire resisting characteristics of electric cables API RP 14C* Basic Surface Safety Systems API RP 521* Pressure-Relieving and Depressuring Systems API Spec 14A* Subsurface safety valves NFPA 13 Installation of sprinkler systems. ANSI/ASME VIII-1 Pressure Vessels NACE MR 01-75* Standard Material Requirements, Metals for Sulfide Stress Cracking and Stress Corrosion Cracking Resistance in Sour Oilfield Environments *) also available as ISO/TC 67 standard By 4 regulators By 5

14. Duplicating standards for pipelines transportation systems ANSI/ASME B31.4 Liquid Transportation Systems for Hydrocarbons ANSI/ASME B31.8 Gas Transmission and Distribution Piping Systems API RP 1102 Pipelines Crossing Railroads and Highways API RP 1111 Offshore Hydrocarbon Pipelines CAN/CSA-Z184-92, Gas Pipeline Systems CAN/CSA-Z187-M87 Offshore Pipelines (replaced by Z662-07) DNV OS-F101 Submarine Pipeline Systems EN 14161 Pipeline Transportation Systems (Adoption of ISO 13623) ISO 13623 Pipeline transportation systems NEN 3650 Requirements for pipeline systems NZS 5223 High Pressure Gas and Petroleum Liquids Pipelines PD 8010-2 Code of practice for pipelines: Subsea pipelines

15. Country of origin of standards referenced

16. Region of origin of referenced standards

17. Oil & gas industry can influence

18. Summary so far References to industry standards (44%) dominates, then to national standards (35%) and finally international standards (21%). Regional origin of standards is 40% from SDOs in N&S America, 24% from Europe, 21% are international standards and 15% emanates from SDOs in India and Australasia. API standards are dominating with 225 references, including 49 API MPMS standards. ISO has delivered 152 of the standards, including 59 from the work of ISO/TC 67.

19. Sharing and single references: Canada and US regulators

20. Sharing and single references: Denmark, Norway and UK regulators

21. Other observations Many standards referenced cover the same subject and duplicate each other. E.g. offshore structures and pipelines. Mix of references to dated (e.g. Norway, US) and undated revisions. Referenced standards appear to be voluntary in most of the regulatory regimes. Other technical solutions can be opted for provided proof of compliance can be documented.

22. Conclusions Standards play an important role in the regulators definition of the desired safety level of oil and gas installations they regulate. The diversity of references provides a challenge for international operators. Duplication of standards should be looked into for harmonization. The oil and gas industry is able to directly influence the content of 380 of the standards listed in this report and therefore is largely responsible for their development and maintenance.

23. Conclusions cont. There is a significant increase in the reference to international standards and a sharp decrease in references to national standards compared with PETROL96. However, with the figure of only 21% references to international standards by the regulators, it is evident there is still a lot of work to be done. Global Standards Used Locally Worldwide

24. Questions? Alf Reidar Johansen OGP Standards Manager Email: arj@ogp.org.uk Mobile: +47 95 029 079