Report on international standards work

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

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

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

4. 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 describedhereinwasproposed by ISO Central Secretariat, building on ISO Directives and OGP’srole as a liaison member to ISO/TC67.

5. New OGP solution vs ISO route (draft & simplified) Project initiation1) 3) 2) 4) Trade regulation «barrier». Draft standards and comments will be made available in the public domain. Review for controlled technology (TBA) 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

6. OGP proposed ISO/TC67 resolution • 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. • 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 2013.

7. 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)

8. 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.

9. 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

10. 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

11. OGP Contacts OGP Reception • Reception@ogp.org.uk • Tel: +44 207 633 0272 Alf Reidar Johansen (Standards manager) • Alf.Reidar.Johansen@ogp.org.uk • Mobile: +47 95 029 079 Jarno Dakhorst (Manager for New Solution) • Jarno.Dakhorst@ogp.org.uk • Mobile: +31 6 33 33 46 71