OGP International Standards workshop

1

• OGP International Standards workshop
• Part II
• by Alain Samne (ISO Central Secretariat), and
• Neil Reeve (Shell Standards Manager and President
  of IFAN)
• Delhi (IN), 2007-04-26

2
Indian oil and gas sector ISO workshopContents

• Introduction -- ISO global village
• Strategy STRATPLAN 2005-2010
• Collaborative arrangements Regional,
  national, sectorial
• Standards Development ISO committees, ISO/CS
  services, ISO deliverables and regulations
• Adoption ISO/Guide 212005
• Case study Cross-border pipeline
• ISO/TS 290012003 History, certification,
  implementation
• Conclusion Benefits and challenges ahead

3
Indian oil and gas sector ISO workshopContents

• Introduction -- ISO global village
• Strategy STRATPLAN 2005-2010
• Collaborative arrangements Regional, national,
  sectorial
• Standards Development ISO committees, ISO/CS
  services, ISO deliverables and regulations
• Adoption ISO/Guide 212005
• Case study Cross-border pipeline
• ISO/TS 290012003 History, certification,
  implementation
• Conclusion Benefits and challenges ahead

4
Regional standards bodies

• ACCSQ (ASEAN Consultative Committee for Standards
  and Quality)
• AIDMO (Arab Industrial Development and Mining
  Organization)
• ARSO (African Regional Organization for
  Standardization)
• CEN (European Committee for Standardization)
• COPANT (Pan-American Standards Commission)
• EASC (Euro-Asian Council for Standardization,
  Metrology and Certification)
• PASC (Pacific Area Standards Congress)

5
ISO and CEN Regional

• Largest of ISOs Regional Liaison Organizations
• Collaborative arrangements under the Vienna
  Agreement whereby industry drives the parallel
  development and processing of internationally-rele
  vant projects (ISO-lead, CEN-lead)
• EN-mandated VA project developments aim to
  facilitate and ensures harmonized European
  regulations based on International Standards
• Approx. 2/3 of ISO Standards are concerned

6
ISO and ASTM Cross-sector SDO

• Collaboration via ANSI, ASTM hosts US ISO/TC
  mirror committees
• Active participation in many ISO-committee
  sectors (i.e. paints and varnishes, rubber,
  plastics, coal)
• MoU with ISO/TCs ensures coordinated development
  efforts and avoids duplication
• Pilot project for ISO/TC85 Nuclear energy
  producing industry-recognized dual-logo
  International Standards

7
ISO and OECD Global economic player

• ISO liaison status
• Contribute to ISO technical work by participation
  and submission of comments at development stages
• MoU with TC23/SC2 Tractor testing producing
  ISO Standards which are integrated into OECD
  Codes
• Future collaboration to include services,
  education, anti-trust, sustainable reporting

8
ISO and OGP Trade association

• Consortia of international oil gas producers
  with ISO-liaison status
• OGP member companies input to deliver the agreed
  work programme of international standards for the
  oil gas industry, with particular focus
  on ISO/TC67
• This priority includes
• project-management and ISO-editing support by the
  dedicated OGP/JIP
• workshops at industry relevant locations to
  promote the adoption and use of ISO/IEC standards
  by operators, regulators and the supply industry
  at large
• Monitoring and coordinating the actions of OGP
  member companies in order to effectively
  influence the development of International
  Standards for the benefit of all OGP members,
  including identifying new standards areas
• Working closely with regulatory bodies (IRF) to
  ensure integration of International Standards
  within regulations/legislation

9
ISO and API Industry-specific

• ANSI delegated hosts of ISO/TC secretariats for
  upstream (TC67) and downstream (TC28) oil and gas
  sector
• Various collaborative arrangements
• Pilot project
• Delegated development
• Joint working groups
• Multi-partite developments

10
Indian oil and gas sector ISO workshopContents

• Introduction -- ISO global village
• Strategy STRATPLAN 2005-2010
• Collaborative arrangements Regional, national,
  sectorial
• Development Technical committees, services and
  ISO International Standards
• Adoption ISO/Guide 212005
• Case study Cross-border pipeline
• ISO/TS 290012003 History, certification,
  implementation
• Conclusion Benefits and challenges ahead

11
ISO/IEC Guide 21 Adoption of ISO deliverables

• The adoption of an International Standard is
  defined as
• The publication of a regional or national
  normative document based on a relevant
  International Standard, or endorsement of the
  International Standard as having the same status
  as a national normative document, with any
  deviations from the International Standard
  identified.  

12
ISO/IEC Guide 21 Content

• ISO/IEC Guide 21
• provides methods for adoption of International
  Standards as regional or national standards
• defines a system for indicating the degree of
  correspondence between International Standards
  and regional or national standards so as to
  promote coherence in the way regional or national
  standards bodies adopt International Standards
  and indicate the degree of correspondence with
  International Standard
• and contributes thereby to achieving greater
  uniformity in the indication of both
  correspondence and deviations among standards of
  different countries will aid communication, avoid
  confusion and facilitate trade

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Adopted standardsDegrees of correspondence
14
Adopted standardsNumbering

• Numbering of identical adoptions
• It should be evident to the reader immediately,
  and not only after examination of the content,
  when regional or national standards are identical
  to the International Standards
• Two numbering options
• Single numbering
• IEC 616421998 becomes XYZ/IEC 616421998
• with the acronym (represented here as XYZ for
  the regional or national standard) being added in
  front of the original reference number of the
  International Standard
• Dual numberingXYZ 878781998ISO 136161996

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Adopted standardsDating

• There are two options for the dating of regional
  or national standards which are based on
  adoptions
• Dating based on the year of publication of the
  regional or national standard
• Example XYZ IEC 616421998 (MOD of IEC
  616421996)
• Dating based on the year of publication of the
  International Standard
• Example XYZ IEC 616421996 (IDT of IEC
  616421996)
• In Dual numbering each of the individual numbers
  may contain a separate publication year.
• Example XYZ 878781998 ISO 136161996

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Standards and Technical Regulations

• ISO standards are voluntary, but .
• they can be used as a basis for regulations
• Incorporating standards (the actual text or
  sections of the actual text) into legislation
• Incorporating references to standards into
  legislation (often using the clause  as amended
  from time to time )

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Technical Regulations versus Standards

• Technical RegulationDocument which lays down
  product characteristics or their related
  processes and production methods with which
  compliance is mandatory
• StandardDocument approved by a recognized body
  that provides, for common and repeated use,
  rules, guidelines or characteristics for products
  or related processes and production methods, with
  which compliance is voluntary

When a
Techn. Regulation
calls up a
Standard
Standard
it becomes mandatory
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Standards and regulations working together

• Globally there are many examples of standards and
  regulations working together
• Safety of toys, bicycles, etc
• Construction codes
• Safety of machinery
• Medical devices
• Personal protective equipment
• Automotive safety and performance
• Measuring instruments
• Noise emission
• Energy efficiency of household equipment

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Integration of ISO deliverables by industryAre
there costs?

• Advantages come at a price, e.g.
• Product adapting costs are not well known (survey
  reveals that approx 80 of companies dont
  monitor)
• Increased workload of expert staff, and absence
  on standards development work
• Other costs associated with standards development
  (not well known)

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30 key Standards for TC 67
21
Cost vs. Benefit

• As a global industry, trading in international
  markets, and with international contractors,
  suppliers and customers, operating in a multitude
  of different regulatory frameworks, the oil and
  gas industry deserves International Standards
  that are relevant to a global market.
• Total worldwide industry expenditure covered by
  the 30 key ISO/TC 67 standards equals USD 25bn
  p.a.
• If only 1 is saved by the use of these ISO
  standards, the BENEFIT to industry is USD 250mi
  p.a.
• The COST to industry (resource investment) to
  achieve this is in the order of USD 10mi p.a.
• Hence, the RETURNBENEFIT/COST, 250/10, or
• 251

22
Indian oil and gas sector ISO workshopContents

• Introduction -- ISO global village
• Strategy STRATPLAN 2005-2010
• Collaborative arrangements Regional, national,
  sectorial
• Standards Development ISO committees, ISO/CS
  services, ISO deliverables and regulations
• Adoption ISO/Guide 212005
• Case study Cross-border pipeline
• ISO/TS 290012003 History, certification,
  implementation
• Conclusion Benefits and challenges ahead

23
Difficult Pipeline Project

• A recent major pipeline project has just been
  completed for petroleum product between
  Southistan and Northistan (Southistan's northern
  neighbour).
• Southistan's national oil company was one
  partner, and
• an independent oil company was Northistan's
  partner.
• The two partners could not agree on a single set
  of standards for the design of the pipeline and
  so a compromise was reached.
• The pipeline in Southistan would be designed to
  Southistan's national standards (in fact
  developed by Southistan's national oil company)
  and the Northistan pipeline would be designed to
  the company specifications of the Northistan
  partner.
• The specification break would be at the river
  crossing which forms the border between
  Northistan and Southistan. This compromise was
  successful in enabling the pipeline project to be
  designed, installed and commissioned.

24
Impacts Technical and Financial

• However post commissioning audits illustrated a
  number of negative ramifications
• the project team and contractor (responsible for
  the whole pipeline project) had had to
  effectively make two pipeline designs (with
  significant extra design and project engineering
  costs)
• it was not possible to place one large order (and
  gain price leverage) for the linepipe, which is
  one of the largest costs of the pipeline project
• there were problems with the pipeline welding and
  inspection since both parts of the line had
  different material and personnel qualification
  requirements
• it was evident that on a per kilometre basis the
  Southistan part of the line was significantly
  more expensive (primarily due to thicker wall
  thickness of the line).

25
Short-term Moving forward

• Further developments to expand the northern
  pipeline are expected to start in the near
  future, whilst another cross border pipeline
  project is being discussed with Eastistan.
  Considering the results of the northern pipeline
  project, several Southistan parties, and notably
  the Ministry of Mines, were wondering how to make
  things better on these new projects.
• The Southistan steel pipe manufacturer, active in
  SBS mirror committee to ISO/TC 67, brought to the
  attention of SBS that a revision of ISO 3183
  (linepipe) is reaching its FDIS stage, and that a
  new work item proposal for the revision of ISO
  13623 (pipeline transportation systems) has just
  passed ballot and the ISO work group for this is
  being reactivated.
• The company was recommending the SBS to adopt ISO
  3813 as a national standard and to participate in
  the development of the revised version of ISO
  13623.

26
Stakeholder positions ISO 3183

• Regarding ISO 3183 -- Linepipes
• The national steel pipe manufacturer wishes to
  see ISO 3183 adopted as the next edition of the
  national standard in order to enable them to jig
  their mill to enable production to both national
  and international orders with no plant change.
• The experts from the national oil company, while
  supporting in principle the concept of moving to
  the new international standard for linepipes, are
  not yet ready to replace the current national
  standard and therefore opposing the national
  adoption of ISO 3183, at least until the company
  Design and Engineering practices would have been
  updated and more closely aligned to ISO 3183
  requirements.
• The representatives of the Ministry of Mines
  confirm the Governments full support to the SBS
  national adoption policy, but see no point in
  moving in a hurry and, by doing so, possibly
  damaging the national oil company.

27
Medium and long-term ISO 3183

• The realities of the "difficult" pipeline project
  were used to quantify the differences between the
  ISO FDIS 3183 and the current national linepipe
  standard. It transpired that apart from the
  emotional and ownership issues related to
  switching standards, there were a small number
  of technical issues.
• The SBS gained agreement that the national
  position should be to adopt ISO 3183 as the next
  version of its national linepipe standard, albeit
  with a brief 3-page national amendments/supplement
  s annex (i.e. ISO/IEC Guide 21-12005 modified
  option).
• The SBS mirror committee decided to carefully
  review the outstanding elements of
  differentiation with ISO 3183. It was agreed
  that, if the analysis should confirm that at
  least some of the differences are related to
  demonstrated specificities of the Southistans
  conditions, a proposal would be made to ISO/TC67
  to resolve them in a future revision of ISO 3183
  enabling a future "identical" adoption.

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Stakeholder positions ISO 13623

• Regarding ISO 13623 Pipeline design and
  operation
• Neither the pipe mill nor national oil company
  experts have significant knowledge of ISO 13623
  (an "umbrella" systems document, which covers
  design through to operation aspects of pipelines
  for the oil and gas industry).
• Checking against the current national standard
  showed several differences of approach, although
  it seemed clear that ISO 13623, along with its
  referenced standards, provided a more
  comprehensive and technically sound framework
• Hence for the various experts it was not clear
  whether or not to participate in the revision.

29
Medium and long-term ISO 13623

• The SBS agreed to hold off its national adoption,
  preferring active stakeholder participation
  (industry experts), from the pipe mills and
  national oil company, to join the ISO/WG tasked
  with the revision of ISO 13623.
• These industry experts would also work with
  colleagues from Northistan and Eastistan (where
  another cross border pipeline project is being
  discussed) to see if the needs of the three
  neighbours could all be met in the revision just
  starting development, in order to justify
  adopting ISO 13623 once published.
• This expert would also become familiar with the
  main referenced (sometimes multipart) standards
  including ISO 14313 (pipeline valves), ISO 13847
  (pipeline welding), ISO 15590 (pipeline bends,
  fittings and flanges), ISO 15589 (Cathodic
  protection) and ISO 21809 (pipeline coatings).
  These are also all in various stages of revision
  and development).

30
Indian oil and gas sector ISO workshopContents

• Introduction -- ISO global village
• Strategy STRATPLAN 2005-2010
• Collaborative arrangements Regional, national,
  sectorial
• Standards Development ISO committees, ISO/CS
  services, ISO deliverables and regulations
• Adoption ISO/Guide 212005
• Case study Cross-border pipeline
• ISO/TS 290012003 History, certification,
  implementation
• Conclusion Benefits and challenges ahead

31
Background to ISO/TS 29001

• A successful partnership between ISO and the
  international oil and natural gas industry has
  resulted in the publication of a new technical
  specification for implementing ISO 9001-based
  quality management systems.
• ISO/TS 290012003, petroleum, petrochemical and
  natural gas industries Sector-specific quality
  management systems Requirements for product and
  service supply organisations, it is envisaged
  will become the common and unique basis for the
  industrys quality management system requirements
  worldwide.
• The new document was the result of a
  collaboration between the American Petroleum
  Institute (API) and ISO technical committee
  ISO/TC 67. The new technical specification is
  available for use by manufacturers of oil
  industry equipment and materials (upstream and
  downstream), service providers to the oil and gas
  industry, purchasers of equipment, materials and
  services and organisations who could use the
  standard for assessments and certification.

32
How does ISO/TS 29001 benefit your organisation?

• ISO/TS 290012003 provides additional
  requirements to ISO 90012000 specifically
  intended for the petroleum, petrochemical and
  natural gas industries. It is envisaged that it
  will become the common basis for the industrys
  quality management systems requirements worldwide
  thereby helping to reduce or eliminate multiple
  assessments with the additional benefits of
  reduction in disruption to the business,
  associated paperwork and costs.
• The new technical specification aims at the
  development of a quality management system that
  provides for continual improvement, emphasising
  defect prevention and the reduction of variation
  and waste in the supply chain and from service
  providers.

33
Visiting card of a successful businessBP/TNK

• June 2006 -- first Russian company to have
  successfully passed their certification audit of
  compliance with the new special requirements for
  oil and gas enterprises, ISO/TS290012003Quality
  management system requirements for the design,
  development, production, installation and service
  of products for the petroleum, petrochemical and
  natural gas industries, proving that its
  management system meets international standards
• 2004 -- granted 2 certificates of compliance with
  ISO 140012002 (environmental management systems)
  and OHSAS 18001 (occupational health safety
  management systems)
• 2003 1st Russian oil and gas enterprises proved
  the compliance of its management system with the
  international standard ISO 90012000

34
Unified business organization model

• A unified model of business organization with an
  internal classification of all business processes
  was constructed making it possible to
• objectively analyze and accept the most efficient
  managerial solutions based on actual data
• get rid of redundant functions
• optimize the flow of documents
• create a system of well-balanced goals and
  performance indicators with online progress
  monitoring.
• The company marshalled its clear-cut mechanisms
  of internal performance control within the
  frameworks of the quality management system and
  the business efficiency management system.

35
Preparation for re-certification audit

• Preparations for certification lasted for six
  months and the Quality Management System (QMS)
  employees analyzed the internal regulatory
  documents of the company and meet with the
  business-processes owners for integration of yet
  to be adopted ISO/TS 29001 requirements
• A number of business-process internal-audits for
  technical requirements compliance were carried
  out within the re-certification framework
  (re-certification is a repeated independent
  assessment of the management system compliance
  with the established requirements after the
  expiry of the previous certificate of compliance)
• After the elimination of detected shortcomings,
  the company management underwent an external QMS
  audit with the Russian Register association
• According to the 5-day auditing schedule,
  auditors examined and tested the company's
  management system, and
• detected only two minor discrepancies
  (re-certification allows having up to ten)
• noted considerable improvement of the management
  system over the last six months
• provided a number of recommendations for its
  perfection.

36
Post audit/certification continual improvement

• QMS team eliminated discrepancies and developed
  measures for preventing their recurrence
• When finished, a report was submitted to the
  Russian Register and the certification procedure
  proceeded
• In addition, the company drew up a long-term plan
  of QMS improvement and further development based
  on received recommendations, with numerous
  measures currently being carried out for
  improving company performance
• A certificate of compliance of the management
  system to the requirements of international
  standards is a visiting card of a company
  entering the market
• Modern approaches to management set requirements
  to the management system rather than the quality
  of products. The management system needs to
  ensure a predictable and stable quality of
  products, services, and production organization

37
Big-picture benefits of QMS certification

• The QMS is an integral part of the company
  management system aimed at attaining the goals of
  the company, ensuring high quality of its
  products and services, and meeting the demands,
  expectations, and requirements of customers and
  concerned parties.
• The fact that the QMS complies with the
  International Standards and is certified by a
  reputable certification authority points to the
  high level of organization in the company and
  raises its credibility on the markets in and
  outside Russia, ensuring high ranking with
  business partners, customers, and investors, as
  well as retaining a strong competitive edge
  aiding to survive in the present-day business
  environment.

38
API Quality Register (QR)

• APIs Management System Certification Body
• ANAB-accredited
• Services
• ISO 9001 Certification
• ISO 14001 Certification
• Dual Certification (API Monogram and ISO 9001)
• API Spec Q1 Certification (IDT ISO/TS 290012003)
• ISO/TS 29001 Certification
• TAB Members represent all areas of industry
• Operators, Manufacturers, Consultants, Service,
  Laboratory

39
APIQR -- Programme activity

• Increasing demand for ISO/TS 29001 certification,
  currently under revision

40
World total number of ISO 90012000 certificates
41
World total number of ISO 14001 certificates
42
API/Spec Q12003 ISO/TS 290012003 Registration
43
Indian oil and gas sector ISO workshopContents

• Introduction -- ISO global village
• Strategy STRATPLAN 2005-2010
• Collaborative arrangements Regional, national,
  sectorial
• Standards Development ISO committees, ISO/CS
  services, ISO deliverables and regulations
• Adoption ISO/Guide 212005
• Case study Cross-border pipeline
• ISO/TS 290012003 History, certification,
  implementation
• Conclusion Benefits and challenges ahead

44
A Few Examples Industrial Cranes

• It is estimated that implementation of ISO
  Standards in crane maintenance programmes brings
  annual worldwide savings of the order of three
  billion US dollars.
• Use of these ISO Standards improves safety of
  crane operators
• Businesses in the sector make increased returns
  on investment due to the higher crane
  productivity resulting from fewer breakdowns and
  greater on-the-job reliability

45
Standards for simpler structures
BASE DELIVERABLES

• In the developing countries there is an urgent
  need for simplified standards for simpler
  structures. New focus on development of
  simplified design standards for simple structures
  (Colombia has secretariat of a new committee
  ISO/TC71/SC 5, Simplified design standard for
  concrete structures)

46
Benefits for industry

• Contractual agreements simplified
• Significantly lower transaction and production
  costs
• Greater choice of markets and suppliers
• Increased competition amongst suppliers
  dependence on single supplier reduced
• Increased confidence in quality of products and
  services

47
Benefits for regulators

• Support technical regulations while avoiding
  unnecessary barriers to trade ensure equity in
  trade
• Provide the technological and scientific bases
  underpinning health, safety and environmental
  legislation
• When used in association with regulations,
  standards contribute to safety
• Reflect state-of-the-art and assist in
  liability management
• Facilitate (public) procurement

48
Benefits for consumers

• Safer, healthier, more environmentally sound
  products and services
• Compatibility within and between products
• Greater consistency in the delivery of services
• Improved choice and access to goods and services
• Lower costs

49
Some challenges ahead

• Limited resources time, experts, funding,
  knowledge management
• Corporate buy-in of big-picture benefits as
  opposed to short-term investments
• True international participation good
  intentions are not always good enough
• Project leaders Experts in their field but not
  necessarily in standardization
• Corporate insistence to reference a single set of
  international standards (e.g. BPs ETP, Shells
  DEP)

50
More information
ISO Annual Report 2005
ISO in Brief
My ISO Job
51
In the Oil and Gas sector
Standards in the real world Examples For
everyone

• ISO/CSs monthly information magazine
• An excellent resource for business, industry,
  consumer and government
• Facilitates communication in all spheres

52
Conclusion !!

• The ISO system
• contributes to positive globalization
• and sustainable development

53
and in real terms
54
Questions, comments

• Thank you for your attention !

http//www.iso.org