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2012 Standards Conference SC18 Committee on Quality Standards Westminster, CO June 14, 2012

API Monogram Program Status Report. 2012 Standards Conference SC18 Committee on Quality Standards Westminster, CO June 14, 2012. Aaron Duke Certification & Audit Program Development Monogram Program/APIQR dukea@api.org. W. Don Whittaker Manager Monogram Program/APIQR whittakerd@api.org.

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2012 Standards Conference SC18 Committee on Quality Standards Westminster, CO June 14, 2012

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  1. API Monogram Program Status Report 2012 Standards ConferenceSC18 Committee on Quality Standards Westminster, CO June 14, 2012 Aaron Duke Certification & Audit Program Development Monogram Program/APIQR dukea@api.org W. Don Whittaker Manager Monogram Program/APIQR whittakerd@api.org

  2. API Monogram/APIQR Program Status Report Monogram Program Statistics Audit Program Monogram Standards Update Fraud & Product Complaints API Conference & Expo – Beijing - 2013

  3. API Monogram/APIQR Certified Companies 5-12

  4. 3812 Active Certified Companies. 3546 Licensed Companies. 1093 Companies Certified with APIQR. 827 Companies With Both. 5-12

  5. API Monogram Licensed Companies Top Countries China – 1441 USA – 590 India – 213 S. Korea – 133 Canada – 98 Italy – 92 UK – 71 UAE – 66 Indonesia – 62 Japan – 52 Germany – 50 Mexico – 40 Malaysia – 39 Singapore – 36 Brazil – 33 3546 Licensees. 77 Countries. 5-12

  6. API Monogram Licenses Top Countries China – 2249 USA – 885 India – 403 Italy – 200 S. Korea – 188 UAE –164 Canada – 152 Indonesia – 110 UK – 106 Germany – 99 Japan – 90 Singapore – 89 Mexico – 69 France – 64 Malaysia – 63 5859 Licenses. 5-12

  7. Top Specifications 5-12

  8. Top Licensed Products 5-12

  9. APIQR ISO 9001 Certified Companies Top Countries China – 274 USA – 266 Canada – 57 India – 45 Indonesia – 34 S. Korea – 32 UAE – 25 Singapore – 24 Mexico – 22 Russia – 21 UK – 17 S. Arabia – 15 Venezuela – 13 Egypt – 12 Italy – 11 1037 Companies. 63 Countries. 5-12

  10. APIQR API Spec Q1 Certified Companies Top Countries China – 279 USA – 254 Canada – 51 India – 46 Indonesia – 33 S. Korea – 33 Singapore – 26 UAE – 25 Russia – 19 Mexico – 18 UK – 17 Egypt – 14 S. Arabia – 14 Turkey – 11 Italy – 11 1023 Companies. 64 Countries. 5-12

  11. API Monogram Applications Top Countries China – 294 USA – 90 India – 48 Indonesia – 36 Italy – 30 S. Korea – 22 UAE – 19 UK – 19 Canada – 18 Singapore – 17 Germany – 11 S. Arabia – 11 Turkey – 10 Mexico – 10 Russia – 8 737 Applications at 516 Companies. 5-12

  12. APIQR ISO 9001 Applications Top Countries China – 71 USA – 62 Canada – 17 Russia – 9 Malaysia – 7 Australia – 6 Singapore – 6 UK – 6 India – 5 Mexico – 5 Italy – 4 Romania – 3 S. Korea – 3 Spain – 3 UAE – 3 242 Applications. 5-12

  13. APIQR API Spec Q1 Applications Top Countries China – 73 USA – 62 Canada – 17 Russia – 10 Australia – 9 Singapore – 8 Malaysia – 7 UK – 6 India – 5 Mexico – 5 Italy – 4 UAE – 4 Romania – 3 S. Korea – 3 Spain – 3 257 Applications. 5-12

  14. Audit Nonconformities by Specification

  15. Audit Nonconformities by Clause

  16. Audit Program Status Report 2012 Standards ConferenceSC18 Committee on Quality Standards Westminster, CO June 14, 2012 Aaron Duke Certification & Audit Program Development Monogram Program/APIQR dukea@api.org

  17. 2012 To Date Total Certification Program Audits • 1045 Audits Performed • Audits by Program: • Monogram Only – 433 • Dual – 444 • Registration – 144 • Other – 24 • Audits by Country: • China – 320 (30%) • USA – 228 (22%) • India – 54 (5%) • Canada – 44 (4%) 5-12

  18. API Monogram Audits by Type 5-12

  19. Dual (API Monogram/APIQR) Audits by Type 5-12

  20. APIQR Registration Audits by Type 5-12

  21. 2009 – 2012 Audits Performed Historical Comparisons 6-12

  22. 2012 Audits Due – Status 5-12

  23. 2012 - 2013 Audits Due 5/23/12

  24. Active API Monogram/APIQR Auditors • 143 Active Auditors • 138 QMS-Monogram • 20 Auditors in training • 16 EMS-OHSAS • 11TPCP • 15 Perforator Witness 5/23/12

  25. Audit Program • Auditors • Auditor Training Session – Singapore – February 2012 • 19 Auditor Observations Due in 2012 • 2012 Auditor Summit – Sanya, China – November 12-15, 2012 • 2013 Auditor Summit – Phoenix, Arizona – February 18-21, 2013 • API Spec Q2 – training & resource planning • Continue to develop resources in key areas • Working to foster relationships with sub-contract providers • USA, Central Asia, Japan • Audits • More audit questions and tools – all priority specs done end 2012 • Develop better technical audit & training tools for auditors • New myCerts audit module implemented Q4 2012 5/23/12

  26. API Spec Q1 • Quality Programs for the Petroleum, Petrochemical and Natural Gas Industry, 9th Edition • Effective TBD • API Spec 2C • Specification for Pedestal Mounted Cranes, 7th Edition • Published March 2012-Effective September 2012 • API Spec 5CT • Casing and Tubing, 9th Edition • Published July 2011-Effective Jan 2012 New / Revised Specifications

  27. API Spec 6AV1 • Verification Test of Wellhead Surface Safety Valves and Underwater Safety Valves for Offshore Service, 2nd Edition • Effective TBD • API Spec 8C • Specification for Drilling and Production Hoisting Equipment (PSL 1 and PSL 2), 5th Edition • Published April 2012-Effective October 2012 • API Spec 11AX • Subsurface Sucker Rod Pumps & Fittings, 13th Edition • Effective Fourth Quarter 2012/First Quarter 2013 New / Revised Specifications

  28. API Spec 11E • Pumping Units, 19th Edition • Effective Fourth Quarter 2012/First Quarter 2013 • API Spec 17E • Subsea Umbilicals, 5th Edition • Effective TBD • API Spec 20A • Carbon Steel, Alloy Steel, Stainless Steel and Nickel Base Alloy Castings for use in the Petroleum and Natural Gas Industry, 1st Edition • Published March 2012 New / Revised Specifications

  29. Program Updates 11IW Specification Withdrawn • Document will no longer be considered as active and maintained within the API Standards document list, but will remain as historical document • Ballot concluded May 3rd 2012 • 11IW licenses to be withdrawn on November 3rd, 2012 11V1 – 19G1-G2 Transition • 19G1 / 19G2 initial / transition audits still underway • 4 facilities transitioned / 6 audited and under review / 6 facilities have not completed transition request • Transition period ends July 1, 2012 – 11V1 licenses to be withdrawn on July 1, 2012

  30. Program Updates • myCerts 2 • Q2 • Application process /content changes • Quality manuals • Audit reports • Composite list upgrade

  31. Fraud and Complaints Overview

  32. Number of Fraud Cases

  33. Fraud Distribution 2009-2012

  34. Actions Taken

  35. 2012 Recent Product Complaints • API Spec 6D Ball Valves with multiple leaks discovered after gas commissioning. Product inspection demonstrated that the Valves were not fitted with internal sealant injection fittings. • API Spec 5CT Pipe delivered with clear nonconformities identified in Mill Cert. Pipe tested and several defects found throughout pipe length (butt welds, jointers, cross welds, pipe length) When welding procedures were requested by client, they received no response. Periodic audits

  36. Major Complaint • API Spec 5L Pipe delivered with major signs of corrosion and rust which raised questions regarding quality of product . During the cleaning of corrosion, pieces of metal broke off from inner pipe surface. • Tests performed to assess mechanical integrity yielded that in addition to poor finish, the impact strength of Pipe was far below requirements. Periodic Audit Corroded metal piece 

  37. Major Complaint • API Spec 8A/8C/4F Facility with multiple complaints. One end user received 4F Mast which shipped with structural damage. Records were requested regarding structural and mechanical integrity of 4F Mast, API Licensee refused to release documentation. Pad eye damage  • One end user received 8A Bails that became bent in the field. • Periodic audit

  38. 2012 Periodic Audit Outcomes • Two Facilities cancelled • Two 4F Facilities approached consultants affiliated with Monogram Program to provide designs and engineering for 4F products. Consultants alerted API that the facilities do not have capability nor equipment to test or assemble. One audit so far performed with early recommendation from auditor of immediate cancellation. • Potential client of 16A licensee performed an Audit as part of a purchase agreement, discovered evidence that licensee did not have minimum capability to Design, Weld, and Heat Treat 16A products. API notified, periodic audit yielded credible evidence to substantiate complaint. License now suspended.

  39. Upstream Downstream Beijing Exposition and Conference Sept, 2013 Measurement Training – Q1 and Q2

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