2012 Standards Conference SC18 Committee on Quality Standards Ft. Worth, TX Jan 26, 2012

1. API Monogram Program Status Report 2012 Standards ConferenceSC18 Committee on Quality Standards Ft. Worth, TX Jan 26, 2012 Katie Burkle Associate Monogram Program/APIQR burklek@api.org Aaron Duke Audit Program Manager Certification Programs 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 – Singapore 2012

3. API Monogram/APIQR Certified Companies

4. 3681 Active Certified Companies. • 3438 Licensed Companies. • 1031 Companies Certified with APIQR. • 788 Companies with Both.

5. API Monogram Licensed Companies Top Countries: China – 1402 USA – 570 India – 209 S. Korea – 125 Canada - 99 3438 Licensees. 75 Countries. 9% Annual Growth.

6. API Monogram Licenses Top Countries: China – 2202 USA – 856 India – 04 Italy – 192 S. Korea - 176 5686 Licenses. 75 Countries. 11% Annual Growth.

7. Companies Licensed to 65 Specifications.

8. APIQR ISO 9001 Registered Companies Top Countries: China – 261 USA – 240 Canada – 60 India – 43 S. Korea – 33 983 Companies. 61 Countries. 18% Annual Growth.

9. API Monogram Applications Top Countries: China – 300 USA – 111 India – 41 Italy – 31 S. Korea – 31 797 Applications from 559 Companies.

10. APIQR ISO 9001 Applications Top Countries: USA – 69 China – 62 Canada – 15 Russia – 8 India – 7 236 Applications.

11. APIQR API-Q1 Applications Top Countries: USA – 72 China – 65 Canada – 15 Russia – 9 India – 8 254 Applications.

12. Audit Nonconformities by Clause

13. Audit Program Status Report 2012 Standards ConferenceSC18 Committee on Quality Standards Ft. Worth, TX Jan 26, 2012 Aaron Duke Audit Program Manager Certification Programs dukea@api.org

14. Total Certification Program Audits • 2620 Audit Performed • Audits by Program: • Monogram Only – 1203 • Dual – 1035 • Registration – 300 • Other – 82 • Audits by Country: • China – 949 (36%) • USA – 518 (20%) • India – 151 (6%) • Canada – 118 (4%) • South Korea – 84 (3%)

15. 2011 Audits

16. API Monogram Audits by Type

17. APIQR Registration Audits by Type

18. Dual (API Monogram/APIQR) Audits by Type

19. Re-Audits 200 Re-Audits to date in 2011

20. 2012 Expectations

21. Local Auditors in 32 Countries.

22. Active API Monogram/APIQR Auditors 144 Active Auditors. 22 Auditors in Training.

23. Audit Program • Auditors • 22 auditors in process – USA / China / Japan / Eastern Europe • 39 Auditor Observations in 2011 • 10A specific training – Singapore, November 2011 • October-November 2012 – Asian Auditor Summit – China • API Spec Q2 – training & resource planning • Audits • Fully trained additional staff member in the audit team • More audit questions for more specs • Develop better technical training tools for auditors – 5CRA training • myCerts audit module implemented Q3-Q4 2012

24. Monogram Program Specs – New / Revised • API Spec 5CT – Casing and Tubing, 9th Edition, published Jul 2011 / effective Jan 2012 • API Spec 5L – Addendum 3 – Line Pipe, 44th Edition, published Jul 2011 / effective Jan 2012 • API Spec 6D – Addendum 2 – Pipeline Valves, 23rd Edition, published August 2011 • API Spec 6D – Errata 6 – Pipeline Valves, 23rd Edition, published August 2011 • API Spec 6A – Addendum1 – Wellhead Equipment, 20th Edition, published November 2011 • API Spec 6A – Errata 2 – Wellhead Equipment, 20th Edition, published November 2011 • API Spec 6H – End Closures, Connectors and Swivels, 2nd Edition, Reaffirmed • API Spec 9A – Wire Rope, 26th Edition, Effective November 2011 • API Spec 11AX – Addendum 1 – Subsurface Sucker Rod Pumps & Fitting, 12th Edition, published August 2011 • API Spec 17D - Errata – Design and Operation of Subsea Production Systems-Subsea Wellhead and Tree Equipment, 2nd Edition, published September 2011 • API Spec 17F – Subsea Production Control Systems, 2nd Edition, Reaffirmed • API Spec 19G3 – Running Tools, Pulling Tools, and Kick-over Tools and Latches for Side-pocket Mandrels, 1st Edition, No Effective Date Noted (Future Monogrammable Spec)

25. Monogram Program Specs - Status • API Spec Q1 – Quality Programs for the Petroleum, Petrochemical and Natural Gas Industry, 9th Edition, Effective TBD • API Spec 2C – Offshore Pedestal-mounted Cranes, 7th Edition, Effective TBD • API Spec 8C – Drilling and Production Hoisting Equipment, 5th Edition, Effective TBD • API Spec 11AX – Subsurface Sucker Rod Pumps & Fitting, 13th Edition, Effective TBD • API Spec 11E – Pumping Units, 19th Edition, Effective TBD • 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, Effective TBD • API Spec 6AV1 –Verification Test of Wellhead SSVs and USVs for Offshore Service, 2nd Edition, Effective TBD

26. Program Updates 11V1 – 19G1-G2 Transition • Received 10 applications for 19G1 & 19G2 (5 of each – 6 facilities) • 15 existing 11V1 licensees – 6 existing 11V1 licensees submitted app by January 1 deadline • 19G1 / 19G2 initial / transition audit scheduled • 1 audit completed / 3 scheduled to be complete by mid-April / 2 assigned & being scheduled • Transition period ends July 1, 2012 – 11V1 licenses withdrawn on July 1, 2012 5CT, 9th Edition • New grades for 9th Edition - Added seamless and ERW to product listing 17D, 2nd Edition • Products updated to include PSL 3G • New Products – Licensees need to submit new LIF for review and possible audit Audit Product Questions / Color Coding • 5CT, 9th / 6A, 20th / 13A / 11B / 7K / 17D / 9A / 7F

27. Fraud and Complaints Overview

28. Fraud & Misuse Cases

29. Fraud & Misuse Cases – Global Distribution Top Countries: China – 31 USA – 18 India – 9 Canada – 4 UK – 3

30. Actions Taken Note: 4 Withdrawn applications were also listed in the NLO

31. 2011 Product Complaints • 4 – Complaints still open regarding facilities supplying defective products. • Periodic audits set-up & assigned – to be completed by end of Q1 2012 • API Spec 11V1 Mandrels bursting in the field • API Spec 8A Bails bending in the field • API Spec 5L Pipe delivered with welding defects and falsified X-ray testing reports • API Spec 6A Ring Joint Gaskets - poor workmanship, nonconforming dimensions • 2 – Facilities cancelled– substantial complaints coupled with poor audit results. • 1 – Facility could not provide API Spec 8C documentation/records to end user • Investigative actions to be included in upcoming renewal audit • 1 – Facility’s API Spec 4F nameplate does not meet 4F marking requirements • AAR’s raised against company – will not be renewed until resolved

32. Upstream Program Sessions • API Spec 6A – 2 day technical training session • API Spec Q1 – 2 day training session • API Spec Q2 – Operator & service supply company perspectives • Well integrity & well control topics • HSE / SEMS implementation offshore – API RP75 • Crane safety, training and maintenance TO REGISTER OR FOR MORE INFORMATION CONTACT Matthew Cunningham – cunninghamm@api.org – 1-202-682-8158 www.apiexpo.org

33. Thank You 2012 Standards ConferenceSC18 Committee on Quality Standards Ft. Worth, TX Jan 26, 2012 Katie Burkle Associate Monogram Program/APIQR burklek@api.org Aaron Duke Audit Program Manager Certification Programs dukea@api.org W. Don Whittaker Manager Monogram Program/APIQR whittakerd@api.org