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Erik Milito, API Director, Upstream and Industry Operations

Erik Milito, API Director, Upstream and Industry Operations David Soffrin , API Manager, Downstream Standards Program Andy Radford, API Senior Policy Advisor, Offshore Issues Roland Goodman , API Manager, Upstream Standards August 12, 2010.

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Erik Milito, API Director, Upstream and Industry Operations

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  1. Erik Milito, API Director, Upstream and Industry Operations David Soffrin, API Manager, Downstream Standards Program Andy Radford, API Senior Policy Advisor, Offshore Issues Roland Goodman, API Manager, Upstream Standards August 12, 2010 American Petroleum InstitutePresentation to NAE/NRC CommitteeAnalyzing Deepwater Horizon Incident:API Standards/Industry RecommendationsRelated to Offshore Drilling Operations

  2. Topics API Standards Development Process Offshore Drilling Standards and Recommended Practices API Recommended Practice 96, Deepwater Well Design Joint Industry Task Forces Overview: Scope of Work and Recommendations Enhanced Industry Operations and Capabilities

  3. API Standards API publishes ~500 technical standards covering all aspects of the oil and natural gas industry MMS references 72 API standards in regulations Updated in FR as of April 28, 2010 46 Measurement Practices 14 Design Codes 10 Operational Recommended Practices 2 Inspection Codes Most Recent - May 4, 2010 - API RP 90, Annular Casing Pressure Management

  4. Standards Development Process API is accredited by the American National Standards Institute (ANSI) Open to all interested parties Balance of interests among participants Approval by consensus (not unanimity) Transparent process (any stakeholder can comment on any document) Due process ensures that all comments must be considered and documented

  5. Standards Development Process • API standards include: • Specifications • Recommended Practices • Guidance Documents • Codes • Development managed through industry committee structure • Documents drafted by industry volunteers and contracted experts

  6. Subcommittee on Drilling Well Control Equipment Responsible for 8 API Standards Key standards Spec 16A – Drill-through Equipment (BOPs) Spec 16D - Control Systems for Drilling Well Control Equipment

  7. Subcommittee on Drilling Well Control Equipment Testing in Spec 16A, Specification for Drill- through Equipment includes: Pressure ratings Dimensions Design Verification Testing, 5.5 Operational Testing for BOPs, 5.7 Testing for Non-metallic sealing materials, 5.8

  8. Subcommittee on Drilling Well Control Equipment Spec 16D, Specification for Control Systems for Drilling Well Control Equipment and Control Systems for Diverter Equipment Spec 16D covers control systems for BOPs – Hydraulic, Electro-Hydraulic, Emergency Disconnect Systems, Acoustic, and Remote Operated Vehicles Actuation times consistent with MMS regulations

  9. Subcommittee on Well Cements Responsible for 16 API Standards Key standards - RP 65 and 65-2 RP 65, Cementing Shallow Water Flow Zones in Deepwater Wells - cited in MMS Regulations RP 65-2, Isolating Potential Flow Zones During Well Construction - published in May 2010

  10. Subcommittee on Subsea Production Equipment Responsible for 17 API Standards with four additional under consideration Key standards RP 17H on Remotely Operated Vehicles (ROVs) RP 17M on Remotely Operated Tool Intervention Systems (ROTs) Covers ROV and ROT interfaces on subsea BOP and production systems Combined document will include proposed additional post-deployment integrated system testing requirements and changes to hot tap interface to facilitate recognition by equipment

  11. Drilling & Production Operations Subcommittee Responsible for 13 API Standards for both onshore and offshore practices Key work includes standards and coordination on RPs 53, 59, 65, and RP 90, recently incorporated by reference RP 90 - Guide to managing annular casing pressure in offshore wells

  12. Drilling & Production Operations Subcommittee RP 53, Recommended Practice for Blowout Prevention Equipment Systems for Drilling Operations Configuration, installation and testing of BOP equipment systems Cited in MMS regulations Update underway - Initial focus on pressure barriers, control systems, testing, etc.

  13. Drilling & Production Operations Subcommittee RP 59, Recommended Practice for Well Control Operations Basic well control principles Detailed procedures for handling well control events Basis for industry training programs

  14. Drilling & Production Operations Subcommittee • RP 96, Deepwater Well Design (working title) • Study the loads and design practices used in subsea wells, including long strings and liner/tieback wellbore configurations • Understand the relative merits of each configuration to provide a framework to select the completion configuration that provides the highest overall system reliability

  15. Drilling & Production Operations Subcommittee • RP 96 Scope • Barrier philosophy • Load case considerations • Risk mitigation • References to other related industry standards • RP 96 Goal • Systematic drilling and completion well planning • Provide confidence that all items accounted for • Avoid unintended consequences

  16. Joint Industry Task Forces Offshore Operating Procedures Offshore Equipment Subsea Well Control and Containment Oil Spill Response

  17. Joint Industry Task Forces Objectives: Review equipment, designs, processes/procedures, testing protocols, planning, regulations, and associated data Identify gaps Make recommendations to close identified gaps and to align industry standards with recognized best practices Improve equipment, operations and response

  18. Offshore Operating Procedures Processes Associated with Drilling and Completing Deepwater Wells Focus on Mechanical Loads, Cementing Practices, Barriers and Well Displacement Addressing Health, Safety & Environment Case Over 30 Participants; Over 20 Organizations

  19. Offshore Operating Procedures May 17, 2010 Recommendations Health, Safety and Environment (HSE) Case Drilling Contractor Safety Case Lease Operator Safety Management System Well Construction Interfacing Document

  20. Offshore Operating Procedures May 17, 2010 Recommendations Operating Procedures Engage casing hanger latching mechanisms when casing is installed in the subsea wellhead Provide two independent barriers, including one mechanical barrier, for each flow path

  21. Offshore Operating Procedures May 17, 2010 Recommendations Operating Procedures Perform negative tests to a differential pressure greater than or equal to anticipated pressure after displacement Positively test each casing barrier to a pressure exceeding the highest estimated integrity of casing shoes below that barrier

  22. Offshore Operating Procedures May 17, 2010 Recommendations Operating Procedures Close BOPs during displacement to underbalanced fluid columns Perform separate displacement operations for riser and casing – Monitor volumes Ensure shearable drillstring components are positioned in the shear rams during displacement

  23. Offshore Operating Procedures May 17, 2010 Recommendations Operating Procedures Form API committee to study physical loads, design practices for well completions and completion configuration Adopt API RP 65 Part 2: Isolating Potential Flow Zones During Well Construction

  24. Offshore Equipment Reviewing Current BOP Equipment Designs, Testing Protocols, Regulations and Data Secondary BOP Control Systems BOP Testing and Test Data Remotely Operated Vehicles Addressing Health, Safety & Environment Case Over 60 Participants; Over 30 Organizations

  25. Offshore Equipment May 17, 2010 Recommendations Secondary BOP Control Systems Ensure BOP can automatically close blind/shear ram(s) and close choke/kill line valves Perform full surface function/pressure testing prior to running of the BOP stack

  26. Offshore Equipment May 17, 2010 Recommendations Secondary BOP Control Systems At prescribed intervals, conduct subsea testing of hydraulic function of rams and valves Arm the system when the BOP stack is latched on the wellhead

  27. Offshore Equipment May 17, 2010 Recommendations Secondary BOP Control Systems Verify proper operation of the system by testing to MMS-approved APD casing pressure Disarm and rearm only if approved through formal MOC process

  28. Offshore Equipment May 17, 2010 Recommendations BOP Testing and Test Data Upon completion of the testing, forward the test charts and function test work sheets to relevant MMS district office

  29. Offshore Equipment May 17, 2010 Recommendations Other Secondary Control Systems Establish Phase 2 work group to evaluate system combinations and capabilities under various conditions – Make recommendations Evaluate processing acoustic systems to remove ambient noise Engage national research facilities

  30. Offshore Equipment May 17, 2010 Recommendations Remotely Operated Vehicles Ensure ROV can close blind shear rams, pipe rams, casing shear rams, and choke and kill valves Ensure ROV can unlatch the LMRP Standardize ROV hot stab and receptacle per API Spec. 17H

  31. Offshore Equipment May 17, 2010 Recommendations Remote Operated Vehicles Surface test ROV functionality – develop visual reference capability to confirm ram closure Identify methods for testing without introducing seawater in BOP system Stage ROV tooling/external hydraulic power supplies strategically in the Gulf

  32. Subsea Well Control and Containment Reviewing everything that happens after a BOP has failed or intervention with BOP has failed Does not include BOPs, EDS, autoshear/deadman system, ROV/BOP interface Over 30 participants/Over 30 organizations Goal – August 25 for initial recommendations

  33. Subsea Well Control and Containment Well Containment at the Seafloor Hard Connect Top Kill Existing Equipment Modification

  34. Subsea Well Control and Containment Intervention and Containment within the Subsea Well Relief Well Considerations Dynamic Kill Direct Mechanical Intervention Subsea Stripping & Snubbing; Coil Tubing; Packers/Mechanical Barriers; Reactant Pills

  35. Subsea Well Control and Containment Subsea Collection and Surface Processing and Storage Capture System Sealed to Wellbore No Seal to Wellbore Dispersed Flow

  36. Enhanced Industry Capabilities MMS NTLs N-05 and N-06 Well Design and Construction Blowout Preventers Subsea Intervention Spill Preparedness and Response Planning Safety Management Systems

  37. Erik Milito, API Director, Upstream and Industry Operations, militoe@api.org David Soffrin, API Manager, Downstream Standards Program, soffrind@api.org Andy Radford, API Senior Policy Advisor, Offshore Issues, radforda@api.org Roland Goodman, API Manager, Offshore Standards Program, goodmanr@api.org www.api.org American Petroleum InstitutePresentation to NAE/NRC CommitteeAnalyzing Deepwater Horizon Incident:API Standards/Industry RecommendationsRelated to Offshore Drilling Operations

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